Commerce Accountancy · General Awareness

Consumer Protection and Commerce

1,192 Questions

Consumer Protection and Commerce encompasses consumer rights, unfair trade practices, retail operations, and e-commerce strategies. It details how goods and services are regulated, sold, and managed within various markets. Questions from this area are common in commerce, economics, and general awareness exam sections.

E-Commerce PlatformsRetail Trade TypesConsumer Rights ProtectionUnfair Trade PracticesOmnichannel StrategiesTariff Impacts

Consumer Protection and Commerce Questions

Multiple choice

Bin card is maintained by

  1. purchase department

  2. production department

  3. marketing department

  4. storeskeeper

  5. none of these
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The storeskeeper is responsible for the physical custody of materials and maintains the bin card to track the movement of stock in and out of the storage area.

Multiple choice

Which of the following business models is used in Quikr.com or Olx.com websites?

  1. Business - to - Business (B2B) business model

  2. Business - to - Consumer (B2C) business model

  3. Consumer - to - Business (C2B) business model

  4. Consumer - to - Consumer (C2C) business model

  5. Government - to - Business (G2B) business model
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

This is the correct answer. The website following C2C business model helps consumers to sell their assets like cars, motorcycles, etc. or rent a room by publishing their information on the website.

Multiple choice

Which of the following statements is correct about m-commerce?

  1. It is adapting an existing U.S. centric website to another language and culture.

  2. It relies on the use of wireless devices, such as personal digital assistants, cell phones, and smart phones, to place orders and conduct business.

  3. Its exchanges involve transactions between and among consumers.

  4. It is the buying and selling of goods and services or the transmission of funds or data, over an electronic network, primarily the internet.

  5. It is the process of buying, selling or exchanging products, services or information, usually physical, meaning there is the existence of a physical store.
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Mobile commerce (m-commerce) relies on the use of wireless devices, such as personal digital assistants, cell phones, and smart phones, to place orders and conduct business.

Multiple choice

Which of the following is incorrect about B2C business E-commerce model?

  1. In this e-commerce type, business and consumers are involved.

  2. Here, customers deal directly with the organisation, avoiding any intermediaries.

  3. B2C business E-commerce model performs comparison shopping.

  4. Amazon, Yahoo, etc. do not come under B2C business E-commerce model.

  5. B2C business E-commerce model sells to the public, typically through catalogs utilising shopping cart software.
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Amazon, Yahoo, etc. follow B2C business E-commerce model.

Multiple choice

Which of the following E-commerce models is followed by Monster website?

  1. Consumer to Business E-commerce business model

  2. Business to Consumer E-commerce business model

  3. Consumer to Consumer E-commerce business model

  4. Peer to Peer E-commerce business model

  5. Traditional commerce
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Peer to Peer E-commerce business model is followed by Monster website.

Multiple choice

Which of the following is incorrect about B2B business E-commerce model?

  1. In B2B business E-commerce model, business and consumers are involved.

  2. B2B business E-commerce model includes purchasing and procurement, supplier management, inventory management, channel management, sales activities, payment management and service and support.

  3. In B2B business E-commerce model, pricing is based on quantity of orders and is often negotiable.

  4. In B2B business E-commerce model, participants are organisations.

  5. FreeMarkets, Dell, General Electric, etc. are some websites which use B2B business E-commerce model.
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The companies included in the B2B E-commerce are manufacturers, wholesalers, rather than retailers only. Hence, the given statement is incorrect.

Multiple choice

What, if true, would be the best reason why the sales of CFL didn't show any rise?

Directions: Answer the question based on the following passage.

The city of Orgville introduced discounts for people who use CFL. This was done with an aim to reduce the electricity consumption of the city. The Electricity Board compared the new bills with the previous ones and decided whether a household was eligible for discount or not. The program was a huge success and majority of the residents availed of the discounts. But the retailers reported no increase in the sales of CFL after the announcement of the discount program.

  1. CFLs didn't produce as much light as claimed by the manufacturers.

  2. CFLs could not withstand voltage fluctuations and were repeatedly replaced by the residents, ultimately by the fluorescent lamps.

  3. The residents became more alert to energy conservation measures.

  4. The residents borrowed CFLs temporarily to claim discounts in electricity bills.
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

(1): Incorrect. We have to reconcile stagnant sales with success of program. The light output of CFLs doesn't materially affect the contradiction. (2): Incorrect. The replacement by fluorescent lamps would add to the power consumption and heighten the contradiction. (3): Correct. The criterion adopted for claiming discount was the saving in power consumption actually effected; so the people conserved power to claim discount, with CFL or without CFL. (4): Incorrect. Borrowing of CFLs for a few days would not lower bills. (5): Incorrect. If bought after launch of program, these would still increase sales.

Multiple choice

What is the inherent, if misplaced, assumption of CRT wholesalers?

Directions: Answer the question based on the following passage.

In a market study it was observed that for their homes people now prefer buying LCD screens to the old school CRT monitors. The drop in the sales of the CRT monitors and TV units is evidence that the future is dark for the CRT market. Last week the telecom ministry published a tender for more than 500 computer monitors. The CRT wholesalers sending their bids are very pessimistic about getting this order.

