Topic 1 Flashcards
What is a consumer
A consumer is a person who buys goods and all services
Need
A need is something a person requires in order to survive
Desire
A desire is a strong wish to have something that is not crucial to survive
Maslow’s hierarchy of needs
Physiological or physical needs Safety and security needs Social needs Need for ego or self esteem need for self actualization
Consumer rights
A consumer has the right to be provided with basic needs, to choose, to safety, too accurate information, to be heard or object to something, to have products and services repaired or reimbursed, to consumer education, to a healthy environment, to quality, to fair prices and to courteous treatment
Consumer responsibility
To be informed, prompt payment, be honest, guard against damage of goods, use the proper channels for complaints, to be polite and courtiers and act respectfully, to drop a budget and stick to it, to preserve the natural heritage
Impulsive decisions
A choice made quickly and on this photo of the moment and little attention is given to possible consequences
Habitual decision
To take the same decision it is a decision you do not have to think about because you do so much
Emotional/intuitive decisions
This is an emotional decision based on instant rather than on facts
Rational decision
A decision that is well thought through at the alternatives have been considered
Rational decision making process of consumers
Identify problem or Aim
Look for possible solutions or alternative (information)
Consider the pros and cons of each alternative or evaluate alternatives
Choose the alternative that offers the best solution
Evaluate the outcome and except responsibility for your decision
Sustainable consumption
Sustainable consumption is the way people utilise the resources to satisfy their basic needs and at the same time to take precautions so that the environment and natural resources are not damaged or depleted
Principles of sustainability
Reduce reuse recycle
Sustainable consumer choice
Use biodegradable products
Make good buying decisions e.g. buying organic products
Grow your own vegetables and herbs to avoid use of pesticides
Use solar energy where possible
Good buying habits
Choose products that carry SABS seal quality
Compare the same products from different brands,
compared the price of the same product and Different stores,
compare shops E.G.security, service, the righty and parking,
shop at shops with a good reputation,
be aware of any additional costs
make sure of the guarantee of a product
, when necessary read terms and conditions,
Check shops policy regarding return of goods,
be Careful that bargains don’t mislead you
Don’t spend money on a product just because it’s a bargain,
buy locally and become part of the proudly South African campaign,
choose organic when possible,
avoid packaged and processed foods,
note the expiry date on food
Psychological Factors that influence customers buying habits
Motivation and the needs, personality, perception, knowledge, values, attitudes and lifestyle
Motivation and needs (psyc factor)
The needs that have to be met
Needs at a lower level will be need to be met first
Personality (psyc factor)
Unique characteristics determain personal decisions
Perception (psyc factor)
The way something is perceived-a mental impression
Perception can lead to a buying action
Knowledge (psyc factor)
The consumer is introduced to and made aware of the availability of goods and services through media
Can have a positive or negative impact on a consumers decision
Values (psyc factor)
A persons values are their principles or standards of conduct
Values determine behavior, direction and choices
Attitudes (psyc factor)
Consumers buying decisions are determined by their values, preferences , tastes and interests
Positive= will shop their again Negative = will not shop again
Lifestyle (psyc factor)
Your lifestyle is determined by your activities
SOCIO CULTURAL FACTORS
Personal Reference group Family Social status Culture
Personal (socio cultural)
Buying decisions are influenced by E.G.age, gender,occupation and financial status
Reference group (socio-– cultural factors)
This is the group whose norms and values you would like to live by, E.G celebrities are often our role models, so we will be influenced to buy the same brands that they wear
Family (social cultural factors)
Children off and follow their parents example, E.G.F are parents work and regularly by junk food, it will have an impact on the children’s buying decisions
Social status (social cultural factors)
People are born into a particular position (standing, or class) in society. This social position depends on the financial status, occupation, education, and the material possessions
Culture (social cultural factors)
We are cold and rain panache and because of all variety of cultural groups. Find decisions of different cultural groups are influenced by religion, rules and traditions. With in these groups, there are some cultures (groups within a larger or national culture) each some culture has its own values, ideas and attitudes. The buying decision of every member of the group is influenced by it
Economic factors
Income, credit facilities, price
Economic factors definition
The countries are commonly also influences the consumers buying decisions. In times of prosperity, consumers tend to buy more and more luxurious products, well in weaker economic times then buy more selectively
Income (economic factors)
Income your own financial position determines how much money you are going to spend. After expenses E.G.insurance, medical aid, taxes and debts are paid, the consumer will know how much money there is left to spend
Credit facilities (economic factors
Credit is a way of buying goods without having to pay cash. Examples of credit purchases our credit cards, purchases on clothing accounts, consumer cards and higher purchase/lay– by transactions.This can lead to impulsive purchases. I can see my could buy products that he or she cannot afford
Price (economic factors)
Cheapest substitute products are bought more easily. The greater risk is if an expensive product was a poor choice glasses then greater
Elite/high income definition
This group of and buys expensive cars and eveningwear. Expensive cars such as porche and BMW, and expensive clothes sold in Boutique, reflect this target
Middle income definition
The largest percentage of. Products on the market is aimed at this group. Checkers and Woolworths reflect this Target group
Low income definition
This group by is mainly essential in cheaper items. Do you have us with affordable products with like this target group such as pep stores.
Types of dealers
Direct and indirect
Flea markets and street vendor’s
Fleamarket and Street benders.
Goods are sold on pavements.
Sales are on a cash basis only.
Goods are relatively inexpensive because there are no extra costs involved.
As a consumer you should check the quality of the product yourself.
Products range from clothing to Food to furniture.
Clothing items sold to the flea market or street vendor are most likely to be: manufactured in bulk, surplus goods or rejects, unique handmade items and secondhand clothing.
Some flea market sell imitation/fake brands
Types of directs dealers
Fleamarket and street Vendors, secondhand shop
Types of indirect dealers
General dealers, convenience stores (cafes), specialty stores, department stores, wholesalers, hypermarkets, supermarkets, factory shops/manufactures outlets, online shopping, mail order
General dealers
General dealers are found in small towns,
the shop is off and managed by the owner.
A variety of products are sold, E.G.milk, bread, sweets, groceries, medicine and household items
Convenience stores (cafes)
Smaller stores that are open seven days a week.
Longer hours than a supermarket maybe even 24 hours a day – which is why the prices are higher.
A variety of products are sold, E.G.milk, bread, fast food, a range of small of groceries.
Consumers shop here when supermarkets are closed.
Often located in petrol stations
Specialty stores
These shops specialise in one product. Good quality products offered. Service is good. Often found in shopping centres. Prices are high.
Department stores
Includes Edgars and, Woolworths
Why brightly of products eat out you got the clothing department with children’s ladies and men’s clothing, food, shoes, beauty products and linen departments
A variety of services, either G.help and advice and trying on clothes – clothing alterations, accessing specific sizes and colours that he’s also Available.
Accounts and exchange or refund facilities are available
Goods are usually expensive because the shop requires a large number of employees and Attractive show rooms
Each type of department store provides for the needs of its target market
Wholesalers
Macro is in example of wholesaler
It is the link between the manufacturer and retailer.
Products are sold in bulk at low prices.
Products are packaged in smaller quantities and sold to consume is it a bigger profit
