CB, E, and GI Reviewer

Maria has just started working. She now earns her own money and is deciding whether to buy a smartphone or save for future needs. Which factor influencing consumer behavior is most relevant to her decision?

• Social factors

• Psychological factors

• Economic factors

• Cultural factors

Answer explanation

Maria’s decision is influenced by her income, budget, and ability to purchase — all part of economic factors.

Juan sees an online ad claiming a shampoo will make hair more youthful and attractive. He feels that using it would improve his self-image. Which psychological sub-factor is at play here?

• Learning

• Motivation

• Reference group

• Occupation

Answer explanation

Juan wants to improve his appearance and self-image. This is driven by internal motivation (Maslow: esteem needs).

A family buys rice and vegetables every week, but when a famous influencer on social media recommends a new snack, their teenage child insists they try it and the family buys it. Which factor is most at work?

• Cultural factors

• Economic factors

• Social factors

• Personal factors

Answer explanation

The teenager is influenced by a reference group in this case, the influencer. Social factors include influencers, peers, and family.

In a community that highly values modest living and savings, many people prefer affordable, practical products over luxury brands. What factor does this reflect?

• Psychological factors

• Cultural factors

• Technological factors

• Personal factors

Answer explanation

Values such as modesty, savings, and simplicity are part of one’s culture, which shapes purchase choices.

A luxury car brand advertises to high-income executives who care about status and prestige. Which combination of influencing factors is the brand targeting?

• Psychological and Cultural

• Economic and Personal

• Social and Personal

• Social and Economic

Answer explanation

Luxury cars target:

• Social factors — status, prestige, belonging

• Personal factors — income, occupation (executives)

A popular online clothing brand like Shein offers very cheap fashion items. Because of the fast production cycle, large amounts of textile waste end up in landfills in nearby communities, affecting soil quality and local health. This is an example of:

• Positive externality

• Negative externality

A city government invests in improving public schools, resulting in students performing better academically. Nearby workplaces notice that more skilled graduates apply for jobs, even though the companies did not invest in the schools. This situation reflects:

• Positive externality

• Negative externality

A student frequently buys Cheetos, Jollibee meals, and other junk foods. Over time, their health declines, and the government must increase funding for public healthcare programs to address growing lifestyle-related illnesses. This illustrates:

• Positive externality

• Negative externality

A printing shop uses large amounts of paper daily. They properly segregate waste and donate leftover paper scraps to schools for art activities, allowing students to access free materials. This scenario demonstrates:

• Positive externality

• Negative externality

Students in a school use plastic water bottles every day and often leave them scattered around campus. The school must spend extra funds on waste collection and cleaning services. This situation is an example of:

• Positive externality

• Negative externality