List of Consumer Behavior MCQs

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

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

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

Explanation:

The occupation of an individual can provide a large level of information about the social class he or she
belongs to.