Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

LIBF Unit 2 > Topic 1 - Needs, Wants + Aspirations > Flashcards

Topic 1 - Needs, Wants + Aspirations Flashcards

1
Q

What are needs?

A
  • ‘must have’ items in order to survive
  • e.g. water, food + shelter
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What are wants?

A
  • optional ‘nice to have’ items
  • desirable not essential
  • e.g. jewellery, going cinema
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What are aspirations?

A
  • hopes for future
  • items/experiences ppl wish to have in medium/long term future
  • e.g. exotic holiday, sharing a flat w friends
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What causes needs + wants to change when growing older?

A
  • their lifestyle
  • the prevailing culture of society they live in
  • family size
  • ability to afford products
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What is the life cycle stage of a 0-2yr old?

A

Birth + infanthood

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What is the life cycle stage of a 2-5 yr old?

A

Childhood - preschool

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What is the life cycle stage of a 5-12 yr old?

A

Childhood - school

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What is the life cycle stage of a 13-19 yr old?

A

Teenager

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What is the life cycle stage of a 18-25 yr old?

A

Young adult

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What is the life cycle stage of a 26-40yr old?

A

Mature adult

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What is the life cycle stage of a 41-60 yrs old/55-65 yrs old?

A

Middle age to late middle age

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What is the life cycle stage of a 66+ yr old?

A

Old age/retirement

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What are the main types of financial product to satisfy medium + longer term needs, wants + aspirations?

A
  • MT + LT savings
  • investments
  • pensions
  • LT borrowing
  • insurance
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

What are medium + longer-term savings for?

A
  • to save over a longer period (> 3 yrs)
  • to cover future needs, wants + aspirations
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What are investments for?

A
  • saving for a longer-term want/aspiration
  • more risky than LT savings product but may bring a higher return
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What are pensions for?

A
  • save money in pension scheme for retirement
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

What are longer-term borrowing products for?

A
  • to finance a large purchase + pay back over a long period
  • e.g. a mortgage or a hire purchase
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

What is insurance for?

A
  • covering LT risks
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Why do ppl buy financial products?

A
  • enables ppl to satisfy their needs, wants + aspirations
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

What is the key internal factor that affects someone’s choices?

A
  • own personal set of values, beliefs + attitude
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

What are values?

A
  • general feelings or beliefs about desirable behaviour + goals
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

What 2 sig. functions do values fulfil in regard to buying financial products?

A
  • help ppl distinguish between what they consider as needs + wants, + to form aspirations
  • help ppl plan finances + decide between diff. alternatives
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

What are beliefs?

A
  • the way ppl think things are
  • more specific + detailed than values
  • can be religious but also inc.: free speech, fairness
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

What can beliefs influence?

A
  • the way ppl see financial services + the firms providing them
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

What are attitudes?

A
  • how, at a given time + place, ppl think + feel about another person, event or issue
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

What can attitudes be changed by?

A
  • circumstances
  • events
  • experience
  • advice
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

What do ppl’s perceptions represent?

A
  • their understanding of the wrld around them (physical surroundings + social envi.)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

Where do ppl get their perceptions from?

A
  • sensory inputs (sight, sound, smell, tough + taste)
  • non-sensory inputs
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

What do perceptions affect?

A
  • feelings ab. products
  • financial products that could help buy these products
  • banks + other financial institutions providing financial services
30
Q

What do preferences for particular products depend on?

A
  • personal values, beliefs + attitudes
31
Q

What is 1 way customers can express a preference about financial products?

A
  • by the distribution channel they choose to use (branch, by phone or online)
32
Q

What are major external factors influencing needs, wants + aspirations?

A
  • marketing + advertising
  • peer pressure
  • trends, fashion + role models
33
Q

What is marketing?

A
  • activities companies do to promote buying + selling of a product/service
  • inc. advertising, selling + delivering products to customers/businesses
34
Q

What can marketing be subdivided into?

A
  • promotion
  • public relations (PR)
35
Q

What is promotion?

A
  • paid for marketing activities, inc. advertising
36
Q

What are the aims of the activities included in promotion?

A
  • communicate w ppl
  • inform them of goods + services
  • persuade them to buy
37
Q

What is advertising?

A
  • used to inform customers about available products + persuade them to buy product
  • can carry explicit + implicit messages
38
Q

What types of media carry advertisements?

