Commerce Semester 1 2025

Commerce Notes SE

Topic 1- Nature of Commerce

NEEDS VS WANTS

needs - things that are necessary for survival.

wants - things that are not essential for survival but that we want.

collective wants - Goods or services that are desired for a whole community.

complementary wants - Wants that complement each other.

individual wants – wants of an individual for own personal use.

substitute wants - Items that can be used instead of of another items.

GOODS AND SERVICES

goods - items that you can see or touch.

durable goods - items that can be used many times.

non-durable goods - items that can be used only once.

tangible goods –capable of being touched.

services - things done for you by others.

intangible goods –not capable of being touched.

RESOURCES

land - naturally occurring resources, such as forests.

labour - the human skills and effort required to produce goods and services.

capital - goods used to make other goods e.g. blender to make smoothie.

enterprise –refers to the initiative and risk-taking involved in organizing the other factors of production to produce goods and services.

INDUSTRY SECTORS

primary – produces raw materials from what nature has provided. e.g farming/mining

secondary – includes all workers involved in turning raw materials into finished or semi-finished products e.g steel to make cars.

tertiary –service business, provides service for others. (within tertiary is quaternary and quinary)

quaternary – information and knowledge sharing. e.g teacher

quinary – people within homes. e.g domestic cleaning.

LEVELS OF GOVERNMENT

federal - laws for the entire country e.g trade/defence.

state - responsible for areas within states or territories. e.g. hospitals, schools.

local – responsible for local matters e.g rubbish collection, parks.

2 SECTOR CIRCULAR FLOW DIAGRAM

scarcity- the gab between limited (scarce) resources and unlimited wants.

opportunity cost - refers to what a person loses if they choose to do A rather than B.

commerce - the buying and selling of goods and services between individuals and businesses.

Topic 2 - Consumer decisions

FACTORS INFLUENCING CONSUMER DECISIONS OVERTIME

Age. Price. Gender. Convenience. Environmental and Ethical considerations. Marketing. Culture. Customer Service. Disposable income.

SHOULD I… SPEND OR SAVE?

Y=C+S

y=income

c=consumption

s=savings

COMPARISON SHOPPING AND THE DECISION-MAKING PROCESS

comparison shopping - refers to contacting) a number of sellers to obtain the best deal.

PRICING

manufacturer - a person or business that makes goods (price at which wholesaler buys products)

wholesaler - means a person or business that buys goods in large quantities from the manufacturer (price retailers buy at)

retail - means a business that sells products directly to consumers (normal selling price which stores charge)

discount store – a business that sells products for a lesser price than normal store prices.

WHERE TO BUY?

Local, Interstate, Global..

convenience stores - a shop with extended opening hours, stocking a limited range of household goods and groceries.

specialty stores - a retail business that focuses on selling a specific type of product.

department stores - has several departments housed under the same roof. E.g David jones/Myer

discount stores - a shop that sells goods at less than the normal retail price.

factory outlets - a retail shop that sells stuff directly from a manufacturer.

supermarket- large store operated on a self-service basis.

Non-retail – internet, vending machines, auction.

PAYMENT OPTIONS

Afterpay – 'buy now, pay later' platform that makes it possible to buy something now, receive your goods, and pay them off later.

credit – customer is able to spend money, with the rust they will pay it off in the future.

debit – an expense, or money paid out from an account.

Paypal – an online payment system that allows users to send and receive money online and make payments for goods and services.

savings - the money one has saved.

cash - money in coins or notes.

Topic 3 – Scams

scam – an illegal business practice where criminals deceive people to steal their money or personal information.

HOW CAN YOU IDENTIFY A SCAM?

Too Good to Be True - If an offer seems too good to be true, it probably is.

Urgency - Scammers often create a sense of urgency, pressuring you to act quickly without thinking.

Unsolicited Contact - unexpected messages or calls from unknown sources.

Requests for Personal Information – acting as Legitimate companies and asking for personal information.

Suspicious Links or Attachments - Avoid clicking on links or downloading attachments from unknown or suspicious emails.

