Commerce
What is a 'consumer'?
Someone who purchases goods and services to satisfy needs and wants
What may influence your decision when purchasing a new phone? Give 3 reasons.
- Brand
- Price
- Marketing/advertising
- In-store browsing
- Online shopping
- Catalogues/newspapers
- Word of mouth
What is ONE benefit of doing online shopping?
Allows you to comparison shop (reduces chance of impulse buying), convenience for people who are time poor, cheaper prices.
Name 5 payment methods
- EFTPOS
- Gift cards
- Cards (credit/debit cards)
- Crypto
- BPay
- Online transfers
- Cash
Why do we need consumer protection?
Keeps us safe from scams/ripoffs, makes sure consumers are treated justly and honestly, to ensure we have access to safe and good quality goods/services.
What is the latin term for 'Let the Buyer Beware'?
Caveat Emptor
What is a 'budget'?
An estimate of income and expenditure for a set period of time.
Why is commerce important to learn about?
- To make wise decisions about money
- To know how products are created...
etc.
How can social media influence your consumer decisions?
- Advertisements (especially targeted advertisements)
- Branding
- Influencers & sponsorships
Define: comparison shopping
Contacting (through the Internet or in person) a number of sellers to obtain the best deal.
What is a retail outlet?
It is a physical store where buyers and sellers come together in a marketplace and products are exchanged for money.
What is an advantage AND disadvantage of using cash?
Advantage: easy for making smaller purchases, especially if you have change
Disadvantage: contact (COVID), receiving change, harder for expensive purchases
What are the common false and misleading advertising techniques? OR give TWO examples of false and misleading advertising.
Bait and switch, misleading advertising
What are two organisation for consumer redress?
NSW Fair Trading and NSW Civil and Administrative Tribunal.
How can budgets be useful to us? Give an example.
- Helps us keep track of our expenses
- Know how much we can spend
- Keep track of how much we can save.
E.g. just got a new job, being able to save up to buy a new phone.
Define: Commerce
The buying and selling of goods and services between individuals and businesses.
Define: consumer decisions
Choices people make when buying goods and services to satisfy their needs and wants.
Why do the same items often cost different amounts at different stores?
- Supply: some stores might get their items cheaper than others (e.g. at wholesale vs. retail)
- More expensive: hoping customers might be lazy and not shop around.
- Deals/sales to try to get more customers, but losing some profit
Name three different types of retail outlets and give examples of these.
Convenience store (7/11), Department (Myer), Supermarket (Woolworths), Specialty, discount variety, factory outlets
What is a disadvantage of debit cards?
the money will be taken out and ensure your account always has enough funds to cover the payments.
What is the difference between referral selling and unsolicited goods?
Referral selling - This illegal technique offers the consumer a ‘special deal’ if she or he buys the product and then supplies the names of potential customers to the trader.
Unsolicited goods - This practice involves sending unordered goods through the mail and then demanding payment for them.
What is a consumer warranty?
Consumer warranty is given to a product when purchased that can be refunded, repaired or replaced if necessary.
What are the steps to make a budget?
STEP 1 Calculate your total income
STEP 2 Record your expenses
STEP 3 Total your expenses
STEP 4 Compare your total income with your total expenditure
STEP 5 Assess your financial position
What is the difference between a 'need' and a 'want'?
Give 1 example of each.
Needs: Goods essential to our survival such as food, water, clothing and shelter
Wants: Luxury or non-essential items such as holidays, designer clothes
Name all the key factors affecting consumer and financial decisions.
Customer service, price, convenience, marketing and advertising, gender, age, disposable income, environmental considerations, social media, cultural factors.
What was the most important thing you learnt about comparison shopping?
- Always shop around for the best deal
- Making sure what you want fits the price.
What is the difference between a factory outlet and a specialty store?
Specialty stores sell specific products or services and the advantage is that they provide knowledgeable service. Factory outlets are where goods are sold at a discount price.
What is one ADVANTAGE and one DISADVANTAGE of using 'buy now, pay later' services?
Advantage: you don't need to have the money right now to buy things
Disadvantage: harder to control spending, more likely to go over budget
Explain the features of a simple contract.
