LWEO

chapter 4

chapter 4

Buying is choosing

In this chapter buying and paying are central. To start with the latter: there are various ways in which you can pay for something, namely paying in cash with coins, banknotes or e-wallet and cashless payment with a debit card, giro collection form or transfer order. In order to make cashless payments you need to have a transfer account (also known as a current account). The title of this chapter “Buying is choosing” has been a very conscious choice, for buying always entails choosing. When you buy one thing, your money is spent and you cannot buy something else. Especially when buying more durable goods such as running shoes, a game computer, and so on. It is important to compare the different articles and weigh your decision carefully. This is not always that easy. After all, advertisers do everything they can to present their products as the best, the most beautiful, etc. And you have to stand firm in order to resist that pressure.

links
Interactive Buying Guide by and for Consumers (www.kieskeurig.nl)
Consumers’ Association (www.consumentenbond.nl)
Consumers’ Program (kassa.bnnvara.nl)
Foundation for Idealistic Advertising (www.sire.nl)
Dutch Advertising Code Foundation (www.reclamecode.nl)
Banknotes (google)

glossary

Glossary chapter 4

Advertising Code Committee
Committee which assesses advertising according to the rules it has drawn up itself. People can file complaints with this committee when they think that an advertiser has not complied with the Dutch Advertising Code.
bank money
Money from people in a bank account that is at their immediate disposal.
brand
By means of a brand a product distinguishes itself from other products. The brand usually intends to guarantee a certain quality.
cash payment
Customers pay directly with coins and banknotes.
consumers’ sovereignty
Consumers determine what and how much is produced.
consumption
The purchase of goods and services by families.
debit card
Synonym: PIN card
direct marketing
Marketing strategy whereby an enterprise targets possible customers directly.
Dutch Advertising Code
Rules drawn up by the advertisers themselves which they must comply with.
hallmarks
Extra label to inform consumers quickly about product properties. Well-known hallmarks are the EKO hallmark, KEMA hallmark and the Max Havelaar hallmark.
hidden advertising
Advertising that is not presented as such, but is hidden in films, for example, such as the use of certain products in a soap series.
inferior goods
Goods of which you buy fewer when your income increases.
investing
The purchase by companies of goods and services that are necessary for the production.
luxury goods
Goods not necessary for people’s lives.
marketing
All the activities within an enterprise aimed at selling a product in the best possible way.
marketing mix
The way in which an enterprise offers its product. In the marketing mix we distinguish:
• price policy: the height of the price, discounts
• product policy: quality, packaging, service
• place policy: points of sale, manner of distribution
• promotion policy: advertising, actions, information
market share
The market share indicates which portion of the total market is in the hands of an enterprise. The market share may be represented in a percentage of the numbers sold or in a percentage of the total turnover.
mass media
Means of communication whereby a large number of people can be reached, such as daily and weekly papers, film, video, the Internet and broadcasting stations.
merchandising
Presenting a manufacturer’s products in the shop in a special way.
Misleading Advertising Act
According to this Act, advertising must not be misleading.
mobile wallet
Mobile telephone which you can charge with money and which you can then use to pay.
Non commercial advertising
Advertising, without a profit motive, to change people’s behaviour.
pay by funds transfer
Payment with money that is in your bank account
PIN card
A card (plastic card) with which you can make payments. The money is then transferred from your account to somebody else’s account by the bank.
pinnen
Using a debit card and the secret PIN code to withdraw money from a cash machine.
place (policy)
In marketing by place we mean the location where an enterprise offers goods. Part of the marketing mix in which the place policy (number and quality of the points of sale, the way of distribution, etc.) are central.
primary goods
Goods that are necessary to live on.
promotion (policy)
Part of the marketing mix by which the whole of sales-promoting activities is meant aimed at increasing the turnover. So all the sales-promoting activities of an enterprise intended to increase the sales.
ready cash
Coins and banknotes in the hands of the general public.
sales
The quantity of sold products expressed in units, kg, litre, etc. Another word for the quantity sold.
SIRE
(Stichting Ideële Reclame; Foundation for Idealistic Advertising) Foundation that makes non-commercial advertising aimed at changing people’s behaviour.
turnover
(total yield). The value of the products sold. Can be calculated by: sold quantity × selling price.