a) Explain the term “exchange in commerce b) What is impulse buying?

Answer Details

(a) The term "exchange" in commerce

Exchange means the process of transferring goods and services from those who produce or own them to those who need them, usually with money acting as the medium. It is the buying and selling of goods and services, and it forms the very heart of commerce because it moves goods from the producer to the final consumer. Exchange may be by barter (goods for goods) or, more commonly today, through the use of money as a medium of exchange. It creates possession utility by placing goods in the hands of those who want them and are willing to pay for them.

(b) Impulse buying

Impulse buying is the unplanned purchase of goods, where a customer buys on the spur of the moment without having intended to do so before entering the shop. It is triggered by attractive display, packaging, advertising or a sudden desire, rather than by prior need or planning. For example, a shopper who goes to buy only bread but suddenly picks up chocolate placed near the counter is engaged in impulse buying.