1.1 - 1.8 Flashcards
(68 cards)
What is commerce?
Commerce is the activity of buying and selling, which occurs everywhere and is continuous.
What is a consumer?
A consumer is someone who purchases goods and services to satisfy their needs and wants.
What are goods?
Goods are tangible items that can be produced and physically touched, such as a television or a car.
What are services?
Services are actions performed by one person for another in exchange for payment, such as hairdressing or medical services.
What is opportunity cost?
Opportunity cost is what an individual gives up in order to satisfy a need or want.
What are durable goods?
Durable goods are items that can be used multiple times, like a car or television.
What are non-durable goods?
Non-durable goods are items that can be used only once, such as a sandwich or a litre of petrol.
What are the four types of resources used in production?
The four types of resources are:
* Land
* Labour
* Capital
* Enterprise
What does ‘disposable income’ refer to?
Disposable income refers to the amount of money that households have available for spending and saving after income taxes.
What is customer service?
Customer service refers to the assistance and advice provided to consumers before, during, and after purchasing products.
How does price affect consumer decisions?
Consumers typically seek the best value for their money, balancing price and quality.
What role does convenience play in consumer decisions?
Convenience affects when, where, and what consumers buy, including factors like store location and shopping hours.
How does marketing and advertising influence consumer behavior?
Marketing and advertising expose consumers to products and can create a perceived need for them.
How does gender influence consumer decisions?
Gender can influence purchasing preferences and spending habits on certain products, such as cosmetics.
How does age affect consumer wants?
Consumer wants change over time, influenced by life stages, from toys in childhood to homes in adulthood.
What is the impact of social media on consumer purchasing decisions?
Social media influences purchasing decisions through content shared by social influencers with large audiences.
What are cultural factors in consumer behavior?
Cultural factors include values, perceptions, and behaviors that influence how individuals make buying decisions.
What is comparison shopping?
Comparison shopping is the practice of checking prices and quality across different retailers before making a purchase.
What are generic products?
Generic products are those that lack a brand name and are usually cheaper while maintaining acceptable quality.
What is the significance of impulse buying?
Impulse buying can lead to poor financial decisions and wasted money.
What is a budget?
A budget is a financial plan that outlines income and spending to help manage finances effectively.
What is the effect of disposable income on spending habits?
Higher disposable income allows consumers to spend more on luxury items and vacations.
True or False: Consumers have unlimited wants.
True
What is the primary focus of most small retailers?
High levels of assistance and after-sales service.
