Consumer Choice * Commerce and Choice

Report
Stage 5 Commerce
Students learn about:
•
Decisions affecting the quality of our lives
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Consumer
Financial
Business
Employment
Legal
Environmental
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An agreement (either written
or spoken) between two
parties; for example, a buyer
and seller..
Liability
◦ The degree of financial
responsibility for any losses
incurred by a business or
individual.
Anyone who buys goods and
services.
Contract
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Good
◦ An item that is tangible. It
can be seen or touched.
Goods and services provided
for the community by
governments.
Consumer
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A spending and saving plan.
Collective wants
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◦ Selling the rights to use a
business name, image or
management system.
Budget
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Franchise
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Liquidity
◦ Funds available to finance
spending on a day-to-day
basis
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Needs
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Personal wants
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Service
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Standard of living
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Wants
◦ Goods essential to our survival,
such as food, water, shelter and
clothing.
◦ Luxury or non-essential goods
and services that we, as
individuals, would like to
consume.
Savings
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The amount of money a person
has available after paying for
needs and wants.
◦ An intangible good that is
provided by an individual or
organisation; for example,
legal advice or a haircut.
◦ A person’s quality of life; a
person’s economic, social
and personal wellbeing.
◦ Luxury or non-essential
goods and services
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The consumption of goods and services has an
important impact on the quality of people’s lives.
Goods that are essential for our survival are
known as needs.
◦ They include food, water, shelter and clothing.
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Goods and services that we buy are not necessary
for our survival are known as wants.
◦ Examples are DVDs, perfume and movie tickets.
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Wants may not be essential for our survival but
they do help to support the lifestyle or standard
of living that we aspire to aka Quality of Life
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One important factor influencing the quality of our
lives is the amount of time that we spend working.
On average, Australian employees are working longer
hours than they did in the past.
Often the decision about how many hours to work
will depend on the person’s preferred lifestyle.
Many people work longer hours to help support the
material standard of living to which they have grown
accustomed.
Some people choose to work shorter hours so that
they have more time to consume leisure-related
services
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Worksheet found at
http://www.studyismy
buddy.com/consumerchoice.html
This video gives you an
overview of various
factors that you
may/not be aware of
when making a
purchasing decision
What things that have
you consumed today?
Are they a good,
service, need or want?
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Write definitions for
the following terms
and find a picture to
illustrate each:
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Goods
Services
Needs
Wants
Consumers
Personal wants
Collective wants
Consumer decisions
Should I purchase
new clothes or save
money for a
computer ?
Legal decisions
How can I exercise
my legal rights as a
consumer ?
Financial decisions
Where should I
invest my savings ?
Business decisions.
Is there a need I
could meet by
setting up a
business ?
Employment
decisions What
should I do for work
experience ?
Family
decisions
Legal decisions
How can I
exercise my legal
rights as a
consumer ?
How do my
actions impact
upon others in
my
household?
Social life
decisions.
How will I
respond
to
pressures
from my
peers?
Decisions based on
values and beliefs.
What are my
attitudes towards
people from different
cultural backgrounds
Health decisions.
How can I stay fit
and ensure that I
get enough
exercise ?
Learning/educat
ion decisions.
What subjects
should I choose
for Year 11 and
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choosing what to
buy
◦ types of goods and
services
◦ different brands and
products
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choosing where to
buy
◦ range of locations
and sources
◦ types of retail outlets
◦ internet purchasing
and mail order
◦ locally, interstate,
globally
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The key financial decisions consumers need to
make and the importance of the decision.
◦ Spend money – to satisfy needs and wants
◦ Save money –
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Personal satisfaction and security
Superannuation and long term investment
Buy expensive item
Savings history to get a loan
Develop a poster on preparing a
budget OR options for paying
(cash, credit card, direct debit etc)
OR making investment decisions
OR deciding how to receive income
(cash, fringe benefit, salary sacrifice)
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Financial requirements
Business skills
including technology
Employee requirements
Legal structure –
determines liability –
sole trader,
partnership, company,
franchise, cooperative.
Production –
where/how will it be
produced
(primary/secondary/ter
tiary/quaternary/quina
ry)
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Marketing – Product
(what consumers
want), Price (what
competitors charge
and what consumers
willing to pay),
Promotion (how
market), Place (where
sell).
Quantity to produce –
consider demand.
Distribution – shop
front, direct mail,
internet.
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The main types of employment decisions a person makes:
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Number of hours worked / number of hours for leisure activities.
Sector to work in.
Run business or work for someone.
Adapt to change in the job market.
How employment decisions impact on a person’s quality of
life:
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Number of hours with the family.
Friendship time.
Leisure activities.
Amount of money earned.
Outline 5 examples of flexible
working practices and the advantages
of each way of working.
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Protect consumer rights.
Responsibility of suppliers.
Contract – when purchase item enter contract
with retailer. Right to get what paid for.
Access the NSW Office of Fair
Trading website
www.fairtrading.nsw.gov.au.
Outline the types of legal advice
this site provides for consumers.
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Environmentally aware consumers ask
themselves the following questions:
◦ Does the production or distribution process of this
product harm the environment?
◦ Does the use of the product harm the environment?
◦ Is this product recyclable?
Brainstorm the strategies
consumers can use to minimise
the impact of their consumption
decisions on the environment

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