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‘While consumers are more optimistic about their financial outlook, they remain cautious, giving due consideration to all types of spend from grocery to big ticket items.’ (a) Discuss how consumer shopping patterns have changed over the past 10 years and suggest reasons for such changes - Leaving Cert Home Economics - Question 4 - 2016
Question 4
‘While consumers are more optimistic about their financial outlook, they remain cautious, giving due consideration to all types of spend from grocery to big ticket i... show full transcript
Worked Solution & Example Answer:‘While consumers are more optimistic about their financial outlook, they remain cautious, giving due consideration to all types of spend from grocery to big ticket items.’ (a) Discuss how consumer shopping patterns have changed over the past 10 years and suggest reasons for such changes - Leaving Cert Home Economics - Question 4 - 2016
Step 1
Discuss how consumer shopping patterns have changed over the past 10 years and suggest reasons for such changes.
Answer
Over the past decade, consumer shopping patterns have significantly shifted due to various factors:
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Increased Frequency of Shopping: Consumers are shopping more frequently in smaller quantities. Large shopping centers have adapted to this trend by promoting ‘one-stop shopping’ which saves time.
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E-commerce Growth: There's been a dramatic rise in online shopping, driven by the convenience of shopping from home and the availability of a wider range of products.
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Shopping Hours: With 24-hour shopping becoming more common, consumers now have more flexibility, often shopping late at night or early in the morning.
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Payment Methods: The acceptance of cashless payments and cards has facilitated easier transactions, enabling consumers to spend more fluidly.
Reasons for Changes
- Health Concerns: The pandemic has increased health consciousness about shopping environments, leading to a preference for online options.
- Consumer Awareness: Increased awareness regarding value for money and ethical consumption has influenced choices.
- Competition Among Retailers: The rise in competitive strategies has encouraged retailers to enhance consumer loyalty through offers and advertisements.
Step 2
Give details of four merchandising techniques used by retailers to maximise consumer spending.
Answer
Retailers employ various merchandising techniques to enhance consumer spending:
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Store Layout: The layout influences how much time consumers spend in-store. A strategic design, such as clearly defined aisles, can lead to impulse purchases.
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In-store Stimuli: Lighting, background music, and appealing aromas can enhance the shopping experience and encourage consumers to stay longer and spend more.
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Product Placement: High-demand products are often positioned at checkout areas to encourage additional purchases. For example, snacks are placed near lines to capture impulse buys.
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Loyalty Cards: By offering loyalty points or discounts through loyalty programs, retailers can incentivize repeat visits and higher spending.
Step 3
Name and give details of one statutory agency that protects consumers.
Answer
One statutory agency that protects consumers is the Competition and Consumer Protection Commission (CCPC).
- Role: This agency investigates and addresses unfair trading practices. It provides consumers with information regarding their rights and helps resolve disputes through mediation.
- Functions: The agency enforces consumer protection laws and investigates complaints against businesses to ensure compliance. For instance, it has the authority to take action against false advertising.