Consumer Behaviour in the Digital Age: 100+ MCQs with Answers
Q1. Which major change best defines modern consumer beha viour compared to traditional retail?
A. Reduced access to information
B. Elimination of price comparison
C. Shift from physical to digital and omni-channel decision-making
D. Increased reliance on cash payments
✅ Answer: C. Shift from physical to digital and omni-channel decision-making
Q2. In behavioural economics, “Econs” are best described as:
A. Emotion-driven decision-makers
B. Cognitively limited individuals
C. Perfectly rational and self-interested agents
D. Socially influenced consumers
✅ Answer: C. Perfectly rational and self-interested agents
Q3. According to Thaler and Sunstein, real consumers behave more like:
A. Rational calculators
B. Econs
C. Humans
D. Algorithms
✅ Answer: C. Humans
Q4. Bounded rationality implies that consumers:
A. Always make optimal decisions
B. Have unlimited cognitive capacity
C. Rely on shortcuts due to limited processing ability
D. Avoid complex decisions entirely
✅ Answer: C. Rely on shortcuts due to limited processing ability
Q5. Online environments magnify bounded rationality mainly due to:
A. Lower prices
B. Increased anonymity
C. Information and choice overload
D. Reduced competition
✅ Answer: C. Information and choice overload
Q6. Which of the following is an example of a heuristic?
A. Calculating net present value precisely
B. Following the default option
C. Evaluating all alternatives equally
D. Ignoring peer behaviour
✅ Answer: B. Following the default option
Q7. Consumers are described as “cognitive misers” because they:
A. Enjoy complex calculations
B. Prefer exhaustive analysis
C. Avoid mental effort when possible
D. Reject simplified choices
✅ Answer: C. Avoid mental effort when possible
Q8. Which decision is most prone to procrastination?
A. Buying luxury goods
B. Retirement planning
C. Online impulse purchases
D. Social media browsing
✅ Answer: B. Retirement planning
Q9. Impulsivity in online environments is primarily increased because:
A. Social pressure is higher
B. Transaction costs are reduced
C. Information is sequential
D. Human interaction is mandatory
✅ Answer: B. Transaction costs are reduced
Q10. Context-dependent choice means decisions are influenced by:
A. Only price and quality
B. Personality traits alone
C. How options are framed and presented
D. Rational calculations only
✅ Answer: C. How options are framed and presented
Q11. Which framing leads consumers to prefer annuities over savings accounts?
A. Investment framing
B. Risk framing
C. Future consumption framing
D. Loss framing
✅ Answer: C. Future consumption framing
Q12. Peer influence is strongest when:
A. Choices are simple
B. Information is scarce
C. Decisions are complex
D. Consumers are experts
✅ Answer: C. Decisions are complex
Q13. The “Screen Effect” primarily alters consumer behaviour by:
A. Increasing physical interaction
B. Enabling different information processing
C. Eliminating visual cues
D. Increasing social pressure
✅ Answer: B. Enabling different information processing
Q14. Attribute-based decision making occurs when consumers:
A. Evaluate one option at a time
B. Compare options across attributes simultaneously
C. Ignore product attributes
D. Focus only on brand loyalty
✅ Answer: B. Compare options across attributes simultaneously
Q15. Which attribute becomes more influential in side-by-side comparisons?
A. Brand name
B. Packaging
C. Risk or volatility
D. Store location
✅ Answer: C. Risk or volatility
Q16. Visual bias implies that:
A. Consumers always read fine print
B. Appearance does not matter
C. Visual appeal affects trust and usability perceptions
D. Experts rely more on visuals than content
✅ Answer: C. Visual appeal affects trust and usability perceptions
Q17. Non-expert consumers judge website credibility mainly based on:
A. Source citations
B. Data accuracy
C. Visual appeal
D. Legal disclosures
✅ Answer: C. Visual appeal
Q18. Online anonymity tends to increase:
A. Social anxiety
B. Conservative behaviour
C. Honest disclosure and impulsive actions
D. Rational analysis
✅ Answer: C. Honest disclosure and impulsive actions
Q19. Which behaviour increased with online pizza ordering?
