The Competent Consumer

Consumer

Someone who buys goods and services for their own use

Needs

Something you can’t live without e.g. food

Wants

Something that you would like to have but can live without e.g. a TV

Influences of needs and wants

Age, culture and circumstances

Priority

Something that feels important to you

Goods

Products you buy in shops and online e.g. food, clothes

Service

Something that is done for you by a skilled person

State services

Paid for by taxation e.g. schools

Factors that affect decision making when shopping

1. Needs & wants

2. Money available

3. Peer pressure

4. Fashion

Impulse Buying

Buying something on the spur of the moment without planning e.g. gum at checkout

Decision Making Steps When Shopping

1. Define the decision

2. Research options online and in-store

3. Consider the pros and cons of choosing each options

4. Make a decision

5. Buy item

6. Evaluate decision

Online Shopping Pros

1. Convenient and handy

2. Can shop anytime on device

3. Wide selection

4. Usually quick delivery

Online Shopping Cons

1. Delivery charge

2. Can’t try products before purchase

3. Encourages impulse buying

4. Fraud

Methods of Payment

1. Cheque

2. Debit card e.g. current account

3. Credit card e.g. Visa

4. Online banking e.g. Revolut

Pros of Cash

1. Quick

2. Easy

Cons of Cash

1. May overspend

2. Can get lost

Pros of Debit Card

1. Quick & easy to use

2. Contactless

3. Safe & secure

Cons of Debit Card

1. Can lose track of spending

2. Some bank fees are charged

Pros of Credit Card

1. Buy now, pay later

2. Good for buying tickets

3. Good for shopping abroad

Cons of Credit Card

1. High interest if bill paid late

2. Encourages impulse buying & overspending

PayPal Pros

1. Online companies can’t see your card details

2. Safe and secure

3. Easy transfers

PayPal Cons

1. Encourages impulse buying

2. Overspending

3. Getting into debt