Service Management And Insurance

1. JOSEPH’S COLLEGE OF COMMERCE (AUTONOMOUS)

END SEMESTER EXAMINATION – MARCH/APRIL 2015

1. COM – VI SEMESTER

C1 11 603: SERVICE MANAGEMENT AND INSURANCE

 

Duration: 3 hrs                                                                                       Max. Marks: 100

SECTION – A

 

I)                   Answer ALL the questions.  Each carries 2 marks.                         (10×2=20)

 

1. What are the two factors measured by SERVQUAL score?
2. What do you mean by Annuity Certain?
3. Define a service.
4. In terms of customer loyalty, what is meant by Zero defections?
5. What is service delivery?
6. What is social insurance?
7. What is internal marketing?
8. What is demand-based pricing?
9. State any four characteristics of services.
10. What is fire insurance?

 

SECTION – B

II)                Answer any FOUR questions.  Each carries 5 marks.                             (4×5=20)

 

11. Explain briefly any five reasons for the growth of service sector in India.
12. Explain the functions of IRDA.
13. Analyze the elements of physical evidence in service industry.
14. Write a short note on targeting customers and the bases for market segmentation.
15. Evaluate critically the service blueprint and its components.
16. Explain life insurance products or policies.

 

SECTION – C

• Answer any THREE questions. Each carries 15 marks.         (3×15=45)

 

17. Explain the model of service quality gaps with the help of a diagram.
18. Discuss the importance of various promotional techniques of service industry. Present ‘AIDA’ model of consumer response.
19. Explain in detail marine insurance policies and fire insurance policies.
20. What is price bundling? Explain factors influencing pricing decisions.
21. Discuss various strategies for balancing demand and capacity (supply) in services management.

 

 

SECTION – D

 

1. CASE STUDY.                  (15 Marks)

 

22. Spiritual & Yoga Tourism:

 

Tourism industry is the largest employment generator of the world. Today all countries of the world are striving to develop tourism in a big way. Besides economic, the social and environmental gains of tourism are also significant. It is considered as an ambassador of peace and international brotherhood. It brings better understanding between different nations and civilizations. India can be considered the yoga and spiritual capital of the world.

 

Tourism in India

 

Tourism provides the second highest net foreign exchange earnings to our economy. It is estimated that, by 2015, this industry will create 10 million new jobs, may contribute Rs. 1,50,000 crore in capital investment and may have 8% share in GDP. Many small nations viz. Singapore, Srilanka, Malaysia, Thailand etc. woo millions of foreign tourists and bag billions of foreign exchange. India, albeit, the country houses rich tourism locations, yet, figured in the bottom of the rank table in wooing foreign tourists. Apart from foreign tourists, domestic tourists have emerged as a powerful source for the development of tourism.

 

Foreign Tourist Arrival in India

 

Tourism Industry in 2005 and 2006 were exceptional years. According to FHRAI, there has been a consistent growth in international arrivals and travelers from new markets such as South East Asia, China and Russia are increasing their presence. The resilience and opening up of the Indian economy is likely to attract foreign investors. According to the World Tourism Organization (WTO), international tourist inflow in India is expected to grow at 6.5% CAGR, which means increase in the tourist arrivals from the present 2.5mn to 6.0mn in 2010 and 10mn by 2020.

 

Role of Yoga and Spirituality in Indian Tourism

 

People from across the world now come to India for Ayurveda, yoga and meditation in Rishikesh, Uttaranchal that is practiced since centuries. In fact India has fast emerged as a health tourism destination because of these.

 

 

 

Rishikesh

 

Rishikesh represents the site where Vishnu vanquished the demon Madhu. Rishikesh is one of the first choices of tourists coming to India for Ayurveda, yoga and meditation. While yoga and meditation are practiced and taught in ashrams on riverbanks, there are reputed universities here where Ayurveda is taught.

 

Studies have been carried out to find out the attractiveness of a tourist destination based on attributes of a destination (Gearingm, 1974; Ritchie and Jins, 1978; Tang and Rochananond, 1990). Some studies proposed the image building towards a tourist destination based on the feelings, belief and opinion that individuals have about a destination’s perceived capacity to provide satisfaction in relation to their different levels of needs (Hu and Ritchie, 1993). Latest studies emphasize on both multi-attribute approach and holistic impressions of the tourist site to find out its image (Baloglu and McCleary, 1999; Choi, 1999; Beerli and Martin, 2004).

