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 technology packaged enterprise solutions

Which of the following statements best describe a loyal customer?

  1. Loyal customers continue to deal with your company, even after repeated poor service experiences

  2. A loyal customer tells an average of 10 to 20 other people about a good experience with your company

  3. Loyal customers prefer to buy from your company, even at slightly higher prices

  4. Only 20 percent of any company’s customers are loyal, and that number is constant
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

A loyal customer demonstrates commitment by preferring to purchase from your company even when competitors offer slightly lower prices. This price tolerance is a key indicator of true loyalty. Option A is incorrect because loyal customers will eventually leave after repeated poor service. Option B understates the impact - loyal customers actually tell MORE people. Option D is incorrect because loyalty percentages vary widely by industry and company.

Multiple choice technology mainframe

What is Smart card?

  1. Smart card a credit card with special promotional offers in specific stores

  2. Smart card is same as credit card in which a small chip will be inserted in the card

  3. Smart card is same as credit card in which a magnetic stripe inserted in the card

  4. Smart card is same as credit card in with a digital signature inserted in the card
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

A smart card is a plastic card embedded with a microchip (integrated circuit) that manages and secures data, unlike traditional magnetic stripe cards. The stored answer correctly identifies this chip integration, distinguishing it from regular credit cards or promotional store cards.

Multiple choice technology mainframe

What is Contact less card?

  1. Contact Less card is a type of smart card , where customer has to tap the card for transaction

  2. Contact Less card is a type of smart card, which requires a contact between card and card reader

  3. Contact Less card is a type of smart card, which has two microchips

  4. Contact Less card is a type of smart card, which uses unique physical or behavioral characteristics to identify the individual
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Contactless cards use NFC technology to complete transactions with a tap - no physical contact or swiping required. Option B incorrectly describes contact-based cards, C refers to dual-chip cards (not contactless-specific), and D describes biometric authentication. Contactless means proximity-based communication.

Multiple choice technology mainframe

What are Rewards?

  1. These are gifts provided by the merchant to the customer.

  2. These are the points that will be acquired when the customer does a specific transaction.

  3. These are the points earned by the card member for increasing the credit limit.

  4. These are the points earned by the merchant for setting up the POS.
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Rewards are loyalty points or benefits earned by customers when they make qualifying transactions with their credit card. These accumulate over time and can be redeemed for various benefits like cashback, merchandise, or travel. Option A is incorrect because rewards are earned by customers, not provided as gifts by merchants. Option C refers to credit limit increases, which are separate from rewards programs. Option D incorrectly suggests merchants earn rewards, when rewards are customer-centric.

Multiple choice technology mainframe

What is Co-brand card?

  1. It is the card where the Issuer is tied up with any social service group (some orphanage, old-age home, CRY, etc.,) and for every transaction/s, certain % will be donated to the group.

  2. It is the additional card offered to the relatives of customer card and for every transaction/s, certain points will be awarded.

  3. It is the promotional card offered to a customer with good behavior history

  4. It is the card where the Issuer is tied up with any other branded firms, through which every body get benefitted (ICICI Big Bazaar card, Citibank Indian Oil card, etc.)
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

A Co-brand card is a credit card issued in partnership between a card issuer and a commercial brand or company (like ICICI Big Bazaar card or Citibank Indian Oil card). These cards offer mutual benefits to both the customer and the partnering brand, often through special discounts, rewards, or exclusive offers. Option A describes affinity cards (charitable partnerships), not co-brand cards. Option B refers to supplementary cards. Option C describes promotional cards, which are different products entirely.

Multiple choice technology testing

For a low risk Roger's Customer which statement is true.

  1. PIN can be defined. If no PIN, nothing is needed.

  2. PIN is need.

  3. Date of birth or postal code should be defined.

  4. PIN, Postal code and date of birth should be defined.
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

For low-risk Rogers customers, authentication requirements are minimal. A PIN can optionally be defined, but if no PIN is set, no additional verification is needed. Higher-risk customers require stronger authentication like postal code or date of birth verification, but this is not necessary for low-risk customers.

Multiple choice technology testing

Case in ICM is created by CSR i.) When there is some issue with customers request ii.) When the customer have any issues with his/her service iii.) When the customer request has to worked on by another department iv.) When the customer request cannot be completed during the interaction

  1. (i), (ii) and (iii)

  2. (i), (ii) and (iv)

  3. (i), (iii) and (iv)

  4. (i), (ii), (iii) and (iv)
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Cases in ICM are created for all four scenarios: customer request issues, service problems, work required by other departments, and incomplete requests during interaction. These represent the complete set of circumstances where formal case creation and tracking is necessary for proper resolution and follow-up.

