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MARKETING MANAGEMENT - 2
Unit-2: Consumerism
Multiple Choice Questions (MCQs)
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1. What is Consumerism? Answer: b
a) The study of consumer behavior
b) The protection and promotion of 6. Which of the following is a cause of
consumer rights Consumerism?
c) Advertising techniques a) Increase in disposable income
d) A government policy for producers b) Decrease in advertising
Answer: b c) Reduction in product diversity
d) Lack of innovation
2. Which of the following is a positive Answer: a
aspect of Consumerism?
a) Overconsumption of resources 7. A key feature of Consumerism is:
b) Increased product variety and quality a) Focusing on producer needs
c) Environmental degradation b) Prioritizing consumer rights and welfare
d) Rising consumer debt c) Reducing competition among
Answer: b companies
d) Limiting consumer choice
3. Which of the following is a negative Answer: b
aspect of Consumerism?
a) Increased employment 8. Which of these is a consumer right
b) Economic growth under the Consumer Protection Act, 1986?
c) Wasteful consumption a) Right to monopoly
d) Improved living standards b) Right to be heard
Answer: c c) Right to advertise
d) Right to import goods
4. The rise of Consumerism in India was Answer: b
significantly influenced by:
a) The Green Revolution 9. One common problem faced by Indian
b) Economic liberalization in the 1990s consumers is:
c) The Partition of India a) Availability of imported goods
d) The Swadeshi Movement b) Misleading advertisements
Answer: b c) Reduced buying power
d) Lack of choices
5. The Consumer Protection Act, 1986, Answer: b
aims to:
a) Promote the interests of manufacturers 10. Consumerism can lead to:
b) Protect the rights of consumers a) Increased waste and environmental
c) Restrict foreign trade degradation
d) Regulate the stock market b) Decreased access to goods
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c) Improved environmental policies d) Import regulations

d) Lower advertising expenses Answer: a
Answer: a
16. Which of the following is a cause of
11. Consumer movements are initiated to: consumer exploitation?
a) Protect producer rights a) Educated consumers
b) Raise awareness about consumer issues b) Unethical business practices
c) Increase taxes on goods c) Strict government regulations
d) Promote luxury goods d) Competitive pricing
Answer: b Answer: b

12. Which of these is a common consumer 17. Consumer movements in India gained
grievance? momentum with:
a) High-quality goods a) The enactment of the Consumer
b) False advertising Protection Act, 1986
c) Timely delivery of products b) Independence in 1947
d) Transparent pricing c) The establishment of SEBI
Answer: b d) The introduction of GST
Answer: a
13. What does the term "Right to
Information" mean in Consumerism? 18. A "consumer" under the Consumer
a) Consumers can access accurate product Protection Act is defined as:
details before purchasing a) A producer of goods
b) Producers can demand consumer b) A person who buys goods or services for
information personal use
c) Consumers must share personal data c) A wholesale trader
with sellers d) A government official
d) Businesses can withhold product details Answer: b
Answer: a
19. The slogan “Jago Grahak Jago” is
14. One advantage of Consumerism is: related to:
a) Better consumer rights and awareness a) Environmental awareness
b) Overexploitation of resources b) Consumer rights awareness
c) Pollution and waste c) Industrial growth
d) Increased consumer debt d) Import regulations
Answer: a Answer: b

15. The Consumer Protection Act, 1986, 20. Which is NOT a consumer right under
established: the Consumer Protection Act, 1986?
a) Consumer courts a) Right to safety
b) Trade unions b) Right to profit
c) Tax exemptions c) Right to consumer education
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d) Right to choose
Answer: b 26. A limitation of Consumer Movements
in India is:
21. Which of the following is a major a) Lack of legal framework
cause of Consumerism? b) Limited consumer awareness
a) Decline in global trade c) Strong business ethics
b) Advancements in technology d) Overregulation of the market
c) Lack of competition Answer: b
d) Reduction in advertising
Answer: b 27. The Consumer Protection Act provides
remedies through:
22. One key objective of Consumer a) Criminal courts
Movements is to: b) Consumer dispute redressal forums
a) Encourage overconsumption c) Industrial tribunals
b) Advocate for fair trade practices d) Banking ombudsman
c) Protect producers from competition Answer: b
d) Increase import tariffs
Answer: b 28. Which of the following is an external
factor contributing to Consumerism?
23. Which type of advertising promotes a) Social media influence
Consumerism? b) Low production costs
a) Informative advertising c) Consumer ignorance
b) Misleading or manipulative advertising d) Local trade practices
c) Environmental campaigns Answer: a
d) Educational campaigns
Answer: b 29. The “Right to Redressal” under the
Consumer Protection Act ensures:
24. Consumer exploitation often occurs a) The consumer can seek compensation
due to: for grievances
a) Government subsidies b) Protection of producer rights
b) Lack of consumer awareness c) Mandatory product replacement
c) High-quality goods d) Increase in consumer spending
d) Transparent pricing Answer: a
Answer: b
30. SWOT analysis for Consumerism
25. Which of these problems is associated includes:
with the rise of Consumerism in India? a) Strengths, Weaknesses, Opportunities,
a) Decrease in population Threats
b) Growing consumer debt b) Sales, Workers, Offers, Targets
c) Increased job opportunities c) Safety, Wages, Optimization, Trade
d) Rising literacy rates d) Strategy, Weaknesses, Operations,
Answer: b Targets
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Answer: a 36. Which is NOT a problem arising from

