CONSUMER BEHAVIOUR MCQ

1. Which of the following statements is true about consumer behaviour?

a. Consumer behaviour is the study of microeconomics
b. Consumer behaviour is the study of macroeconomics
c. Consumer behaviour is the study of income analysis
d. None of the above

Answer: a

2. Which of the following statements about utility is correct?

a. One of the main characteristics of utility is that it is a relative concept
b. One of the main characteristics of utility is that it is a subjective concept
c. One of the main characteristics of utility is that it is a psychological phenomenon
d. All of the above

Answer: d

3. Which of the following concepts is true?

a. The ability to satisfy the human wants in a good or service is called its satisfaction
b. The ability to satisfy the human wants in a good or service is called its productivity
c. The ability to satisfy the human wants in a good or service is called its profitability
d. The ability to satisfy the human wants in a good or service is called its utility

Answer: d

4. Which of the following statements is true about the law of equi-marginal utility?
a. The law of equi-marginal utility is known as the law of decreasing utility
b. The law of equi-marginal utility is known as the law of increasing utility
c. The law of equi-marginal utility is known as the law of substitution
d. The law of equi-marginal utility is known as the law of contribution

Answer: c

5. Which of the following statements about the addition of utilities is correct?

a. The addition of utility that is obtained from all the units of a good or service is called the total
utility
b. The addition of utility that is obtained from all the units of a good or service is called the
additional utility
c. The addition of utility that is obtained from all the units of a good or service is called the
marginal utility
d. The addition of utility that is obtained from all the units of a good or service is called the
maximum satisfaction

Answer: a
6. Which of the following statements is true?
a. The capability of any commodity to satisfy human wants is known as utility
b. The capability of any commodity to satisfy human wants is known as taste
c. The capability of any commodity to satisfy human wants is known as consumption
d. The capability of any commodity to satisfy human wants is known as quality

Answer: a

7. Which of the following about the relationship between marginal utility and price is correct?
a. The marginal utility of a commodity or service must be equal to its price to ensure maximum
satisfaction of the consumer
b. The marginal utility of a commodity or service must be greater than its price to ensure
maximum satisfaction of the consumer
c. The marginal utility of a commodity or service must be lesser than its price to ensure
maximum satisfaction of the consumer
d. There is no relationship between the marginal utility of a commodity or service and its price

Answer: a

8. Which of the following is true about the relationship between total utility and marginal utility?
a. The total utility of a product or service is maximum when the marginal utility is negative
b. The total utility of a product or service decreases when the marginal utility is negative
c. The total utility of a product or service increases at a decreasing rate when the marginal utility
is negative
d. None of the above

Answer: b

9. Which of the following statements about the demand curve is true?

a. The slope of the demand curve is upward from left to right
b. The slope of the demand curve is downward from left to right
c. The slope of the demand curve is parallel to the X-axis
d. The slope of the demand curve is parallel to the Y-axis

Answer: b

10. Which of the following statements is true?

a. In the case of necessity goods, the fall in prices does not lead to an increase in demand
b. In the case of comfort goods, the fall in prices does not lead to an increase in demand
c. In the case of luxury goods, the fall in prices does not lead to an increase in demand
d. None of the above

Answer: a

11. Which of the following statements about demand is correct?

a. The main factor that affects the demand for a product or a service is its price
 b. The main factor that affects the demand for a product or a service is the change in income
levels of the consumer
c. The main factor that affects the demand for a product or a service is the taste of a consumer
d. All of the above

Answer: d

12. Which of the following statements is correct?

a. Goods that can be used alternatively to each other are known as substitute goods
b. Goods that can be used alternatively to each other are known as comfort goods
c. Goods that can be used alternatively to each other are known as complementary goods
d. All of the above

Answer: a

13. The Law of Demand is a _______.

a. Qualitative statement
b. Quantitative statement
c. Both a and b are correct
d. Both a and b are incorrect

