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Commerce > Nature of Commerce, Consumer Protection, Consumer and Financial Decisions > Flashcards

Nature of Commerce, Consumer Protection, Consumer and Financial Decisions Flashcards

Commerce (67 cards)

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1
Q

What is commerce?

A

Commerce is the activity of buying and selling things.

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2
Q

What knowledge and understanding do students develop in the study of Commerce?

A

Knowledge and understanding of consumers, financial, economic, business, legal, political, and employment matters.

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3
Q

What skills are developed through the study of Commerce?

A

Decision-making, problem-solving, planning, research, and communication skills.

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4
Q

What are the two main types of purchases consumers can make?

A

Goods and services.

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5
Q

Define ‘consumer’.

A

A consumer is someone who purchases goods and services to satisfy their needs and wants.

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6
Q

What are goods?

A

Goods are things that are produced and can be physically touched.

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7
Q

What is the difference between durable and non-durable goods?

A

Durable goods can be used many times; non-durable goods can be used only once.

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8
Q

Give an example of a durable good.

A

A car or a television.

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9
Q

Give an example of a non-durable good.

A

A sandwich or a litre of petrol.

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10
Q

What are services?

A

Services are things that one person will do for someone in return for payment.

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11
Q

What are needs?

A

Needs are essential items for survival, such as food, clothing, and shelter.

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12
Q

What are wants?

A

Wants are things we like to have, such as a car or a phone.

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13
Q

What is opportunity cost?

A

What an individual gives up in order to satisfy a need or want.

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14
Q

What is an example of opportunity cost?

A

Jack’s opportunity cost of buying a car instead of a video game.

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15
Q

What are the four types of resources used by producers?

A

Land, labour, capital, and enterprise.

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16
Q

Define ‘land’ in the context of resources.

A

Natural resources such as forests, coal, and fertile soil.

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17
Q

Define ‘labour’ in the context of resources.

A

The physical and mental effort of people who are working.

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18
Q

Define ‘capital’ in the context of resources.

A

Goods used to make other goods.

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19
Q

Define ‘enterprise’ in the context of resources.

A

The ability to combine land, labour, and capital to earn a profit.

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20
Q

What does it mean when resources are scarce?

A

Resources are limited or scarce and can become overutilised.

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21
Q

True or False: Overfishing can lead to the scarcity of certain fish species.

A

True.

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22
Q
A
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23
Q

What are the key factors affecting consumer and financial decisions?

A
  1. Customer service
  2. Price
  3. Convenience
  4. Marketing and advertising
  5. Gender
  6. Age
  7. Disposable income
  8. Environmental considerations
  9. Social media
  10. Cultural factors
  11. Quality

These factors influence individual purchasing behavior and financial decisions.

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24
Q

What role does customer service play in consumer decisions?

A

Good pre-sales and after-sales service makes customers feel valued, encouraging repeat purchases. Poor service can deter future buying.

Customer service greatly impacts consumer loyalty.

