This document discusses consumer choice and decisions. It covers the different types of decisions consumers make regarding commerce, employment, business, legal issues, and the environment. It also discusses factors consumers consider when making purchases like comparison shopping based on price, quality, and location. The document outlines legislation protecting consumers, such as the Competition and Consumer Act, and different payment options including cash, credit cards, and EFTPOS.

1. CONSUMER CHOICE
YEAR 9 COMMERCE ELECTIVE, MR SHIPP 2016

2. 1.COMMERCE AND CHOICE
Section 1

3. A.DECISIONS AFFECTING THE
QUALITY OF OUR LIVES
• Commercial decisions can
be related to consumer,
financial, business,
employment, legal or
environmental factors
• A consumer is someone
who purchases goods
and services to satisfy
needs and wants

4. Supermarket Psychology

5. List the strategies used by
supermarkets to entice consumers to
buy their products

6. 1. Do I really want this
item?
2. Can I afford it?
3. Is there another
product for a better
price?
Three basic questions should be asked before buying
something

8. • A major decision by
consumers is how much
to spend their income
and how much to save it
• Sticking to a budget and
choosing wise payment
methods are also
important considerations
1. Financial Decisions

10. What is Choice Australia?

12. • Many workers now work longer hours to support their
high material standard of living
• Which type of working sector, whether to run a business,
working flexible hours and adapting to changes in the
market are essential for consumers to make decisions
2. Employment Decisions

13. • Questions you might need to ask
2. Business Decisions
What good or service will I sell?
How much will I charge?
Where will I buy my supplies?
What marketing strategies will I use?

14. 1Supermarket Psychology 1

15. • Consumers are now all protected under the
Competition and Consumer Act 2010 (Cth)
• Two major considerations when buying a product
under consumer
1. is the product of merchantable quality and what are
the terms of the sales contract
2. is the product fit the purpose of what you intended
to buy it for
4. Legal Decisions
click here for legislation

16. • Is the product that I am
buying or selling
ecologically
sustainable
• All business have a
responsibility to
handle waste and
produce products that
are environmentally
friendly
Environmental Decisions

17. Supermarket Psychology 2

18. In the 21st century consumers have
an abundance of choice when buying
a product or acquiring a service. Is
this a good or bad change for
consumers?
Discussion Time - Pair work Activity
8 minutes to have two points for and against

19. 2.CONSUMER DECISIONS

20. COMPARISON SHOPPING
• Comparing prices from
a number of sellers
• This can be achieved
by using the internet,
magazines,
advertisements,
specialist websites
such as CHOICE,
telephone or store
visits

21. • There are two types of goods (tangible):
• 1. Durable Goods - such as washing machines,
TVs and Printers
• 2. Non-Durable Goods - take away packaging,
coffee and magazines
Types of Goods and Services

23. • Complementary goods are those goods to are
consumed concurrently e.g. cars and petrol
• Substitutes are products that can be alternative
purchases to one another e.g. butter and
margarine

24. • There are a range of services (intangible) that
consumers and businesses receive:
• Producer services are provided by one business for
the benefit of another e.g. transport couriers
• Consumer services, on the other hand, include the
broad range of services that individuals consume

25. CHOOSING WHERE TO BUY
1. General Store

26. 2. Supermarkets

27. When Fresh is not Fresh

28. 3. Department Stores

29. 4. Category
Killers

30. Lowest Prices Guaranteed Advertising

31. 5. Franchises

32. 6. Periodic Markets

33. • 1. What are the benefits of using comparison
shopping? give an example for a typical
Australian Family
• 2. Argue whether price is the only factor to
consider when undertaking comparison
shopping
Question Time

34. • This form of shopping
has changed the way
consumers buy their
products.
• No longer does the
consumer purchase on a
local level but has access
to regional and
international markets to
make their decisions
INTERNET PURCHASING

35. The Future of Shopping

36. Advantages Disadvantages
an increase in the range of products websites may not be permanent
comparison shopping can be done
from home at your own time
faulty products may be difficult to fix
cheaper prices may be sort with extra
competition in the market
delivery charges need to be factored
into the price
privacy issues of credit card details

37. Drip Pricing CHOICE

38. KEY FACTORS AFFECTING CONSUMER
DECISIONS

39. 3. CONSUMER PROTECTION

40. • Two crucial pieces of protective legislation are the
Competition and Consumer Act 2010 (Cwlth) and
the Fair Trading Act 1987 (NSW)
• Unconscionable act by a seller is any practice that
is just not reasonable, such as scams and rip-offs.
• Every year 1 in 20 Australians fall victim to some
type of scam

41. Scams in Australia

42. Go to scamwatch.gov.au and list the
different types of scams that
consumers face in modern times
Activity Time - Class Combined Activity

43. ATM Skimmers

45. Illegal Pyramid Schemes

46. FEATURES OF A SIMPLE CONTRACT

47. LEGAL RIGHTS AND PROTECTIVE
LEGISLATION FOR CONSUMERS
• Two crucial pieces of protective legislation are the
Competition and Consumer Act 2010 (Cwlth) and
the Fair Trading Act 1987 (NSW)
• Unconscionable act by a seller is any practice that
is just not reasonable, such as scams and rip-offs.
• Every year 1 in 20 Australians fall victim to some
type of scam

50. Carlill v Carbolic Smoke Ball Co

55. Gift Cards Consumer Law

57. LEGAL RIGHTS AND PROTECTIVE
LEGISLATION FOR CONSUMERS
• To administer the rules that ensure transactions
between consumers and traders (businesses) are fair
• Provide consumers with current legislation
information
1. NSW Fair Trading Office

61. • Handles issues such as
anticompetitive and
unfair market practices,
mergers or takeovers
of companies and
product safety/liability.
• Runs at a national level
2. The Australian Competition and Consumer Commission

62. ACCC Role

63. • an independent official who has been appointed to
deal with complaints against either government
departments or private businesses
• State and Federal Level
3. Ombudsman

64. 4. PAYMENT CHOICES

65. TYPE DEFINITION EXAMPLE ADVANTAGES DISADVANTAGES

66. • Barter - the swapping or exchanging of one
good for another
• Cash/Money - exchange of a currency for a
good/service

67. • Cheque - written instruction asking for funds to be
transferred from your bank account into someone
else’s.
• Direct Debit - a periodic payment option for a
regular payment, generally monthly payment

68. • Credit Cards - payment made which does not draw
from your actual money. Generally has a interest
fee period (55 Days). This may also include
Paywave
• EFTPOS - Electronic Funds Transfer At Point OF
Sale - cashless payment done with a bank card.
This may also include PayWave

70. • Book It Up - In isolated areas where banks may be
hard to access. Sellers allow the consumer to have
a tab before they need to pay for it.
• BPAY - payment can be made on the phone, post
office or online more easily and have access 24/7

71. • It is essential that you keep records of your
purchases as a consumer
• If products you purchase are related to work/tax
considerations, an annual record should be
undertaken (Budget)
Managing Your Records