C08 Customer Service MCQs

Welcome to our comprehensive collection of Multiple Choice Questions (MCQs) on C08 Customer Service, a fundamental topic in the field of IC38 Life Insurance Agent Exam. Whether you're preparing for competitive exams, honing your problem-solving skills, or simply looking to enhance your abilities in this field, our C08 Customer Service 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 C08 Customer Service mcq questions that explore various aspects of C08 Customer Service problems. Each MCQ is crafted to challenge your understanding of C08 Customer Service principles, enabling you to refine your problem-solving techniques. Whether you're a student aiming to ace IC38 Life Insurance Agent Exam tests, a job seeker preparing for interviews, or someone simply interested in sharpening their skills, our C08 Customer Service MCQs are your pathway to success in mastering this essential IC38 Life Insurance Agent Exam topic.

Note: Each of the following question comes with multiple answer choices. Select the most appropriate option and test your understanding of C08 Customer Service. You can click on an option to test your knowledge before viewing the solution for a MCQ. Happy learning!

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C08 Customer Service MCQs | Page 1 of 8

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Q1.
What is meant by customer lifetime value?

a.

Sum of costs incurred while servicing the customer over his lifetime

b.

Rank given to customer based on business generated

c.

Sum of economic benefits that can be achieved by building a long term
relationship with the customer

d.

Maximum insurance that can be attributed to the customer

Discuss
Answer: (c).Sum of economic benefits that can be achieved by building a long term
relationship with the customer Explanation:Customer Lifetime Value (CLV) is the sum of economic benefits that can be achieved by building a long-term relationship with the customer. This value represents the total economic worth or benefits that a business can derive from a customer over the course of their relationship. It includes not just the immediate transactions but also the potential for repeat business, referrals, and other value generated through the customer's ongoing engagement with the company. CLV is a critical concept in customer relationship management and is used to assess the long-term profitability of maintaining a customer relationship.
Q2.
Why is customer service important in the insurance industry?

a.

It helps sell more cars

b.

Insurance is tangible and easily experienced

c.

Insurance promises are intangible and require trust

d.

Customers do not matter in the insurance sector

Discuss
Answer: (c).Insurance promises are intangible and require trust Explanation:Customer service is crucial in the insurance industry because insurance promises, being intangible, require trust and positive customer experiences to build and maintain strong customer relationships.
Q3.
What is the foundation of good service quality according to the SERVQUAL approach?

a.

Responsiveness

b.

Assurance

c.

Tangibles

d.

Reliability

Discuss
Answer: (d).Reliability Explanation:According to the SERVQUAL approach, the foundation of good service quality is reliability, which is the ability to perform the promised service dependably and accurately.
Q4.
Which aspect of service quality involves the human touch and individualized attention provided to customers?

a.

Tangibles

b.

Empathy

c.

Responsiveness

d.

Assurance

Discuss
Answer: (b).Empathy Explanation:The aspect of service quality that involves the human touch and individualized attention provided to customers is empathy.
Q5.
What is the key element that every relationship begins with?

a.

Communication

b.

Trust

c.

Attraction

d.

Presence

Discuss
Answer: (c).Attraction Explanation:Every relationship begins with attraction. Attraction means being liked and being able to build a rapport with the customer, starting with creating a great first impression. Without attraction, a relationship is hardly possible. A salesperson cannot make much headway if they are not liked by the customer.
Q6.
Which element of a relationship is about being liked and creating a great first impression?

a.

Presence

b.

Communication

c.

Attraction

d.

Trust

Discuss
Answer: (c).Attraction Explanation:The element of a relationship about being liked and creating a great first impression is attraction. Attraction is regarded as the key to unlocking every heart. Without it, a relationship is hardly possible.
Q7.
Why is customer relationship management important for companies?

a.

It's a cost-effective way to acquire new customers

b.

It helps in achieving the highest level of profitability

c.

The cost of retaining a customer is lower than acquiring a new one

d.

It streamlines internal processes

Discuss
Answer: (c).The cost of retaining a customer is lower than acquiring a new one Explanation:Customer relationship management is important for companies because the cost of retaining a customer is lower than acquiring a new one. It's a cost-effective way to maintain a customer base and achieve long-term profitability.
Q8.
What does responsiveness in service quality refer to?

a.

The physical environment of the service provider

b.

The willingness and ability of service personnel to help customers and provide prompt responses

c.

The trust and confidence conveyed by service personnel

d.

The speed and accuracy of the service provided

Discuss
Answer: (b).The willingness and ability of service personnel to help customers and provide prompt responses Explanation:Responsiveness in service quality refers to the willingness and ability of service personnel to help customers and provide prompt responses to their needs.
Q9.
What is tangibles in the context of service quality?

a.

The trust and confidence conveyed by service personnel

b.

The physical environment factors such as location, layout, and cleanliness

c.

The human touch and individualized attention provided to customers

d.

The foundation of good service quality

Discuss
Answer: (b).The physical environment factors such as location, layout, and cleanliness Explanation:Tangibles in the context of service quality refer to physical environmental factors like location, layout, cleanliness, and the sense of professionalism conveyed to customers when contacting a service provider.
Q10.
What does the second element of a relationship entail?

a.

Effective communication

b.

Building trust

c.

Being there when needed

d.

Offering attractive discounts

Discuss
Answer: (c).Being there when needed Explanation:The second element of a relationship entails being there when needed. This means being available and responsive to the customer's needs and concerns, which is essential for building trust and maintaining a healthy relationship.
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