consumer affairs Flashcards
Define a consumer
A consumer is any individual, group or onrganization that acquired goods and services from a supplier
Advantages of purchasing using credit cards
Having credit enables consumers to buy goods or assets without having to pay for them in cash at the time of purchase.
Disadvantages of purchasing using credit cards
What is consumer affairs
- Concerned with the relationship between the buyer and consumer
- concerned with establishing rules and codes of conduct
What is the purpose of the rules in consumer affairs?
- safeguard/protect the rights of the consumers
- ensure the market place is fair for business, for competing suppliers
What is a good
A goodis a product that can be used to satisfy a need or a desire
3 characteristics of goods:
- tangible product
- can be deliverd from seller to purchaser
- ownership is transferred from seller to purchaser
types of goods - name 4
- economic goods
- free goods
- consumer goods
- producer goods
types of goods - explain the difference between the 4
- economic goods - goods that command a price
- free goods - have utility but no value e.g. sunlight, air
- consumer goods - available directly to the consumer in the form in which they are intended to be used e.g. bread. vegetables, shoes, television
- producer goods - those used to make goods
What is a service
A service is provided to meet a need or desire
4 characteristics of services
- intangible - not something that can be touched or physically measured
- service has economic value when consumer pays for it
- service provider uses a range of skills, expertise adn aptitude to perform teh service
- carries out work that the consumer don’t have time, skill or resources to do themselves
person who provides a service is called …
service provider
person who sells goods is called…
supplier or seller
define public service
services that are paid for with tax revenue and provided by the government
examples of public services
- education
- health
- transportation
- waste/garbage disposal
- social welfare
- justice (courts, etc)
- immigration and customs
- housing
- child protection
- water supply
what are the stages of the chain of distribution of goods and services
Manufacturer or producer
–>Wholesaler
–>Retailer
–>Customer
4 elements of the producer or manufacturer
- production of goods and services
- requires finance
- requires other elements
Name 5 things producer of goods requires finance for
- purchase land,
- build warehouse
- buy raw materials
- pay wages
- insurance
Other than finance, what other things does manufacturer require?
- skill
- personnel
- marketing of product
- transport
name 4 activities of the wholesaler
- buy in bulk
- takes on the duty of marketing
- provides warehousing for storage
- stores goods and releases them in times of shortage
name 4 activities of the retailer
- buys in bulk
- breaks the bulk to suit the requirements of individual customers
- provides goods in the locality, which may be distant from the sources
- provides personal services to customers
What are the 4 categories of consumers
- individuals, groups, institutions
- consumer of goods
- consumer of services
- consumer of credit
Explain the interaction between consumers and manufacturers, wholesalers and retailers
what is credit
credit is the deferred payment of a debt
Examples of consumer credit
- personal loans
- credit cards
- hire purchase
- mortgages
Explain what is a personal loan
- individuals apply for a loan from a bank or similar financial institution
- Loan will be taken out over an agreed period of time
- given at a rate of interest
What is a credit card (3 points)
- credit card is used when individual sets up a credit account at a bank or similar institution
- can be used as a form of payment for goods and services
- cardholder pays off a certain amount of outstanding debt on a regular basis
Define hire purchase
- allows people to have use of goods for a fixed period of time
- in return for a deposit followed by regular payments
- The hirer does not own the goods
- vendor can repossess the goods if there is a default in payments
Explain a mortgage
- is a loan associated with housing
- homebuyer or home builder can secure a loan with a bank or other financial institution
- loan will be secured against the value of the property for which the loan is being made
List the factors that influence consumer demand for goods and services
- size of income
- taste patterns
- savings
- credit facilities and conditions
- fluctuations in supply
- quality
- pricing
- access to informations
- advertising
- consumer expectations
What is a market
- a market is any structure that allows for transactions to take place
- where buyers purchase goods, services or information from sellers
- goods and services are bought and sold in a market
What is supply?
Supply is the amount of a product that producers are willing and able to sell at a particular price
What is demand?
Demand is the willingness and ability to buy a product
at a given price
at a given time
What is advertising?
Advertising is the act of presenting a product or event to the public.
Advertising can be informative or persuasive
**How does advertising influence demand?
Informative advertising provides information on availability, uses, price and content.
Persuasive advertising focuses on people’s desires and seeks to enhance the desirability of the product being advertised. Successful advertising will produce an increase in demand. Misleading advertisemens can result in decreased demand.
