The question was very well answered by the candidates.

The required answers to the question are as follows:

• Explanation of Impulse Buying

            -           This is the act of buying goods or articles on the spur of the moment, without
                        thinking whether one really needs the items.
-           No budget is made for this type of buying.

Disadvantages of Impulse Buying

-           It encourages spending money on irrelevant things while the necessary items
                        are ignored.
            -           It leads to overspending and waste of family resources.
            -           It can cause misunderstanding and conflict between husband and wife.
            -           The family may suffer when family housekeeping money is used recklessly on
                        impulse buying.

(c)        Advantages and disadvantages of buying a sewing machine on hire purchase

            Advantages of buying a sewing machine on hire purchase
-           Sewing machine is obtained on payment of only small deposit.
-           The consumer can use the sewing machine while still paying for it.
-           The retailer’s sales increases.
-           Increase in return of profit for the retailer.
-           It eases pressure on the family finances/budget.

Disadvantages of buying a sewing machine on hire purchase
-           Consumers are tempted to buy more than they can afford.
-           With long period of payment, sewing machine may be worn out before full
            payment is made.
-           Interest rate on the sewing machine is usually high.
-           There is risk of non-payment.
-           The sewing machine may be forfeited if full payments are not made on the
            due date.         

(d)        Sources of consumer information

-           Consumer’s own experience, her friends, neighbours and relatives.
-           Advertisement, Television, Radio.                                                                 
-           Sales agents.
-           Manufacturers’ leaflets and labels on goods.
-           Posters, handbills, internet, newspaper, journals, magazine, flyers

(iii)       Why consumer education is needed

            -           To enable the consumer know his/her rights.
            -           It enables them to discern innate or assess consumer information, so that they can interpret the available information about the goods and services.
            -           To enable them know how and where to buy the goods and services needed.
            -           To obtain best value for money.
            -           Eliminate waste in consumption.
            -           Safeguard consumers.