IC88 Mock Test Sample 14

1. What is the ultimate purpose of business?

a) Maximizing shareholder value
b) Creating and retaining customers
c) Expanding market share
d) Cutting production costs

2. What is the primary concern of the production orientation approach?

a) Maximizing sales through discounts
b) Focusing on product quality
c) Emphasizing large production capacities
d) Attracting and persuading customers

3. What type of data does market segmentation provide?

a) Weather forecasts
b) Customer loyalty information
c) Customer profiles and buying behavior
d) Employee profiles

4. What is the starting point for planning?

a) Setting objectives
b) SWOT Analysis
c) Creating strategies
d) Conducting market research

5. Why should a service employee admit when they do not know an answer?

a) It enhances reliability
b) It increases responsiveness
c) It is unnecessary
d) It avoids penalties

6. Which example shows the impact of inadequate essential instruments on service quality?

a) Centralized government establishment
b) Customer-focused private organization
c) Hospital with adequate instruments
d) Restaurant lacking support staff

7. What must management take responsibility for regarding insurance agents?

a) Personal life
b) Financial decisions
c) Promises made by the agent
d) Medical condition

8. How can organizations monitor customer needs and expectations?

a) Through personal contact with customers
b) By competing with others
c) By creating flawless offerings
d) Through advertising only

9. What principle is suggested for middle managers?

a) Command and control
b) Less communication
c) Sharing information and leading more
d) Separating subordinates from management

10. What factors should be considered while designing a service product?

a) Technology availability
b) Market segment
c) Delivery arrangements
d) All of the above

11. How can price influence demand?

a) Raising prices always boosts demand
b) Offering sales and discounts
c) Ignoring pricing effects
d) Maintaining constant prices

12. Why are target segments important for insurance agents?

a) No impact on efforts
b) Unfocused work
c) Better rapport and focused efforts
d) Reputation is irrelevant

13. What is a good strategy to encourage customers to share satisfactions?

a) Detailed brochures
b) Future discounts
c) Promotional objects or materials
d) Frequent advertisements

14. What is important while preparing a code of ethics for firms?

a) Safety standards only
b) Acceptance by organization members
c) Prohibition of bribery only
d) Public relations consistency

15. How does non-life insurance contribute to trade and industry?

a) Eliminating risk management
b) Increasing business failures
c) Ensuring businesses survive calamities
d) Reducing insurance importance

16. What does niche marketing involve?

a) Focusing only on popular markets
b) Avoiding competitive segments
c) Directly confronting market leaders
d) Maintaining leadership position

17. In insurance companies, the brand is usually associated with-

a) Office location
b) CEO name
c) Product name
d) Company name

18. Who can be considered a retailer in insurance business?

a) No retailer exists
b) Surveyors
c) Agents
d) Insurer

19. Which method aims to capture the market and increase sales volume?

a) Marketing
b) Management
c) Distribution
d) Sales promotion

20. Which is NOT a type of stroke providing satisfaction?

a) A word of comfort
b) An assignment of importance
c) A smile
d) Called by a token number