IC88 Mock Test Sample 7

1. What does the example of the hotel catering to pilgrims illustrate?

a) Luxurious service is essential for satisfaction
b) Every provider should imitate Disneyland
c) Quality standards should focus on internal facilities
d) Quality standards should match the target market

2. How can a middle manager best perform the role described?

a) By maintaining strict hierarchy
b) By minimizing employee involvement
c) By relying only on personal expertise
d) By involving operating personnel in decision-making

3. What is the recommended strategy for a “Problem Child” in the Boston Matrix?

a) Harvest
b) Build
c) Divest
d) Hold

4. What is the main factor considered in determining life insurance premium rates?

a) Competitive pricing strategies
b) Negotiation with customers
c) Regulatory approval
d) Actuary’s assessment based on trends and experience

5. What role does trust play between insurance agents and buyers?

a) Trust is not important
b) Trust depends only on agent experience
c) Trust is irrelevant in insurance
d) A lot of trust is placed on the agent

6. Why may physical facilities seem less important in current service delivery trends?

a) Increased advertisements
b) Emergence of online services
c) Advanced pricing strategies
d) Reduced customer testimonials

7. Which supporting activity cannot be performed for social impact by insurers?

a) Adopting villages
b) Making profit unethically
c) Providing education
d) Sanitation support

8. Which strategy involves setting a high initial price and lowering it later?

a) Marketing research
b) Growth strategy
c) Price skimming
d) Test marketing

9. What has brought a revolution in retail business?

a) Brand loyalty
b) Choice of products
c) Online markets
d) Distribution systems

10. Which statement is true about the Rurban Mission?

a) Only statement (ii) is true
b) Only statements (i) and (iii) are true
c) All statements are true
d) Only statements (i) and (ii) are true

11. Insurance belongs to which category of consumer goods?

a) Convenience goods
b) Shopping goods
c) Specialty goods
d) Unsought goods

12. Which factors establish a manager’s ethical standards?

a) Company policies
b) Legal framework
c) Social values and norms
d) All of the above

13. How is the marketing concept more advantageous than selling?

a) Helps determine product price
b) Helps design better products
c) Helps plan advertising media
d) All of the above

14. The influence of reference groups is generally-

a) Fixed
b) Indirect
c) Direct
d) Subtle

15. Which statement is true regarding empowered employees?

a) Empowerment is learned, not taught
b) Empowered employees solve problems
c) They may dislike strict rules
d) All of the above statements are true

16. A complaint may indicate inadequacy due to-

a) Faulty perceptions
b) Customer neglecting instructions
c) Poor delivery system design
d) All of the above

17. About 47,000 village weekly markets are known as-

a) Painths or shandies
b) Secondary markets
c) Fixed price markets
d) Fair price shops

18. Which electronic fund transfer protocol was launched by NPCI?

a) United Payment Interface (UPI)
b) Paytm
c) United Payment through Internet
d) Mobikwik

19. Which statement is not true regarding ethics?

a) Ethics is same as law
b) Ethics is contextual
c) Ethics deals with right and wrong
d) Ethics in business differs from outside business

20. Till 2000, what type of barrier existed to start an insurance business in India?

a) Social barrier
b) Legal barrier
c) Political barrier
d) Technological barrier