Answer: a

14. When the price of coffee rises, the demand for tea _____.
a. Falls
b. Rises
c. Stays the same
d. None of the above

Answer: b

15. Elasticity of demand is a ______.

a. Qualitative statement
b. Quantitative statement
c. Both a and b are correct
d. Both a and b are incorrect

Answer: b

AGAIN SOME IMPORTANT MCQ’S

1. The first step of the buying process is recognition of ____ by the customer.

A. Market
B. Need or Problem
C. Availability of product or service
 D. Money or funds to buy

Answer: B) Need or Problem

Explanation:

In buying cycle, a customer first identifies a need or a problem for which he wants
a solution.

2. In the second step of the buying process the customer engages in

A. Evaluation of alternatives
B. Confirms need or problem
C. Information search
D. Buying

Answer: C) Information search

Explanation:

Once a customer identifies a need or problem s/he starts to search for

information about the available solutions.

3. A customer is ____ when the performance of the product matches his

expectations.

A. Happy
B. Delighted
C. Dissatisfied
D. Satisfied

Answer: D) Satisfied

Explanation:
Once a customer uses the product or service and it performs as per his/ her
expectations, the customer is satisfied.

4. In consumer behavior CDM stands for

A. Consumer Decision Making

B. Customer Decision Mix
C. Customer Development Model
D. Consumer Decision Mapping

Answer: A) Consumer Decision Making

Explanation:

CDM stands for Consumer Decision Making, which is an important element in the
buying cycle.

5. In CDM the first stage is

A. Alternative evaluation
B. Need
C. Purchase
D. Information search

Answer: B) Need

Explanation:

In the decision-making process, the first step of the consumer is the identification
of need.

6. ____ is the final step in the Consumer Decision Making model.

A. Purchase
 B. Post-purchase
C. Evaluation of alternatives
D. Information search

Answer: B) Post-purchase

Explanation:

The final step in CDM is post-purchase, where the consumer uses the product or
service.

7. When the performance of a product or service exceeds the expectation,

the customer is .

A. Happy
B. Satisfied
C. Delighted
D. None of the above

Answer: C) Delighted

Explanation:

When a product or service performs beyond the expectations of the customer, he

is delighted by the product or service.

8. In a situation where parents buy toys for kids, the parents are ____.

A. Decider
B. Maintainer
C. Buyer
D. All of the above

Answer: D) All of the above

Explanation:
The authority to buy, decide and maintain the purchase lies with the parents in
this case.

9. A person buying milk displays ____.

A. Credence buying behavior

B. Extensive buying behavior
C. Routine buying behavior
D. Selective buying behavior

Answer: C) Routine buying behavior

Explanation:

Buying milk is a regular buying where the customer does not involve in the
complete buying cycle every time. He goes to the store and buys the routine milk.

10. When a buyer goods or services to use in the production or assembling

of products to be sold or supplied to others, it is known as.

A. Secondary Buying Behavior

B. Standard Buying Behavior
C. Business Buying Behavior
D. Consumer Buying Behavior

Answer: C) Business Buying Behavior

Explanation:

The consumer is buying the goods as a component of the final product that will
be sold or supplied by his business.
11. The study of behavior by an individual, group, or organization and all
the activities involved in the process of purchase, use, and dispose of goods
or services is called.

A. Consumer Behavior
B. Organizational Behavior
C. Business Behavior
D. Behavioral Studies

Answer: A) Consumer Behavior

Explanation:

Consumer behavior studies the actions involved in and associated with the
process of purchase, use, and disposal of goods or products by individuals,
groups or organizations.

12. The purchase of items like ice cream, chocolate, or soft drinks
demonstrate .

A. Deliberate buying
B. Corrective buying
C. Effective buying
D. Impulsive buying

Answer: D) Impulsive buying

Explanation:

In impulsive buying, the consumer does not go through the extensive buying
cycle. The decision is made impulsively and the stakes are very low.

