The document outlines key concepts related to consumer behavior, including the five steps of adopting a new product and psychological factors influencing consumer decisions. It discusses elasticity of demand, types of goods such as Giffen goods, and sociocultural factors affecting purchasing habits. Additionally, it highlights the role of advertising and self-concept in consumer behavior.

1. CONSUMER BEHAVIOUR

2. • The consumers' five steps of adopting a new product refer to which of the following:
Awareness, interest, evaluation, trial, adoption
• The psychological factors influencing consumer behavior are :motivation, perception,
learning, beliefs and attitudes
• Social class group which earns through exceptional ability is best classified as : lower
uppers
• Person's own living or interacting and acting pattern is classified : lifestyle
• The desire to have a commodity or service is called: want
• Welfare definition of Economics was given by: Alfred Marshall
• A book “The Nature and significance of Economic Science” is written by: Lionel Robbins
• The goods which satisfy human wants directly are called: Consumers’ good
• By making a table, a carpenter creates: Form utility

3. • The satisfaction of human want is called: Consumption
• Health is not wealth because it has no : Marketability
• Motor car for a busy doctor is a : Necessary
• When Marginal utility diminishes, total utility : Increases at a diminishing rate
• The law of equi-marginal utility is otherwise called as : Law of substitution
• The marginal utility curve is: Downward sloping
• “Change in demand” occurs due to the change in : Income, Prices of related goods, Taste
and preference.
• In case of perfectly elastic demand, demand curve becomes : Horizontal
• In case of Unitary elastic demand, the value of Ed is: One
• The demand curve of Giffen goods is: vertical
• When MU is zero, TU is: Maximum

4. • In case of perfectly elastic demand, the value of Ed is : Infinite.
• The elasticity of demand for goods used for alternative purposes is: Elastic.
• In case of perfect substitutes, the elasticity of demand is: Infinite
• The demand for necessaries is: Inelastic
• Wrist watch for a college student is a: Necessary
• The demand for comforts is: Elastic
• In case of perfectly elastic, demand curve is: Horizontal
• In case of unitary elastic, demand curve is: Rectangular hyperbola
• The demand for commodity on which a consumer spends more percentage of his income is:
More elastic
• In case of relatively more elastic, demand curve is: Flatter

5. • Religion is a sub culture.
• The relatively homogeneous and enduring divisions in a society, which are hierarchically ordered
and whose members share similar values, interests, and behavior constitute : Culture
• A person's reference groups consist(s) of all the groups that have a direct (face-to-face) or indirect
influence on his/her attitudes or behavior.
• The family in a buyers life consisting of parents and siblings is the family of orientation.

29. • Advertising, sales promotions, salespeople, and publicity : can influence the consumers’
thoughts about products
• Marketers can create brand equity By selling them in prestigious outlets
• If the purchase is for a high-involvement product, consumers are likely to develop a high degree of
Product knowledge so that they can be confident that the item they purchase is just right for them.
• A culture is a group of people with shared value systems based on common life experiences and
situations.
• Even though buying roles in the family change constantly, the Wife has traditionally been the
main purchasing agent for the family.
• The basic premise of the self-concept is that people’s possessions contribute to and reflect their
identities; that is, “we are what we have.”
• A Motive is a need that is sufficiently pressing to direct the person to seek satisfaction of the need.
• A good synonym for motive is a(n) CUE.
• According to Maslow’s Hierarchy of Needs, the lowest order of needs are called :self-actualization
needs.

31. • The higher-order (self-esteem and self-actualization) and lower-order (physiological, safety, and
love)

32. • A giffen good is a product that people consume more of as the price rises and vice versa—violating the
basic law of demand in microeconomics.

33. • A GIFFEN GOOD is an inferior good only with certain peculiarities like
• →should not have readily available substitutes
• →should be using up persons major income
• Eg- coarse cereals ,even if price increases poor people are forced to consume it
because they would not have left out with money to go for other food items
• all giffen goods are inferior but all inferior goods may not be giffen