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Description
Flashcards by Alyssa Richards, updated more than 1 year ago
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Created by Alyssa Richards
almost 3 years ago
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| Question | Answer |
| What are durable goods & what do we expect of them? Provide examples | Goods that can be used many times e.g. car/television Come with a higher price expectation that they will last a long time |
| What are non-durable goods? Provide examples | Goods that can only be used once or don't last long. e.g. a sandwich or a litre of petrol or a plastic poncho |
| What is opportunity cost? Provide examples | Something that a consumer gives up in order to satisfy a need or want e.g. when choosing between buying 2 items to one the consumer didn't buy is the opportunity cost. |
| What questions are involved in opportunity cost? | What else could the consumer have bought with their money? Was there a tough choice between 2 options? |
| How are consumers' needs and wants satisfied? | Producers use resources to manufacture the goods and services consumers desire. |
| What are the 4 resources produces use to satisfy consumer needs and wants? Provide examples | 1. Land- naturally occurring resources e.g. forests or soil. 2. Labour- physical and mental effort of people working 3. Capital- goods used to make other goods e.g. tractors (production of crops) 4. Enterprise- combination of all other resources (land, labour & capital) to earn profit. |
| What does scarcity of resources mean? | That resources are scarce or limited |
| Why are resources scarce? Provide examples | They can be overutilized and become even more limited. e.g. fish are rare due to overfishing |
| How does customer service affect consumer decision making? ( 4 reasons) | * most consumers will return to a retailer if they get good service. * Poor service can have the opposite effect * makes a consumer feel valued * important as there are lots of businesses offering similar goods and services. |
| How does price affect consumer decision making? ( 3 reasons) | A major factor as: * If price is more than a consumer can afford, they are unlikely to buy it * Consumers want the best value for money * CCA 2010(promotes fair-trading/consumer protection), implemented per until pricing code for many goods |
| How does location/convenience affect consumer decision making? ( 2 reasons) | Includes travel time, number of retailers in one location, shopping hours: * consumers don't have a lot of time, and want a hassle free experience (influences when, where and what'll they'll buy) * online shopping/app purchases are considered convenient |
| How does Marketing affect consumer decision making? ( 3 reasons) | Marketing includes: ads, presentation, branding ect. Has a huge influence on consumer decisions: * influenced by the marketing of a product thinking they need a product * effective with continuous exposure * desentized from saturation |
| How does Gender affect consumer decision making? ( 3 reasons) | * Influences some types of purchases e.g. cosmetics and tools * generally males & females have a no. of common wants e.g. music, cars & entertainment * Gender may play a role in some ads |
| How does Age affect consumer decision making? ( 2 reasons) | * A consumers wants change over time * E.g. Babies wants rattles, tennagers want a phone, then a car, later you want a house and when you retire you want a world cruise. |
| How does Finance/Disposable income affect consumer decision making? ( 4 reasons) | * if a consumer can't afford an item they may be able to access finance to pay for it * Finance includes interest * A consumer with a higher disposable income will spend a portion of their income on luxury items or lifestyle items, e.g. vacations or tours |
| What is a disposable income? | The amount of money that households have available for spending and saving after income taxes have been accounted for |
| How does Environmental factors affect consumer decision making? ( 2 reasons) | * a consumer might prefer products that don't harm the environment * Increased consumer awareness of environmental issues impacts purchasing behavior |
| How does Social Media affect consumer decision making? ( 2 reasons) | * Websites & apps enable a user to share & create content or to participate in social networking (includes: insta and FB) * social influences with large followers post regularly, which can influence purchasing behavior. |
| How does Cultural facotrs affect consumer decision making? ( 2 reasons) | Refers to a set of basic values, preciptions, wants and behaviors of a particular community: * influences the way certain consumers may behave * learned from parents and realities and becomes cultures. |
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