Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Commerce > Consumer Choices > Flashcards

Consumer Choices Flashcards

1
Q

Define Budget

A

A spending and saving plan.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Define Collective wants

A

Goods and services provided for the community by governments.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Define Consumer

A

Anyone who buys goods and services.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Define Contract

A

An agreement between two parties

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Define Franchise

A

Selling the rights to use a business name, image or management system.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Define Good

A

An item that is tangible.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Define Liability

A

The degree of financial responsibility for any losses incurred

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Define Liquidity

A

Funds available to finance daily spending

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Define Needs

A

Goods essential to our survival

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Define Personal wants

A

Luxury goods and services we want.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Define Savings

A

The amount of money a person has available after paying for needs and wants.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Define Service

A

An intangible good provided by an individual or organisation; e.g. legal advice

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Define Standard of living

A

A person’s quality of life

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Define Wants

A

Luxury or non-essential goods and services

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Define Category killer

A

A large store that dominates the sale of one type of product.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Define Comparison shopping

A

The process of comparing the price and quality of similar products before purchasing

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Define Complementary good

A

A good that is consumed with another good; e.g car and petrol.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Define Credit

A

The ability to receive goods and services now but pay in the future.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Define Customer loyalty programs

A

Strategies used by retailers to reward customers for making regular purchases

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Define Demographic

A

The features of a population, such as age and sex structure.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Define Depreciate

A

To decrease in value

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Define Deregulation

A

The removal of government laws and regulations.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Define Disposable income

A

A person’s income after tax has been deducted.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

Define Durable good

A

A good that has a long lifespan

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

Define Extended warranty

A

An extended period of cover on a warranty agreement, secured by paying an extra fee.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

Define Gross income

A

A person’s total income before tax has been deducted.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

Define Hire purchases

A

An agreement that enables a customer to pay for a purchase in installments

28
Q

Define Impulse buying

A

The unplanned purchase of goods or services.

29
Q

Define Non-durable good

A

A good that is purchased frequently and has a short lifespan

30
Q

Define Substitute

A

A good that can be purchased as an alternative to another good.

31
Q

Define Warranty

A

An agreement that outlines the conditions under which a consumer is entitled to have a good repaired or replaced.

32
Q

Personal Decisions Include

A
  • Family
  • Health
  • education
  • Environmental
  • Decisions based on values and beliefs
  • Social Life
33
Q

Commercial Decisions include:

A
  • Consumer Decisions
  • Legal Decisions
  • Financial Decisions
  • Employment Decisions
  • Business Decisions
34
Q

Employment Decisions include

A
  • Which sector of the workforce to work in−primary, secondary, tertiary, quaternary or quinary.
  • Whether to run a business (be an employer) or work for someone else (be an employee)
35
Q

What are the Benefits of Saving

A
  • personal satisfaction and a feeling of security in case of an emergency.
  • Savings can be used to buy a more expensive good in the future
  • Provide evidence of a savings history to show you can manage your money responsibly.
36
Q

Disadvantages and advantages of owning a business

A

Advantages

  • The freedom to make their own decisions and create their own product or service
  • The ability to generate profits and wealth from an interest of their own
  • The freedom to decide where and when they work and who they employ.

Disadvantages

  • Increased Responsibilities/risk
  • Failure due to poor financial management
  • Lack of experience and skills/planning
  • Unstable economic conditions
37
Q

What positions are there for a business

A

can either be a sole trader, partnership, private company, franchise or cooperative.

38
Q

When determining price to charge consider:

A
  • Production costs
  • Competitor prices
  • Willingness to pay
  • Quantity
  • Distribution
  • Environmental factors
39
Q

Distinguish between non-durable good, durable and complementray

A

non-durable: not meant to last, e.g food
durable: meant to last long e.g fridge
complementary good: product with specific relation e.g. car and petrol

40
Q

Producer services are consumed by who

A

Businesses

41
Q

Consumer services are consumed by who

A

individuals

42
Q

List the shop heirachy

A
  • General (Corner) stores
  • Supermarkets
  • Department Stores-
  • Discount Stores
  • Independent Specialty stores
  • Category Killers
  • Franchises
  • Periodic Markets
  • Shopping Strips
  • Planned Centres
43
Q

Advantages and Disadvantages of Direct marketing

A

Disadvantages
- It is difficult to make price and quality comparisons.
- A number of direct marketing scams exist
- hidden delivery costs
Advantages
- Convenience
-The flexibility to change your mind

44
Q

Advantages and Disadvantages of Internet shopping

A

Advantages
-Make Inquiries
-Check for any hidden costs
-Check for any restrictions on imported goods.
-Protect Your Personal information.
-Be wary of offers that sound good true.
Disadvantages
-Pay for anything upfront.
-Deal with retailers that will not supply a mailing address or contact details.
-Forget to keep records of transactions
-Trust any single person’s opinion or guarantee.
-Forget to check for danger signs of fraud

45
Q

Factors effecting consumer decisions

A
  • finance
  • price
  • marketing
  • age and gender
  • environmental concerns
  • service and convenience
  • warranties
46
Q

5 marketing P’s

A
  • Price
  • Position
  • Product
  • Promotion
  • Place
47
Q

What is Bait and Switch Advertising

A

Bait and Switch Advertising is being attracted to a sale by very low prices only to find it is sold out and a more expensive good is available

48
Q

What is Fake Price Reductions

A

In Sales, the customer has a right to know what the original price of the good was and how much it has been reduced.