13. Habitual Consumer Decision Making involves

A. No decision making
B. Cognitive decision making
 C. Evaluation of alternatives
D. None of the above

Answer: A) No decision making

Explanation:

In habitual buying, the customer does not make a decision. The customer in this
case already knows what he wants to buy.

14. A customer makes a limited search before taking a decision. He is

displaying

A. Limited CDM
B. Habitual CDM
C. Nominal CDM
D. All of the above

Answer: A) Limited CDM

Explanation:

The customer does limited research about the product or service, and makes a
decision.

15. Which of the following shows the high level of involvement?

A. Habitual CDM
B. Limited CDM
C. Nominal CDM
D. Extended CDM

Answer: D) Extended CDM

Explanation:
In Habitual, Limited, and Nominal Consumer Decision Making, the customer is not
much involved while making a decision. Whereas in Extended Consumer Decision
Making the customer goes into details before making a decision.

16. The following can be used to explain the information search by a

customer

A. Sequence
B. Degree
C. Direction
D. All of the above

Answer: D) All of the above

Explanation:

The information search by a consumer holds multiple aspects and is normally

described in terms of the direction, the sequence, and the degree or extent of the
search.

17. Customers are ____ when they look for the prestige associated with the
brand while making a decision.

A. Novelty oriented
B. Quality oriented
C. Brand conscious
D. All of the above

Answer: C) Brand conscious

Explanation:

Brand-conscious customers, make their purchase decisions based on the prestige

associated with the brand. They pay relatively lower attention to other details.
18. The customers who look for quality while making a purchase decision
come under

A. Quality oriented style

B. Impulsive style
C. Pleasure oriented style
D. None of the above

Answer: A) Quality oriented style

Explanation:

The customers falling under the Quality oriented style, primarily focus on the
quality of the product or service rather than image or novelty.

19. The customers who are interested in buying and experimenting with new
products or variants come under a rather small section called

A. Novelty conscious
B. Impulsive buyers
C. Brand conscious
D. Pleasure oriented

Answer: A) Novelty conscious

Explanation:

A small section of consumers, categorized as Novelty conscious, are willing to

experiment and buy new products or variants to keep up-to-date with the trends.

20. The consumers who buy without much analysis or information about the
product come under

A. Pleasure oriented
B. Impulsive buyer
C. Novelty oriented
 D. Shop for fun

Answer: B) Impulsive buyer

Explanation:

Impulsive buyers don’t search for much information, nor do they do a detailed
comparison of a product, before making a purchase decision.

21. A customer seeking the best bargain in terms of enhanced price-

performance equation will come under

A. Quality oriented style

B. Novelty oriented
C. Value for money style
D. Impulsive style

Answer: C) Value for money style

Explanation:

A value for money style customer focuses on deriving maximum value from a
purchase and not just the best price offer.

22. Consumer behavior is a study of

A. Macroeconomics
B. Microeconomics
C. Purchasing power parity
D. All of the above

Answer: B) Microeconomics

Explanation:

The branch of consumer behavior comes under the study of microeconomics

23. Utility, as a concept is

A. Subjective
B. Psychological
C. Relative
D. All of the above

Answer: D) All of the above

Explanation:

The utility of a product or service is decided by the customer and varies from
product to product as well as customer to customer depending upon multiple
factors. Hence it is relative, subjective, and a psychological phenomenon.

24. The law of equi-marginal utility is also known as

A. Law of increasing utility

B. Law of substitution
C. Law of decreasing utility
D. Law of Contribution

Answer: B) Law of substitution

Explanation:

The law of equi-marginal utility explains the amount of a product the consumer is
willing to consume in comparison to another product, given that the new product
is equally satisfying.

25. Which of the following terms plays role in deciding the demand for a
product or service

A. Price
 B. Interest of consumer
C. Income levels or change income levels of consumers
D. All of the above

Answer: D) All of the above

Explanation:

The demand for a product or service varies with a change in any of these factors
hence it depends on all of them.