A. Healthier choices
B. Reduced portion sizes
C. High-calorie indulgent orders
D. Decline in sales
✅ Answer: C. High-calorie indulgent orders
Q20. Recommendation agents primarily help consumers by:
A. Increasing advertising exposure
B. Eliminating all alternatives
C. Creating personalized consideration sets
D. Enforcing default options
✅ Answer: C. Creating personalized consideration sets
Q21. Robo-advisors are best described as:
A. Human financial consultants
B. Static investment tools
C. Algorithm-based portfolio managers
D. Regulatory authorities
✅ Answer: C. Algorithm-based portfolio managers
Q22. Preference-feedback engines allow consumers to:
A. Avoid peer opinions
B. Receive real-time social validation
C. Eliminate uncertainty completely
D. Make anonymous purchases only
✅ Answer: B. Receive real-time social validation
Q23. The Connectivity Effect strengthens:
A. Independent thinking
B. Expert dominance
C. Herd behaviour
D. Price sensitivity only
✅ Answer: C. Herd behaviour
Q24. Displaying best-seller lists mainly encourages consumers to:
A. Experiment with unknown options
B. Follow aggregate market preferences
C. Ignore popularity
D. Delay purchases
✅ Answer: B. Follow aggregate market preferences
Q25. According to the Edelman Trust Barometer, consumers trust:
A. Experts only
B. Celebrities most
C. “People like me” as much as experts
D. Government agencies primarily
✅ Answer: C. “People like me” as much as experts
Q26. Avatar-based decision making relies primarily on:
A. Mathematical optimization
B. Peer pressure
C. Role models or relatable personas
D. Trial-and-error learning
✅ Answer: C. Role models or relatable personas
Q27. The first step in avatar-based decision making is to:
A. Rank attributes
B. Identify a suitable avatar
C. Calculate weighted scores
D. Analyze market data
✅ Answer: B. Identify a suitable avatar
Q28. Avatar-based approaches are especially useful for:
A. Simple impulse buys
B. Low-risk decisions
C. Complex financial decisions
D. Routine grocery purchases
✅ Answer: C. Complex financial decisions
Q29. Traditional decision models assume choice is driven by:
A. Social identity
B. Inherent net value of alternatives
C. Emotional attachment
D. Peer imitation
✅ Answer: B. Inherent net value of alternatives
Q30. Embedding disclosures within avatars helps because:
A. Consumers ignore disclosures otherwise
B. Avatars reduce regulation
C. Disclosures become contextually meaningful
D. Risk information becomes irrelevant
✅ Answer: C. Disclosures become contextually meaningful
Q31. Which factor most clearly differentiates online decision-making from offline decision-making?
A. Physical interaction
B. Sequential information access
C. Simultaneous information display
D. Higher transportation costs
✅ Answer: C. Simultaneous information display
Q32. Attribute-based evaluation is more likely when consumers:
A. Examine products one at a time
B. Rely on salespeople
C. Compare alternatives side-by-side
D. Lack digital access
✅ Answer: C. Compare alternatives side-by-side
Q33. Which consumer bias is intensified by visual appeal of websites?
A. Anchoring bias
B. Visual bias
C. Availability bias
D. Loss aversion
✅ Answer: B. Visual bias
Q34. Visual bias mainly affects which group of consumers?
A. Financial experts
B. Regulators
C. Non-expert consumers
D. Data scientists
✅ Answer: C. Non-expert consumers
Q35. Reduced social friction in online environments leads to:
A. More conservative behaviour
B. Higher embarrassment
C. More honest disclosures
D. Reduced engagement
✅ Answer: C. More honest disclosures
Q36. Which behaviour is more likely under anonymity?
