consumer

• Goods


  Physical products that can be purchased
• Services


  Intangible products that can be purchased
• Factors that influence consumer decisions

  • Money
  • Needs/wants
  • Peer pressure
  • Trends
  • Advertising/marketing
  • Personal values
• Money


  The amount of money we have influences our consumer decisions. For example, if money is limited the consumer might not buy expensive brands, e.g. Nike.
• Needs and wants


  Consumers should decide whether something is a need (e.g. a warm coat for winter) or a want (e.g. a designer coat to keep up with the latest fashion).
• Peer pressure


  Teenagers in particular can worry about being excluded by their peers if they do not own particular items or brands. This can put financial pressure on parents.
• Trends


  Product, clothing and footwear manufacturers cleverly introduce new trends each year to maintain their sales. Often there are only very minor changes to products, but these are enough to make last year's product 'out of fashion'.
• Advertising and marketing


  Manufacturers use a variety of advertising and marketing techniques, such as celebrity endorsement, to make their products desirable.
• Personal values


  Our personal values and preferences influence our decisions, e.g. a person might refuse to buy certain cosmetics if they have been tested on animals.
• Decision-making process


  1. Identify the problem and the goal

  2. Research and collect information

  3. List possible solutions

  4. Weigh up the pros and cons of each possible solution

  5. Talk solutions through with others

  6. Make your choice

  7. Take action

  8. Evaluate your action
• Advantages of online shopping

  • Large choice of goods available
  • Easy to compare prices, brands and styles
  • More convenient, as goods can be ordered from home at any time
  • Goods are delivered to your home or place of work
  • Some companies offer next-day delivery and order tracking
  • Prices can be cheaper or discounted
• Disadvantages of online shopping

  • Increased risk of impulse buying, overspending and debt
  • Goods may not be as expected, as you cannot try them on or check for quality
  • Returning unsuitable goods is inconvenient and time consuming
  • You must have a debit or credit card or a PayPal or similar account
  • Greater risk of fraud if bank card details are accessed by hackers
• Methods of payment


  • Cash
  • Debit cards
  • Credit cards
  • PayPal
• Cash


  You are less likely to overspend and get into debt. Carrying cash is not very secure and, if it is lost or stolen, there is little chance of getting it back.
• Debit cards


  Cards are more secure than cash, as if the card is stolen it can be blocked. There is no charge or a minimal charge for tap payments. It can be easy to lose track of payments, leading to overspending. If cards are stolen, the thief could use (by tapping) the cards three times in one day before a PIN is asked for. Report stolen cards immediately.
• Credit cards


  If the bill is paid in full, the consumer can buy now, pay later without being charged interest. If bills are not paid in full, people can get into credit card debt. Interest rates are high, so purchases end up costing more.
• PayPal


  The company you are buying from does not have access to your credit or debit card details, making online fraud less likely. Online payments can be made quickly and easily, which can cause impulse buying.