Yearly exam terminology

Question 1

Budget

Answer 1

A spending and saving plan

Question 2

Collective wants

Answer 2

Goods and services provided for the community by governments

Question 3

Consumer

Answer 3

Anyone who buys goods and services

Question 4

Contract

Answer 4

An agreement between two parties

Question 5

Franchise

Answer 5

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

Question 6

Good

Answer 6

An item that is tangible. It can be seen or touched

Question 7

Liability

Answer 7

The degree of financial responsibility for losses incurred by a business or individual

Question 8

Liquidity

Answer 8

Funds available to finance spending on a day-to-day basis

Question 9

Needs

Answer 9

Goods essential to our survival, such as food, water, shelter and clothing

Question 10

Personal wants

Answer 10

Luxury or non-essential goods and services that we, as individuals, would like to consume

Question 11

Savings

Answer 11

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

Question 12

Service

Answer 12

An intangible good that is provided by an individual or organisation

Question 13

Standard of living

Answer 13

A person’s quality of life in regards to their economic, social and personal wellbeing

Question 14

Wants

Answer 14

Luxury or non-essential goods and services

Question 15

Category killer

Answer 15

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

Question 16

Comparison shopping

Answer 16

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

Question 17

Complementary good

Answer 17

A good that is generally consumed along with another good

Question 18

Credit

Answer 18

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

Question 19

Customer loyalty programs

Answer 19

Strategies used by retailers to reward customers for making regular purchases from their business

Question 20

Demographic

Answer 20

The features of a population, such as age and gender structure

Question 21

Depreciate

Answer 21

To decrease in value. An asset depreciates through wear, deterioration or obsolesce (becoming out-dated)

Question 22

Deregulation

Answer 22

The removal of government laws and regulations

Question 23

Disposable income

Answer 23

A person’s income after tax has been deducted

Disposable income = Gross income - Taxes

Question 24

Durable good

Answer 24

A good that has a long lifespan and doesn’t need to be replaced frequently

Question 25

Extended warranty

Answer 25

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

Question 26

Gross income

Answer 26

A person’s total income before tax has been deducted

Question 27

Hire purchase

Answer 27

An agreement that enables a customer to pay for a purchase in instalments over a period of time

Question 28

Impulse buying

Answer 28

The unplanned purchase of goods or services

Question 29

Non-durable goods

Answer 29

A good that is purchased frequently and has a short lifespan

Question 30

Substitute

Answer 30

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

Question 31

Warranty

Answer 31

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

Question 32

Consumer sovereignty

Answer 32

The power of consumers to decide which businesses and products survive in the marketplace

Question 33

Merchantable quality

Answer 33

Fit for the purpose for which a good is bought

Question 34

Unconscionable conduct

Answer 34

Dishonest and unfair conduct by individuals or businesses providing goods and services to consumers

Question 35

Advertising

Answer 35

The promotion of a good or service in order to increase sales and profits or to inform the public

Question 36

Direct marketing

Answer 36

Contacting householders personally, by name, via businesslike phone calls, emails or letters

Question 37

Ethical

Answer 37

Relating to ethics, which are a set of morals that help govern human conduct

Question 38

Guerilla marketing

Answer 38

A flexible, non-traditional way of promoting a brand name

Question 39

Junk mail

Answer 39

Advertising flyers delivered via the letterbox

Question 40

Marketing

Answer 40

Promotional campaigns, including advertising, to make products known to consumers

Question 41

Naming rights

Answer 41

The right of a company to include its own name in the name of a competition or sporting facility in return for the company financially supporting or sponsoring the event or venue

Question 42

Product endorsement

Answer 42

The use of sporting stars and media personalities to promote a good or service

Question 43

Product placements

Answer 43

The prominent display of products in movies or television programs

Question 44

Sponsorship

Answer 44

Brand strengthening via the funding of elite sporting personalities and teams

Question 45

Telemarketing

Answer 45

The promotion of goods and services via the telephone

Question 46

Focus group

Answer 46

A group of potential consumers, chosen at random, who give their opinions about a campaign developed to promote a particular good or service

Question 47

Market research

Answer 47

The gathering of information about the needs and desires of potential consumers

Question 48

Mass marketing

Answer 48

Promotional campaigns targeting a large proportion of the population

Question 49

Niche marketing

Answer 49

Promotional campaigns targeting quite small groups of potential customers

Question 50

Self-regulation

Answer 50

Ethical standards and complaint resolution procedures put in place and maintained by an industry group

Question 51

Target market

Answer 51

A specific demographic or social group to which an advertiser wishes to appeal