commerce study topic 1

Question 1

define consumer ??

Answer 1

an individual in which purchases goods and services to satisfy their needs or wants.

Question 2

define good ??

Answer 2

produced and can be physically touched

Question 3

define service ??

Answer 3

one person will do for someone in return for payment

Question 4

examples of goods may include

Answer 4

car, phone, laptop or a hair straightener

Question 5

examples of services may include ?

Answer 5

hairdresser, plumbers, doctors and dentist

Question 6

define durable

Answer 6

an object that can be used more than once

Question 7

define non durable ??

Answer 7

an object that can only be used onced

Question 8

define opportunity cost

Answer 8

an individual gives up a want or a need in order to be able to purchase another item

Question 9

where do our needs and wants come from

Answer 9

*Land
*Labour
*Capital
*Enterprise

Question 10

define land ??

Answer 10

these resources occur naturally, such as forests, coal and fertile soil.

Question 11

define labour

Answer 11

this includes both the physical and mental effort of people who are working.

Question 12

define capital ????

Answer 12

these resources are goods used to make other goods. For example, a tractor is a capital good because it is used to produce crops.

Question 13

define enterprise

Answer 13

this is the ability to combine the other resources of land, labour and capital so as to earn a profit.

Question 14

what is comparison shopping

Answer 14

Nowadays consumers have access to technology and have the ability to order goods online for example a pair of shoes. Consumers tend to do their research online by

Question 15

what objectives may consumers look out for when comparison shopping ??

Answer 15

the history/origin or the company, quality of the product which is being purchased and lastly overlooking the reviews made by other consumer who have purchased the item

Question 16

what does the term income mean ??

Answer 16

money received on a regular basis

Question 17

where does income come from

Answer 17

from work, property, business, investment or welfare

Question 18

what is a budget ??

Answer 18

a plan in which many consumer go through in order to have a stable lifestyle or simply improve their quality of life

Question 19

what is a retailer ??

Answer 19

a business or person that sells goods directly to customers.

Question 20

what is an e-tailer

Answer 20

is a business that sells products directly to customers over the internet. Instead of having a physical store, *** operate through websites or apps.

Question 21

what does the term e commerce mean ??

Answer 21

refers to buying and selling goods or services online.

Question 22

what is impulse buying ??

Answer 22

someone makes a spontaneous purchase without planning or thinking about it in advance

Question 23

what is a Manufacturer ?

Answer 23

A manufacturer is the individual or business that makes the product in factories.

Question 24

what is a wholesaler ?

Answer 24

A wholesaler is a company that buys from the manufacturer in large quantities at a cheaper price but then sells the products to the retailers at a more expensive price.

Question 25

the term Convenience ‘Corner’ stores
means ??

Answer 25

small retail store that stocks a range of everyday items typically located in residential areas

Question 26

the term Mail Order means what ??

Answer 26

To buy products via catalogues, for delivery by mail.The range of products often not available in retail stores. Products being different in reality, for example book club

Question 27

what is a Specialty stores

Answer 27

Stores that are a service/ a need , the service and product knowledge provided by the sales staff, limited range of products available

Question 28

what is a Discount Variety stores

Answer 28

A plain design and offers basic customer service. Their products are normally cheaper however they are not residential for example hot dollar

Question 29

Credit

Answer 29

Credit is the supply of money now in return for the promise of paying it back later (it is ‘borrowed’ money with extra fees, charges and interest).

Question 30

store credit

Answer 30

Some large stores or retail groups issue their own cards that operate like regular credit cards. These cards usually are associated with special deals, discounts, bonuses and a rewards program.

Question 31

paypal

Answer 31

Most online merchants accept PayPal as one of their methods of payments

Question 32

debit cards

Answer 32

With a debit card, you are using your own money, by electronically accessing money already in your account. You pay no interest, only an account operating fee, and can spend up to your account balance.

Question 33

BPAY

Answer 33

PAY ® is another type of electronic payment method. This system uses the telephone or internet to transfer funds from your cheque, savings or credit card account to the account of the business you wish to pay.

Question 34

Direct debit

Answer 34

The bank automatically withdraws (debits) the funds from your account and electronically transfers the funds to the business requiring payment

Question 35

Cheque

Answer 35

A cheque is a written communication ordering your financial institution, called the drawee, to pay a person a specific amount of money.

Question 36

Lay-by

Answer 36

When you buy goods using lay-by, you first pay a deposit and then the store puts aside the goods for you. You then make regular payments over a fixed period of time. Unlike cash or credit card purchases, you do not take possession of, or own the goods, until you pay off the last instalment owing.

Question 37

Book-up

Answer 37

Book-up is credit provided by a retailer so that you can purchase goods from the retailer’s store and pay the account at a later date. You must pay back this amount within a set period of time.

Question 38

Afterpay

Answer 38

‘Buy now pay later’ providers such as Afterpay are replacing lay-by as a method of payment. Afterpay is a digital service linked to a customer’s credit or debit card and enables consumers to ‘buy now, pay later’.

Question 39

Personal Loans

Answer 39

*Money is borrowed from the bank for a certain amount of time.
*Interest and fees are charged, and must be paid
* Repayments must be made
*Secured loan – you provide an asset as security
*Unsecured loan – there are no assets which secure the loan, and interest is charged at a higher rate

Question 40

Mortgage

Answer 40

*A loan to buy a house or land which is secured by the property
*If you do not repay the loan, the finance provider will take and sell the property
*Interest rates and fees and charges are payable
*Variable versus fixed rates of interest.