Multiple choice technology packaged enterprise solutions

What is Standard RFQ

  1. Used for Items , that will be ordered regularly

  2. Used for one-off items or items that are ordered infrequently

  3. Used to source a specific quantity of an item to be delivered at certain site on certain date

  4. None of the above
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Standard RFQ (Request for Quotation) is used for one-off items or infrequently ordered items where you don't have an established agreement. Option A describes Blanket Purchase Agreements. Option C describes Planned Purchase Orders. Standard RFQs are ad-hoc sourcing documents.

Multiple choice technology

Which of the following is the most likely candidate for a ‘Fact’?

  1. Customer Name

  2. Number of overtime hrs

  3. ZIP Code

  4. Product
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

A Fact in data warehousing must be numeric, additive, and represent a measurement. 'Number of overtime hrs' is quantitative and can be aggregated (summed) across dimensions. Customer Name, ZIP Code, and Product are descriptive attributes that belong in dimension tables, not facts.

Multiple choice

The choice of distribution channel is affected by

  1. market consideration

  2. product consideration

  3. middle man consideration

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

The choice of distribution channel is a complex decision that requires considering multiple factors: market factors (customer needs, preferences, location), product factors (perishability, value, technical complexity), and middleman factors (availability, cost, reliability). All three categories of considerations affect the distribution channel choice, making 'all of the above' the correct answer.

Multiple choice

Which out of the following is not a type of non-store retailing?

  1. Limited line stores

  2. Automatic vending

  3. Direct selling

  4. Telemarketing
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Limited line stores are brick-and-mortar retail establishments with a narrow product assortment, which makes them a TYPE of store retailing, not non-store retailing. Non-store retailing includes methods like automatic vending, direct selling, and telemarketing that sell products without physical retail locations.

Multiple choice

According to the passage, consumers are buying more products

Directions: Read the following passage and answer the question.
We truly live in an age of abundance. Everything from our wardrobes, to our homes, to the stores selling all kinds of stuff - every place is overflowing with stuff we have managed to acquire or aspire to own and it is a corroboration of a truly consumerist era. We know what we want and we want it now. Everyone has wants that need to be fulfilled and envy - the Green eyed monster has transmuted into Shrek - the lovable ogre - with the world now not only coming to terms with, but also embracing with gusto, a culture of material ambition. Keeping up with the Joneses is out and ‘Have it, flaunt it’ is the new style statement.
Advertisers, through every platform available, television, newspaper, radio, internet and sundry other means, are encouraging us to go out and buy the latest model, the latest product or the latest service. With manufacturers churning out newer models every few months and consumers lapping them up, it would seem that perfectly good working products would be consigned to the waste basket but that is not the case. The market for second hand products is burgeoning, except for the fact that they are now no longer called second hand but ‘used products’. Without offending the sensibilities or the ego of someone who doesn’t have enough spare money to buy the latest, state of the art model, the altered name means he can now buy and flash a product which till yesterday was haute but has suddenly lost value and favor after the coming of its latest avatar.

  1. because advertisers are bombarding them with messages to buy new products

  2. because newer models are making older models obsolete

  3. because people are earning more and thus spending more

  4. because everyone wants to keep up with the Joneses

  5. because thrift and frugality have lost favor
Reveal answer Fill a bubble to check yourself
E Correct answer
Explanation

Correct answer as envy is fueling want without established need. 'Have it, flaunt it' conveys 'earn and splurge'.

Multiple choice

Research indicates that consumer behavior regarding the purchase of soaps varies very little except when the soap contains rose essence. Accordingly, soaps containing the ingredient will have labels indicating that rose essence is present.

Which one of the following is an assumption upon which the above argument is based?

  1. If soap isnot available with the ingredients, then a consumer prefers to buy whatever is available.

  2. The ingredients used in different soaps may differ significantly.

  3. Consumers prefer buying soaps that contains rose essence.

  4. Soap bars labels should reveal all ingredients.

  5. None of these
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

This argument leaps from 'people are influenced by the presence of rose essence' to 'companies advertise the presence of rose essence.' The assumption on which the given argument is based is that people like rose essence.

Multiple choice

Anti-competitive practices include

  1. insider trading

  2. grey markets

  3. employment of child labour in production activities

  4. tying arrangements
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Anti-competitive practices include manipulation of supply, exclusive dealing arrangements, tying arrangements, etc.