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Consumers are presented with an increasing range of goods and services - Leaving Cert Home Economics - Question 4 - 2007
Question 4
Consumers are presented with an increasing range of goods and services. As a result, it can be difficult to make informed choices. (a) Discuss how any four of the f... show full transcript
Worked Solution & Example Answer:Consumers are presented with an increasing range of goods and services - Leaving Cert Home Economics - Question 4 - 2007
Step 1
Discuss how (i) advertising might affect consumers' decision making
Answer
Advertising plays a crucial role in shaping consumer behavior. It introduces new products to the market and raises awareness among potential buyers. By highlighting unique features or benefits, advertising can differentiate a product from competitors, influencing the consumer’s preference. Furthermore, advertising may compel consumers to buy products they cannot afford, as seen when promotional ads create a sense of urgency. Sponsorship of events or associations with popular figures (e.g., sports stars) can also enhance the consumer's identification with the brand, making them more likely to choose it.
Step 2
Discuss how (ii) household income might affect consumers' decision making
Answer
Household income is a significant factor that influences purchasing decisions. Higher income provides greater freedom in spending capacity, while lower income may lead to prioritizing essential goods and budgeting carefully. Young adults, such as teenagers, may contribute to household income through part-time jobs, thus affecting family purchasing decisions. Additionally, changes in a household's financial situation, such as unexpected expenses, can alter buying behavior and lead to reconsideration of what goods and services are essential.
Step 3
Discuss how (iii) discount offers might affect consumers' decision making
Answer
Discount offers can significantly sway consumer decisions by creating a sense of urgency and driving impulse purchases. Promotions such as 'buy one, get one free' give consumers the impression of receiving more value for their money, enticing them to purchase more than they initially planned. For example, a customer may spend $3 for the price of 2 free samples, leading to increased perceived savings. This sense of obtaining a bargain can lead consumers to choose products they may not have considered otherwise.
Step 4
Discuss how (iv) shopper loyalty schemes might affect consumers' decision making
Answer
Shopper loyalty schemes incentivize repeated purchases by offering rewards for brand loyalty. Programs like club memberships provide consumers with tokens or points that accumulate over time, motivating them to continue shopping with a particular brand or store. For instance, rewards such as discounts or exclusive offers may encourage consumers to prioritize shopping at specific locations, as they perceive value in the loyalty program. Additionally, the collection of points can influence consumers to align their buying habits with achieving certain targets, such as earning a free gift.
Step 5
State the advantages and disadvantages of (ii) internet shopping
Answer
Advantages of internet shopping include convenience as it allows consumers to shop anytime and anywhere without the need to visit physical stores. It also offers a variety of choices from different retailers, often at competitive prices, and provides customer reviews that assist in making informed decisions.
However, disadvantages may include the inability to physically inspect products before purchase, which can lead to dissatisfaction. Additionally, issues like shipping costs, potential delays, and the risk of online fraud may deter some consumers from choosing online shopping over traditional methods.