Consumer Decisions Quiz

Podcast Beta

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What is the term used to describe what an individual gives up to satisfy a need or want?

Market value

Disposable income

Opportunity cost (correct)

Consumer choice

Which of the following best defines a durable good?

A product that can be used multiple times (correct)

A product that has a short lifespan

A product that is inexpensive

A service that cannot be reused

How does age influence consumer financial decisions?

Older consumers have less disposable income

Younger consumers prioritize luxury items over needs

All age groups tend to buy the same products

Purchasing preferences change as people age (correct)

What is the purpose of the Competition and Consumer Act 2010 (Cwlth)?

To implement a per-unit pricing code for ease of price comparison Signup and view all the answers

What does disposable income refer to?

Income available for spending and saving after tax deductions Signup and view all the answers

Which factor is NOT mentioned as influencing consumer purchasing decisions?

Personal experiences Signup and view all the answers

What is a common effect of poor customer service?

Reduced customer retention Signup and view all the answers

Why are many consumers becoming more aware of environmental issues in their purchasing choices?

Influence from social media and community awareness Signup and view all the answers

What is the main purpose of comparison shopping?

To evaluate multiple products based on price and quality Signup and view all the answers

Which of the following accurately describes a 'discount store'?

A store that sells products for less than regular retail prices Signup and view all the answers

Which type of store primarily focuses on a specific category of products?

Specialty store Signup and view all the answers

What factor should be considered along with price when making a purchase?

Quality of the product Signup and view all the answers

What is an online retailer commonly referred to as?

E-tailer Signup and view all the answers

What distinguishes a 'mom-and-pop' store from other retail types?

It is typically family-owned and independent Signup and view all the answers

What is a major advantage of online shopping compared to traditional retail?

Ease of comparing numerous products and prices Signup and view all the answers

Which law helps protect consumers from unethical business practices?

Fair Trading Act 1987 (NSW) Signup and view all the answers

Study Notes

Consumer Decisions

Consumers purchase goods and services to fulfill their needs and wants.
Durable goods can be used repeatedly, while non-durable goods are single-use.
The opportunity cost represents what someone gives up to satisfy a need or want.
Consumer needs and wants vary, resulting in diverse purchasing behaviors.
Good customer service is essential for retaining customers.
Consumers seek value for money by prioritizing low prices and high quality.
Per-unit pricing simplifies price comparisons for consumers.
Convenience influences purchasing decisions in terms of timing, location, and product choice.
Marketing and advertising significantly influence consumer choices.
Gender impacts purchasing patterns, often evident in targeted product advertising.
Age influences financial decisions as priorities evolve over time.
Disposable income determines a household's spending and saving potential.
Higher disposable income leads to increased spending on luxury and lifestyle items.
Environmental awareness can influence consumers to choose products with minimal or recyclable packaging.
Social media and social influencers play a role in shaping purchasing decisions.
Cultural factors significantly influence consumer behavior by shaping values, perceptions, wants, and behaviors.
Comparison shopping involves comparing prices, quality, availability, and after-sales service to secure the best deal.
Online shopping simplifies comparison shopping by readily comparing prices from various stores globally.
It's crucial to avoid impulse buying both online and in physical stores.
When purchasing, consider product quality alongside price.

Consumer Protection

The Competition and Consumer Act (Cwlth) and Fair Trading Act 1987 (NSW) help protect consumers from unethical business practices.

Retail Landscape

A manufacturer produces goods for sale.
A wholesaler sells goods in bulk at reduced prices.
A retailer sells goods to the public in smaller quantities for individual use.
Department stores offer a wide range of goods across various departments.
Discount stores sell goods at reduced prices compared to traditional retail.
Warehouse stores store finished goods and raw materials to support supply chains.
Mom-and-Pop stores are small, family-owned businesses.
Specialty stores focus on selling specific product categories.
Boutique stores offer fashionable clothing and accessories.
Convenience stores offer a limited selection of essential items.
Supermarkets sell a vast array of food and household goods.
E-tailers sell products through online platforms.
Vending machines dispense small items like food, drinks, or cigarettes upon coin insertion.

Studying That Suits You

Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

Description

Test your knowledge on consumer behavior and decision-making processes. This quiz covers key concepts such as durable vs non-durable goods, opportunity cost, and the influence of marketing on purchasing choices. Explore how factors like age and gender shape consumer preferences.