IC88 Mock Test Sample 2
Marketing and insurance services focus on customer needs, strategic planning, and effective decision-making. Insurance companies determine coverage based on a person’s financial capacity and purpose of insurance. Successful marketing exchanges occur when producer and customer decisions complement each other. Service marketing includes elements such as people, process, and physical evidence, while intangibility makes services difficult to evaluate before purchase. Strategic planning begins with SWOT analysis and requires innovative approaches that consider competition and environmental changes. Automation supported by artificial intelligence enhances human creativity instead of replacing people. The service sector contributes significantly to GDP and creates employment opportunities through technology-driven growth.
1. What considerations does an insurance company look at when determining the amount a person can insure their life for?
a) The value of their property
b) Their age and gender
c) Their educational qualifications
d) Their ability to pay and the purpose of the insurance
2. In a successful exchange, what must happen between the decisions of the producer and the customer?
a) The customer’s decision must precede the producer’s
b) The producer’s decision must force the customer’s decision
c) The decisions must not match
d) The decisions of the producer and customer must complement each other
3. What is the purpose of setting specific marketing objectives in marketing planning?
a) To determine costs and margins
b) To identify monitoring parameters
c) To understand strengths and weaknesses
d) To provide a clear direction for marketing activities
4. How does Vishal Sikka describe automation enabled by artificial intelligence?
a) Automation replaces people
b) Automation eliminates human roles
c) Automation is irrelevant in the future
d) Automation amplifies people and supports creativity and innovation
5. In buying decisions, what factors affect the choice of what and from whom to buy?
a) Price and brand alone
b) Availability and convenience
c) Credit possibilities and service arrangements
d) Friend recommendations and dealer availability
6. ____ goods are bought infrequently and buying decisions are made without haste.
a) Shopping goods
b) Unsought goods
c) Convenience goods
d) Specialty goods
7. Strategic planning for marketing begins with-
a) Setting marketing objectives
b) Identifying target markets
c) Conducting a situational analysis (SWOT analysis)
d) Designing the marketing mix
8. Which of the following is not a dimension of the 7Ps of service marketing mix?
a) Performance
b) Physical evidence
c) Process
d) People
9. If an agent serves only one principal and has exclusive rights, he is called a-
a) Service agent
b) Sole-selling agent
c) Principal-selling agent
d) Free-lancer agent
10. Under which insurance business has almost the entire corporate business been done through direct marketing?
a) Life insurance business
b) Non-life insurance business
c) Health insurance business
d) Both life and non-life insurance business
11. Which statement is not true regarding reference groups?
a) Needs and wants are influenced by reference groups
b) A reference group is a fixed group
c) Influence of reference groups is subtle
d) Conformity may not be necessary
12. Marketing concepts are based on the assumption that-
a) Only the producer has choices
b) Only the customer has choices
c) Both producer and customer have choices
d) Customers must buy what is available
13. What are the implications of intangibility in services?
a) Services can easily be patented
b) Customers may not assess service quality easily
c) Demand and supply are always balanced
d) Services are simple to standardize
14. Which statement is not true about the insurance service sector?
a) Price has limited strategic scope
b) Insurance service exists at claim time
c) Every insurance policy is a standard policy
d) Insurance purchase may appear forced
15. In insurance service business, who are considered intermediaries?
a) Agents
b) Brokers
c) Insurers
d) Both agents and brokers
16. What are the objectives of marketing activities?
a) To create wants only
b) To improve affordability and maintain availability
c) To advertise more only
d) To reduce customer choices
17. Every asset is expected to last for a period during which it is expected to-
a) Grow
b) Last
c) Appreciate
d) Perform
18. Strategies will have to be-
a) Only innovative
b) Only competition-focused
c) Only environment-focused
d) Innovative, competition-oriented, and environment-focused
19. Which statement is true regarding the services business?
a) Service sector contributes more than 55% of GDP
b) National barriers are less relevant for information
c) Services create more jobs per unit investment
d) All the statements are true
20. Why do marketing principles not fully apply to services?
a) Due to separability
b) Due to availability
c) Due to flexibility
d) Due to intangibility