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25
How does price influence consumer decisions?
Price is often one of the first considerations for consumers. If a product's price exceeds what a consumer can afford, they are unlikely to buy it. ## Footnote The Competition and Consumer Act 2010 facilitates price comparisons.
26
What is convenience in the context of consumer decisions?
Convenience relates to hassle-free shopping, including factors like travel time, store location, shopping hours, and online shopping access. ## Footnote Convenience is increasingly important in today’s fast-paced lifestyle.
27
How does marketing and advertising affect consumer choices?
Consumers are exposed to approximately 500 marketing strategies daily, which can influence their perception of need for new products. ## Footnote Successful marketing campaigns significantly impact consumer behavior.
28
In what ways does gender influence consumer purchasing?
Gender affects types of purchases, such as females typically spending more on cosmetics compared to males. ## Footnote Gender-based marketing strategies can target specific consumer groups.
29
Why is age a factor in consumer behavior?
A consumer's wants evolve with age, changing from toys in childhood to technology in adolescence. ## Footnote Different age groups have distinct purchasing preferences.
30
What is disposable income and how does it influence purchases?
Disposable income is the amount of income available for spending after taxes. It determines the types of products consumers can afford. ## Footnote Higher disposable income generally allows for more discretionary spending.
31
How do environmental considerations affect consumer choices?
Consumers are increasingly aware of environmental issues, leading to preferences for products with minimal or recyclable packaging. ## Footnote Environmental awareness can influence brand loyalty and purchasing decisions.
32
What is the impact of social media on consumer purchasing decisions?
Social media enables influencers to promote products, significantly affecting followers' buying choices. ## Footnote Platforms like Instagram and Facebook are key marketing tools.
33
Define cultural factors in consumer behavior.
Cultural factors consist of values, perceptions, and behaviors learned from family and community, shaping individual consumer choices. ## Footnote Cultural upbringing plays a crucial role in consumer habits.
34
What does quality mean in the context of consumer goods?
Quality refers to a product being free from defects and performing as expected. A quality service compares customer expectations with actual performance. ## Footnote Quality assurance is vital for consumer satisfaction.
35
What is comparison shopping?
Comparison shopping involves evaluating prices, quality, and services across multiple retailers or e-tailers to find the best deal. ## Footnote This practice helps consumers make informed purchasing decisions.
36
List the advantages of comparison shopping.
1. Better prices 2. Improved product knowledge 3. Enhanced bargaining position 4. Avoiding inferior quality items ## Footnote Comparison shopping can lead to significant savings.
37
What is the difference between a manufacturer, wholesaler, and retailer?
A manufacturer produces goods, a wholesaler buys in bulk and sells to retailers, and a retailer sells directly to consumers. ## Footnote Understanding the supply chain is essential for consumers.
38
What are the main advantages of online shopping?
1. Wide range of sources 2. Convenience of comparison shopping 3. Potentially lower prices 4. Quick delivery 5. Mobile shopping ease ## Footnote Online shopping has transformed consumer behavior.
39
What are some disadvantages of online shopping?
1. Non-permanent websites 2. Potential delivery charges 3. Complicated returns 4. Security risks with personal information 5. Scams and fraud ## Footnote Consumers must be cautious when shopping online.
40
What payment options are commonly available to consumers?
1. Cash 2. Credit 3. Debit 4. Mobile payments 5. Buy now, pay later services ## Footnote Each payment method has its own advantages and disadvantages.
41
What are the advantages of using cash as a payment option?
1. Universally accepted 2. No hidden costs 3. Reduced risk of debt 4. Discounts may be offered for cash payments ## Footnote Cash transactions promote financial discipline.
42
What are the disadvantages of using cash?
1. Easily lost or stolen 2. Inconvenient to carry in large amounts 3. Limited purchasing ability without ATMs ## Footnote Consumers often prefer electronic payments for larger purchases.
43
What are the advantages of using credit cards?
1. Convenient for online purchases 2. Helps build credit history 3. Allows immediate purchases 4. Potential for rewards ## Footnote Responsible credit card use can enhance financial flexibility.
44
What are the disadvantages of using credit cards?
1. Risk of overspending 2. Higher costs compared to other credit forms 3. Potential for debt accumulation ## Footnote Users must manage credit wisely to avoid financial pitfalls.
45
What is a credit card?
A credit card allows you to borrow money to make purchases, requiring repayment before the end of the interest-free period. ## Footnote Usually one month.
46
List the main advantages of credit cards.
* Avoid carrying large amounts of cash * Convenient for online and telephone purchases * Help establish a good credit history * Offer cheap use of funds if the balance is paid in full
47
List the main disadvantages of credit cards.
* Easy to overspend and accumulate debt * More expensive than other credit forms like personal loans * Can damage credit rating with late payments
48
What are store credit cards?
Store credit cards are issued by large stores or retail groups, offering special deals and rewards but often have higher interest rates and fewer interest-free days than regular credit cards.
49
What is PayPal?
PayPal is an online payment intermediary that allows transactions using credit cards, bank accounts, or stored PayPal funds, known for its security and dispute resolution.
50
How does a debit card differ from a credit card?
A debit card uses your own money from your account, while a credit card allows you to borrow money and incur interest.
51
What does EFTPOS stand for?
EFTPOS stands for electronic funds transfer at point of sale.
52
What is BPAY?
BPAY is an electronic payment method allowing funds to be transferred from a bank account to a business account using the internet or phone.
53
Define a cheque.
A cheque is a written order directing a financial institution to pay a specific amount to a named payee.
54
Who is the drawee in a cheque transaction?
The drawee is the financial institution that pays the cheque.
55
Who is the payee in a cheque transaction?
The payee is the person or entity receiving the payment.
56
What is the drawer of a cheque?
The drawer is the person authorizing the cheque transaction.
57
List the main advantages of using cheques.
* Safer than carrying cash * Can be posted securely * Only named recipients can cash the cheque
58
List the main disadvantages of using cheques.
* Not accepted everywhere * Processing and clearing take time * Bank charges may apply
59
What is direct debit?
Direct debit is a payment method where funds are automatically withdrawn from a bank account to pay bills.
60
List the main advantages of direct debit.
* Convenient method for payments * Prevents forgetting payments and incurring late fees * Can be set up and terminated via internet banking
61
List the main disadvantages of direct debit.
* Must ensure sufficient funds to avoid payment refusal * May incur charges for insufficient funds * Limited control over bill verification
62
What is lay-by?
Lay-by is a payment method where a deposit is made, and the item is reserved until the total amount is paid off.
63
What is book-up?
Book-up is credit provided by a retailer allowing customers to purchase goods on credit and pay later, often used by tradespeople.
64
What is Afterpay?
Afterpay is a digital service enabling consumers to 'buy now, pay later' by paying for purchases in four equal installments.
65
List the main advantages of Afterpay.
* Instant online approval * No application or annual fees if paid on time * Immediate receipt of goods or services
66
List the main disadvantages of Afterpay.
* Significant fees for missed payments * $10 late fee per missed payment and an additional $7 if unpaid within seven days
67

Commerce (1 decks)

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