Ch.28 Consumer Decisions Flashcards
(39 cards)
Describe the term ‘consumer’
A consumer is someone who buys or uses goods and services
What is a good? Give 1 example
Goods are items that are bought and sold. Eg. Food
What is a service? Give 1 example
A service is work carried out by skilled people for a customer or a client. Eg. A hairdresser
What is the difference between a good and a service
A good is bought and sold, a service is carried out by skilled people in their craft
List 5 factors that influence consumers decisions
- Money
- Sustainability
- Advertising and Marketing
- Trends
- Peer pressure
Describe the 4 (1-4) steps involved in a consumer decision
- Identify the problem and the goal
- Research and collect information
- List up possible solutions
- Weigh up the pros and cons of each possible solution
Describe the other 4 steps ( 5-8) influencing the consumer decision making process
- Talk through solutions with others
- Make your choice
- Take action
- Evaluate your action.
Give 3 advantages of online shopping
- Large choice of goods available
- More convenient, goods can be ordered from home and delivered to your house
- Easy to compare prices, brands and styles.
Give 3 disadvantages of online shopping
- Increased risk of impulse buying ands over spending.
- Goods may not be as expected
- Returning goods is inconvenient
List the 4 methods of payment
- Cash
- Debit Cards
- Credit Cards
- PayPal
Give 1 advantages and 1 disadvantage of cash
Advantage: Less likely to overspend and get into debt
Disadvantage: carting cash is not very secure & if it is lost or stolen, there is little chance of getting it back
Give 1 advantages and 1 disadvantage of debit cards
Advantages: cards are more secure than cash
Disadvantages: easy to lose track of payments, leading to overspending.
Give 1 advantages and 1 disadvantage of credit cards
Advantages: if the bill is payed in full, the consumer can buy now, pay later without being charged interest
Disadvantages: if bills are not paid in full, you can get into credit card debt ( interest 25%+), so purchases end up costing more.
Give 1 advantages and 1 disadvantage of PayPal
Advantages: companies do not have access to your card details, making fraud less likely.
Disadvantages: online purchases can be made quickly, which can cause impulse buying.
What is advertising?
It is a method of mass communication used to persuade consumers to buy a product or service
Give the 4 functions of advertising in detail:
P: Product
S: Service
1: tell people about a new P/S
2: inform people about the P/S
3:Persuade the consumer to buy the P/S
4: Promote the brand name, making people familiar with it
List the 8 Advertising techniques listed:
- Humour
- Traditional/ Wholesome images
- Happy family images
- Logos & slogans
- Glamorous/ romantic images
- Famous persons
- Statistics
- Patriotism
Expand on the advertising technique humour:
Humour catches the consumers attention
Expand on the advertising technique traditional/ wholesome images:
traditional/ wholesome images encourage consumers to think these products are healthy and good for them.
Expand on the advertising technique happy family images:
Happy family images encourages consumers to feel that they are caring for their family if they use this product.
Expand on the advertising technique Logos and Slogans:
Logos & Slogans make brands easy to remember and recognise
Expand on the advertising technique glamorous and romantic images
Glamorous and romantic images encourage consumers to think that if they have this product they too will find romance or be glamorous.
Expand on the advertising technique famous personalities:
Famous personalities encourage consumers to think that if they have this product, they have something in common with the famous person.
Expand on the advertising technique statistics:
Statistics encourages the consumer of how good a product is.