Consumerism?
31. The rise of Consumerism has a) Increased waste
increased: b) Better product quality
a) Environmental sustainability c) Environmental degradation
b) Economic inequality d) Rising financial inequality
c) Rural population Answer: b
d) Producer revenue only
Answer: b 37. The “Right to Choose” ensures:
a) A monopoly for sellers
32. A critical issue addressed by Consumer b) Availability of alternatives to consumers
Movements is: c) Higher product prices
a) Product innovation d) Consumer ignorance of products
b) Misleading advertisements Answer: b
c) Higher education for sellers
d) Import tariffs 38. A significant benefit of consumer
Answer: b awareness is:
a) Reduced business competition
33. Consumer awareness campaigns aim b) Prevention of unfair trade practices
to: c) Increased tax benefits for producers
a) Promote government schemes d) Decrease in government regulations
b) Educate consumers about their rights Answer: b
and responsibilities
c) Increase market prices 39. Consumer movements can fail due to:
d) Restrict consumer purchases a) Lack of skilled leaders and funding
Answer: b b) Strong legal support for consumers
c) Growing consumer awareness
34. One disadvantage of Consumerism is: d) Effective government regulations
a) Job creation Answer: a
b) Increased global trade
c) Overuse of natural resources 40. Consumer education helps to:
d) Improved living standards a) Reduce consumer spending
Answer: c b) Empower consumers to make informed
decisions
35. The Consumer Protection Act was c) Strengthen producer monopolies
amended in: d) Restrict access to luxury goods
a) 1991 Answer: b
b) 2019
c) 2000 41. A consequence of aggressive
d) 1985 Consumerism is:
Answer: b a) Increased local business growth
b) Wasteful consumption of resources
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c) Decreased consumer choice d) Imposing penalties on consumers

d) Improved social equality Answer: b
Answer: b
47. Which factor does NOT directly
42. Consumer exploitation includes: contribute to Consumerism?
a) Transparent pricing practices a) Increased advertising campaigns
b) False claims and warranties b) Advancements in technology
c) Higher consumer literacy c) Awareness of sustainable consumption
d) Fair competition d) Growth in disposable income
Answer: b Answer: c

43. Which of these is a consumer 48. The introduction of foreign brands in

responsibility? India led to:
a) Paying taxes a) Reduction in product diversity
b) Being aware of product details and b) Growth in consumer choices and
rights preferences
c) Encouraging monopolies c) Decrease in competition
d) Ignoring unethical practices d) Elimination of local businesses
Answer: b Answer: b

44. A consumer grievance redressal forum 49. The National Consumer Disputes
works at which levels? Redressal Commission (NCDRC) handles
a) District, State, and National levels cases involving claims above:
b) Only State level a) 20 lakh
c) Only National level b) 1 crore
d) Local and International levels c) 10 crore
Answer: a d) 5 lakh
Answer: b
45. The Consumer Protection Act, 1986,
provides a time frame for filing 50. Which of the following problems is
complaints. What is the time limit? often linked to misleading
a) 1 year from the date of purchase advertisements?
b) 2 years from the date of cause of action a) Better consumer education
c) 6 months from the date of grievance b) Increased consumer trust
d) No specific time limit c) Unethical trade practices
Answer: b d) Enhanced product quality
Answer: c
46. A consumer court order can include:
a) Cancellation of consumer rights 51. The consumer right that allows seeking
b) Compensation for damages caused by remedies for defective goods is:
unfair practices a) Right to Safety
c) Protection of unethical businesses b) Right to Redressal
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c) Right to Information b) Reducing legal support for consumers

d) Right to Choose c) Enhancing consumer education and
Answer: b awareness
d) Eliminating competition
52. Consumerism can be controlled Answer: c
through: 57. The Consumer Protection Act, 2019,
a) Increased advertising replaced the 1986 Act to:
b) Encouraging sustainable consumption a) Reduce consumer rights
practices b) Address modern trade practices like e-
c) Promoting excessive consumption commerce
d) Restricting market competition c) Eliminate consumer courts
Answer: b d) Reduce consumer choice
Answer: b
53. The “Right to Safety” under the
Consumer Protection Act ensures 58. Which is NOT a function of Consumer
protection from: Dispute Redressal Forums?
a) Financial exploitation a) Protect consumer interests
b) Hazardous goods and services b) Resolve consumer grievances
c) False advertising c) Penalize consumers for over-purchasing
d) Overpriced goods d) Ensure compensation for unfair trade
Answer: b practices
Answer: c
54. A consumer movement that promotes
environmental sustainability is known as: 59. Consumerism negatively impacts the
a) Green Consumerism environment by:
b) Ethical Consumerism a) Encouraging minimal resource use
c) Social Consumerism b) Generating excessive waste and
d) Fair Trade Movement pollution
Answer: a c) Promoting sustainable practices
d) Reducing industrial activity
55. What is the role of Consumer Answer: b
Awareness Organizations (CAOs)?
a) Supporting producer interests 60. One challenge Indian consumer’s face
b) Educating consumers about rights and in Consumerism is:
responsibilities a) Lack of legal protection
c) Promoting luxury consumption b) Difficulty in accessing redressal
d) Regulating government policies mechanisms
Answer: b c) Overregulation of businesses
d) Declining product quality
56. An essential step to strengthen Answer: b
Consumer Movements in India is:
a) Increasing consumer ignorance
Prepared by Asst. Prof. Sushmita Sharma