Commerce Half Yearly Flashcards
(95 cards)
1
Q
Define ‘consumer’ in the context of commerce.
A
Someone who purchases goods and services to satisfy needs and wants
2
Q
What does ‘disposable income’ refer to?
A
Income available after taxes
3
Q
What is the definition of ‘goods’?
A
Items that you can see or touch
4
Q
What is ‘barter’?
A
The swapping or exchanging of one good for another
5
Q
True or False: ‘Impulse buying’ is the act of buying something after careful consideration.
A
False
6
Q
What is the purpose of the Competition and Consumer Act 2010?
A
To protect consumers through legislation
7
Q
What are some factors influencing consumer and financial decisions? Name three.
A
- Advertising/Marketing * Age * Convenience
8
Q
What is ‘redress’ in the context of consumer protection?
A
To set right
9
Q
Fill in the blank: ‘A _______ is a legally binding agreement.’
A
contract
10
Q
What is the role of ‘customer service’ in consumer decisions?
A
It can influence repeat business and customer loyalty.
11
Q
What is ‘merchantable quality’?
A
An acceptable quality in keeping with a product’s price
12
Q
What does ‘EFTPOS’ stand for?
A
Electronic funds transfer at point of sale
13
Q
What is ‘comparison shopping’?
A
Contacting multiple sellers to obtain the best deal
14
Q
List two advantages of using cash as a payment method.
A
- Accepted almost everywhere * Lack of hidden costs
15
Q
What are some consequences of poor financial management? Name two.
A
- Excessive debt * Impact on wellbeing
16
Q
True or False: ‘Scams’ refer to legal business practices.
A
False
17
Q
What is a ‘wholesaler’?
A
Buys goods in large quantities from the manufacturer
18
Q
Define ‘acceptance’ in the context of contracts.
A
When the offeree agrees to the proposal
19
Q
What does ‘Caveat emptor’ mean?
A
Let the buyer beware
20
Q
What is the significance of ‘long-term financial strategies’?
A
They are important for financial stability, such as superannuation.
21
Q
Describe one current issue affecting consumer decisions.
A
Housing affordability and its impact on savings
22
Q
What does ‘mail order’ refer to?
A
A system of shopping where consumers order products through the mail
23
Q
What is the difference between ‘retailers’ and ‘manufacturers’?
A
Manufacturers make goods; retailers sell products directly to consumers.
24
Q
What are the advantages of using a credit card?
A
- Avoid carrying cash * Helps build credit history
25
Fill in the blank: 'The _______ is the financial institution that provides cheque account facilities.'
drawee
26
What does 'interest' refer to when borrowing money?
The extra money you have to pay back
27
List three types of non-store retail methods.
* Mail order * Telemarketing * Internet shopping
28
What is the main benefit of using budgeting tools?
To avoid overcommitment and manage finances effectively
29
How does social media influence consumer behavior?
It introduces trends and increases awareness of products.
30
What is 'service' in the context of commerce?
Things done for you by others
31
What is a 'scam'?
An illegal business practice
32
What is 'pay by lay-by'?
Making a deposit on a purchase and paying installments
33
What is a prepaid card?
A card loaded with a specific amount of money that can be used for purchases
## Footnote
Prepaid cards can be reloadable or one-time use.
34
List advantages of prepaid cards.
* Controls spending
* Doesn’t require a bank account
## Footnote
Prepaid cards are often used to manage finances without the need for traditional banking.
35
What are some disadvantages of prepaid cards?
* Limited value
* May charge fees
* Not accepted everywhere
## Footnote
These limitations can affect the usability of prepaid cards in various transactions.
36
What is lay-by?
A payment method where a deposit is made on a purchase and regular installments are paid until the item is fully paid off
## Footnote
Lay-by is commonly used for larger purchases like furniture or electronics.
37
List advantages of lay-by.
* Cheaper than credit card (no interest)
## Footnote
This can make lay-by an appealing option for consumers looking to avoid debt.
