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Commerce > Consumers Choice > Flashcards

Consumers Choice Flashcards

0
Q

Want

A

An item that is not essential for survival; it is something somebody desires.

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1
Q

Need

A

An item that is necessary for a person’s survival.

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2
Q

Good

A

An item that can be purchased by a consumer; is tangible.

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3
Q

Service

A

An act performed for a consumer; intangible

E.g hairdresser

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4
Q

Individual good

A

An item that is solely for personal use

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5
Q

Complementary good

A

Something you need to purchase so an original good can function.

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6
Q

Collective good

A

An item or good that is used by the community.

E.g: public pool

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7
Q

Single-use good

A

A good that can be used only once, if it is used it no longer exists.

E.g: perfume, petrol

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8
Q

Disposable-use good

A

A good that is used now and once used is not used again.
Sometimes they are used again in the home.

E.g: milkshake container, plastic bag

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9
Q

Durable-use good

A

Goods that have a very long life and can be used many times.

E.g: washing machine, fridge

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10
Q

Convenience goods

A

Goods that save us time and effort. They are normally more expensive than regular goods.

E.g: pre cut mushrooms

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11
Q

Planned obsolescence

A

A policy of planning or designing a product with an artificially limited useful life. This makes the consumer have to purchase more products.

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12
Q

Opportunity cost

A

It is the sacrifice involved in choosing to satisfy one want rather that another.

E.g: choosing a holiday over a car. The car would be the opportunity cost.

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13
Q

Impulse buying

A

Buying something without thought as to whether you really needed the good.

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14
Q

Budget

A

A spending and saving plan

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15
Q

Standard of living

A

A person’s quality of life; a person’s economic, social and personal wellbeing.

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16
Q

Contract

A

An agreement between two parties

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17
Q

Liability

A

An individual’s or business’s financial responsibility for any losses.

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18
Q

Liquidity

A

Funds available for day to day spending

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19
Q

Franchise

A

Selling the rights to use a business name/image.

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20
Q

Slogan

A

Catchy statements which are easily remembered to help sell a product/service.

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21
Q

Jingle

A

A catchy song that is sung and is easily remembered

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22
Q

Informative advertising

A

Where consumers are informed of the facts only.

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23
Q

Persuasive advertising

A

Where the advertisement tries to influence the consumer into buying a product.

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24
Q

Advertising

A

When businesses tell consumers about their products in an attempt to increase sales

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25
Q

Subsistence economy

A

When all needs and wants are satisfied by the people themselves.

26
Q

Commercial economy

A

Where are needs and wants are satisfied indirectly through money.

27
Q

Barter

A

Exchanging goods for goods

28
Q

Interdependence

A

When people rely on each other to satisfy their wants

29
Q

Why do our wants change?

A

We grow up and mature, our responsibilities change and society’s influences determine what we want.

30
Q

What are the four characteristics of wants?

A
  • UNLIMITED: no person is ever satisfied.
  • COMPLEMENTARY: when one want requires another
  • CONSTANTLY CHANGING: as a result of technology, advertising, age
  • SUBSTITUTES WANTS: when a want can be exchanged for another good/service.
31
Q

Income

A

Money received on a regular basis from work, property, business, investment or welfare.

32
Q

Merchantable quality

A

Being of an acceptable quality in keeping with the price that you must pay for the good.

33
Q

How do businesses encourage impulse buying?

A
  • excess packaging
  • technical language/jargon
  • planned obsolescence
  • advertising
34
Q

What are some techniques used in the supermarket to encourage consumers?

A
  • strategically placed items
  • shelves at eye level
  • staple items at the back
  • radio station to advertise specials
  • lighting to make the food look better
35
Q

Disposable income

A

The money a person has available after doing all their taxes/important. This money is for purchasing goods

36
Q

Discretionary income

A

Individual income that is not allocated for necessary items like food and shelter.

37
Q

What are words to describe a passive consumer?

A

Quiet, easily persuaded, indecisive, naive, doesn’t really know what they want

38
Q

What are some words to describe an assertive consumer?

A

Smart, calm, confident, knows what they want, informed, knows their right, patient

39
Q

What are ways to describe an aggressive consumer?

A

Determined, over the top, stubborn, pushy, trying to get what they want, loud

40
Q

Manufacturers

A

Produce products for consumers

41
Q

Wholesalers

A

Buy large quantities of goods off manufacturers then sells small quantities to retailers for more than they paid.

42
Q

Retailer

A

Sells products directly to the consumer. They add costs and a profit so they get RRP

43
Q

What are the types of retail outlets?

A
  • convenience store
  • specialty store
  • department stores
  • discount variety stores
  • supermarkets
  • internet shopping
44
Q

What are the advantages of online shopping/mail order?

A

Increased range available and ability for comparison shopping. Also convenient.

45
Q

What are the disadvantages to online shopping/ mail order?

A

Tracing the seller if problems arise is difficult, supplying credit card detail can be risky

46
Q

Locally bought

A

Going to the local corner store or shopping arcade. Is convenient and may be more expensive.

47
Q

Regionally bought

A

Department stores, discount department stores and supermarkets are often in bigger shopping complexes.

48
Q

Interstate or globally bought

A

It may be necessary to buy from another state or country due to a product not being available in your local area.

49
Q

What are some key factors affecting consumer decisions?

A
  • finance
  • price
  • marketing
  • age and gender
  • convenience
  • customer service and warrants
  • environmental considerations
50
Q

Why do firms advertise their products/services?

A

To earn money and profits for their company, so that they can keep making products.

51
Q

Why do advertisers use mass media?

A

They use mass media because it takes the message to a greater number of people

52
Q

What are some forms of advertising?

A

Pamphlets, drink coasters, billboards, commercials, flyers.

53
Q

Why do firms hire advertising agencies?

A

Because they have more resources and people who know advertising. It is also easier for the firms.

54
Q

What is brand advertising?

A

When you stress certain features so that consumers think one product is better than others

55
Q

Why do whole industries advertise their products?

A

To increase sales in general, not just for a particular brand.

56
Q

Why do firms advertise to improve public image?

A

So that the country as a whole sees the benefits in the firm. This is usually after bad publicity.

57
Q

What are the advantages of advertising?

A
  • product reaches consumers quicker
  • potentially more sales
  • provides employment for people
58
Q

What are the disadvantages of advertising?

A
  • they aim to sell a brand, not overall product
  • uses up resources such as buildings
  • consumers get irritated by them
59
Q

What does the Media Council do?

A

They have rules to make sure that ads are in good taste, are not offensive and obey the laws

60
Q

What does the Broadcasting Control Board do?

A

It sets the max time in an hour that can be used for advertising

61
Q

What does the Federation of Australian Commercial Television Stations (FACTS) do?

A

They preview all ads that are shown on more than one station to make sure that are are decent and that they don’t go over the max ad time

62
Q

What does the Competition and Consumer Act 2010 do?

A

Make sure that the retailers are not giving you false prices, information or false info on the quality of the good/service.

Commerce (4 decks)

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