Commerce Notes Notes Date: 01/02/2022 Consumers * They consume or ‘use’ the bought goods or services themselves. They do not buy to sell. © What other people are buying usually influences what we buy. E.g, Fidget spinners, your mate buys then everyone else then you want one. Final Consumers Need aepries Need examples © Your mum buys stuff (the buyer) for you. sascsizton inns ay ee then that makes you the final consumer, met ee {Esteem Seareucor cine, mete coca emery Needs and Wants soci ‘eon tar met ‘sina * We see and buy what we want based on meager aaa perceived need and our desire. asd aay © Primary needs are food, water, clothing ‘rata, Sep Shee, and secondary are respect, creativity, ne aaa love ect. Need food, water, clothes, internet Want designer clothes, shoes, tablets and games. Goods and services © Goods are items that are usually tangible, such as pens, physical books, hats. Services are activities provided by ‘other people, who include doctors, lawn care, dentists, barbers, digital movies, video games. © Money is exchanged for these goods and services. Resouces soi with is Heotvebis —-«-Nen-meBewobie Steusinids — guanuly ant — Lan nstittions Quaity | a Continous or Bt f J flow e.g. wind, Recyclable e.g. ‘Non Recyclable water metals e.g. Fossil fuels Natural waste Vegetation (Forests)Scarcity © Scarcity is the predominant method in making something worth more. If there is 100000 new iPhones which go to 100 it will be super scarce and worth more, © Carithave everything in life Unlimited Wants and Limited Resources = Scarcity Questions 1. | want to put all the world’s resources into Finding another liveable planet or making another planet liveable like terraforming and other stuff. This way we can solve many problems regarding overpopulation and the increasing pollution and scarcity of resources. 2. Scarcity can affect production by increasing strain, pressure and stress and the production people. It can also affect production in a good way by making it more rich and valuable. Date: 02/02/2022 Five Major Factors that Influence Consumer Behaviour © Factors pertaining to, dealing with, or affecting the mind Motivation Perception Learning Attitudes and Beliefs © Humans Imitate other humans an wish to be socially accepted = Family m= Reference Groups = Roles and Status ‘© Encompasses the set of beliefs, Moral Values, traditions and language = Culture = Subculture = Social Class (© Personal Factors © Individual factors that strongly influences consumers behavior = Age = Income = Occupation = Lifestyle © Economic Factors © Factors that talk about the financial position of the consumer Personal Income Family Income Consumer Credit Liquid Assets SavingsFactors Influencing consumer and Financial Decisions © There has been a recent push to ensure the businesses being bought from are sustainable and their role infighting climate change is now being reviewed. Many millennials and zoomers would rather spend the extra money than know their actions were supporting climate change © Age Brings change to people's lifestyle and affects their needs and personal values. ‘© Consumer Convenience is any element of the customer experience that saves the customer time and. effort ‘© Consumers are more likely to choose a brand that ensures a convenient experience © Aculture can be defined as the total average of beliefs, values, and traditions that are directly linked to the consumer behaviour of members of a specific society. For example, in America, thelr food culture means their serving sizes are massive when compared to Australian standards. ‘© Importance of delivering consistent excelling service to each and every customer. Itis what makes us, ‘want to come back. Ifa business has bad customer service we are less likely to go there. © Innational accounts definitions, personal income minus personal current taxes = disposable personal income, Whether or not you're gonna save this money, itis stil classified as being disposable, Questions 1. Capital is the tools and physical things of the trade 2. Hairdresser- Trimmer, Shaver, Spray Bottle, Comp, Gel, Chairs, Hair washer, Gloves, Apron, Pin Pad b. HalrDresser - Barber, Checkout, Cleaner, Shaving Skills, How to Fade 2. Goodor | Fruits Bread Meat Coffee Headlight | sydney | Tax Return Service Tip | Advice How Long | 4-Sweeks | 1 week t2days | thr 6+ years | 2- T hour ‘each item Weeks last 2Months after Frozen cancella tion When will | 11 week 1 week 2weeks | Whenever | Whenit | Whenu | When you you need to breaks | want | need by itagain Any Nope Nope Nope Sugar, Milk, | Maybe | Airline ‘complemen Equal, Stick | some deal | Points tary goods? Resources used to create goodQuestions 1. Does Not have a widely recognised brand or logo. It is cheaper and good quality. It is for people who need a range of household products for cheaper but still good quality. a. Franchise - A way of business expansion where you run the business for some one like maccas isa franchise. b. Category Killer-A category killers a large retail chain superstore that dominates its product category and puts less productive and highly specialised merchants out of business, 3. Ashopping Hierarchy is an order where they are ranked in order of what they sell. For example at the bottom will be small shops that sell things like bread and milk. And then at the top will be things like furniture or electrical products (Ty). 