Commerce Accountancy · General Awareness

Consumer Protection and Commerce

1,245 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 business economics and quantitative methods consumer's behaviour consumer equilibrium laws in economics utility and law of diminishing marginal utility

A rational consumer is a person who ____________.

  1. behaves at all times, other things being equal, in a judicious manner.

  2. is influenced by persuasive advertising

  3. knows the price of goods in different market and buys the cheapest.

  4. has perfect knowledge of the market.
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

A rational consumer is considered to be that person who makes rational consumption decisions.

 In other words, the consumer who makes his choices after considering all the other alternative goods (and services) available in the market is called a rational consumer.

Multiple choice elements of business selling and distribution definition and functions of purchasing and storage department purchasing and stores product life cycle

Common purchasing activities include _______.

  1. receive and verify purchase requisitions

  2. search for qualified suppliers that can fulfill the buyer's needs

  3. issue purchase orders to suppliers

  4. all of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Purchasing activities include the entire lifecycle from receiving requisitions and sourcing to issuing orders.

Multiple choice elements of business purchasing and stores definition and functions of purchasing and storage department product life cycle e-marketing

The first activity of Purchasing cycle is _______.

  1. communicating requirement to the purchase

  2. source Selection and development

  3. recognizing the need for procurement

  4. inspection of goods
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The purchasing cycle begins when a need for a product or service is identified and formally recognized.

Multiple choice organisation of commerce and management recent trends of business e-commerce and mobile commerce introduction to internet and e-commerce emerging modes of services

What is e-commerce?

  1. Buying and selling international goods

  2. Buying and selling products and services over the internet

  3. Buying and selling products and services not found in stores

  4. Buying and selling products having to do with computers

  5. Buying and selling selling of electronics goods
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Buying and selling products and services over the internet is e-commerce.

E-commerce refers to the process of buying or selling products or services over the Internet. ... E-commerce activities such as selling online can be directed at consumers or other businesses. Business to Consumer ( B2C ) involves the online sales of goods, services and provision of information directly to consumers.

Online shopping is a form of electronic commerce which allows consumers to directly buy goods or services from a seller over the Internet using a web browser. ... When an online store is set up to enable businesses to buy from another businesses, the process is called business-to-business (B2B) online shopping.

Business to consumer (B2C) – Transactions happen between businesses and consumers. ... Online retail typically works on a B2C model. Retailers with online stores such as Walmart, Macy's, and IKEA are all examples of businesses that engage in B2C ecommerce.

Multiple choice organisation of commerce and management recent trends of business e-commerce and mobile commerce introduction to internet and e-commerce emerging modes of services

What is e-commerce?

  1. Buying and selling international goods

  2. Buying and selling products and services over the Internet

  3. Buying and selling products and services not found in stores

  4. Buying and selling products having to do with computers

  5. Buying and selling of electronic goods
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

E-commerce -- electronic commerce or EC -- is the buying and selling of goods and services over an electronic network, primarily the internet.

Types of e-commerce:

  • According to the commercial profile: Focuses on type of parties participating in transaction.
  1. B2B (Business-to-Business): businesses whose clients are also businesses or organizations. For example, we could think about a construction materials company selling its products to architects and interior designers.
  2. B2C (Business-to-Consumer): businesses that sell their products or services directly to the consumer. This is the usual type and there are thousands of examples of clothes, shoes or electronics stores.
  3. C2B (Consumer-to-Business): sites in which consumers offer products or services and businesses bid on them. We are talking about the traditional websites for freelancers such as Freelancer, Twago, Nubelo or Adtriboo.
  4. C2C (Consumer-to-Consumer): businesses that facilitate the selling of products among consumers. The clearest example is eBay or any other second hand website.
  5. In addition to these types of electronic commerce, there are other popular types such as G2C (Goverment-to-Consumer), C2G (Consumer-to-Goverment) or B2E (Business-to-Employer).

Multiple choice commercial applications marketing mix - 4 p's meaning and objectives of pricing pricing strategies pricing

Match the following.

$1$. Spatial gap a) Customers make their purchase at regular intervals, whereas production has to be organised on a continuous process
$2$. Temporal gap b) Consumers are usually scattered, whereas production is concentrated in a few centres
$3$. Perceptional gap c) Customers cannot have full information of producers and products available, this prevents free exchanges
$4$. transactional gap d) Manufactureres organise large-scale production, whereas customers prefer to buy only in small quantities
  1. $1$-a, $2$-c, $3$-d, $4$-b
  2. $1$-b, $2$-a, $3$-d, $4$-c
  3. $1$-a, $2$-b, $3$-d, $4$-c
  4. $1$-b, $2$-a, $3$-c, $4$-d
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Spatial gap relates to the distance between producers and consumers (b). Temporal gap relates to the difference in timing between production and consumption (a). Perceptional gap relates to information asymmetry (c). Transactional gap relates to the difference in quantities (d).

Multiple choice commercial applications marketing mix - 4 p's meaning and objectives of pricing pricing strategies pricing

When a firm charges different prices for different groups of customers, it may be accused of _________.