TYPES OF SCAMS

dating/romance - Scammers use dating or friendship to get your money.

investment scams -. They will ask you to invest money in different business opportunities.

product and service scams - trick you into paying for a product or service that may not exist or is never delivered.

jobs and employment scams - deceive you into handing over your money by offering you a ‘guaranteed’ way to make fast money or a high-paying job for little effort.

unexpected money - deceive you into giving money upfront or your personal information in order to receive a prize from a lottery or competition that you never entered.

impersonation scams - Scammers impersonate trusted businesses, friends or family, to steal your money or personal information.

IMPACTS OF SCAMS

financial losses - Scams cost Australians millions each year

emotional and phycological harm - cause feelings of shame, stress, anxiety, and depression, it can also affect relationships.

erosion of trust – reduced trust in digital platforms, businesses, and even government communication channels.

impact on vulnerable groups -  the elderly or people with limited digital literacy are often targeted.

broader economic and social costs - Businesses suffer reputational damage when impersonated by scammers. Government and banking resources are strained by the need to combat scams and support victims.

WHAT CAN YOU DO IF YOU HAVE BEEN SCAMMED?

-            Contact your bank or card provider immediately to report the scam. Ask them to stop any transactions.

-            Report scam to ScamWatch or the Police

-            Watch out for follow up scams

Topic 4 – Consumer Protection

WHY DO CONSUMERS NEED CONSUMER LAWS?

-            to prevent unfair practices

-            ensure product safety

-            ensure accurate information is provided

-            gives access to redress

-            so fair competition between businesses is promoted

unconscionable act -  any practice by a seller that is unreasonable, unfair and often illegal.

redress – compensation for a wrong

CONTRACT

contract – a legally enforceable agreement between 2 or more parties. The contract outlines the details of the agreement and the rights and responsibilities of each party.

offer - the offeror offers something of value and specify the details of the product ( the offeree can decline).

agreement – the offeree agrees written or verbal but clearly shows acceptance.

consideration – each party gives up something of value.

LEGAL RIGHTS AND RESPONSIBILITIES OF CONSUMERS

Responsibilities

-            remember caveat emptor (which means ‘the buyer beware’. A seller is not required to tell you everything which means the purchaser is taking a risk)

-            pay correct amount.

-            purchase from ethical and legal sources.

Key Rights as a Consumer

consumer guarantees/warrantees – customers can expect a refund/exchange if the product is faulty.

accurate product information – must have clear information e.g. clearly labelled ingredients on food.

product safety - When you buy a product it should be safe to use.

full disclosure of terms of sale – the full price is always displayed.

AUSTRALIAN CONSUMER LAW

unconscionable act - means any practice by a seller that is unreasonable, unfair and often illegal.

false/ misleading advertising – advertising a product (which isn’t actually in stock) at a great deal to attract customers then offering another product instead.

referral selling – businesses convince person to buy goods or services with the promise of a benefit, such as a discount. If they provide details of potential customers.

unsolicited goods – sending unordered goods through the mail then demanding payment for them.

pyramid scheme – you are required to pay an entry fee with the opportunity to get quick and easy money if you recruit new members.

CONSUMER PROTECTION AGENCIES

accc - The ACCC is an independent statutory authority that enforces the Competition and Consumer Act 2010.

nsw fair trading – state government and consumer body responsible for…

-            assisting customers with complaints

-            ensuring products reach product safety standards

-            ensure sellers measuring devices are accurate e.g scanners

-            warning community about scams and rip offs

REDRESS

When you can get a refund, repair or replacement – when the product is sold with major problem or develops a major problem within warrantee.

the three r’s – when a product or service doesn’t meet the consumer guarantees they must offer a solution, including a REPAIR, REFUND, OR REPLACEMENT.

(customer can also choose to keep the product for a smaller price)

major – consumer chooses out of the 3 r’s.

minor – the seller decides.

When you cannot get a refund, repair or replacement

-             changed your mind (unless business has a changed your mind policy)

-            if the problem was due to you misusing it

-            if you were told about the problem before buying

-            did something to product against business advice

-            problem caused by actions from someone other than the business.

consumer redress – the measures taken to correct or compensate for wrongs or harms caused to customers by businesses or service providers.

redress from scam – contact accc.