Learn: Consumer and financial decisions

acceptable quality

a product fit for purpose, acceptable in appearance and finish, free from defects, safe and durable

acceptance

when the offeree agrees to the proposal

assets

items of value

bankruptcy

when a person gives up control of their assets and finances, either voluntarily or by a court order

barter

the swapping or exchanging of one good for another

budget

a list of income and likely expenditures

caveat emptor

a term meaning 'let the buyer beware'

cheque

a written communication ordering your financial institution to pay a person a specific amount of money

commerce

the buying and selling of goods and services between individuals and businesses

comparison shopping

contacting (by telephone, internet or in person) a number of sellers to obtain the best deal

consideration

the giving up of something of value

consumer

someone who purchases goods and services to satisfy needs and wants

consumer guarantees

a set of rights and remedies for defective goods and services

contract

a legally binding agreement

creditors

people you owe money to

debt

money owing to external sources; e.g. a bank

disposable income

the amount of money that households have available for spending and saving after income tax has been deducted

distribution chain

the ways of getting the product to the customer

drawee

the financial institution that provides cheque account facilities

drawer

the person who writes and signs a cheque

durable goods

items that can be used many times

e-commerce

the buying and selling of information, goods and services via the internet

e-tailer

electronic retailer

EFTPOS

electronic funds transfer at point of sale

electronic transfer

the transfer of funds from one account to another via the internet or telephone

enterprise

a project or undertaking that may relate to a business, organisation, community or government agency

fixed expenses

expenses that are the same amount every time — for example, monthly rent, or a minimum charge of $40 per month for a mobile phone

garnishee

a court order that allows an employer or bank representative to take money from your wages or accounts and give it to your creditors

goods

items that you can see or touch

impulse buying

buying something without giving much thought as to whether you really need it

income

money received on a regular basis from work, property, business, investment or welfare

interest

the price that must be paid in order to use someone else's money

labour

the human skills and effort required to produce goods and services

land

naturally occurring resources, such as forests, coal and fertile soil

mail order

to buy products, via catalogues, for delivery by mail

manufacturer

a person or business that makes goods

money

any token, with an agreed value, that people accept as payment in exchange for a good or service

needs

things that are necessary for survival, such as water and food

non-durable goods

items that can be used only once

offer

a proposal

online shopping

purchasing products over the internet

opportunity cost

what you have to forgo if you choose to do A rather than B; the value of the next best alternative that is forgone whenever a choice is made

payee

the person who is to receive the money from a cheque

price

the amount of money a consumer is prepared to offer in exchange for a good or service

profit

what remains after all business expenses are deducted from sales revenue

redress

to set right

retailer

a business that sells products directly to consumers

rip-off

to overcharge or swindle

scam

an illegal business practice

sequestration order

an order from the Federal Court of Australia declaring an individual bankrupt

services

things done for you by others

superannuation

money set aside during your working life for retirement; commonly called 'super'

unconscionable act

any practice by a seller that is just not reasonable and often illegal

variable expenses

expenses that change over time, and do not occur on a regular basis. For example, a person may go to a music concert this month to hear their favourite singer and buy a computer game next month

wants

things that are not essential for survival but that we would like to have

wholesaler

buys goods in large quantities from the manufacturer

writ of execution

a court order that allows a court official (the sheriff) to seize and then sell some of your property

money

any token, with an agreed value, that people accept as payment in exchange for a good or service

cheque

a written communication ordering your financial institution to pay a person a specific amount of

money

commerce

the buying and selling of goods and services between individuals and businesses

contract

a legally binding agreement

debit card

plastic card that allows you to buy goods by electronically transferring money out of your

account into the store's account. It can also be used to obtain cash

debt

money owing to external sources; e.g. a bank

market segmentation

when the total market is subdivided into groups of people who share one or more common characteristics

niche market

also known as a concentrated or micro market, a niche market is a narrowly selected target

market segment

primary target market

the market segment at which most of the marketing resources are directed

product placement

the inclusion of advertising in entertainment

target market

the group of customers to whom a business intends to sell its products

unconscionable act

any practice by a seller that is just not reasonable and often illegal

wholesaler

buys goods in large quantities from the manufacturer