Commerce

• Scope of commerce


  • Consumers
  • Needs and wants
  • Goods and services
  • Resources
  • Scarcity
• Consumer


  Someone who purchases goods and services to satisfy their needs and wants
• Needs


  Items that everyone must purchase because they are essential for survival (e.g. food, clothing, shelter)
• Wants


  Things that we like to have, but are not essential for survival (e.g. car, mobile phone, computer)
• Goods


  Things that are produced and can be physically touched (e.g. television, car)
• Services


  Things that one person will do for someone in return for payment (e.g. plumbers, doctors, dentists)
• Opportunity cost


  What an individual gives up in order to satisfy a need or want
• Durable goods


  Products we can use many times and are long lasting (e.g. fridge)
• Non-durable goods


  Products that can only be used minimally and are temporary (e.g. coal)
• Scarcity pushes consumers to make impulse decisions/ more impulsive purchasing behaviour
• Resources used to manufacture goods and services

  • Land
  • Labour
  • Capital
  • Enterprise
• Availability can affect the cost. These resources are scarce
• Examples of goods and services

  • Bicycle
  • Plumber
  • House
  • T.V
  • Camera
  • Dentist
  • Bread
  • Car
  • Dress
  • Electrician
  • Shirt
  • Computer
  • Television
  • Doctor
  • Coat
  • Mobile Phone
  • Shoe
  • Teacher
  • Shelter
  • Shoes
• Factors influencing consumer decisions


  • Customer service
  • Marketing and advertising
  • Price
  • Social media
  • Convenience
  • Gender
  • Age
  • Disposable income
  • Environmental considerations
  • Cultural factors
• Customer service


  Has the most influence on consumer decisions. Customers are more inclined to purchase a product when they receive excellent and helpful customer care
• Marketing and advertising


  Crucial factor in influencing consumer decisions. Helps customers become more familiar with a company and its products, introducing new items to consumers
• Price


  Significant factor influencing consumers' decision-making. Consumers want the best value for their money
• Social media


  Increases the brand visibility of the business or company. Plays a big role in influencing consumer decisions due to the accessibility of technology and social platforms globally
• Convenience


  One of the main factors influencing consumer decisions. Many consumers expect their shopping to be convenient and hassle-free
• Gender


  Plays a big part in impacting consumer decisions. Males and females have different purchasing behaviours
• Age


  Plays a big role in consumer decisions and the kinds of goods they purchase. Consumers have varied needs at different ages
• Disposable income


  A consumer's level of income determines what kind of products they regularly purchase
• Environmental considerations


  Consumers take time to consider the environmental side of products such as organic, origin of produce, cruelty-free, etc.
• Cultural factors


  Refer to the fundamental beliefs, attitudes, desires, and actions of a specific society or individual group. An individual's purchasing decisions are greatly influenced by cultural considerations
• How individuals make particular decisions


  1. Whether to spend or save (e.g. being prepared for unexpected expenses)

  2. What to buy (e.g. different types of goods and services)

  3. Where to buy (e.g. locally, regionally, interstate or globally; physical or online store)
• Spend or save


  Deciding how much of one's income to set aside for savings vs spending is the most fundamental financial decision that consumers must make
• Comparison shopping


  • Shopping around for the best deal. Comparing price, quality, availability and after-sales service
• 1. commerce (online shopping) has made comparison shopping much easier
• Impulse buying


  Purchases made on the spur of the moment can often turn out to be unsatisfactory
• Distribution chain


  Manufacturer sells to wholesaler, who sells to retailer, who then sells to consumers. Each stage adds cost and profit
• Where do we buy?

  • Local stores
  • Regional stores
  • Interstate and global stores
• Local stores


  Service the local residents live closest by. Purchases options are limited to basic needs
• Regional stores


  Large shopping complexes housing discount stores and major retailers
• Distribution chain


  1. Manufacturer

  2. Wholesaler

  3. Retailer
• At each stage in the distribution chain, the seller needs to make a profit by selling the products at a higher price than the price at which they were bought
• The final price consumers pay depends on the price the seller paid and the profit he or she makes, or at which stage in the chain consumers buy the goods
• Where do we buy?

  • Local Stores
  • Regional Stores
  • Interstate+Global Stores
• Local Stores


  • Service the local residents live closest by
  • Purchases options are limited to basic needs
  • Are most often convenience stores or shopping arcades containing takeaway shops, newsagents, a local fruit and veg store
• Regional Stores


  • Are large shopping complexes housing discount stores, department stores, specialty stores and supermarkets
  • Are air conditioned and offer plenty of parking
  • People travel from surrounding regions to visit the complex
• Interstate+Global Stores


  • Globalisation has freed consumers from the limitations of where they live
  • The ease of online makes it easy and appealing to purchase items from other locations we can't physically travel to