38
What are some disadvantages of lay-by?
* Cancellation fee
* Missing payments results in a bad credit score
## Footnote
These issues can arise if the consumer is unable to keep up with payments.
39
When is cash preferred over cashless payments?
* Small businesses
* Places with poor internet or no card facilities
## Footnote
Cash can be more practical in certain situations, especially in rural areas.
40
What are the advantages of cashless payments?
* Convenient and fast
* Easy to track expenditures
* Proof of purchase without a receipt
## Footnote
Cashless payments are often preferred in urban settings and for online transactions.
41
Define 'credit'.
Using borrowed money to make purchases that will be paid back later, usually with interest
## Footnote
Credit can be obtained through loans, credit cards, and buy-now-pay-later services.
42
What is a credit card?
A card that allows you to borrow up to a limit to make purchases, requiring at least a minimum repayment each month
## Footnote
Interest is charged on any remaining balance not paid in full.
43
What are personal loans?
A set amount of money borrowed with a fixed repayment plan over time
## Footnote
They are typically used for larger purchases like cars or home appliances.
44
What is 'Buy Now, Pay Later'?
A service that lets you split a purchase into interest-free installments
## Footnote
While convenient, late payments may incur fees.
45
What is an overdraft facility?
A bank account feature that allows you to spend more than you have, up to a limit, usually with interest or fees
## Footnote
This can provide short-term financial relief but may lead to debt.
46
List advantages of using credit.
* Buy things without immediate cash
* Useful in emergencies
* Can build credit history
* May offer rewards
## Footnote
These benefits can enhance a consumer's financial flexibility.
47
What are some disadvantages of using credit?
* Can lead to debt if not managed
* Interest charges increase total cost
* Late payments affect credit score
* Encourages overspending
## Footnote
Proper management is crucial to avoid negative consequences.
48
What is excessive debt?
Borrowed money that must be repaid with interest, leading to personal, social, and legal issues
## Footnote
It can result in stress, repossession, or even bankruptcy.
49
What are fixed expenses?
Expenses that are the same amount every time, such as rent or mobile phone plans
## Footnote
They are predictable and easier to budget for.
50
What are variable expenses?
Expenses that change over time, such as entertainment or clothing purchases
## Footnote
These can fluctuate based on personal choices.
51
What is superannuation?
A compulsory savings system that allows individuals to save a percentage of their earned income for retirement
## Footnote
The super rate will increase to 12% in July 2025.
52
What is a budget?
A plan for income and spending that includes goods and services, debt, and savings
## Footnote
Budgets help manage finances effectively.
53
What can consumers do if they experience difficulty repaying loans?
Apply for a hardship variation by contacting the loan provider and explaining the situation
## Footnote
This can lead to options like extending the loan period or postponing payments.
54
What is the role of ASIC?
Australian Securites and Investment Commission
To protect consumers in areas such as consumer credit, investment, and superannuation, reducing fraud
## Footnote
ASIC provides information and oversight for financial products.
55
What are the four basic rights of a consumer?
* Safe products
* Accurate product information
* Full disclosure on terms of sale
* Consumer guarantees
## Footnote
These rights are essential for consumer protection.
56
What is the Australian Consumer Law (ACL)?
A national law introduced in 2011 that replaced 17 existing laws, providing uniform consumer rights across Australia
## Footnote
The ACL enhances consumer protection and simplifies regulations.
57
What constitutes an unconscionable act?
Any unreasonable practice such as scams or misleading advertising
## Footnote
Such acts are prohibited under the Competition and Consumer Act.
58
What are consumer guarantees?
Automatic rights that ensure goods and services are fit for purpose and match their descriptions
## Footnote
These guarantees protect consumers from faulty products.
59
What is 'caveat emptor'?
A legal term meaning 'let the buyer beware', indicating that consumers accept most of the risk in purchases
## Footnote
Sellers are not required to disclose all information about the goods.
60
What is a pyramid scheme?