A. Ethical restraint
B. Social conformity
C. Impulsive indulgence
D. Analytical reasoning
✅ Answer: C. Impulsive indulgence
Q37. Increased online indulgence demonstrates which behavioural concept?
A. Mental accounting
B. Moral hazard
C. Reduced social oversight
D. Time inconsistency
✅ Answer: C. Reduced social oversight
Q38. Which example best illustrates the Choice Engine Effect?
A. Physical brochures
B. Robo-advisors
C. Human financial advisors
D. Store clerks
✅ Answer: B. Robo-advisors
Q39. Recommendation engines primarily reduce:
A. Profit margins
B. Cognitive burden
C. Product differentiation
D. Brand loyalty
✅ Answer: B. Cognitive burden
Q40. Which data source do recommendation agents commonly use?
A. Regulatory filings
B. Past consumer behaviour
C. Manufacturing costs
D. Store inventory only
✅ Answer: B. Past consumer behaviour
Q41. Preference-feedback engines are most closely linked to:
A. Expert validation
B. Social proof
C. Price sensitivity
D. Risk aversion
✅ Answer: B. Social proof
Q42. The Connectivity Effect mainly increases:
A. Independent decision-making
B. Expert reliance
C. Herd behaviour
D. Market efficiency
✅ Answer: C. Herd behaviour
Q43. Displaying “most purchased” labels leverages which bias?
A. Endowment effect
B. Confirmation bias
C. Popularity heuristic
D. Framing effect
✅ Answer: C. Popularity heuristic
Q44. Consumers are more likely to follow others’ choices when:
A. They are highly informed
B. Choices are simple
C. Decisions are complex
D. Prices are low
✅ Answer: C. Decisions are complex
Q45. Aggregate market preference data mainly serves as:
A. Risk disclosure
B. Decision shortcut
C. Cost comparison
D. Quality certification
✅ Answer: B. Decision shortcut
Q46. Which platform best exemplifies access to peer preferences?
A. ERP systems
B. Government portals
C. TripAdvisor
D. Accounting software
✅ Answer: C. TripAdvisor
Q47. According to behavioural economics, humans tend to:
A. Maximize expected utility
B. Optimize every decision
C. Freeze under complexity
D. Ignore social influence
✅ Answer: C. Freeze under complexity
Q48. Information overload often leads consumers to:
A. Seek expert advice
B. Delay or avoid decisions
C. Increase analysis
D. Choose randomly
✅ Answer: B. Delay or avoid decisions
Q49. Which principle explains why consumers stick with default options?
A. Rational choice
B. Status quo bias
C. Risk neutrality
D. Mental accounting
✅ Answer: B. Status quo bias
Q50. Online stock trading decisions are often influenced by:
A. Fundamental analysis only
B. News frequency
C. Long-term projections
D. Regulatory disclosures
✅ Answer: B. News frequency
Q51. Which behaviour reflects time inconsistency?
A. Saving regularly
B. Choosing long-term rewards
C. Procrastinating retirement planning
D. Following a budget
✅ Answer: C. Procrastinating retirement planning
Q52. Short-term pleasure despite long-term harm reflects:
A. Loss aversion
B. Impulsivity
C. Anchoring
D. Overconfidence
✅ Answer: B. Impulsivity
Q53. Online environments reduce procrastination mainly by:
A. Increasing effort
B. Increasing paperwork
C. Lowering transaction costs
D. Increasing risk
✅ Answer: C. Lowering transaction costs
Q54. Context-dependent choice implies preferences are:
A. Stable across situations
B. Independent of framing
C. Influenced by presentation
D. Always rational
✅ Answer: C. Influenced by presentation
Q55. Which design choice can nudge consumers ethically?
A. Hidden fees
B. Dark patterns
C. Transparent defaults
D. Information suppression
✅ Answer: C. Transparent defaults
Q56. Which role do visuals play in automatic processing?
