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18 Cards in this Set
- Front
- Back
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What are factors that affect the total consumer expenditure?
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Consumer Confidence
Interest Rates |
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What is Consumption?
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Consuming goods/ commodities/ services as they provide satisfaction when consumed.
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What is disposable income?
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Income which is left after paying taxes.
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Why do people consume?
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In order to achieve a certain level of satisfaction.
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What is consumer confidence?
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How confident the consumer is with their power to spend money.
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How do low interest rates affect conusmer consumption?
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With low interest rates consumption level increases, with higher level of interest rates level of consumption would fall.
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What are some consumption patterns and trends?
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Tech. advances.
Real income More health concious - Lifestyle, work pattern - Social attitude - Delay in marriage - More focus on environment. |
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People's lifestyle and work pattern.
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Different lifestyle for different people, spending habits depend on life style & nature of work.
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Real income
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Amount of income after income. The income is adjusted to inflation.
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Social Attitude
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Clothing, Entertainment, cultures are all different this can affect spending patterns and styles.
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Marriage/Birth
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Children and Marriage are large financial expenses this can affect their spending and consumption patterns.
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Health Conscious
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Organic Food instead of regular, more expensive yet still popular.
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Greater focuses on the Environment.
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More people are looking towards eco-friendly products.
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Technological advances -
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Sleeker, Newer, Thinner, Lighter, products are more preferred. This may cause people to make impulsive purchases.
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What determines Saving?
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- Levels Consumption
- Interest rates - Consumer Confidence. - Availability of saving scheme. |
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Why do people borrow?
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- Interest Rates
- Wealth - Consumer Confidence |
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FD - Fixed Deposit
STDR - Short Term Deposit return |
Savings Account - Ordinary account where generally salaries are deposited.
Current Account - Monthly deposit on certain date. |
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What are some problems with borrowing?
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Loan Repayment
Problems with the financial system of the country. |
