Unit 1. Consumer and Financial Decisions

• 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)