Commerce- Consumer and financial decisions

Question 1

What are some of the key factors of consumer decisions?

Answer 1

Customer service, age, cultural factors, price, social media, market/advertising, disposable income, Environmental considerations, gender

Question 2

What is comparison shopping?

Answer 2

when you compare different items based on price, after-sale service and availability

Question 3

what is the distribution chain?

Answer 3

manufacturer - wholesaler- retailer- consumer

Question 4

unordered/ unsolicited goods

Answer 4

sending things through the mail and then demanding payment for them

Question 5

special prize/ offer

Answer 5

scratch a coupon get a prize. You go to collect your price only to discover you can only receive it if you purchase a certain number of goods

Question 6

Pyramid sellings

Answer 6

you are required to pay a joining fee with the opportunity of earning quick money as you recruit new members. However, most participants will lose their money

Question 7

what is a contract

Answer 7

A legally enforceable agreement between 2+ parties. The contact outlines the details of the agreement and the rights and responsibilities (obligations) of each party.

Question 8

2 types of contracts:

Answer 8

• Verbal (oral) contracts are legally recognized are most common but insecure
• Written contracts are more formal and reliable. As such they are preferred for large sums for money (i.e. buying a house)

Question 9

Features of a contract

Answer 9

Offer, acceptance, consideration

Question 10

consumer rights

Answer 10

safe products, accurate product information, full disclosure of terms and sale, consumer guarantees and warranties

Question 11

what is the Australian consumer law

Answer 11

protects consumers against- misleading advertising, unconscionable conduct,

Question 12

what are the customer guarantees for goods?

Answer 12

• acceptable quality,
• fit for purpuse,
• match description
• comply with any warranty
• legally owned (by seller)
• spare parts available

Question 13

what are the customer guarantees for services

Answer 13

• fit for purpose
• provided with skill and care
• provided within a reasonable time

Question 14

NSW Fair Trading is the State government consumer body and is responsible for

Answer 14

• Assisting consumers with complaints
• Ensuring products meet Australian safety standards
• Ensuring seller measuring devices are accurate (scales, scanner, petrol pumps, etc)
• Warning the community about scams and rip-offs

Question 15

define Financial management

Answer 15

Planning and managing personal financial activities such as your income, spending, saving and investing

Question 16

Causes of debt for young people:

Answer 16

• Mobile phone bills
• Credit card debt
• Car loans
• Buy-now-pay-later services
• Payday loans

Question 17

Poor financial management may lead to

Answer 17

• Personal consequences
• Social consequences
• Legal consequences

Question 18

legal consequences of Poor financial management

Answer 18

court orders, bankruptcy, repossession, garnishee order

Question 19

pros to superannuation

Answer 19

PROS
forces people to start saving for retirement early
money is automatically deducted and invested
value of savings increases over time
allows you to maintain your lifestyle into old age

Question 20

cons to superannuation

Answer 20

CONS
Most people have to wait until they turn 60 until they can access their super
Super fund investments may lose value over time
The government does not guarantee the safety of super funds
Administration and management fees are charged by super funds