Commerce- Consumer and financial decisions Flashcards
What are some of the key factors of consumer decisions?
Customer service, age, cultural factors, price, social media, market/advertising, disposable income, Environmental considerations, gender
What is comparison shopping?
when you compare different items based on price, after-sale service and availability
what is the distribution chain?
manufacturer - wholesaler- retailer- consumer
unordered/ unsolicited goods
sending things through the mail and then demanding payment for them
special prize/ offer
scratch a coupon get a prize. You go to collect your price only to discover you can only receive it if you purchase a certain number of goods
Pyramid sellings
you are required to pay a joining fee with the opportunity of earning quick money as you recruit new members. However, most participants will lose their money
what is a contract
A legally enforceable agreement between 2+ parties. The contact outlines the details of the agreement and the rights and responsibilities (obligations) of each party.
2 types of contracts:
- Verbal (oral) contracts are legally recognized are most common but insecure
- Written contracts are more formal and reliable. As such they are preferred for large sums for money (i.e. buying a house)
Features of a contract
Offer, acceptance, consideration
consumer rights
safe products, accurate product information, full disclosure of terms and sale, consumer guarantees and warranties
what is the Australian consumer law
protects consumers against- misleading advertising, unconscionable conduct,
what are the customer guarantees for goods?
- acceptable quality,
- fit for purpuse,
- match description
- comply with any warranty
- legally owned (by seller)
- spare parts available
what are the customer guarantees for services
- fit for purpose
- provided with skill and care
- provided within a reasonable time
NSW Fair Trading is the State government consumer body and is responsible for
- Assisting consumers with complaints
- Ensuring products meet Australian safety standards
- Ensuring seller measuring devices are accurate (scales, scanner, petrol pumps, etc)
- Warning the community about scams and rip-offs
define Financial management
Planning and managing personal financial activities such as your income, spending, saving and investing
Causes of debt for young people:
- Mobile phone bills
- Credit card debt
- Car loans
- Buy-now-pay-later services
- Payday loans
Poor financial management may lead to
- Personal consequences
- Social consequences
- Legal consequences
legal consequences of Poor financial management
court orders, bankruptcy, repossession, garnishee order
pros to superannuation
PROS
forces people to start saving for retirement early
money is automatically deducted and invested
value of savings increases over time
allows you to maintain your lifestyle into old age
cons to superannuation
CONS
Most people have to wait until they turn 60 until they can access their super
Super fund investments may lose value over time
The government does not guarantee the safety of super funds
Administration and management fees are charged by super funds
