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Consumers Choice Flashcards

0
Q

Want

A

An item that is not essential for survival; it is something somebody desires.

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1
Q

Need

A

An item that is necessary for a person’s survival.

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2
Q

Good

A

An item that can be purchased by a consumer; is tangible.

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3
Q

Service

A

An act performed for a consumer; intangible

E.g hairdresser

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4
Q

Individual good

A

An item that is solely for personal use

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5
Q

Complementary good

A

Something you need to purchase so an original good can function.

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6
Q

Collective good

A

An item or good that is used by the community.

E.g: public pool

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7
Q

Single-use good

A

A good that can be used only once, if it is used it no longer exists.

E.g: perfume, petrol

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8
Q

Disposable-use good

A

A good that is used now and once used is not used again.
Sometimes they are used again in the home.

E.g: milkshake container, plastic bag

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9
Q

Durable-use good

A

Goods that have a very long life and can be used many times.

E.g: washing machine, fridge

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10
Q

Convenience goods

A

Goods that save us time and effort. They are normally more expensive than regular goods.

E.g: pre cut mushrooms

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11
Q

Planned obsolescence

A

A policy of planning or designing a product with an artificially limited useful life. This makes the consumer have to purchase more products.

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12
Q

Opportunity cost

A

It is the sacrifice involved in choosing to satisfy one want rather that another.

E.g: choosing a holiday over a car. The car would be the opportunity cost.

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13
Q

Impulse buying

A

Buying something without thought as to whether you really needed the good.

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14
Q

Budget

A

A spending and saving plan

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15
Q

Standard of living

A

A person’s quality of life; a person’s economic, social and personal wellbeing.

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16
Q

Contract

A

An agreement between two parties

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17
Q

Liability

A

An individual’s or business’s financial responsibility for any losses.

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18
Q

Liquidity

A

Funds available for day to day spending

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19
Q

Franchise

A

Selling the rights to use a business name/image.

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20
Q

Slogan

A

Catchy statements which are easily remembered to help sell a product/service.

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21
Q

Jingle

A

A catchy song that is sung and is easily remembered

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22
Q

Informative advertising

A

Where consumers are informed of the facts only.

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23
Q

Persuasive advertising

A

Where the advertisement tries to influence the consumer into buying a product.

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24
Advertising
When businesses tell consumers about their products in an attempt to increase sales
25
Subsistence economy
When all needs and wants are satisfied by the people themselves.
26
Commercial economy
Where are needs and wants are satisfied indirectly through money.
27
Barter
Exchanging goods for goods
28
Interdependence
When people rely on each other to satisfy their wants
29
Why do our wants change?
We grow up and mature, our responsibilities change and society's influences determine what we want.
30
What are the four characteristics of wants?
- UNLIMITED: no person is ever satisfied. - COMPLEMENTARY: when one want requires another - CONSTANTLY CHANGING: as a result of technology, advertising, age - SUBSTITUTES WANTS: when a want can be exchanged for another good/service.
31
Income
Money received on a regular basis from work, property, business, investment or welfare.
32
Merchantable quality
Being of an acceptable quality in keeping with the price that you must pay for the good.
33
How do businesses encourage impulse buying?
- excess packaging - technical language/jargon - planned obsolescence - advertising
34
What are some techniques used in the supermarket to encourage consumers?
- strategically placed items - shelves at eye level - staple items at the back - radio station to advertise specials - lighting to make the food look better
35
Disposable income
The money a person has available after doing all their taxes/important. This money is for purchasing goods
36
Discretionary income
Individual income that is not allocated for necessary items like food and shelter.
37
What are words to describe a passive consumer?
Quiet, easily persuaded, indecisive, naive, doesn't really know what they want
38
What are some words to describe an assertive consumer?
Smart, calm, confident, knows what they want, informed, knows their right, patient
39
What are ways to describe an aggressive consumer?
Determined, over the top, stubborn, pushy, trying to get what they want, loud
40
Manufacturers
Produce products for consumers
41
Wholesalers
Buy large quantities of goods off manufacturers then sells small quantities to retailers for more than they paid.
42
Retailer
Sells products directly to the consumer. They add costs and a profit so they get RRP
43
What are the types of retail outlets?
- convenience store - specialty store - department stores - discount variety stores - supermarkets - internet shopping
44
What are the advantages of online shopping/mail order?
Increased range available and ability for comparison shopping. Also convenient.
45
What are the disadvantages to online shopping/ mail order?
Tracing the seller if problems arise is difficult, supplying credit card detail can be risky
46
Locally bought
Going to the local corner store or shopping arcade. Is convenient and may be more expensive.
47
Regionally bought
Department stores, discount department stores and supermarkets are often in bigger shopping complexes.
48
Interstate or globally bought
It may be necessary to buy from another state or country due to a product not being available in your local area.
49
What are some key factors affecting consumer decisions?
- finance - price - marketing - age and gender - convenience - customer service and warrants - environmental considerations
50
Why do firms advertise their products/services?
To earn money and profits for their company, so that they can keep making products.
51
Why do advertisers use mass media?
They use mass media because it takes the message to a greater number of people
52
What are some forms of advertising?
Pamphlets, drink coasters, billboards, commercials, flyers.
53
Why do firms hire advertising agencies?
Because they have more resources and people who know advertising. It is also easier for the firms.
54
What is brand advertising?
When you stress certain features so that consumers think one product is better than others
55
Why do whole industries advertise their products?
To increase sales in general, not just for a particular brand.
56
Why do firms advertise to improve public image?
So that the country as a whole sees the benefits in the firm. This is usually after bad publicity.
57
What are the advantages of advertising?
- product reaches consumers quicker - potentially more sales - provides employment for people
58
What are the disadvantages of advertising?
- they aim to sell a brand, not overall product - uses up resources such as buildings - consumers get irritated by them
59
What does the Media Council do?
They have rules to make sure that ads are in good taste, are not offensive and obey the laws
60
What does the Broadcasting Control Board do?
It sets the max time in an hour that can be used for advertising
61
What does the Federation of Australian Commercial Television Stations (FACTS) do?
They preview all ads that are shown on more than one station to make sure that are are decent and that they don't go over the max ad time
62
What does the Competition and Consumer Act 2010 do?
Make sure that the retailers are not giving you false prices, information or false info on the quality of the good/service.

Commerce (4 decks)

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