Commerce topic 1, 3, 4

• What is a durable good?

  A durable good is something that can be used many times.
• What is a non-durable good?

  A non-durable good is something that can be used once.
• What is the difference between a good and a service?

  A good is something we can physically touch, while a service cannot be physically touched.
• What are needs and wants?

  Needs are things humans require to survive, while wants are things we desire but do not necessarily need.
• What factors influence consumer and financial decisions?

  • Advertising/marketing
  • Age
  • Convenience
  • Culture
  • Customer service
  • Disposable income
  • Environmental considerations
  • Social media
• How does good customer service influence purchasing decisions?

  Good customer service makes consumers feel valued and encourages them to purchase.
• What do consumers want when making purchases?

  Consumers want the best value for their money.
• How does age affect consumer needs and wants?

  As we get older, our needs and wants change.
• What is opportunity cost?

  Opportunity cost is the value of the option not taken when making a decision.
• What is a warranty?

  A warranty is a voluntary promise.
• What is budgeting and why is it important?

  • Budgeting helps save and track expenses.
  • Cons:
  • Can be inflexible
  • Time-consuming
  • If unrealistic, can cause stress
• What factors should be compared when making a purchase?

  Price, quality, availability, and after-sales service should be compared.
• What are the different shopping locations and methods?

  • Locally: Convenience stores
  • Regionally: Department stores and supermarkets
  • Globally: Online shopping
  • Mail order: Order form via mail
• What is a convenience store?

  A convenience store is commonly attached to service stations and has higher prices with less choice.
• What is a specialty store?

  A specialty store sells one type of product and offers knowledgeable service.
• What is a discount variety store?

  A discount variety store has a plain design, basic customer service, and cheap products.
• What is a factory outlet?

  A factory outlet sells goods at a discount near the factories where they were manufactured.
• What is a department store?

  A department store sells a large range of products within one store, often at cheaper prices than specialty stores.
• What is a supermarket?

  A supermarket sells a wide range of goods and is a large self-serve store.
• What are the pros and cons of cash as a payment method?

  Pros:

  • Accepted almost everywhere
  • Some stores offer discounts
  • Reduces risk of debt

  
  

  Cons:

  • Can be lost or stolen
  • May not be enough if no ATM is nearby
• What are the pros and cons of store credit?

  Pros:

  • Access to in-store discounts
  • Purchase goods readily

  
  

  Cons:

  • Higher interest rates
  • Fewer interest-free days than regular credit cards
• What are the pros and cons of PayPal?

  Pros:

  • High security and consumer protection
  • Easy to shop online

  
  

  Cons:

  • Hidden fees
  • Strict rules and difficult verification process
• What are the pros and cons of EFTPOS, debit cards, and BPAY?

  Pros:

  • No interest, only account operating fee
  • Spend up to account balance

  
  

  Cons:

  • Payment refused if insufficient funds
  • Time-consuming process
• What are the pros and cons of direct debit?

  Pros:

  • No interest, only account operating fee
  • Schedule bill payments easily

  
  

  Cons:

  • May not check bill accuracy
• What are the pros and cons of cheques?

  Pros:

  • Safer than cash
  • Can be posted safely

  
  

  Cons:

  • Not accepted everywhere
  • Time to process and clear
• What are the pros and cons of credit?

  Pros:

  • Convenient for online shopping
  • Helps establish good credit history

  
  

  Cons:

  • Easy to overspend and build debt
  • More expensive than other forms of credit
• What are the pros and cons of lay-buy?

  Pros:

  • No interest, good for securing expensive items
  • Cheaper than credit cards

  
  

  Cons:

  • Item not owned until payment is complete
  • Not all stores offer this method
• What are the pros and cons of book-up?

  Pros:

  • Purchase goods and pay later
  • No interest unless extending time

  
  

  Cons:

  • May overspend
  • Security may be required
• Why do people prefer to shop at specialty stores?

  People prefer specialty stores for a focused selection of products and quality over price.
• What constitutes an unconscionable act under the Competition and Consumer Act?

  • Practices that are unreasonable
  • Includes scams and rip-offs
  • Illegal and aimed at gaining unfair advantage
• What is a contract?

  A contract is a legally enforced agreement between two or more parties.
• What are the essential features of a valid contract?

  Offer, acceptance, and consideration are essential features of a valid contract.
• What is an offer in a contract?

  An offer is a proposal involving one party offering something in return for something else.
• What is acceptance in a contract?

  Acceptance is when the offeree agrees to the proposal in a clear manner.
• What is consideration in a contract?

  Consideration requires each party to give up something of value.
• What are the legal rights for consumers?

  • Safe products
  • Accurate product information
  • Full disclosure of terms of sale
  • Consumer guarantees and warranties honored
• What is the purpose of the Australian Consumer Law (ACL)?

  • Protect consumers against undesirable business practices
  • Operates under the Competition and Consumer Act 2010
• What practices does the ACL protect consumers from?

  • Misleading and deceptive advertising
  • Unconscionable conduct
  • Misrepresentation of products
  • Unfair trade practices
• What is the definition of an offer in a contract?

  An offer is a proposal made by one party to another, stating their intention to enter into a contract.
• What does acceptance in a contract entail?

  Acceptance occurs when the offeree agrees to the proposal in a clear written or oral statement.