A
  • TV + radio (broadcast media)
  • newspapers + magazines (print media)
  • online (electronic + social media)
  • cinema
  • hoardings
  • posters + billboards
39
Q

What types of promotion may businesses use?

A
  • carrying out product trials
  • offering ‘money off’ coupons or ‘buy 1, get 1 free’ offers
  • running customer competitions
  • sponsoring teams/events + offering special credit terms
  • bank may offer cash back to customers choosing its credit card
40
Q

Why should ppl be careful when choosing a financial product?

A
  • always lots of ‘small print’: terms + conditions
  • sometimes bonus/discount only available in certain circumstances (may be misleading)
41
Q

What is public relations known as?

A
  • ‘below the line’ expenditure
42
Q

What is public relations (PR)?

A
  • advertising not paid for directly but keeps a business’s product in the public eye
43
Q

What are e.g. of PR?

A
  • businesses having an agreement w a celeb. to use their products/marketing merchandise at public events
  • feature a celeb. in its magazine/website
44
Q

What are the 2 other aspects of PR?

A
  • public placement
  • sponsorship
45
Q

What is public placement?

A
  • product appearing on a TV show/film
46
Q

What is a sponsorship?

A
  • business paying for a sporting/entertainment event/venture
47
Q

What do peers determine?

A
  • the acceptable behaviour within our particular group
48
Q

What do trends affect?

A
  • way ppl pay for goods + services (e.g. cards or cash)
  • ppl’s attitudes to saving
  • how ppl view using credit
49
Q

What is a major influence on attitude?

A
  • social networking sites (e.g. Facebook + twitter)
50
Q

What is culture about?

A
  • norms: behaviour + attitudes across social groups
51
Q

What does culture indicate?

A
  • what society considers to be acceptable + unacceptable
52
Q

What culture is strong in the UK?

A
  • home ownership
53
Q

Why is culture important?

A
  • influences what ppl consume + what financial services products ppl buy
54
Q

What is the feedback effect?

A
  • link between thoughts, feelings + behaviour, can be traced back to attitudes + so out personal values
55
Q

What is the feedback effect linked to?

A
  • expectations
56
Q

What does the feedback effect refer to?

A
  • ppl’s own attitudes mean they affect the outcomes of events
57
Q

What are financial examples of the feedback effect called?

A
  • expectations-led’ events
58
Q

What is a financial examples of the feedback effect?

A
  • if ppl expect a share price to fall, they’ll start to sell the shares: if enough ppl sell them, price falls
59
Q

What are some examples of how values can affect an individual’s thoughts, feeling, behaviour + decision-making?

A
  • ethical investing
  • managing finance
  • religious beliefs
60
Q

What is ethical investing?

A
  • someone choosing to save money to use on what that individual considers to be good purposes
61
Q

What are ethics?

A
  • set of ideas ab. what ppl think is right
62
Q

How can ppl manage their finance?

A
  • forward planning + budgeting
63
Q

What are financial choices affected by?

A
  • how well they feel they can manage the costs + consequences
  • a person’s attitude to risk + reward
64
Q

What is an example where religious beliefs affect financial decisions?

A
  • Islamic law prohibits payment of interest on debt: Muslims not allowed to borrow money via a western-type mortgage/loan
  • all major banks provide compliant financial products
65
Q

What are implications when someone purchases a financial services product?

A
  • responsibilities the customer must afford to meet their obligations
  • for a specified time period
66
Q

In the case of a medium/long-term loan why can a person not by certain they can afford to pay the money back?

A
  • their circumstances may change (lose job/become ill + unable to work)
67
Q

What are examples of when affordability needs to be considered?

A
  • buying insurance policies
  • in relation to saving
  • borrowing money
68
Q

What are most ppl’s attitude to risk?

A
  • some degree of risk tolerance, but also limit risk they’re exposed to
69
Q

What are the 2 extremes of attitudes to risk?

A
  • risk tolerant
  • risk adverse
70
Q

How do ppl who are risk tolerant act?

A
  • find it exciting to take risks
  • engage in hazardous activities + don’t insure anything
71
Q

How do ppl who are risk adverse act?

A
  • cautious, avoid risky situations + take precautions in situations they can’t avoid

LIBF Unit 2 (10 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions