* Impulse buying means buying something without giving much thought to whether you really need it. * A retailer is a person or business that sells directly to the consumer * Comparison shopping is shopping around to find the best deal * If there is a lot of difference in the prices, the cheapest product may not always be the best because it may be not last as long as the expensive product
* Convenience stores: They sell a variety of products, magazines and newspapers. * Speciality stores: Hairdressers, newsagents and gift shops are examples. Specialise in one type of product * Department stores: Myer and David Jones are examples. They sell a large range of products * Discount variety stores: K mart, Target, Big W is examples. Basic customer service. * Supermarkets: They sell food items. Examples are Woolworths, Aldi, and Coles * Internet shopping
Buying locally, regionally, interstate, and globally
* Locally: Local store will be used by consumers who live nearby. People travelling to and from school or work often shop here. * Regionally: Westfield shopping centre is a large regional shopping complex. They provide plenty of parking. * Interstate: Mail order is used to purchase goods from another state.
Key factors affecting consumer decisions:
Elements of a contract
* Offer: It involves one of the parties offering something of value to the other party. * Acceptance: An acceptance occurs the offeree agrees to the proposal. This involves a written or an oral statement. * Consideration: This stage requires each party to give up something of value. Consideration can take the form of a sum of money being paid.
* Referral selling: This technique offers the consumer a special deal if they buy the product. The special deal is usually a form of discount or commission which is not usually paid * False and misleading advertising. Two common false and misleading advertisements are: * Bait and switch advertising: This involves advertising discounted products for a short time. When they run out they are directed to a higher price * Misleading advertisements: Some advertisements say a product has a special quality but it actually doesn’t * Unordered goods: This is selling unordered goods through the mail and then demanding payment for them. * Special prizes and offers: You open the letter and it says you have been selected from a majority of people. It says you have won a prize, when you go collect the prize it says you have to buy a number of goods to earn it. * Get-rich-quick schemes: You receive a letter offering you the chance to participate in the transfer of money from another country. You will receive a percentage of that money for your assistance. You are required to give bank account details, giving the scammer the opportunity to steal your money * Pyramid schemes: You are required to pay a joining fee with the chance of earning quick money as you recruit new members. However, you’re likely to lose your money
Promoting and selling
* Promotion is the method used by a business to inform, persuade, and remind consumers about its products * A promotion mix is the various promotion strategies a business uses in its promotional campaign: personal selling, advertising, below the line promotions, publicity. * Personal selling: Activities of a sales person directed to a customer in an attempt to make a sale * Advertising: It is a paid, non personal message
* Below the line promotions: Promotional activities for which the business does not make use of an advertising agency. Free samples are an example of below the line promotions. * Publicity: It is any free news story about a business’s...