 

The information provided through various advertising media arouses lot of interest and expectations in the minds of the visitors about the tourist destination in respect of its key attributes and support services, creating a powerful impression in the minds of the visitors about the destination (Un and Crompton, 1990; Fakeye and Crompton, 1991; Gartner, 1993; Baloglu and McCleary, 1999, Beerli and Martin, 2004).

 

Questions:

 

1. Discuss the marketing mix to boost spiritual and yoga tourism in India.
2. Suggest measures to promote yoga tourism.

(10+5)

 

 

 

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1. COM – VI SEMESTER

SERVICE MANAGEMENT AND INSURANCE

 

ANSWER KEY

 

Section A

1. Intrinsic service quality and extrinsic service quality.
2. If the specified period is fixed without regard to the duration of any life, it is called Annuity Certain.
3. According to Philip Kotler, “A service is an act or performance that one party can offer to another that is essentially intangible and does not result in the ownership of anything.”
4. Zero defections would mean keeping every customer the company can profitably serve.
5. Service delivery is the degree of interaction and customization between the customer/client and the service provider which involves the degree of labor intensity.
6. Social insurance is the protection provided to the weaker section of the society who are unable to pay the premium for adequate insurance. Examples include pension plans, disability benefits etc.
7. Internal marketing is a management strategy that focuses on how to develop customer conscious employees. Or, the employees of the organization are the first market and final consumers are the second.
8. Demand-based pricing involves setting prices consistent with customer perceptions of value. Prices are based on what customers will pay for the services provided.
9. Intangibility; perishability; variability and inseparability. (any other valid characteristic)
10. A fire insurance is a contract of indemnify the insured for destruction of or damage to property or goods, caused by fire, during a specified period.

 

SECTION B

1. Need to explain in one or two lines the following 5 reasons: (each reason and explanation carry one mark)

• Economic affluence
• Cultural changes
• IT revolution
• Development of markets
• Export potential
• Healthcare consciousness

1. IRDA Functions:

• protection of the interests of the policy holders in matters concerning assigning of policy, nomination by policy holders, insurable interest, settlement of insurance claim, surrender value of policy and other terms and conditions of contracts of insurance;
• promoting efficiency in the conduct of insurance business;
• regulating investment of funds by insurance companies;
• regulating maintenance of margin of solvency;
• promoting efficiency in the conduct of insurance business;

1. Elements of physical evidence: exterior design, signage, parking, surrounding environment, and interior design, equipment, layout, webpages, employee dress, business cards, virtual servicescape etc. (some of these should be explained) – One mark each for each element explanation.
2. Demographic segmentation; geographic segmentation; psychographic segmentation; behavioral segmentation and techno graphic segmentation. – One mark each for every base of segmentation.
3. Service blueprint is a visualization of the designer’s concept of the service together with its dimensions. (One mark) Components: customer actions; onstage contact employees actions; backstage contact employees actions and support processes. (one line explanation for each component – one mark each)
4. Whole Life Insurance policy; Term Insurance policy; Endowment Insurance policy (need to explain in short each policy – 1.5 marks each)

 

SECTION C

1. Service quality gaps (draw the model): (two marks each with explanation)

• The knowledge gap
• The standards gap
• The delivery gap
• The internal communications gap
• The perceptions gap
• The interpretation gap
• The service gap

1. Promotional techniques: word of mouth; advertising; sales promotion and direct marketing. (10 marks with explanation)

• ‘AIDA’ model: Awareness; Interest; Desire and Action ( 5 marks )

1. Marine insurance meaning – one mark. Policies: voyage policy; time policy; floating policy; wagering policy and valued policy (1.5 marks each) Fire insurance meaning – one mark. Policies: value policy; blanket policy; adjustable policy (1.5 marks each)
2. Price bundling: it means pricing and selling services as a group rather than individually. (2 marks) Factors influencing pricing: customer demand; costs; corporate objectives; government policy; competitors reactions and barriers in industry ( 2 marks each for a factor)
3. Strategies for balancing demand and capacity: identifying regular customers and serving them first; scheduling services segment-wise; aggressive promotion; offering price incentives; providing service conveniences to the customer; cross-train employees etc. (2 marks each for strategy with explanation)

 

SECTION D

1. Product/service; pricing, promotional, place and people strategies. (10 marks)
2. Each measure – one mark. (5 marks)

REG NO:

 

