Commerce yearly's Flashcards
What are the five main types of retail outlets
Convenience Specialty Discount variety stores Department stores Supermarkets
Where are convenience stores located
they are commonly attached to service stations
What are some examples of specialty stores
Hairdressers, Newsagents and gift shops
What are some larger franchise specialty stores?
Dymocks
The Body Shop
What do specialty stores specialise them
in either one type of product or service or a limited range of a few products
Briefly describe discount variety stores
They are of plain design and offer basic customer service
Their products are often cheaper than department stores
What are examples of variety stores
Kmart, Big W, Target
What are examples of department stores
Myer, David Jones
Briefly describe department stores
Sell a large range of products within the one store because they buy in bulk.
Often cheaper then specialty stores
Why do department stores become higher than a variety store
Because they offer sales assistance on the shop floor
Examples of Supermarkets are:
ALDI, Coles and Woolworths
Briefly Describe Supermarkets
Originally sold only food items
Becoming more like discount variety stores, offering a large items for sale
What have some evolved too?
Hypermarkets
What are some key factors affecting consumer decisions
Finance Price Marketing Age gender Convenience Enviroment Service
What are the Payment choices
Cash Credit Electronic funds transfer Debit cards BPAY Direct Debit Lay-By Cheque Book-up
Elaborate cash
Cash are notes and coins issued by the federal government
Used to pay for inexpensive items.
what is credit
Credit is the supply of money now in return for the promise of paying it back later
What does it allow you to do
To buy what you want immediately and pay for it later either in full or in monthly payments
Describe Credit Interest
because you are using money you do not have you are charged interest for it
unless you pay the total balance back to the credit card company
How long is the interest free period ?
1 month
What are the advantages of credit cards
- avoid to carry cash
- convenient payment method for online and telephone purchases
- establish a good credit history
- offer cheap use of funds
What are disadvantages of credit cards
- easy to overspend
- easy to build up debt
- more expensive than other forms of credit such as personal loan
- damage credit rating if you continually make late payments
what is EFTPOS
a computerised system in which money is transferred from a consumers account to the business’s account
What is it important to do with EFTPOS
keep the reciepts for checking against account statements
What is BPAY
-is another type of electronic payment method.
what does this system use
the telephone and internet to transfer funds from your cheque, savings or credit card account of the business you wish to pay
What is direct debit
an arrangement made with a bank that allows a third party to transfer money from a person’s account on agreed dates, typically in order to pay bills.
How is direct debit a convient method
it helps overcome the problem of forgetting to pay an account
What is Lay-By
you first pay a deposit and the the store puts aside the good for you
How do you pay for the lay-by good
you make regular payments over a fixed period pf time
What happens if you do not complete payment by the agreed date
the store can cancel the lay-by
How is lay-by a good option
because you want to secure something to secure
- there is no interest charge
- it is a cheaper option than using a credit card
What is a cheque
a cheque is a written communication ordering your financial insituition.
What is a book-up
is credit provided by a retailer so that you can purchase goods from the retailers store and pay the account at a later date
Who uses book-up
tradespeople
plumbers and builders
What are advantages of a book-up?
- can purchase goods and pay for them later
- interest isn’t charged unless you apply for extension time
- can spread your purchases
What are disadvantages of a book-up
- form of security may be required
- may overspend
- charge accounts can used only used in that store
What is product differentiation
is the process where a business distinguishes the attributes and features of a product from those of its competitor’s products
What are strategies used to to emphasize product differentiation are:
Price
Product quality
Place
describe price from product differentiation. Provide an example
cheapest provider of a specific range of goods. Example: Big W, promotes with ‘Australias lowest prices every day’
describe product quality from product differentiation. Provide Example
the best quality for products around. Example: Woolworths ‘the fresh food people’
describe place from product differentiation.
-distribution of the good or service
-consists of two parts
: transportation and number of negotiators
involved
What are distribution channels
-when a product is moved from the place of manufacture to the consumer
What is Intermediary
- a business that purchases the final product. then takes on selling the product to the consumer
What are the 3 channels of distribution ?
- producer to consumer
- produce to retailer to consumer
- producer to wholesaler to retailer to consumer
What is product to consumer ?
where the good is produced by and individual/organisation the passed directly to consumer
What is producer to retailer to consumer
where the good is produced and then passed on to the retailer then who passes it on the the consumer
What is producer to wholesaler to retailer to consumer
where the good is produced then passes it on to a wholesaler who then sells part of the stock to retailer who passes it to consumers
What are the advantages of product to consumer
allows producer to maintain control over all areas of product. Provides producer with direct point of contact to consumer
What are the advantages of product to retailer to consumer
Allows producer to concentrate on manufacturing
- Greater distribution to the access of the good
what are the advantages of the producer to the wholesaler to retailer to consumer
- allows the producer to hold lesser amounts of insignificant stock
What is income
-involves money recieved on a regular basis form work, property, buismess, invesment or welfare payments
What is commission
the percentage of sales price recived by salesperson for his or her services
What is a dividend
sum payable as profit for shares
What is fee
money paid to others for their services
what is rent
payment made by a tenant to an owner for use of ones building or land
what is royalty
sum paid of authors, musicians as a percentage of the proceeds from their work
what is salary
a fixed amount of ,money paid on a regular basis to a permanent employee of an organisation
what is social welfare payment
payment made by government to help people in need
what is superannuation
way of saving so an employee had money for retirement
what is wage
money recieved by workers, usually weekly.
What happens if you carefully budget
you can make sure your spending is not greater than your income
What are the to do a budget
calculate income record expenses total expenses compare total income to total expenditure Assess financial position
What are the 8 types of insurance
Life Income Health Car Property Public liability travel home and contents
what is life insurance
insurance that pays out a sum of money either on the death of the insured person or after a set period.
what is income insurance
covers loss of income through personal accident, illness or disability
Rather than reciving usual income regular payments are made by insurance company until recovered
what is health insurance
protects you against medical and hospital expenses
what is car insurnace
includes third-party or comprehensive insurance
Third party: covers people other than you who may be injured in a car accident with an accident you caused
Comprehensive covers yourself and the third party (optional)
what is property insurance
Property insurance is a policy that provides financial reimbursement to the owner or renter of a structure and its contents, in the event of damage or theft.
what is public liability insurance
covers the general public in the event that something happens to them on your property
what is travel insurnace
covers events such as loss of luggage, medical costs, and cancellations due to illness
what is home and contents insurance
covers losses associated with fires, storms, earthquakes and theft
What should you know about your credit card?
what is the interest rate? inetrest free days? pay an annual fee? How much is it? what happens if you miss repayment? Any charges? Whats the limit?
what are the traps of a credit card?
Impulse buying
Inability to pay back the debt by the due date
Having to pay interest plus any other transaction fees
Thinking you’re wealthy when you’re not
What are legal consequences of credit debt
as a debtor you have liabillites you must full-fill. If you dont the creditor can take legal action against you to recover the money owed
What are the social consequences
- financial presusres
- cause stress at home or work
- can affect a persons wellbeing if cannot repay debt
- cause violence, suicide, emotional illness
What happens if you cannot repay a loan
seek advice from a lawyer or financial councellor