49
Q

What is Double Ticketing

A

Double Ticketing occurs when a seller places two or more prices on a product or service and does not charge the customer the lowest price. This is illegal under the Trade Practices Act 1974 (Cwlth)

50
Q

What is Overvalued and Unsafe Vehicles

A

Some scams include the winding back of odometers and shoddy repairs

51
Q

What is Unsolicited Goods

A
  • One common scam is sending people goods that they did not ask for and then demanding payment for them.
  • If you receive unordered goods you are under no obligation to pay for them.
  • Then the seller must retrieve them at their own expense.
  • Alternatively, the householder can do nothing
  • The seller then has 3 months to receive the good, before losing legal ownership of the item.
52
Q

What is Door-to-Door Sales

A

Door to Door Sales involves retailers or their representatives making visits to private homes and offices in an attempt to sell products and services.

53
Q

What are pyramid schemes

A

Pyramid Schemes, which are outlawed in NSW By the Fair Trading Act 1987, promise people quick and easy money in return for a ‘joining fee’. Those who have already joined will make money from each new member that they introduce to the scheme.

54
Q

Features of a contract

A
  • is the object legal
  • possible to perform
  • consideration
  • legal right
  • intention
  • offer and acceptance
55
Q

Why should we use cash payments

A

Immediate, all shops accept cash, and for small-purchases, only cash can be accepted. Consumers can easily monitor budget.

56
Q

Why do we use Direct Debits

A

Consumers can avoid the inconvenience of paying bills by mail or at the bank by setting up a direct debit from their regular savings or cheque account.

57
Q

Wht do we use Cheque

A

A Cheque is a written instruction asking for funds to be transferred from your bank account into someone else’s

58
Q

Advantages and disadvantages of cheque

A 
Advantages
-Cheque are convenient and easy to use
-Security 
-cheque are less bulky than cash
-You can keep a record of purchases 
Disadvantages
-Cheque can be bounced A Bounced cheque is one that has been rejected because there are insufficient funds in the account.
-Some retailers do not accept cheque
-Cheque take a number of days till money can be withdrawn.
59
Q

Advantages and disadvantages of Credit Cards

A

Advantages
-It may take a long time to save enough cash to pay for an expensive item. A credit card allows you to buy a product now and pay it off in installments
-Your money stays in the bank, earning interest until you pay our bill.
-Credit Cards are safer than cash. A card can be cancelled if lost.
-You can build a positive credit history for the future.
-A Credit Card can be an important resource in an emergency. If your luggage is stolen overseas, your credit card may be your only source of funds
-It is easier to pay by phone or over the Internet with a Credit Card
Disadvantages
-Credit Cards are convenient to use, making it easy to overspend and get caught in a ‘debt trap.’
-Department store credit cards can have very high interest rates and should be used with great caution.
-Some companies pass the cost of using the card back to the consumer
-Many cardholders do not pay off their debts within the interest-free period and incur high interest charges.

60
Q

Advantages and disadvantages of EFTPOS

A

Advantages

  • EFTPOS is cash free and minimises security concerns
  • Electronic payment is quick and convenient
  • EFTPOS is widely accepted as a method of payment
61
Q

What is Booking it up

A

Book up is method used in rural communities.Retailers offer small amounts of short-term credit so that they can make purchases at their store.

62
Q

What is Lay-by

A

It allows you to purchase goods when you do not have the money for them up front. A retailer will hold the goods at the store for a specified period of the time till you have paid for them

63
Q

What is Electronic Funds Transfer (EFT)

A

Refers to all types of financial transactions that are carried out electronically e.g. Bpay

64
Q

What is BPAY

A

This system allows you to pay your bills over the phone/internet. BPay reduces the time and cost and is available 24/7. Comes from savings, cheque or credit card.

65
Q

What is EFTPOS

A

EFTPOS allows you to pay for items directly from your bank account using a plastic debit card and a PIN number.

66
Q

How to resolve conflict

A

1) Identify problem, gather relevant documents, including receipt and records
2) Contact business, and talk to person you had an issue with, or ask for manager
3) Contact relevant industry association or ombudsman
4) Contact state government consumer affair department
5) Contact mediation. Conflict resolution service
6) Contact court or tribunal

Commerce (5 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions