Commerce: Consumer & Financial Decisions

• Commerce encompasses the concepts of consumers, needs and wants, goods and services, resources, and scarcity.
• Scarcity affects the choices consumers make.

Consumer & Financial Decisions

• Factors influencing consumer and financial decisions include advertising/marketing, age, convenience, culture, customer service, disposable income, environmental considerations, and social media.
• Individuals decide whether to spend or save, considering unexpected expenses.
• Purchasing decisions involve choices about what to buy (goods and services) and where to buy (locally, regionally, interstate, or globally; physical or online).
• Payment options include cash, cashless transactions, and credit, each with its own advantages and disadvantages.
• Consumers should select and apply appropriate criteria to rank alternative purchasing options.
• Reflecting on past purchasing decisions and affordability can help consumers make better choices in the future.

Reasons for Purchasing

• Disposable income influences purchasing decisions.
• Lower prices attract more customers.
• Marketing and advertising influence consumer buying habits.
• Different age groups have different product needs and wants.
• Gender influences product preferences.
• Social media impacts consumer purchasing decisions.
• Consumers prefer convenient purchasing options.
• Cultural factors affect consumer needs and wants.
• Environmental concerns may influence purchasing decisions.
• Good customer service can encourage consumers to make a purchase.

Consumer Protection

• Consumer protection is necessary.
• A simple contract's features should be understood, such as creating a written contract for financial transactions.
• Consumers have legal rights and responsibilities, protected by legislation like the Competition and Consumer Act 2010.
• Consumer protection agencies and independent bodies, including state and federal government agencies, provide assistance and protection.
• Consumer redress processes should be understood, such as options for a consumer who purchased a product that is not fit for purpose or of acceptable quality.

Acts and ACCC

• The Competition and Consumer Act 2010 introduced Australian consumer law.
• The Act aims to promote fair trade and prevent anti-competition practices.
• The Fair Trading Act 1987 (NSW) works toward preventing scams and ripoffs.
• Engaging in scams and ripoffs provides sellers with unfair advantages.
• The ACCC enforces the Competition and Consumer Act 2010 and investigates anti-competitive businesses.
• Annually, approximately 1 in 20 Australians are affected by scams, such as fake lotteries, "get rich" schemes, and miracle health cures.
• Bait and switch and misleading advertising are common scam types.
• Bait and switch involves advertising one product but providing a different one upon purchase.
• Misleading advertising involves false product claims.

Types of Payments

• Credit card: Paying with borrowed money from the bank, which requires repayment.
• Debit Card: Paying with funds directly from your account.
• Store Credit: Funds provided by a store for purchases within that store.
• PayPal: An online payment service.
• Afterpay: A service that allows consumers to receive the product and pay for it later.
• Electronic fund transfer
• Direct Debit: A third party can transfer payments from your account.
• Cheque: A written order from the bank.
• Book up: paying in advance
• Cash: Physical currency.
• Lay-by: Paying for an item in installments and receiving it after full payment.

Types of Sellers and Prices

• Manufacturer: The product creation location, offering the lowest prices.
• Wholesaler: Suppliers to retailers, offering the second-cheapest prices.
• Retailer: Standard stores with the most expensive prices.
• Discounted price: Reduce price of an item during a sale.

Shopping Methods

• Mail Order: Purchasing through letters to the seller.
• Online shopping: Purchasing items online.
• Retail Outlets: Purchasing items in physical stores.