  1. The drop in the sales of CRT monitors is not seasonal.

  2. Computers are the chief source of entertainment in many homes.

  3. The telecom ministry makes its purchases only through tenders.

  4. CRT monitors and TV units are losing popularity in the rural market also.

  5. The preferences of the telecom ministry are similar to personal preferences for homes.
Reveal answer Fill a bubble to check yourself
E Correct answer
Explanation

(1) Incorrect. Even if CRT monitors demand is seasonal, the pessimism will still hold good because fall in seasonal demand means fall in total demand. (2) Incorrect. Home entertainment statistics are irrelevant. The argument is about LCD and CRT monitors, not about computers. (3) Incorrect. The mode of purchase is not the issue, the specification of purchase is, CRT monitor manufacturers have also submitted a tender. (4) Incorrect. This is additional, though irrelevant evidence, not an inherent assumption. (5) Correct. The evidence is home preference, the conclusion is general. This is flawed assumption because the requirements of the two would be quite different. This assumption is explicitly stated in (5). Only if the ministry prefers similar monitors to the ones they use at home and the general demand comes down, will the pessimism of CRT wholesalers still hold water?

Multiple choice

Which of the following ceased to exist recently?

  1. Monopolies and Restrictive Trade Practices Commission

  2. Competition Appellate Tribunal

  3. Competition Commission

  4. National Consumer Disputes Redressal Commission

Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Special Award for 'Business Thought Leader' - TN Ninan

Multiple choice

What is the full form of CPI?

  1. Consumer price index

  2. Company price index

  3. Customer price index

  4. Cabinet price index
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Consumer price index

Multiple choice

Head of the Customer Relations Department: I have received over 10,000 instances of feedback on this issue from our customers and the most of them like our current color-scheme. These communications prove that most of our customers are not in favor of a change in our current color scheme.

Which of the following, if true, most weakens the conclusion being arrived at by the head of the Customer Relations Department?

  1. The issue is very contentious and many in the top management have very strong opinions on it.

  2. Some managers from Head’s own department do not like the current color-scheme.

  3. Customers who do not like the current color-scheme are more vocal than the customers who like the scheme.

  4. Customers who like the current color-scheme are more likely to give feedback to the Head than customers who do not like the scheme.

  5. During the trial phase of the current color-scheme, the Head himself was not completely satisfied with the current color-scheme.
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The Head of the Customer Relations Department arrives at his conclusion on the basis of the communications that he has received which may or may not be representative of all the customers. This is stated very clearly in option (4). Hence (4)

Multiple choice

Directions: Read the passage/argument and answer the question that follows it. Consumers love to bargain. But retailers appreciate that they will sometimes frown at a slightly cheaper version of a more expensive item, even if the two are identical. It goes to suggest that something is at play in the consumer's mind beyond simple appreciation of the intrinsic qualities of a particular product.

The conclusion of the above passage is best supported by which of the following?

  1. Psychological researchers have discovered that most consumers, while making a particular purchase, mostly go by the stated benefits of the product.

  2. Mall owners report that many consumers pay great attention to the price of an item while purchasing it.

  3. A reliable, representative psychographic research on consumer behaviour shows that for most customers, the price label is a proxy for product quality.

  4. A nationwide survey among prospective consumers shows that they would love to purchase a home solely on the basis of how it is priced.

  5. Some consumers are attracted to the premium tag attached to a product in terms of its affordability and prefer to buy it only due to this factor.

Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The conclusion, stated in the very last line, indicates that despite having the same benefits, the high-priced item attracts more consumer interest than the low-priced one. (1), therefore, is irrelevant as it talks of the benefits of a particular item, which is not the focus of the conclusion. Option (2), on the other hand looks very attractive but for mall owners and many, two words which greatly narrow down the scope of its applicability to a general consumer and retail population. Option (4) suffers from the same problem i.e. prospective home-owners. Out of options (3) and (5), the former is better as the latter is again qualifying the word consumers with some, making it logically unquantifiable.

 

Multiple choice

United States advertising agencies are increasingly using interviews at shopping malls, called, “mall intercepts” to test for advertising effectiveness, products viability, and consumer buying habits. Critics of mall intercepts maintain that the shopping habits of mall shoppers are not representative of those of the larger populations.

Which of the following argument most strengthens the viewpoint of the critics?

  1. Some mall shoppers patronize more than one mall in any given shopping trip.

  2. Mall shoppers, on average, spend 50 percent more time shopping than shoppers at other locations do.

  3. In the course of any year, 95 percent of all households in the United States have at least one member who does some shopping at a mall.

  4. Mall shopper who use public transportation to reach the mall tend to have lower incomes than mall shoppers who drive to the mall.
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The critics claim that shopping habits of mall shoppers may be somewhat different from average shopping habit of an average shopper. Choice (2) establishes the difference in habits.

Multiple choice

Which of the following is not an intrinsic feature of services that distinguishes services from goods?

  1. Services are intangible.

  2. Services are consistent.

  3. Simultaneous production and consumption of services.

  4. Services are perishable.

  5. Customer participates in the service delivery process.
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

This is the correct answer because this option is incorrect. Services are inconsistent. They have to be performed exclusively each and every time.