4. Establishing a loyalty program can promote customer retention and even attract new customers. Loyalty and customer reward programs benefit customers in that they can save money on items that they purchase regularly. Rewards may also prompt customers to buy additional items that they don't ordinarily purchase. Date: 02/02/2022 Payment © Layby © Agreement on Fixed and payment conditions where the product is given as soon as ALL payments are made © Eftpos © Electronic funds transfer point of sales system used to transfer funds from a customers bank to business © Cash © Notes and Coins © Credit ‘© Customers get goods prior to payment so you getit and then pay it later based on bank trust. Borrowed money with interest * Direct Debit © Direct withdrawal form customers bank account into a business account © Cheque © Awritten order to pay a specific amount of money to a business or to an individual from whose name is signed to whose Is the receiving © Afterpay Payment How Credit Cards Work You use your card then it gets authenticated and approved then you need to pay it back with intrest. Nimble - Nimble's Small Loan is a short-term or payday loan. You can borrow between $300 and $2,000, Loan ‘terms can range from 62 days to 9 months. You will be charged standard payday loan fees. Wisr - Gives you your salary or wage earlier and you have to pay them, After Pay - You pay after you use the money without the added interest.Types of Distribution Channels Once manufacturers have produced products, they are usually distributed to wholesalers. The wholesaler buys large quantities, then sells simitar quantities to retailers. The retailer then sells the products directly to the consumer. Retailers then sell the products directly to the consumer. Retailers add their costs and a profit to arrive at the recommended retail price. Pros and Cons of Online Shopping Pros Cons Reducing Carbon Footprint Can physically see your product Right From Home Delays All shops in fingertips Shipping Problems Ease of transaction More Screen time online less talking to others Easy to send gifts Scam No crowds or lines Miss out on instore discount Free shipping Do research and compare items Discount Codes Why | would Shop Locally = Can physically see, touch or try on products + Can get out of the house and have a trip = Cant get scammed online during transactions or while waiting = Can support and help local businesses keep going because you aint gonna always buy milk online or if, you need it quickly. Credit Card Loans 1. Late and missed payment fees 2. Interest payments (daily interest rates) 3. Effects Future Loans e.g mortgages 4. 5. Can be addictive and can create a negative relationship with financial management. What is consumer protection? Consumer protection is the practice of safeguarding buyers of goods and services against unfair practices in the marketplace. Consumers can be protected by laws and regulations, consumer protection agencies and self help services. Including ‘Australian Consumer Law (ACL) 2011 NSW Fair Trading ‘Australian Competition and Consumer Commission (ACCC) Rena ‘Australian Securities and Investment Commission (ASIC)What is consumer protection? Under the ACL if a product or service fails you or doesn't meet a consumer guarantee you have the right to ask for repair, refund or replacement. Also protect yourselves from scams. ACCc provides info to consumers about the types of scams through ‘scamwatch’ Date: 02/015/2022 Consumer Rights * ‘Consumer rights’ are the rights you have when you buy something - either a product or a service. * A’product' is something you can touch and feel ~ like a mobile phone or a car. + A’service’ is something that a company does for you ~ lke letting you use their mobile phone network ‘or washing your car. * Your consumer rights mean that when you buy something, it automatically comes with promises that it's what you asked for, it works and it does what you told the seller you want it to do. ‘© These promises are called your ‘consumer guarantees’ © Protect yourself against scammers ‘© Connections can be made through email, calls or unexpected forms. © Never give personal details to people you don't know or trust Always check person's credentials Date: 02/016/2022 Contracts * Clause -a section, phrase or segment of a legal document such as a contract, deed or will What is a contract * Contract - formal, legally binding agreement between two or more parties. ‘© They outline the terms and conditions of the transaction involved. They outline the rights and responsibilities of the parties involvedElements of a contract a, Proposal, offers something to another party a. Oferee agrees to proposal, Involves a written/oral statement or an act that communicates acceptance a. Consideration requires each party giving up something of values i.e money in exchange for a good/service Tegal Contracts © Acontract is more likely to find an extremely unfair contract unconscionable when © The Consumer is presented with a contract on a take it or leave it basis © Very uneven bargaining power between the parties ‘Fraud and misrepresentation are also grounds for invalidating a contract «Fraud is a false statement about an important fact that is made to induce or persuade a person to agree to a contract ‘+ Important for consumers to examine products carefully and ask many questions before buying Legal Rights for consumer Safe Products © Directions for proper use are provided and are tested * Accurate Product information and descriptions © Ingredients are clearly labelled on all food products/containers © Consumer guarantees and warranties are honoured © Consumers can expect a refund or exchange if the product is faulty © Goods must be of merchantable quality, meaning they must be fit for purpose and match their description ‘Full disclosure of terms of sale © The full price is always displayed especially on credit contracts Organisations that provide assistance consumers State Government © Ombudsman - protects section of law Federal Government Independent Organisation: CHOICE MediaWhat is consumer redress © Ifa customer complains to a business about a purchased good and demands a remedy, the business is legally obliged to provide the appropriate remedy (a reasonable solution such as a repair, replacement or refund.) ‘© Ifabusiness do not comply, the customer can ‘© Report problem to the ACCC or their local consumer protection agency. Returning goods - What are your rights? © Can Return if © Not what it says on the packet © Ifits not fit for purpose © Ifitfs not acceptable quality, Looks Okay, Safe, Durable © Consumers Choice where you take things back - manufacturer or store © Same Rights if itis a gift Consumer Guarantees # These are Implied Conditions Including: a. Acceptable Quality b. Are fit for purpose ©. Match the Description Sample or Model 4. Comply with any excess warranty e. Are legally owned by the seller without any charges Have spare parts ‘© Guaranteed Serviced they buy are a. Fit for Purpose b. Provided reasonable skill or care c. Provided within reasonable time If something goes wrong, te consumers should seek a remedy from the business Caveat Emptor * Consumers are responsible for the risk they take in buying something. Not everything has to be disclosed by the seller. Date: 02/23/2022Peel © Point © Explain © Example © Link Consequences of poor Financial Management * Easy to borrow Hard to pay back Bankruptcy is when a person is unable to pay their debts. A trustee is nominated to manage a persor’s bankruptcy and they have the right to sell their assets (what they own) © Financial, Legal, Social Consequences Repossession * Means to take back goods bought on credit if repayments are not met ‘© Additional Costs if the thing is not sold for enough Garnishing Wages © Garnished means that a lender has applied for a legal order so a certain amount of money is deducted from wage. What are Financial Consequences * Credit Card Traps a. You may be tempted to purchase more stuff leading to excessive debts b. Inability to pay bank can result in high fees How do I avoid Financial Consequences = Consolidate your loans - means to put debts onto 1 simple debt Use Credit Sensibly - Must be able to afford the goods and services before we use our credit card Prioritise paying off debt as quickly as possible Ifyou cant repay loans seek financial advice - From, Lawyers, financial counsellor/advisor, independent organisation.What are the Legal Consequences * There are certain obligations that are fulfilled. Failure to meet these obligations will result in legal action in order to recover the money that you owe. ‘Ifyou can't pay a loan a default notice is issued. © Ifyou receive a default notice you can a. Pay the amount owing Negotiate a change in your repayments Apply for a hardship variation Negotiate a postponement of reposition Refinance your loans Sell your goods and repay the loan Voluntary Surrender ‘Apply for Bankruptcy What are social Consequences * Poor Financial management can impact the wellbeing of individuals and families by affecting relationships, mental health and the overall lifestyle of an individual © Social Consequences include a. Domestic Violence b. Physical and Emotional illness c. Family Break down eg. Divorce d. Suicide What is Superannuation * Superannuation is money put aside by your employer over your working life for you to live on when you retire from work. Super is important for you, because the more you save, the more money you will have for your retirement. Super Act 1982 Number 28. The Act deals with matters relating to the State ‘Superannuation Fund. It provides a fund for persons employed by the State or other people. The Act also sets up reserves and general operations and management of the fund. The Employer provides 10% of ordinary time earnings into your super fund Steps in Creating a budget Calculate your total income Record Your Expense Total Expenses Compare your total income with total expenditure Assess your Financial Position wrens