1. Consumer Choice
Stage 5 Commerce

2. Consumer Choice – Commerce and Choice
Students learn about:
Decisions affecting the quality of our lives
Consumer
Financial
Business
Employment
Legal
Environmental

3. Lingo List Franchise Good Budget Collective wants Liability Consumer
Selling the rights to use a business name, image or management system.
Good
An item that is tangible. It can be seen or touched.
Liability
The degree of financial responsibility for any losses incurred by a business or individual.
Liquidity
Funds available to finance spending on a day-to-day basis
Budget
A spending and saving plan.
Collective wants
Goods and services provided for the community by governments.
Consumer
Anyone who buys goods and services.
Contract
An agreement (either written or spoken) between two parties; for example, a buyer and seller..

4. Lingo List cont. Service Needs Personal wants Standard of living
Goods essential to our survival, such as food, water, shelter and clothing.
Personal wants
Luxury or non-essential goods and services that we, as individuals, would like to consume.
Savings
The amount of money a person has available after paying for needs and wants.
Service
An intangible good that is provided by an individual or organisation; for example, legal advice or a haircut.
Standard of living
A person’s quality of life; a person’s economic, social and personal wellbeing.
Wants
Luxury or non-essential goods and services

5. Quality of Life?
The consumption of goods and services has an important impact on the quality of people’s lives.
Goods that are essential for our survival are known as needs.
They include food, water, shelter and clothing.
Goods and services that we buy are not necessary for our survival are known as wants.
Examples are DVDs, perfume and movie tickets.
Wants may not be essential for our survival but they do help to support the lifestyle or standard of living that we aspire to aka Quality of Life

6. Quality of Life

7. What Influences Our Quality Of Life?
One important factor influencing the quality of our lives is the amount of time that we spend working.
On average, Australian employees are working longer hours than they did in the past.
Often the decision about how many hours to work will depend on the person’s preferred lifestyle.
Many people work longer hours to help support the material standard of living to which they have grown accustomed.
Some people choose to work shorter hours so that they have more time to consume leisure-related services

8. Clickview Video: Consumer Choice & Protection
Worksheet found at buddy.com/consumer- choice.html
This video gives you an overview of various factors that you may/not be aware of when making a purchasing decision
What things that have you consumed today?
Are they a good, service, need or want?

9. Consumption of goods and services
Write definitions for
the following terms
and find a picture to
illustrate each:
Goods
Services
Needs
Wants
Consumers
Personal wants
Collective wants

10. The Decision Cycle
Consumer decisions Should I purchase new clothes or save money for a computer ?
Business decisions. Is there a need I could meet by setting up a business ?
Employment decisions What should I do for work experience ?
Financial decisions
Where should I invest my savings ?
Legal decisions
How can I exercise my legal rights as a consumer ?

11. Personal Decisions Family decisions
How do my actions impact upon others in my household?
Health decisions How can I stay fit and ensure that I get enough exercise ?
Learning/education decisions. What subjects should I choose for Year 11 and 12 ?
Decisions based on values and beliefs. What are my attitudes towards people from different cultural backgrounds ?
Legal decisions
How can I exercise my legal rights as a consumer ?
Social life decisions. How will I respond to pressures from my peers?

12. Consumer decisions choosing what to buy choosing where to buy
types of goods and services
different brands and products
choosing where to buy
range of locations and sources
types of retail outlets
internet purchasing and mail order
locally, interstate, globally

13. Financial decisions
The key financial decisions consumers need to make and the importance of the decision.
Spend money – to satisfy needs and wants
Save money –
Personal satisfaction and security
Superannuation and long term investment
Buy expensive item
Savings history to get a loan
Develop a poster on preparing a
budget OR options for paying
(cash, credit card, direct debit etc)
OR making investment decisions
OR deciding how to receive income
(cash, fringe benefit, salary sacrifice)

14. Business decisions Financial requirements
Business skills including technology
Employee requirements
Legal structure – determines liability – sole trader, partnership, company, franchise, cooperative.
Production – where/how will it be produced (primary/secondary/ter tiary/quaternary/quina ry)
Marketing – Product (what consumers want), Price (what competitors charge and what consumers willing to pay), Promotion (how market), Place (where sell).
Quantity to produce – consider demand.
Distribution – shop front, direct mail, internet.

15. Employment decisions
The main types of employment decisions a person makes:
Number of hours worked / number of hours for leisure activities.
Sector to work in.
Run business or work for someone.
Adapt to change in the job market.
How employment decisions impact on a person’s quality of life:
Number of hours with the family.
Friendship time.
Leisure activities.
Amount of money earned.
Outline 5 examples of flexible
working practices and the advantages
of each way of working.
Self – employment
Part-time
Casual
Work from home
Shift workers
Mining workers

16. Legal decisions Protect consumer rights. Responsibility of suppliers.
Contract – when purchase item enter contract with retailer. Right to get what paid for.
Access the NSW Office of Fair
Trading website
Outline the types of legal advice
this site provides for consumers.
Up to here 26/3/12

17. Environmental decisions
Environmentally aware consumers ask themselves the following questions:
Does the production or distribution process of this product harm the environment?
Does the use of the product harm the environment?
Is this product recyclable?
Brainstorm the strategies
consumers can use to minimise
the impact of their consumption
decisions on the environment
9cm102 21/5/12