Importance of Product Design MCQs

Welcome to our comprehensive collection of Multiple Choice Questions (MCQs) on Importance of Product Design, a fundamental topic in the field of IC 92 Actuarial Aspects of Product Development. Whether you're preparing for competitive exams, honing your problem-solving skills, or simply looking to enhance your abilities in this field, our Importance of Product Design MCQs are designed to help you grasp the core concepts and excel in solving problems.

In this section, you'll find a wide range of Importance of Product Design mcq questions that explore various aspects of Importance of Product Design problems. Each MCQ is crafted to challenge your understanding of Importance of Product Design principles, enabling you to refine your problem-solving techniques. Whether you're a student aiming to ace IC 92 Actuarial Aspects of Product Development tests, a job seeker preparing for interviews, or someone simply interested in sharpening their skills, our Importance of Product Design MCQs are your pathway to success in mastering this essential IC 92 Actuarial Aspects of Product Development topic.

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Importance of Product Design MCQs | Page 2 of 10

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Q11.
What role does marketability play in product design?

a.

It determines the profitability of the product

b.

It influences the level of risk associated with the product

c.

It ensures the product is attractive and easy to sell

d.

It affects the competitiveness of the product

Discuss
Answer: (c).It ensures the product is attractive and easy to sell Explanation:Marketability in product design ensures that the product is attractive and appealing to prospective customers, thus making it easier to sell in the market.
Q12.
How does analysis of the target market influence product design simplicity?

a.

It encourages complex product designs

b.

It necessitates attractive product features

c.

It indicates the required level of simplicity

d.

It discourages innovation

Discuss
Answer: (c).It indicates the required level of simplicity Explanation:Analysis of the target market provides insight into the required level of simplicity in product design, with financially sophisticated markets allowing for more complex designs and less knowledgeable markets favoring simpler designs.
Q13.
Why is competitiveness an important factor in product design?

a.

To ensure high profitability

b.

To prevent marketability issues

c.

To maintain market position against competitors

d.

To minimize product complexity

Discuss
Answer: (c).To maintain market position against competitors Explanation:Competitiveness in product design is crucial to maintain market position against competitors by ensuring that premium rates or charges are comparable and the product remains attractive in the market.
Q14.
How does the level of risk influence contract design?

a.

It determines the complexity of the product

b.

It affects the acceptability of guarantees offered

c.

It has no impact on product design

d.

It influences the marketing strategy

Discuss
Answer: (b).It affects the acceptability of guarantees offered Explanation:The level of risk influences contract design by affecting the acceptability of guarantees offered, as higher guarantees typically increase risk, thus requiring a balance between marketability and risk.
Q15.
What is one way to mitigate the risk of higher surrenders or lapses in contract design?

a.

Offering higher guarantees

b.

Encouraging premium payments

c.

Discouraging complex product features

d.

Reinsuring or hedging all risks

Discuss
Answer: (b).Encouraging premium payments Explanation:One way to mitigate the risk of higher surrenders or lapses in contract design is by encouraging premium payments through penalties for non-payment and incentives for timely payments.
Q16.
How do administration systems influence product design?

a.

They determine the level of guarantees offered

b.

They limit the benefits and charging structure

c.

They affect the competitiveness of the product

d.

They ensure consistency with other products

Discuss
Answer: (b).They limit the benefits and charging structure Explanation:Administration systems influence product design by potentially limiting the benefits to be provided or the charging structure to be adopted, based on the capabilities of the company's computer policy administration system.
Q17.
Why is consistency with other products important in product design?

a.

To ensure regulatory compliance

b.

To simplify administration processes

c.

To minimize errors and associated losses

d.

To save time and cost on systems development

Discuss
Answer: (d).To save time and cost on systems development Explanation:Consistency with other products is important in product design to save time and cost on systems development, training, administration, and marketing, as major changes can result in significant expenses and potential dissatisfaction among existing customers.
Q18.
How do regulatory requirements impact product design?

a.

They determine the profitability of the product

b.

They dictate the level of risk associated with the product

c.

They restrict the design options available to the company

d.

They influence the marketing strategy for the product

Discuss
Answer: (c).They restrict the design options available to the company Explanation:Regulatory requirements impact product design by imposing restrictions on the level of charges, commissions, benefits, etc., thereby limiting the design options available to the company to ensure compliance with regulations.
Q19.
What additional factors should product design consider to achieve higher sales?

a.

The comprehensiveness of features

b.

The need for special training for distributors

c.

The simplicity of sales illustrations

d.

The ability of distributors to explain differences from other products

Discuss
Answer: (a).The comprehensiveness of features Explanation:To achieve higher sales, product design should consider the comprehensiveness of features, the need for special training for distributors, the simplicity of sales illustrations, and the ability of distributors to explain differences from other products.
Q20.
Why is proper communication to a lay customer considered a main issue in product design?

a.

It affects the profitability of the product

b.

It ensures regulatory compliance

c.

It enhances customer understanding and satisfaction

d.

It minimizes product complexity

Discuss
Answer: (c).It enhances customer understanding and satisfaction Explanation:Proper communication to a lay customer is considered a main issue in product design because it enhances customer understanding and satisfaction, leading to better sales and retention rates.
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