Consumer and financial decisions Flashcards
What factors influence consumer and financial decisions?
Factors that influence consumer and financial decisions include advertising/marketing, age, convenience, culture, customer service, disposable income, environmental consideration, social media, and gender.
How does price affect consumer decisions?
if a price of a good is more than a consumer can afford, they will most likely not purchase it. Consumers want value for their money, meaning the lowest price for the highest quality.
How can consumers compare prices of products easily?
The Competition and Consumer Act 2010 (Cth) made it so that consumers can easily compare prices of products by implementing a price per unit code for many products.
What is disposable income?
income remaining after deduction of taxes and social security charges, available to be spent or saved as one wishes.
What is comparison shopping?
Comparison shopping involves shopping around to find the best deal by comparing prices, quality, availability, and after-sales services.
Why is it important for people to make budgets?
Budgets help people keep track of their money and ensure that they have enough to take care of their needs and satisfy their wants.
What is the difference between a manufacturer, a wholesaler, and a retailer?
A manufacturer produces the product, a wholesaler bulk buys the product from the manufacturer and on-sells to retailers for profit, and a retailer sells the product to consumers at a profit.
What is a mail order?
Mail order involves consumers filling out an order form from a catalogue and posting it, then receiving the product in the mail.
What is PayPal?
PayPal is an intermediary that provides security and allows consumers to request a refund if a dispute about a transaction occurs.
What is EFTPOS?
EFTPOS is a computerized system where money is transferred from the consumer’s account to the business’s account.
What is BPAY?
BPAY uses the phone or internet to transfer funds from the consumer’s account to the account of the business they wish to pay.
what is the difference between debit and credit card?
Debit cards are linked to your bank account and immediately deduct funds, while credit cards allow you to borrow money and pay it back later with interest. Debit cards have daily limits and no interest, while credit cards have higher limits and charge interest on unpaid balances.
What is lay-by?
Lay-by involves paying a deposit for something to secure it for a later purchase.
What is book-up?
Book-up is credit provided by a retailer to a consumer so they can purchase goods from the store and pay the accounts at a later date.
What is Afterpay?
Afterpay is a digital service linked to a customer’s credit or debit card that allows them to purchase something and pay it off in four equal installments every 2 weeks
