D616 HLTH 3550
Consumer Behavior
Final Assessment Review
(With Solutions)
2025
1
,1. A global streaming service implements a default opt-in for auto-
renewal subscriptions. Which nudge principle is primarily leveraged
to increase subscription retention?
a. Loss aversion
b. Status quo bias
c. Anchoring
d. Social proof
ANS: b. Status quo bias
Rationale: Status quo bias reflects people’s tendency to stick with
pre-set options. An opt-in default makes subscribers less likely to
actively cancel.
2. A luxury cosmetics company segments its market by grouping
consumers based on lifestyle, interests, and values. Which
segmentation base is being employed?
a. Demographic
b. Psychographic
c. Behavioral
d. Geographic
ANS: b. Psychographic
Rationale: Psychographic segmentation divides the market
according to lifestyle traits, personal values, and interests rather than
observable demographics.
3. A retailer uses a machine-learning model to predict customer
churn, but only 5% of customers actually churn. Which evaluation
metric best assesses the model’s performance on this imbalanced
dataset?
2
, a. Accuracy
b. Precision-Recall AUC
c. Mean squared error
d. Log-loss
ANS: b. Precision-Recall AUC
Rationale: Precision-Recall AUC focuses on correctly identifying
rare positive cases without being swamped by abundant negatives,
making it ideal for imbalanced churn prediction.
4. A virtual try-on app increases purchase intention via perceived
ease of use. According to the Theory of Planned Behavior, which
construct mediates this relationship?
a. Attitude toward the behavior
b. Subjective norm
c. Perceived behavioral control
d. Actual behavior
ANS: a. Attitude toward the behavior
Rationale: In the Theory of Planned Behavior, perceived ease
influences consumers’ attitudes, which in turn shape their intentions
to act.
5. A vendor introduces a third, less attractive pricing tier to steer
customers toward the mid-range option. Which pricing strategy is
this?
a. Penetration pricing
b. Price bundling
c. Decoy pricing
d. Psychological pricing
ANS: c. Decoy pricing
3
Consumer Behavior
Final Assessment Review
(With Solutions)
2025
1
,1. A global streaming service implements a default opt-in for auto-
renewal subscriptions. Which nudge principle is primarily leveraged
to increase subscription retention?
a. Loss aversion
b. Status quo bias
c. Anchoring
d. Social proof
ANS: b. Status quo bias
Rationale: Status quo bias reflects people’s tendency to stick with
pre-set options. An opt-in default makes subscribers less likely to
actively cancel.
2. A luxury cosmetics company segments its market by grouping
consumers based on lifestyle, interests, and values. Which
segmentation base is being employed?
a. Demographic
b. Psychographic
c. Behavioral
d. Geographic
ANS: b. Psychographic
Rationale: Psychographic segmentation divides the market
according to lifestyle traits, personal values, and interests rather than
observable demographics.
3. A retailer uses a machine-learning model to predict customer
churn, but only 5% of customers actually churn. Which evaluation
metric best assesses the model’s performance on this imbalanced
dataset?
2
, a. Accuracy
b. Precision-Recall AUC
c. Mean squared error
d. Log-loss
ANS: b. Precision-Recall AUC
Rationale: Precision-Recall AUC focuses on correctly identifying
rare positive cases without being swamped by abundant negatives,
making it ideal for imbalanced churn prediction.
4. A virtual try-on app increases purchase intention via perceived
ease of use. According to the Theory of Planned Behavior, which
construct mediates this relationship?
a. Attitude toward the behavior
b. Subjective norm
c. Perceived behavioral control
d. Actual behavior
ANS: a. Attitude toward the behavior
Rationale: In the Theory of Planned Behavior, perceived ease
influences consumers’ attitudes, which in turn shape their intentions
to act.
5. A vendor introduces a third, less attractive pricing tier to steer
customers toward the mid-range option. Which pricing strategy is
this?
a. Penetration pricing
b. Price bundling
c. Decoy pricing
d. Psychological pricing
ANS: c. Decoy pricing
3