A. Minor
B. Irrelevant
C. Dominant
D. Secondary
✅ Answer: C. Dominant
Q57. Automatic processing is best described as:
A. Deliberate and slow
B. Rational and analytical
C. Fast and intuitive
D. Mathematical
✅ Answer: C. Fast and intuitive
Q58. The pizza ordering example primarily illustrates:
A. Price elasticity
B. Moral licensing
C. Anonymity effects
D. Loss aversion
✅ Answer: C. Anonymity effects
Q59. Which financial behaviour may worsen online due to low oversight?
A. Saving discipline
B. Risky investing
C. Long-term planning
D. Budget adherence
✅ Answer: B. Risky investing
Q60. Robo-advisors differ from human advisors because they are:
A. Emotion-driven
B. Available 24/7
C. Subjective
D. Relationship-based
✅ Answer: B. Available 24/7
Q61. Which consumer benefit is most associated with robo-advisors?
A. Emotional reassurance
B. Personalized branding
C. Automated portfolio rebalancing
D. Human empathy
✅ Answer: C. Automated portfolio rebalancing
Q62. Preference-feedback engines reduce uncertainty by:
A. Eliminating options
B. Providing peer input
C. Enforcing defaults
D. Raising switching costs
✅ Answer: B. Providing peer input
Q63. Social media “likes” primarily function as:
A. Price signals
B. Quality certifications
C. Social proof indicators
D. Regulatory disclosures
✅ Answer: C. Social proof indicators
Q64. Which behavioural tendency is amplified by connectivity?
A. Individualism
B. Rational independence
C. Conformity
D. Skepticism
✅ Answer: C. Conformity
Q65. The phrase “people like me” highlights:
A. Expert bias
B. Authority bias
C. Homophily
D. Confirmation bias
✅ Answer: C. Homophily
Q66. Avatar-based decision making reduces:
A. Emotional attachment
B. Cognitive load
C. Peer influence
D. Information access
✅ Answer: B. Cognitive load
Q67. An avatar acts primarily as:
A. A calculator
B. A regulator
C. An anchor
D. A constraint
✅ Answer: C. An anchor
Q68. Which decision style best suits avatar-based models?
A. Attribute scoring
B. Algorithmic optimization
C. Role-model imitation
D. Price comparison
✅ Answer: C. Role-model imitation
Q69. Traditional decision algorithms assume consumers:
A. Seek peer approval
B. Maximize weighted utility
C. Avoid complexity
D. Follow defaults
✅ Answer: B. Maximize weighted utility
Q70. Avatar-based approaches are especially helpful when consumers:
A. Are experts
B. Face simple choices
C. Lack financial literacy
D. Have unlimited time
✅ Answer: C. Lack financial literacy
Q71. Embedding disclosures in avatars improves:
A. Regulatory burden
B. Comprehension and relevance
C. Product complexity
D. Price sensitivity
✅ Answer: B. Comprehension and relevance
Q72. Which consumer is least influenced by standard disclosures?
A. Analytical consumers
B. Expert investors
C. Avatar-based decision makers
D. Regulators
✅ Answer: C. Avatar-based decision makers
Q73. Behaviourally informed regulation focuses on:
A. Perfect rationality
B. Human biases
C. Market efficiency only
D. Price controls
✅ Answer: B. Human biases
Q74. Ethical digital design aims to:
A. Manipulate consumers
B. Maximize confusion
C. Support better decisions
D. Eliminate choice
✅ Answer: C. Support better decisions
Q75. Dark patterns violate which principle?
A. Transparency
B. Profit maximization
C. Automation
D. Personalization
✅ Answer: A. Transparency
Q76. Omni-channel consumers expect:
A. Channel separation
B. Inconsistent experiences
C. Seamless integration
D. Offline dominance
✅ Answer: C. Seamless integration
Q77. Online decision-making differs from offline because it:
A. Mirrors physical behaviour
B. Follows identical rules
C. Operates under different psychological dynamics
D. Eliminates bias
✅ Answer: C. Operates under different psychological dynamics
Q78. Behavioural economics challenges which assumption?
