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All questions of Insurance Terminology And Insurance Customers for B Com Exam
In the context of knowing your customers, why is it important for a business to understand the challenges its customers face?- a)To copy the strategies of competitors.
- b)To anticipate customer needs and offer solutions.
- c)To reduce prices to attract more customers.
- d)To focus on marketing efforts only.
Correct answer is option 'B'. Can you explain this answer?
a)
To copy the strategies of competitors.
b)
To anticipate customer needs and offer solutions.
c)
To reduce prices to attract more customers.
d)
To focus on marketing efforts only.
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Dev Patel answered |
Understanding the challenges your customers face allows a business to anticipate their needs and offer solutions. This proactive approach can lead to better customer satisfaction and loyalty. It's not about copying competitors or reducing prices but about providing valuable solutions that address customer pain points.
What is the primary purpose of a Unit Linked Insurance Plan (ULIP)?- a)To provide term life insurance coverage.
- b)To offer retirement benefits.
- c)To combine life insurance coverage with investment opportunities.
- d)To cover medical expenses.
Correct answer is option 'C'. Can you explain this answer?
a)
To provide term life insurance coverage.
b)
To offer retirement benefits.
c)
To combine life insurance coverage with investment opportunities.
d)
To cover medical expenses.
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Dev Patel answered |
The primary purpose of a Unit Linked Insurance Plan (ULIP) is to combine life insurance coverage with investment opportunities. A portion of the premium goes toward providing life cover, while the remainder is invested in stocks or bonds, offering potential wealth creation.
According to the provided information, what percentage of unhappy customers tell over 20 people about their negative experience?- a)10%
- b)13%
- c)20%
- d)9%
Correct answer is option 'B'. Can you explain this answer?
a)
10%
b)
13%
c)
20%
d)
9%
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Dev Patel answered |
According to the information provided, 13% of unhappy customers tell over 20 people about their negative experience. This highlights the significant impact that negative word of mouth can have on a business.
What is the primary reason for customer churn, as stated in the provided information?- a)High pricing
- b)Poor customer service quality
- c)Lack of advertising
- d)Economic conditions
Correct answer is option 'B'. Can you explain this answer?
a)
High pricing
b)
Poor customer service quality
c)
Lack of advertising
d)
Economic conditions
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Dev Patel answered |
According to the information provided, the primary reason for customer churn is poor customer service quality, not high pricing or economic conditions. Businesses should focus on improving customer service to reduce churn.
Which of the following is NOT mentioned as a benefit of ethical behavior and corporate social responsibility for businesses?- a)Attracting customers
- b)Reducing labor turnover
- c)Increasing shareholder value
- d)Reducing recruitment costs
Correct answer is option 'C'. Can you explain this answer?
a)
Attracting customers
b)
Reducing labor turnover
c)
Increasing shareholder value
d)
Reducing recruitment costs
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Dev Patel answered |
While ethical behavior and corporate social responsibility can bring various benefits to businesses, increasing shareholder value is not explicitly mentioned in the provided information as one of these benefits.
What is the primary purpose of a grace period in life insurance?- a)To provide additional coverage.
- b)To allow policyholders to skip premium payments.
- c)To give policyholders time to make premium payments if they miss the due date.
- d)To increase the sum assured.
Correct answer is option 'C'. Can you explain this answer?
a)
To provide additional coverage.
b)
To allow policyholders to skip premium payments.
c)
To give policyholders time to make premium payments if they miss the due date.
d)
To increase the sum assured.
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Dev Patel answered |
The primary purpose of a grace period in life insurance is to give policyholders a brief extension of time to make premium payments if they miss the due date. It prevents the policy from lapsing immediately and provides some flexibility for the policyholder to catch up on payments.
What type of insurance policy covers the insured for their entire lifetime?- a)Term life insurance
- b)Whole life insurance
- c)Endowment policy
- d)Money back policy
Correct answer is option 'B'. Can you explain this answer?
a)
Term life insurance
b)
Whole life insurance
c)
Endowment policy
d)
Money back policy
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Dev Patel answered |
Whole life insurance is a policy that covers the insured for their entire lifetime. It provides coverage for as long as the policyholder lives, making it different from term life insurance, which covers for a specific term.
What is one of the reasons why customer satisfaction is considered important for businesses?- a)It has no impact on customer loyalty.
- b)It reduces negative word of mouth.
- c)It increases customer acquisition costs.
- d)It doesn't affect customer lifetime value.
