lesson 3 - consumer decisions (what and where to buy)

Question 1

what are the two types of expenses?

Answer 1

fixed and variable

Question 2

what are fixed expenses?

Answer 2

reasonably fixed and don’t change (e.g., rent, utility bills, loan repayments)

Question 3

what are variable expenses?

Answer 3

short-term choice expenses (e.g., groceries, clothing)

Question 4

what is impulse buying?

Answer 4

buying something that you weren’t planning on buying due to impulse

Question 5

list the 8 tips for comparison shopping

Answer 5

1. think carefully about what you want
2. shop around for the best deal
3. investigate the product’s features
4. decide beforehand how you want to pay
5. check the refunds and returns policy
6. do not sign anything you do not understand or a blank form
7. compare after-sales service and guarantees
8. keep all receipts and invoices

Question 6

what are generic products?

Answer 6

• contain no brand name
• generally cheaper
• generally of acceptable quality
• supermarkets/pharmacies tend to have a line of generic products as an alternative to stocked brands

Question 7

what is the manufacture price?

Answer 7

the price at which wholesalers purchase products

Question 8

what is the wholesale price?

Answer 8

the price at which retailers purchase products

Question 9

what is the recommended retail price?

Answer 9

normal selling price at which the store sells it

Question 10

what is a discount price?

Answer 10

any price below the recommended retail price

Question 11

what are the different types of retail outlets?

Answer 11

• convenience store
• specialty store
• department store
• discount variety store

Question 12

convenience store

Answer 12

• small range, higher prices, quick access

Question 13

speciality store

Answer 13

• focus on one product type, expert service

Question 14

department store

Answer 14

• wide variety, moderate prices, some service

Question 15

discount variety store

Answer 15

• cheap, large range, minimal service

Question 16

advantages of convenience store

Answer 16

• easy to access
• large variety of necessities
• open long hours

Question 17

disadvantages of convenience stores

Answer 17

• more expensive
• small range of products

Question 18

advantages of speciality stores

Answer 18

• customer service
• wide range of particular products
• specialised knowledge

Question 19

disadvantages of speciality stores

Answer 19

• expensive
• less convenient

Question 20

advantages of department stores

Answer 20

• customer service
• specialised knowledge
• range of products

Question 21

disadvantages of department stores

Answer 21

• more expensive
• big stores

Question 22

advantages of discount variety stores

Answer 22

• range of products
• cheaper

Question 23

disadvantages of discount variety stores

Answer 23

• lower quality
• less customer service

Question 24

advantages of factory outlets

Answer 24

• cheaper

Question 25

disadvantages of factory outlets

Answer 25

- inconvenient - less customer service - less available stock - high demand/busy