A. Scarcity
B. Rationality
C. Competition
D. Innovation
✅ Answer: B. Rationality
Q79. Decision support tools mainly exist to:
A. Increase complexity
B. Replace regulation
C. Reduce cognitive effort
D. Increase dependency
✅ Answer: C. Reduce cognitive effort
Q80. Which factor most influences trust online?
A. Legal disclosures
B. Visual design
C. Price
D. Quantity of text
✅ Answer: B. Visual design
Q81. Which bias causes consumers to overweigh visible information?
A. Anchoring
B. Availability bias
C. Loss aversion
D. Sunk cost fallacy
✅ Answer: B. Availability bias
Q82. Real-time access to others’ choices mainly increases:
A. Analytical thinking
B. Individual judgment
C. Social comparison
D. Price sensitivity
✅ Answer: C. Social comparison
Q83. Consumers choose popular options primarily to:
A. Minimize regret
B. Maximize novelty
C. Avoid effort
D. Increase cost efficiency
✅ Answer: C. Avoid effort
Q84. Which environment most intensifies peer influence?
A. Offline retail
B. Regulated markets
C. Connected digital platforms
D. Private transactions
✅ Answer: C. Connected digital platforms
Q85. Behavioural nudges should be:
A. Covert
B. Manipulative
C. Transparent and welfare-enhancing
D. Mandatory
✅ Answer: C. Transparent and welfare-enhancing
Q86. The digital revolution in consumer behaviour is:
A. Temporary
B. Reversible
C. Permanent
D. Declining
✅ Answer: C. Permanent
Q87. Businesses that ignore behavioural insights risk:
A. Over-regulation
B. Poor consumer outcomes
C. Excessive trust
D. Higher literacy
✅ Answer: B. Poor consumer outcomes
Q88. Policy design based on Econs will likely:
A. Succeed universally
B. Fail to change behaviour
C. Reduce bias
D. Simplify decisions
✅ Answer: B. Fail to change behaviour
Q89. Digital choice architecture mainly affects:
A. Supply chains
B. Consumer cognition
C. Production costs
D. Distribution channels
✅ Answer: B. Consumer cognition
Q90. Ethical marketers should design for:
A. Maximum confusion
B. Human limitations
C. Perfect rationality
D. Emotional manipulation
✅ Answer: B. Human limitations
Q91. Which discipline best explains online consumer errors?
A. Classical economics
B. Behavioural economics
C. Operations management
D. Accounting
✅ Answer: B. Behavioural economics
Q92. Attribute overload often leads to:
A. Optimized decisions
B. Decision paralysis
C. Greater satisfaction
D. Lower regret
✅ Answer: B. Decision paralysis
Q93. Consumers often treat screens as:
A. Social environments
B. Neutral interfaces
C. Judgment-free zones
D. Regulatory spaces
✅ Answer: C. Judgment-free zones
Q94. Which factor most increases indulgent online behaviour?
A. Price discounts
B. Time pressure
C. Anonymity
D. Brand loyalty
✅ Answer: C. Anonymity
Q95. Behavioural design should prioritize:
A. Profit only
B. Consumer welfare
C. Speed only
D. Automation only
✅ Answer: B. Consumer welfare
Q96. Digital nudges are most effective when they are:
A. Complex
B. Hidden
C. Simple and timely
D. Mandatory
✅ Answer: C. Simple and timely
Q97. Avatar-based systems work because humans:
A. Love mathematics
B. Seek role models
C. Avoid technology
D. Reject social cues
✅ Answer: B. Seek role models
Q98. Online decision-making should be viewed as:
A. Identical to offline
B. A scaled version of retail
C. A different playing field
D. A regulatory loophole
✅ Answer: C. A different playing field
Q99. Which stakeholder benefits most from behavioural insights?