Correct answer is option 'B'. Can you explain this answer?
a)
It has no impact on customer loyalty.
b)
It reduces negative word of mouth.
c)
It increases customer acquisition costs.
d)
It doesn't affect customer lifetime value.
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Dev Patel answered |
Customer satisfaction is important for businesses because it reduces negative word of mouth. Satisfied customers are less likely to spread negative opinions about a company, which can damage its reputation. Instead, they are more likely to become advocates for the company and recommend its products or services to others, leading to positive word of mouth.
Which factor can influence consumer behavior by making consumers more confident and willing to make purchases?- a)Personal preferences
- b)Economic conditions
- c)Marketing campaigns
- d)Group influence
Correct answer is option 'B'. Can you explain this answer?
a)
Personal preferences
b)
Economic conditions
c)
Marketing campaigns
d)
Group influence
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|
Dev Patel answered |
Economic conditions can influence consumer behavior by making consumers more confident and willing to make purchases. In a positive economic environment, consumers are more likely to spend money on purchases like vehicles and household appliances, as they feel financially secure.
What does the term "CLV" stand for in the context of business and customer satisfaction?- a)Customer Loyalty Value
- b)Current Lifetime Value
- c)Customer Lifetime Value
- d)Consumer Longevity Value
Correct answer is option 'C'. Can you explain this answer?
a)
Customer Loyalty Value
b)
Current Lifetime Value
c)
Customer Lifetime Value
d)
Consumer Longevity Value
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Dev Patel answered |
CLV stands for Customer Lifetime Value. It represents the total value that a customer brings to a business over the course of their relationship with that business. It takes into account not only the initial purchase but also the potential for repeat purchases and long-term loyalty.
What is the primary influential group that can affect a consumer's purchasing decisions?- a)Family members
- b)Neighbors
- c)Classmates
- d)Acquaintances
Correct answer is option 'A'. Can you explain this answer?
a)
Family members
b)
Neighbors
c)
Classmates
d)
Acquaintances
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Dev Patel answered |
The primary influential group that can affect a consumer's purchasing decisions consists of family members. Family plays a significant role in shaping a person's preferences and choices, particularly for products or services used within the household.
What is the primary purpose of a Unique Sales Proposition (USP) in a business?- a)To create competition among suppliers.
- b)To make the business stand out from competitors.
- c)To offer discounts to customers.
- d)To increase the profit margin.
Correct answer is option 'B'. Can you explain this answer?
a)
To create competition among suppliers.
b)
To make the business stand out from competitors.
c)
To offer discounts to customers.
d)
To increase the profit margin.
|
|
Dev Patel answered |
A Unique Sales Proposition (USP) is used by businesses to differentiate themselves from their competitors. It's a statement or feature that makes a business stand out and highlights why customers should choose them over other options. While competition might be a result of a USP, its primary purpose is to establish a unique and compelling value proposition.
In the context of life insurance, what is meant by the "indisputable clause"?- a)It allows policyholders to dispute the coverage amount.
- b)It states that the policy cannot be challenged by the insurer after a certain period.
- c)It requires policyholders to provide indisputable proof of identity.
- d)It outlines the procedure for policy reinstatement.
Correct answer is option 'B'. Can you explain this answer?
a)
It allows policyholders to dispute the coverage amount.
b)
It states that the policy cannot be challenged by the insurer after a certain period.
c)
It requires policyholders to provide indisputable proof of identity.
d)
It outlines the procedure for policy reinstatement.
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Dev Patel answered |
The "indisputable clause" in a life insurance policy states that the policy cannot be challenged by the insurer after a certain period, usually during the first two years of the policy. This clause helps protect the policyholder's coverage once the policy has been in force for a specified duration.
What does a Family Floater Health Insurance Policy cover?- a)It covers only the individual policyholder.
- b)It covers the insured person's entire family under a single sum insured.
- c)It covers only critical illnesses.
- d)It covers accidents but not illnesses.
Correct answer is option 'B'. Can you explain this answer?
a)
It covers only the individual policyholder.
b)
It covers the insured person's entire family under a single sum insured.
c)
It covers only critical illnesses.
d)
It covers accidents but not illnesses.
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Dev Patel answered |
A Family Floater Health Insurance Policy covers the insured person's entire family under a single sum insured. This means that all family members listed in the policy can avail coverage for hospitalization expenses, provided they do not exceed the sum insured in any one period of insurance.
