Worksheet 1
Glossary:
Comparison shopping: The process of comparing the price and quality of similar products
before making a purchasing decision.
Complementary good: A good that is generally consumed with another good; for example, a
car and petrol.
Demographic: The features of a population, such as age and sex structure.
Disposable income: A person’s income after tax has been deducted.
Impulse buying: The unplanned purchase of goods or services.
Durable good: A good that has a long lifespan and doesn’t need to be replaced frequently;
for example, a fridge or dining table.
Non-durable good: A good that is purchased frequently and has a short lifespan; for
example, food and pens.
Substitute: A good that can be purchased as an alternative to another good.
Activity:
Read the following information on different types of retail formats. Rule up a table
summarising the different types of retail formats, examples from your local area and the
advantages and disadvantages of shopping in this way.
Sample Answer:
Type
Examples
Advantages
Disadvantages
General
(corner)
stores
Waterloo
convenience
store, Fatima’s
mini-market.
Everyday convenience items
close to home, easier to get
fewer products, familiarity
with owners.
Limited opening times
compared to 24-hour
franchises, limited type of
available goods, price
higher for non-basic items.
Supermarkets Coles,
Woolworths.
Diverse offerings, cheap
goods and extended hours.
Displacing smaller
convenience stores.
Department
stores
David Jones,
Myer.
Expensive.
Discount
stores
Big W, Kmart,
Target.
Diverse range of available
goods, one-stop shopping,
loyalty programs and
features like entertainment
and coffee shops.
Focus on cut price
promotion, so very cheap.
diverse range of goods.
Category
killers
Officeworks,
Ability to buy in bulk,
Borders Books. cheaper per unit than other
options. Convenient
locations.
Loungelovers, Specialisation and expertise, Lack of variety, more
MGM Spices.
knowledgeable staff.
expensive, under threat by
larger retail chains.
Independent
specialty
stores
Self-service check out, nonpersonalised shopping
experience and not much
assistance.
Limited range of available
products.
Franchises
McDonalds,
KFC.
Cheap, consistent features
across franchises.
Little room for creativity,
restricted operations.
Periodic
markets
Paddy’s at
Haymarket,
Flemington
Markets.
Pitt Street
Mall, Eastlakes
shopping.
Large variety of goods,
could bargain and bulk-buy
to save money.
Low quality of goods, could
end up overpaying if not
knowledgeable about
bargaining.
Often do not have parking
facilities, unplanned.
Shopping
strips
Planned
centres
Macquarie
Centre,
Warringah
Mall.
Personalised services, range
of specialty stores and
supermarkets, convenient
location.
Large size, variety of goods,
attractive anchor stores,
parking.
High amount of waste,
congestion, pushed up
prices.