A. Consumers only
B. Firms only
C. Policymakers only
D. Consumers, firms, and regulators
✅ Answer: D. Consumers, firms, and regulators
Q100. The core message of the playbook is that digital decisions:
A. Eliminate bias
B. Increase rationality
C. Follow different behavioural rules
D. Require no regulation
✅ Answer: C. Follow different behavioural rules
Q101. Which online feature most directly contributes to attribute-based comparison?
A. Product storytelling
B. Side-by-side comparison tables
C. Brand endorsements
D. In-store demonstrations
✅ Answer: B. Side-by-side comparison tables
Q102. Consumers relying on popularity cues are primarily minimizing:
A. Financial risk
B. Cognitive effort
C. Price sensitivity
D. Brand switching
✅ Answer: B. Cognitive effort
Q103. Which behavioural concept explains why consumers imitate others’ choices online?
A. Mental accounting
B. Social proof
C. Loss aversion
D. Endowment effect
✅ Answer: B. Social proof
Q104. In digital environments, default options are powerful because consumers:
A. Carefully evaluate all alternatives
B. Distrust technology
C. Prefer the path of least resistance
D. Seek novelty
✅ Answer: C. Prefer the path of least resistance
Q105. Which design choice can unintentionally increase risky financial behaviour?
A. Mandatory disclosures
B. Excessive choice variety
C. Educational pop-ups
D. Transparent risk labels
✅ Answer: B. Excessive choice variety
Q106. The tendency to delay beneficial actions despite knowing their value reflects:
A. Overconfidence
B. Procrastination
C. Availability bias
D. Framing effect
✅ Answer: B. Procrastination
Q107. Which factor makes online environments especially prone to impulsive spending?
A. Higher prices
B. Slower transactions
C. One-click purchasing
D. Expert supervision
✅ Answer: C. One-click purchasing
Q108. Behaviourally informed choice architecture primarily aims to:
A. Eliminate all bias
B. Manipulate consumers covertly
C. Guide better decisions without restricting choice
D. Replace consumer autonomy
✅ Answer: C. Guide better decisions without restricting choice
Q109. Which consumer is most likely to benefit from avatar-based decision making?
A. A professional fund manager
B. A data scientist
C. A first-time investor
D. A regulatory auditor
✅ Answer: C. A first-time investor
Q110. When consumers adjust their decisions after observing an avatar’s choice, they are engaging in:
A. Optimization
B. Anchoring and adjustment
C. Random choice
D. Pure imitation
✅ Answer: B. Anchoring and adjustment
Q111. Which digital signal most strongly indicates aggregate market preference?
A. Customer service chat
B. Best-seller rankings
C. Privacy policies
D. Warranty terms
✅ Answer: B. Best-seller rankings
Q112. Behavioural economics suggests that increasing information always:
A. Improves decision quality
B. Reduces bias
C. Enhances confidence
D. Can backfire due to overload
✅ Answer: D. Can backfire due to overload
Q113. Which platform feature best illustrates reduced social oversight?
A. In-person consultations
B. Anonymous online forms
C. Group discussions
D. Live video calls
✅ Answer: B. Anonymous online forms
Q114. The effectiveness of digital nudges depends most on:
A. Their complexity
B. Their invisibility
C. Timing and relevance
D. Legal enforcement
✅ Answer: C. Timing and relevance
Q115. The ultimate implication of the consumer behaviour playbook is that firms must:
A. Assume rational consumers
B. Eliminate personalization
C. Design for real human behaviour
D. Reduce digital interaction
✅ Answer: C. Design for real human behaviour
Consumer behaviour, behavioural economics, online decision making, bounded rationality, heuristics, choice overload, peer influence, digital marketing psychology, omni-channel consumers, recommendation engines, robo-advisors, avatar-based decision making
