Commerce Flashcards
Define: Commerce
Examining how people earn their income, how they spend their money and what goods & services are produced, how the government and the law influence people’s commerce behaviour
Define: Consumer
Someone who purchases goods and services to satisfy their needs and wants.
Outline the four economic resources:
- Land (naturally occur resources)
- Labour (physical & mental efforts of people)
- Capital (goods used to make other goods)
- Enterprise (combine other resources to earn a profit)
Define: Scarcity
When people’s needs & wants is unlimited while the earth’s resource is limited
What’s the difference between needs and wants?
Needs are something essential for living, wants is something to satisfy yourself. A person’s wants are unlimited.
What are the 10 factors that influence consumer and financial decisions?
- Customer service
- Price
- Convenience
- Marketing & advertising
- Age
- Gender
- Disposable income
- Environmental considerations
- Social media
- Cultural factors
How does customer service influence consumer and financial decisions?
Makes you feel valued so will keep buying from them
How does price influence consumer and financial decisions?
Significant factor, consumers want the best value (lowest price & best quality)
How does convenience influence consumer and financial decisions?
Short travel time, long shopping hours or online shopping access
How does marketing & advertising influence consumer and financial decisions?
Influence consumers into thinking they need this product
How does age influence consumer and financial decisions?
A person’s needs and wants changes over time
How does gender influence consumer and financial decisions?
Males and females have common wants but gender can influence types of purchases
How does disposbale income influence consumer and financial decisions?
If they have the money to buy what they want or need.
How does environmental considerations influence consumer and financial decisions?
More consumers are buying environmentally friendly things
How does social media influence consumer and financial decisions?
Social media influencers can influence their follower’s purchasing decisions
How does cultural factors influence consumer and financial decisions?
Every person has their own values, beliefs and principles
Outline how grocery stores influence our consumer decisions:
- Shopping trolleys – can buy/hold more stuff.
- ‘Sale’ and ‘special’ signs – feel like got a bargain and would buy more.
- Bright lighting – visible for consumers
What’s the difference between comparison shopping and impulse buying?
Comparison shopping is looking at different shops to get the best deals. Impulse buying is not thinking enough when buying a product such as if you actually need it.
What are the steps involved in comparison shopping?
- Think carefully about what you want
- You can shop around for the best deal
- Investigate the product’s features
- Decide beforehand how you would like to pay
- Check the refund and return policy
- Don’t sign anything you don’t understand or a blank form
- Compare aftersales service and guarantees
- Keep all receipts and invoices.
What are the stages of the distribution/retail chain?
- Manufactured (product goods using raw material, labour and machine)
- wholesalers (purchases goods from the manufactured)
- retailers (sell small quantities)
- Consumer (buys and gets the product)
What are the advantages of different types of retail outlets?
Some outlets would have things that other outlets don’t have so you can still get what you want, some are also more convenient than others.
What are the disadvantages of different types of retail outlets?
Maybe some outlets are inconvenient to go to or don’t have what you wanted.
Outline: Cash
Notes and coins issued by the federal government
Outline: Credit
Using money that is not yours and pay it back later with interest