Which type of life insurance policy offers both investment and protection benefits?- a)Term life insurance
- b)Whole life insurance
- c)Endowment policy
- d)Retirement plans
Correct answer is option 'C'. Can you explain this answer?
a)
Term life insurance
b)
Whole life insurance
c)
Endowment policy
d)
Retirement plans
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Dev Patel answered |
An Endowment policy offers both investment and protection benefits. It provides coverage for a specific period and, at the end of that period, pays out the sum assured along with any accumulated bonuses. It combines insurance with a savings or investment component.
What does the term "Purchasing Power" refer to in the context of consumer behavior?- a)The ability to buy products or services online
- b)The influence of personal preferences on purchasing decisions
- c)The amount of money a consumer is willing to spend on a purchase
- d)The impact of economic conditions on consumer choices
Correct answer is option 'C'. Can you explain this answer?
a)
The ability to buy products or services online
b)
The influence of personal preferences on purchasing decisions
c)
The amount of money a consumer is willing to spend on a purchase
d)
The impact of economic conditions on consumer choices
|
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Dev Patel answered |
Purchasing power refers to the amount of money a consumer is willing and able to spend on a purchase. It plays a crucial role in influencing consumer behavior, as consumers analyze their purchasing capacity before making buying decisions.
What can marketing campaigns influence in consumer purchasing decisions, according to the provided information?- a)Personal preferences
- b)Economic conditions
- c)Group influence
- d)Purchasing decisions
Correct answer is option 'D'. Can you explain this answer?
a)
Personal preferences
b)
Economic conditions
c)
Group influence
d)
Purchasing decisions
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|
Dev Patel answered |
Marketing campaigns can influence purchasing decisions made by consumers. They can shape consumers' choices and encourage them to opt for one brand or product over another. Marketing campaigns have the power to sway consumer decisions by creating awareness and appealing to emotions.
Which factor can serve as a point of differentiation for businesses in a competitive marketplace?- a)High advertising expenses
- b)Customer satisfaction
- c)Low pricing strategy
- d)Product quality
Correct answer is option 'B'. Can you explain this answer?
a)
High advertising expenses
b)
Customer satisfaction
c)
Low pricing strategy
d)
Product quality
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|
Dev Patel answered |
Customer satisfaction can serve as a point of differentiation for businesses in a competitive marketplace. When businesses prioritize customer satisfaction and provide excellent customer experiences, they stand out from competitors who may offer similar products or services.
What does the suicide provision in a life insurance policy specify?- a)It specifies the policy's maturity date.
- b)It outlines the coverage for critical illnesses.
- c)It states that the policy will not pay the sum assured if the insured commits suicide within a specified period.
- d)It allows policyholders to switch to a different insurance company.
Correct answer is option 'C'. Can you explain this answer?
a)
It specifies the policy's maturity date.
b)
It outlines the coverage for critical illnesses.
c)
It states that the policy will not pay the sum assured if the insured commits suicide within a specified period.
d)
It allows policyholders to switch to a different insurance company.
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Dev Patel answered |
The suicide provision in a life insurance policy specifies that the policy will not pay the sum assured if the insured commits suicide within a specified period from the beginning of the coverage. This provision is in place to prevent insurance fraud.
What does a Family Floater Health Insurance Policy cover?- a)It covers only the individual policyholder.
- b)It covers the insured person's entire family under a single sum insured.
- c)It covers only critical illnesses.
- d)It covers accidents but not illnesses.
Correct answer is option 'B'. Can you explain this answer?
a)
It covers only the individual policyholder.
b)
It covers the insured person's entire family under a single sum insured.
c)
It covers only critical illnesses.
d)
It covers accidents but not illnesses.
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Dev Patel answered |
Apologies for the repetition in the question. As mentioned earlier, a Family Floater Health Insurance Policy covers the insured person's entire family under a single sum insured, providing coverage for hospitalization expenses within that limit. This helps in ensuring the health protection of the entire family.
Chapter doubts & questions for Insurance Terminology And Insurance Customers - Principles of Insurance 2025 is part of B Com exam preparation. The chapters have been prepared according to the B Com exam syllabus. The Chapter doubts & questions, notes, tests & MCQs are made for B Com 2025 Exam. Find important definitions, questions, notes, meanings, examples, exercises, MCQs and online tests here.
Chapter doubts & questions of Insurance Terminology And Insurance Customers - Principles of Insurance in English & Hindi are available as part of B Com exam.
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Principles of Insurance
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