ST. JOSEPH’S COLLEGE OF COMMERCE (AUTONOMOUS)
END SEMESER EXAMINATION – MARCH/APRIL 2016
B.COM – VI SEMESTER
C1 11 603: SERVICE MANAGEMENT AND INSURANCE
Duration: 3 Hours                                                                                             Max. Marks: 100
SECTION – A
I)	Answer ALL the questions.  Each carries 2 marks.                                        (10×2=20)
	1.	Name the 7 P’s of Service Marketing.
	2.	Explain the term ‘People Processing’. Give two examples.
	3.	Define ‘Insurance’.
	4.	What do you mean by ‘Service’?
	5.	In Life Insurance, How do Underwriters classify the potential insured?
	6.	Name any four advantages of Empowerment of Employees.
	7.	Mention the problems of Service Quality Control.
	8.	Bring out the days of grace privilege provided to an assured.
	9.	How is Health Insurance a boon to Salaried Class?
	10.	Expand IRDA. When was IRDA Act passed?
SECTION – B
II)	Answer any FOUR questions.  Each carries 5 marks.                                      (4×5=20)
	11.	Like human life, most of the creations follow a pattern with different ups and downs. On this note, bring out the Service Life Cycle.
	12.	What is Underwriting? Narrate the process of Underwriting in Non-life Insurance.
	13.	Explain in detail, the classification of vehicle and the different types of Motor Insurance Policies.
	14.	Evaluate the characteristics of Service.
	15.	Explain the Economic and Legal principles pertaining to Life Insurance.
	16.	Elucidate the functions of IRDA.
SECTION – C
III)	Answer any THREE questions.  Each carries 15 marks.                                (3×15=45)
	17.	Due to Globalization, trade between different countries of the world is an inevitable scenario and business houses have to safeguard their interest, particularly while the goods are being transported. Water Transport being one of the prominent modes being used by large businesses; bring out the different classifications of Marine Insurance and evaluate the different types of Marine Insurance Policies.
	18.	Explain the factors influencing the location of Service Premises. Also, discuss the factors that guide the look of the premises.
	19.	Mr. Nasir is running a hotel and is unable to understand the concept of Service Quality Management. As a well wisher of Mr. Nasir, help him understand Gap Analysis in Service and the process in which Service Quality Management is normally initiated in a firm.
	20.	Mr. Ravi is an employee of BHEL, aged about 32 years and is planning to take up a life insurance policy. As a learned person in Life Insurance and being a friend of Mr. Ravi, explain him the concept of Life Insurance and its different types.
	21.	In a service firm, the most important aspect is to classify the customer under the right tire and nurturing them appropriately, to help the firm attain its profitability in a fruitful manner. In this regards, explain the analysis of customers and evaluate the steps in Building Customer Loyalty.
SECTION – D
IV)	Case Study                                                                                                           (1×15=15)
	22.	The British airways, in 1982 were one of poor quality airlines with heavy losses. There had been major redundancies in the airlines with heavy reduction in staff. Their reputation among the travelling public was poor, their planes were often late, there were frequent industrial relations problems and generally passengers found British Airways staff cold, aloof, uncaring and bureaucratic, even though professionally competent.   However, by 1990, the airline had been turned around and was able to report record profits. Much of this success can be attributed to the implementation of two key visionary strategies, initiated and led by Sir. Colin Marshall, CEO, who was appointed in January 1983. These visionary strategist focused on: An obsession with improving customer service. An obsession with improving British Airways approach to management.   Experience with another airline had shown that a passenger rating of an airline depended on thousands of ‘moments of truth’. The customer’s perception therefore, derived from a whole array of small experiences such as disinterested staff, smell toilets, sloppy food and so on. British Airways research confirmed that a customer’s view of the airline depended not solely on product, but their intuitive reactions to the ambience, environment and culture they experienced with the airline.   In their drive to achieve a greater number of positive ‘moments of truth’ for the customers. British Airways initiated a major training programme called ‘Putting People First’, which virtually everyone in the airline went through. It exposed the airline employees to the new thinking about customer service and stressed the critical role they had in contributing this. Colin Marshall was so committed to this approach that he attended 97 percent of the courses. The courses were followed through with the establishment of Customer First Team, whereby small groups were encouraged to contribute their ideas for improving customer service. Over 100 teams were set up and of the thousands of ideas generated; over 700 were followed through and implemented. British Airways recognized that customer care was to a degree, a reflection of the care shown by the managers towards its employees.       Questions: In light of the above case, bring out the points to succeed by empowering employees.   Evaluate the advantages of empowerment of employees and bring out the different methods of rewarding employees.   (7.5+7.5)