commerce Flashcards
(63 cards)
What are individual needs and wants in consumer behavior?
They refer to the variations in what people buy based on personal preferences and circumstances
Consumers have different responses when asked about their wants, revealing a wide variety of goods and services.
How does customer service affect consumer decisions?
Good customer service fosters loyalty, while poor service can deter future purchases
Pre-sales and after-sales service play a crucial role in making consumers feel valued.
What is the significance of price in consumer purchasing decisions?
Price is often the first consideration; consumers seek the best value for money
The Competition and Consumer Act 2010 implemented a per unit pricing code for easier price comparison.
Define convenience in the context of consumer decisions.
Convenience relates to hassle-free shopping, including factors like travel time and store hours
Online shopping and app access have become significant aspects of convenience.
What role does marketing and advertising play in consumer decisions?
It influences perceptions and desires, with consumers exposed to an estimated 500 marketing strategies daily
Successful marketing campaigns can create a perceived need for new products.
How does gender influence consumer buying behavior?
Gender can affect purchase types; for example, females may spend more on cosmetics
Differences are often highlighted in product advertisements for occasions like Mother’s Day vs. Father’s Day.
What impact does age have on consumer needs and wants?
Consumer wants evolve over time, from toys in childhood to cars and homes in adulthood
As life stages change, so do significant purchases.
What is disposable income?
It is the amount of money households have available for spending and saving after taxes
Higher disposable income often leads to increased spending on luxury items and vacations.
How do environmental considerations affect consumer choices?
Consumers increasingly prefer products with minimal or recyclable packaging due to environmental awareness
This reflects growing concerns over pollution and waste.
What is the role of social media in influencing consumer decisions?
Social media platforms enable influencers to promote products, impacting their followers’ purchasing choices
Social media includes sites like Facebook and Instagram.
Define cultural factors in consumer behavior.
Cultural factors encompass the values, perceptions, and behaviors that shape consumer habits
These factors are influenced by upbringing and social environment.
What is the most basic financial decision consumers need to make?
Deciding how much of their income to save versus how much to spend
This decision often leads to the creation of a budget.
What is comparison shopping?
It is the practice of checking prices, quality, and services across multiple retailers before making a purchase
This is especially important for major purchases.
Fill in the blank: Many Australian families spend up to ______ percent of their disposable income at the supermarket each week.
40
What are generic products?
Products that lack a brand name and are usually cheaper with acceptable quality
They are often found in various retail settings.
What types of goods and services do consumers typically purchase?
They buy consumables, household goods, luxury items, repair services, and information services
Each category serves different consumer needs.
What are durable goods?
Items that can be used multiple times, such as cars and televisions
In contrast, non-durable goods are used only once.
What is opportunity cost?
The value of what an individual gives up to satisfy a need or want
For example, choosing to save for a car instead of buying a video game.
List the four types of resources used by producers.
- Land
- Labour
- Capital
- Enterprise
These resources are limited and require careful management.
What is the distribution chain in commerce?
The process through which products pass from manufacturers to wholesalers, retailers, and finally to consumers
Each stage adds costs and profit to the product price.
What are the four types of prices a consumer may encounter?
- Manufacture price
- Wholesale price
- Recommended retail price
- Discount price
These prices reflect different stages in the distribution chain.
What is mail order shopping?
A system where consumers order products via mail, fax, phone, or online
It offers a wider range of products but has risks like non-delivery.
How has online shopping changed consumer behavior?
It provides convenience and access to a vast array of products from anywhere in the world
Online shopping can save time and money but may also lead to impulse buying.
What is a primary reason consumers shop online?
To save time and money