  1. cultural relativism

  2. money laundering

  3. facilitating payments

  4. price discrimination
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation
Price discrimination is a pricing strategy that charges customers different prices for the same product or service. In pure price discrimination, the seller charges each customer the maximum price he or she will pay. In more common forms of price discrimination, the seller places customers in groups based on certain attributes and charges each group a different price.
Price discrimination is most valuable when the profit from separating the markets is greater than the profit from keeping the markets combined. This depends on the relative elasticity of demand in the sub-markets. Consumers in the relatively inelastic sub-market pay a higher price, while those in the relatively elastic sub-market pay a lower price.

Multiple choice commercial applications marketing mix - 4 p's meaning and objectives of pricing pricing strategies pricing

Price discrimination is defined as ___________.

  1. The practice of charging different prices to different consumers for the goods or services by slightly altering the packaging or features for the different groups

  2. Disregarding the profit motive by favoring one group of buyers over another by charging that group a lower price

  3. The practice of charging different prices to different consumers for the same goods or services

  4. The practice of selling a goods or services for the same to different groups of consumers group but slightly altering, quantity or features of the goods or services for each group
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Price discrimination refers to the charging of different price by the monopolist for the same product.  The differences maybe on the basis of brand wrapper etc. This policy of the monopolist is called price discrimination.

"Price discrimination refers strictly to the practice by a seller of charging different prices from different buyers for the same good" -J.S. Bian

Multiple choice organization of commerce and management social responsibility of management and csr concept of social responsibility social responsibility social responsibility - concept corporate social responsibility

A company promoting 'tasty' fatty foods that might lead to consumers suffering from heart disease and obesity could be accused of ________________.

  1. Deceptive selling

  2. Misleading advertising

  3. Invasion of privacy

  4. Short-termism
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Short-termism arises when a business priorities short-term rather than long-term performance.Here, the company is promoting tasty fatty foods for their short term benefits at the cost of their reputation and goodwill.

Multiple choice organization of commerce and management social responsibility of management and csr concept of social responsibility social responsibility social responsibility - concept corporate social responsibility

A company promoting 'tasty'  fatty foods that might lead to consumers suffering from heart disease and obesity could be accused of  __________.

  1. decpetive

  2. misleading advertising

  3. invasion of privacy

  4. short-termism
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Short termism-concentration on short-term projects or objectives for immediate profit at the expense of long-term security.

Multiple choice organization of commerce and management social responsibility of management and csr concept of social responsibility social responsibility social responsibility - concept corporate social responsibility

Responsibility of a business towards the consumers are ______.

  1. Fair returns

  2. Fair wages

  3. Fair prices

  4. Working condition
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Fair Prices: The customers should not be cheated by charging high prices. It is not possible to fool the customer at all the time. Thus, fair price convert a customer into permanent customer.This is the responsibility of a business towards its customers.

Multiple choice organization of commerce and management social responsibility of management and csr concept of social responsibility social responsibility social responsibility - concept corporate social responsibility

The enterprise must take proper precaution against _______.

  1. Adulteration and poor quality

  2. Misleading and dishonest advertising

  3. Lack of desired service and courtesy to customers

  4. All of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation
  • Businesses, while serving the needs of their customers, should take into account the overall well-being of the customers and that of society.
  • Businesses should disclose all information truthfully and factually, through labeling and other means, including the risks to the individual, to society and to the planet from the use of the products, so that the customers can exercise their freedom to consumer in a responsible manner. Where required, businesses should also educate their customers on the safe and responsible usage of their products and services.
  • Businesses should promote and advertise their products in ways that do not mislead or confuse the consumers or violate any of the principles in these Guidelines.
Multiple choice organisation of commerce and management marketing mix branding and packaging marketing marketing management

Customers are least interested in the packaging of any product and only care about the product inside.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Product packaging is the process of designing, evaluating and designing packages that protect the products from spoilage, helps in easy transportation and also provide information about the product to consumers. Product promotion is the new consideration as packaging with the help of attractive designs and colors help in drawing people's attention towards the product. This leads to increase sales.

Multiple choice organisation of commerce and management marketing mix branding and packaging marketing marketing management

Labeling provides the information related to the consumption and usage of the product.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Labeling is used to display information about a product and its container, packaging or the product itself.  It is used to provide the statutory warnings and facts about the product. The type and extent of information that must be imparted by a label is governed by the relevant safety and shipping laws.

Multiple choice commercial studies marketing and sales difference between products and services product marketing
Type of products Examples
$1$. Prestige products a) Cigarettes, blades
$2$. Maturity products b) Automobiles, clothing
$3$. Anxiety products c) Medicines, soaps
$4$. Functional products d) Fruits, vegetables
  1. $1$-a, $2$-c, $3$-d, $4$-b
  2. $1$-b, $2$-a, $3$-c, $4$-d
  3. $1$-b, $2$-a, $3$-d, $4$-c
  4. $1$-a, $2$-b, $3$-a, $4$-d
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Prestige products (e.g., automobiles) are status symbols. Maturity products (e.g., cigarettes) are established. Anxiety products (e.g., medicines) are bought to prevent harm. Functional products (e.g., fruits) are basic needs. The mapping 1-b, 2-a, 3-c, 4-d matches these categories correctly.