A scam where participants pay to join and recruit others, promising rewards for new members
## Footnote
Most participants ultimately lose money.
61
What is bait and switch advertising?
An advertising tactic that promotes low-priced items to attract customers, then redirects them to more expensive products
## Footnote
This practice is considered misleading and unethical.
62
What is referral selling?
An illegal technique that offers consumers a discount or commission for referring others to buy a product
## Footnote
This practice is often deceptive and may not deliver promised rewards.
63
What should consumers do if they receive unordered goods?
They are not legally obligated to pay for items they did not order
## Footnote
Consumers should report such incidents to relevant authorities.
64
What is a get-rich-quick scheme?
A scam that promises quick financial gain, often requiring personal information or upfront fees
## Footnote
These schemes are usually fraudulent and exploitative.
65
What is a return fee?
A fee involved in returning a product for a refund or exchange.
## Footnote
Often applied by retailers to cover processing costs.
66
What is a prize coupon?
A coupon that you scratch to win a mystery prize, contingent on purchasing a certain number of goods.
67
What is a Get Rich Quick Scheme?
An offer to participate in transferring money from another country for a percentage, requiring bank account details.
## Footnote
Often a scam to steal personal funds.
68
Define 'Consumer'.
Someone who purchases goods and services to satisfy needs and wants.
69
What are 'Goods'?
Items that one can touch and own, e.g. clothes, cosmetics.
70
Define 'Services'.
Things that a person will do for someone in return for payment, e.g. hairdressers, doctors.
71
What is 'Enterprise'?
The entrepreneurial spirit required to select and organise factors of production to create a business.
72
What is a 'Wholesaler'?
A business that buys goods in large quantities from manufacturers.
73
What is a 'Retailer'?
A business that sells products directly to consumers.
74
What is Product Differentiation?
How a business makes its product unique or stand out from competitor products.
75
List types of Product Differentiation.
* Physical features
* Service-based differentiation
* Perceived differentiation
76
Give an example of Physical features differentiation.
Dyson vacuum's unique design and powerful suction.
77
What is Service-based differentiation?
Differences in customer service, delivery, warranties, or support.
78
What does Perceived differentiation involve?
Branding and reputation.
79
How do social considerations affect the selling process?
Businesses have social responsibilities, and consumers may refuse to buy from unethical companies.
80
What is Corporate Social Responsibility?
Steps taken by managers to ensure broader social welfare of employees, customers, suppliers, and the environment.
81
How can environmental concerns affect businesses?
Pollution may lead to losing customers who are concerned with environmental issues.
82
What is Green Marketing?
Selling products based on their environmental benefits.
83
What must businesses do to be considered environmentally friendly?
* Product modification
* Changes to the production process
* Change to packaging
* Modified advertising practices
84
What is Ethical consumerism?
Consumers actively purchasing brands that do not exploit employees, producers, or the environment.
85
What are appropriate target markets for products?
Demographics with a clear desire or need, ability to afford, easy access, and compatibility with lifestyle.
86
How do businesses target young people in promotions?
* Use of social media and influencers
* Trendy language
* Discounts and freebies
87
What is Bait Advertising?
Advertising a product at a low price that is not available when the customer goes to purchase.
88
What is Unfair Competition?
Copying a brand's advertising, creating confusion between products.
89
What is the Competition and Consumer Act 2010?
Prevents misleading information and undesirable practices in advertising.
90
What are privacy violations in advertising?
Tracking consumer data without clear consent, potentially breaching privacy.
91
What is the ethical issue with targeting vulnerable groups?
Advertising junk food to children is morally questionable due to rising obesity.
92
What does cultural insensitivity in advertising refer to?
Using offensive imagery and stereotypes in marketing.
93
What is the role of the Advertising Standard Bureau (ASB)?
Handles complaints about discrimination, violence, language, and health in advertising.
94
True or False: False or misleading advertising is legal.
False.
95
Fill in the blank: '_____ advertising' is when a product is advertised at a low price but not available.
Bait
