Consumer Choice Flashcards
What are 3 commercial decisions?
+ Getting Insurance
+ Taxes
+ Saving accounts - which one provides the best features?
How can consumers make wise decisions ?
bullet point form
+ Going to School
+ Comparison Shopping ( looking around and seeing whats cheaper)
+Budgeting
What makes it difficult for consumers to make decisions?
More choices being available for consumers makes it difficult.
What are 3 basic questions you should consider before buying something?
- Do i really want this item?
- Can i afford this item?
- Is there something better
What is impulse buying?
The buying of goods without planning to do so
What is comparison shopping?
Looking around at different stores to get the best deal for that product.
What are 4 things you need to do when making a major purchase?
Compare the price
Quality
Availability
After-sales service.
What are some types of goods?
Consumables
Household Goods
Luxury items
What are some types of services?
Repair services
Information services.
What is something you also have to consider other than its price?
Its quality
What will usually happen if you make a quick decision
You often waste your money
What are 3 rules for comparison shopping?
Think carefully about what you want
Look around for the best deal
Compare products in different shops
What are 3 more rules?
Look at the products features
Don’t sign anything you don’t understand
Decide how you want to pay
Whats very important to do after you purchase an item?
To keep all the invoices and receipts
What is the most basic financial decision
: How much of their income to save and how much to spend.
Finish the sentence
People should have a…
budget for managing their income
Finish the sentence
Having a financial plan can…
improve peoples wellbeing and qaulity of life
Finish the sentence
Consumers that don’t have a budget lose money fast because…
they spend it on their wants and not their needs.
What is Income?
Income is money received on a regular basis from a persons work or investments
What are 2 Environmental decisions?
Aim to protect the enviroment
Recycling
What are some business decisions
Compare suppliers
Look at the location of the store
Target people with disposable income.
What are some employment decisions
Do you have intrest in it?
Is it good for your future/
What is a durable good?
Goods that have a long lifespan
What are non-durable goods?
Goods that are manufactured to not last for a long time.
What are complementary goods?
Goods that are consumed together
What are substitutes?
products that can be consumed as alternatives to each other.
What are examples of durable goods?
Machines, Furniture, Cars
What are examples of non- durable goods
newspapers, pens, packaging
What is an example of complementary goods
tomato sauce and meat pie
what is an example of a substitute
butter & margarine
Glue or stick tape
What are some positives of durable goods
last longer and bought less frequently
What are some positives of non-durable goods
less expensive
What are some positives of complementary goods
you cab buy it all in one go
What are some positives of substitutes
its cheaper
what are some disadvantages of durable goods
tend to lose value over time
what are some disadvantages of non-durable goods
they need to be bought more frequently
what are some disadvantages of complementary goods
you have to buy more than one product
what are some disadvantages of substitutes
cant meet peoples demands
What is the steps in the distribution process
manufacturer
wholesaler
retailer
consumer
What are some examples of general (corner) stores
7 eleven, Caltex, convenience
what are some advantages of general stores
focus on selling only selling connivence goods
what are some disadvantages of general stores
rising of retail stores means a lot of general stores closed
What are some examples of supermarkets
Woolworths, Coles, Aldi, IGA
What are advantages of supermarkets
they sell a big variety of food and other household items
What are some disadvantages of supermarkets
they can take over general stores
What are some examples of department stores
David Jones, Myer
What are advantages of department stores
retail stores divided into smaller units
selling wide range of goods
What are disadvantages of department stores
Designed to maximise number of products purchased
What are some examples of Discount stores
Target, Kmart and Big W
What are advantages of discount stores
offer products for cheaper
what are disadvantages of discount stores
the quality of a product
What are some examples of speciality stores
Rebel, Nike, Adidas or Cotton - On
What are advantages of speciality stores
These stores don’t form from a larger company
What are some disadvantages of specialty stores
Difficulties competing major retail chains
What are some examples of category killers
Office Works, Toy R us, Bunnings,
What are advantages of category killers
they attempt to undercut prices from other retailers
what are disadvantages of category killers
no varites
what are some examples of franchises
Maccas, KFC, Subway
Advantages of Franchises?
Cheap and Fast
Disadvantages of franchises?
Mostly unhealthy
What are some examples of Periodic Markets?
Paddys Markets, Flemington Markets
Advantages of periodic markets?
Allows customers to bargain and bulk buy to save money
Disadvantages of periodic markets?
Sometimes bad quality
what is direct marketing
where goods are sold directly to a customer
What are the features of a simple contract for the seller
Offer - clearly communicate their intention
Acceptance - accepts your offer to purchase
Consideration - seller gives up product with value
What are the features of a simple contract for the buyer
Offer - offer something for money to seller
Acceptance - the seller agrees of purchase
Consideration - you give up money for product