Offer - a proposal
Acceptance - agrees to the proposal
Consideration - Agreement to give up something in value
How does the state government provide assistance for consumers?
New South Wales Fair Trading is the state consumer protection agency. It provides information and assistance to all consumers on areas such as consumer issues, shopping on the internet, home building and motor vehicle sales. The department has the responsibility for:
• assisting consumers to resolve their complaints
• checking that products meet Australian safety standards
• ensuring that scales, scanners and petrol pumps used to weigh and price products are correct
• warning the community about dubious business practices such as scams and rip-offs.
What are THREE personal and social consequences of excessive debt?
Personal: These can include being unable to satisfy one’s own needs (for example, food and shelter) or wants (entertainment costs or ongoing costs of a smart phone); inability to maintain lifestyle choices (such as living arrangements, hobbies and leisure activities); feelings of self-doubt or regret; stress at home, school or work; physical, mental and emotional illness; repossession of personal property (for example, car or home); accumulation of excessive debt (money owing); or even bankruptcy.
• Social: Consequences in this area include relationship tensions or breakdown (for example, between friends, family or co-workers); social isolation through an inability to afford the cost of social activities (such as going out to dinner, getting together for coffee, going to movies, bands or events, or gym membership); inability to holiday, travel or invest with others.
What is 'scarcity'? Give 1 example of a 'scarce' item.
Something that is in short supply.
E.g. PS5s when they first released, fruits/veg due to natural disasters, diamonds, etc.
Would your consumer decisions be the same as everyone else's? Why/why not? Provide an example.
No. Everyone is different.
E.g. age, preferences, gender, geographical location.
Give ONE benefit for each of the following: Buying locally, regionally, interstate and globally.
Locally - Convenient
Regionally - More options with department stores and supermarkets, E.g Westfields
Interstate - Access to Australian-made goods
Globally - Access to cheaper prices, more vareity
How has technology impacted the way we make payments?
- Cashless, easier to Tap and Go
- More convenient, access funds ASAP
Why are contracts important? Are contracts verbal, written or both?
A contract is a legally enforceable agreement between two or more persons or parties. The contract outlines the details of the agreement and the rights and responsibilities (obligations) of each of the parties.
Contracts can be both written and oral
• are of acceptable quality
• are fit for purpose (suitable for that which they are being sold)
• match the description, sample or demonstration model
• comply with any express warranty. A warranty is a voluntary promise made by a manufacturer or supplier about the goods.
• are legally owned by the seller without any charges (money owing on them)
• have spare parts reasonably available.
How can debt impact on wellbeing?
Financial and psychological stress
Sleeping difficulties
Tiredness
A durable good is one that can be used many times, such as a car or television. Non-durable goods are those that can be used only once, such as a sandwich or a litre of petrol.
What is store credit? Give an example of when you might be able to get store credit.
Store Credit is money that you can use to spend towards a store. Usually, if it is a change of mind, they will allow you to get store credit instead of a refund.
What does ACCC stand for, who are they, and what law do they enforce?
Australian Competition and Consumer Commission, they are the regulator and they make sure that businesses are doing the right thing by protecting consumers from things such as misleading and deceptive advertising. They enforce the Competition and Consumer Act 2010 (Cwlth).
What is superannuation? Why is it important?
Superannuation is a saving scheme, where in Australia, money is automatically put aside when people work. However, people can voluntarily put money into their superannuation account.
This is important to ensure people can live a good lifestyle after retirement and have enough funds to meet their needs and wants.
What is opportunity cost? Provide an example and explain what the opportunity cost is.
Opportunity cost is when an individual gives up something in order to satisfy a need or want. I have $20. I spend it on watching the Barbie Movie instead of saving for a new laptop. The opportunity cost of watching the Barbie Movie is the new laptop.
Consumers have four basic rights - Safe products, Accurate product information and descriptions, Full disclosure of the terms of sale, Consumer guarantees and warranties
Responsibilities include paying the correct amount, purchasing goods and services from ethical and legal sources, using the products in an environmentally friendly manner and accepting most of the risk when they purchase something.