26. The goods which can be used alternatively to each other are known as

A. Complimentary goods
B. Substitute goods
C. Related goods
D. None of the above

Answer: B) Substitute goods

Explanation:

When a customer uses two products alternatively to fulfill the need, the products
are substituting for each other.

27. When the change in demanded quantity is small when there is a change
in price, it is called

A. Inelastic demand
B. Elastic demand
C. Qualitative demand
D. Market demand

Answer: A) Inelastic demand

Explanation:
The demand for the product is not changing significantly with a change in the
price, showing the inelastic nature of the demand for this product.

28. When the prices of coffee go up, the demand for tea rises. In this
statement, tea is a

A. Substitute good
B. Complimentary good
C. Related goods
D. All of the above

Answer: A) Substitute good

Explanation:

When the prices of coffee rise customers will start to substitute it with a cheaper
option, thus making the tea a substitute product in this case.

29. Given that all other factors are constant, the relationship between price
and demand is ____ proportional.

A. Inversely
B. Directly
C. Not
D. Relatively

Answer: A) Inversely

Explanation:

The law of Demand states that when the price of a product goes up, its demand
will go down, given that all other factors affecting the demand remain constant.
30. If the income of a customer remains constant and the price of a product
decreases his purchasing power increases. This is called

A. Substitution Effect
B. Income Effect
C. Price Impact
D. None of the above

Answer: B) Income Effect

Explanation:

When the income of a customer remains the same but the prices of the product
decrease, he can buy more quantity of the product. This leads to an increase in
the demand for the product.

31. The nature of Elasticity of Demand is

A. Qualitative
B. Quantitative
C. Subjective
D. All of the above

Answer: B) Quantitative

Explanation:

When the price of a product changes, its demand shows a large change, given
that every other factor remains constant.

32. There are differences in media preferences of Social classes. For example
the lower class consumers prefer television whereas the upper class prefers

A. Books and magazines

B. Radio
C. Theatres
 D. Computer games

Answer: A) Books and magazines

Explanation:

The preferences of consumers are affected by their social groups and common
points of discussion. A consumer will consume more of what is popular among his
/ her social group.

33. ____ like marriage, childbirth, divorce, etc. shape the consumption
patterns of individuals.

A. Social status
B. Critical life events
C. Social events
D. Legal events

Answer: B) Critical life events

Explanation:

Critical life events like marriage, divorce, etc. bring tremendous changes in the
lifestyles of individuals. Thereby changing their consumption patterns accordingly.

34. Multiple factors influence an individual’s needs wants and behavior. ____
is one of the most basic influences.

A. Culture
B. Brand
C. Price
D. Celebrity

Answer: A) Culture

Explanation:
An individual's needs, wants and behavior shape up over time. The culture in
which he or she lives plays a very important role.

35. In the study of consumer behavior culture, social class, and reference
group influences are related to the ____ and consumption decisions.

A. Finance
B. Purchase
C. Psychological
D. Preference

Answer: B) Purchase

Explanation:

Culture, social class, and reference groups have a major impact on the behavior
and decisions of individuals.

36. In nations with large areas, the population loses its homogeneity. This
leads to the rise of

A. New demands
B. Subcultures
C. Religions
D. Large markets

Answer: B) Subcultures

Explanation:

Cultures develop around the geographical conditions of an area. A large nation

will have different geographies and the populations in these areas will adapt to
them leading to the rise of subcultures.
37. In recent years, marketers are paying more importance to ____ when
developing a marketing strategy.

A. Inflation
B. Brand value
C. Age groups
D. Celebrity influence

Answer: C) Age groups

Explanation:

The age groups like mature, teenagers, etc play an important role in designing
marketing strategies.

38. Among the following factors, which will best indicate social class?

A. Brand preference
B. Values
C. Occupation
D. Education

Answer: C) Occupation