Ch 4- Smart Shopping

Question 1

What are consumer needs?

Answer 1

Things that we cannot live without e.g. clothes, food, accommodation

Question 2

What are consumer wants?

Answer 2

Things that we would like to have, but aren’t essential

Question 3

What is a budget?

Answer 3

a plan of how much money you are prepared to spend

Question 4

What is false economy?

Answer 4

When we purchase a cheaper product, but it turns out to be more expensive in the long term.
e.g. buying cheap batteries that go flat within 2 hours instead of buying slightly more expensive batteries that last for 20 hours.

Question 5

What is unit price?

Answer 5

the price of a single amount of something

Question 6

What is the calculation for unit price?

Answer 6

price divided by quantity

Question 7

What is a brand?

Answer 7

the distinctive name and logo that producers put on their products, services or businesses

Question 8

What should you do before buying an expensive product?

Answer 8

Shop around to ensure we get this product at the best price

Question 9

What is conspicuous consumption?

Answer 9

spending in an extravagant way with the deliberate intention of trying to impress others

Question 10

What are impulse choices?

Answer 10

sudden unplanned decisions to buy something

Question 11

What will retailers do to tempt you to buy their items?

Answer 11

• Special pricing e.g. 9.95 instead of 10

- Below-cost selling

Question 12

What is below-cost selling?

Answer 12

When retailers dell a product at a lower price than they paid for it. That means they are selling at a loss.

Question 13

What is a loss leader?

Answer 13

A product sold at below cost price with the intention of attracting customers into a shop

Question 14

What should a receipt include?

Answer 14

• name of the seller
• date the item was sold
• name or description of the item purchased
• price paid by consumer

Question 15

Give examples of 5 Irish brands

Answer 15

• Tayto
• Guinness
• Kerrygold butter
• Barry’s tea
• Bailey’s Irish Cream

Question 16

Why is it a good idea to ask for a receipt?

Answer 16

• As a proof of purchase
• To monitor spending
• To check bills for accuracy

Question 17

What is a gaurantee?

Answer 17

A promise from the manufacturer or seller to offer a REFUND or REPLACEMENT to anyone who purchases faulty goods within a specific period of time

Question 18

What is a warranty?

Answer 18

An additional promise from a manufacturer or seller to REPAIR any faulty goods within a specific period of time.

Question 19

What does informative advertising do?

Answer 19

Gives you information about a product e.g. size, colour, availability

Question 20

What does persuasive advertisement do?

Answer 20

tries to convince you that you ‘need’ a product.

Question 21

What does AIDA stand for?

Answer 21

Attention
Interest
Desire
Action

Question 22

What is AIDA used for?

Answer 22

It is used to help design persuasive advertising

Question 23

How can we pay for a product using our own money?

Answer 23

• Cash
• Debit cards
• Gift cards

Question 24

How can we pay for a product using borrowed money?

Answer 24

• Loans
• Hire purchase
• Credit cards

Question 25

What are the benefits of using cash?

Answer 25

- You know how much you have available to spend and how much you have left over. - You can't get into debt as you can only spend what you have

Question 26

What does legal tender mean?

Answer 26

that the notes and coins must be accepted as payment by retailers if offered by a customer.

Question 27

Name 3 ways you know a banknote is real

Answer 27

- A holographic panel is embedded in the note - the note should be pure cotton with a protective coating. - A watermark image can be seen if the note is held against a light - The main image on the front of the note uses raised printing - A security thread is embedded in the note, if held against a light - Under ultraviolet light, the fibres embedded in the paper will make the images glow red, blue or green.

Question 28

What are the benefits of using a debit card?

Answer 28

- They are a convenient and safe way to pay for goods without using cash. - You cannot buy on credit, therefore you cannot get into debt.

Question 29

What is a deposit?

Answer 29

A small part of the cost of the product which will reserve the product for you until you return and pay the rest of the money owed.

Question 30

How can you be a smart consumer online?

Answer 30

- Use trustworthy websites - Use secure payments - Check postage charges - Be aware of taxes - Keep in mind of delivery time - Think it can be more difficult to make complaints

Question 31

What is EFT and what does it stand for?

Answer 31

Electronic Funds Transfer allows money to be transferred from one bank account into another account

Question 32

What is EFTPOS and what does it stand for?

Answer 32

Electronic Fund Transfer at the Point of Sale refers to all the systems that allow customers to pay money electronically in shops.