Consumer ChoiceStage 5 Commerce

Students learn about:

• Decisions affecting the quality of our lives◦Consumer ◦Financial ◦Business ◦Employment◦Legal ◦Environmental

Consumer Choice – Commerce and Choice

Budget A spending and saving plan.

Collective wants Goods and services

provided for the community by governments.

Consumer Anyone who buys goods

and services.

Contract An agreement (either

written or spoken) between two parties; for example, a buyer and seller..

Franchise◦ Selling the rights to use a

business name, image or management system.

Good◦ An item that is tangible. It

can be seen or touched.

Liability◦ The degree of financial

responsibility for any losses incurred by a business or individual.

Liquidity◦ Funds available to finance

spending on a day-to-day basis

Lingo List

Needs ◦ Goods essential to our

survival, such as food, water, shelter and clothing.

Personal wants ◦ Luxury or non-essential

goods and services that we, as individuals, would like to consume.

Savings◦ The amount of money a

person has available after paying for needs and wants.

Service◦ An intangible good that is

provided by an individual or organisation; for example, legal advice or a haircut.

Standard of living◦ A person’s quality of life; a

person’s economic, social and personal wellbeing.

Wants◦ Luxury or non-essential

goods and services

Lingo List cont.

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.

Goods and services that we buy are not necessary for our survival are known as wants. ◦ Examples are DVDs, perfume and movie tickets.

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

Quality of Life?

Quality of Life

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

What Influences Our Quality Of Life?

Clickview Video: Consumer Choice & Protection

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Write definitions for the following terms and find a picture to illustrate each:

◦ Goods◦ Services◦ Needs◦ Wants◦ Consumers◦ Personal wants◦ Collective wants

Consumption of goods and services

Consumer decisions Should I

purchase new clothes or save

money for a computer ?

Business decisions. Is there a need I could meet by setting up a business ?

Employment decisions What

should I do for work experience ?

Financial decisionsWhere should I

invest my savings ?

Legal decisionsHow can I exercise my legal rights as a

consumer ?

The Decision Cycle

Family decisions

How do my actions

impact upon others in my household?

Health decisions. How can I stay fit and ensure that I get

enough exercise ?

Learning/education

decisions. What subjects should

I choose for Year 11 and

12 ?

Decisions based on values and beliefs.

What are my attitudes towards

people from different cultural backgrounds ?

Legal decisionsHow can I

exercise my legal rights as a

consumer ?

Personal Decisions

Social life decisions. How will I respond

to pressures from my peers?

choosing what to buy◦ types of goods and

services◦ different brands and

products

 

choosing where to buy◦ range of locations

and sources◦ types of retail

outlets◦ internet purchasing

and mail order◦ locally, interstate,

globally

Consumer decisions

The key financial decisions consumers need to make and the importance of the decision.◦ Spend money – to satisfy needs and wants◦ Save money –

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)

Financial decisions

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/tertiary/quaternary/quinary)

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.

Business decisions

The main types of employment decisions a person makes:◦ 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:◦ Number of hours with the family.◦ Friendship time.◦ Leisure activities.◦ Amount of money earned.

Outline 5 examples of flexibleworking practices and the advantages of each way of working.

Employment decisions

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.

Legal decisions

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

Environmental decisions