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After its customers complained about being pressured

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After its customers complained about being pressured  [#permalink]

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New post Updated on: 02 Nov 2018, 04:35
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90% (01:07) correct 10% (01:14) wrong based on 787 sessions

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After its customers complained about being pressured to buy unneeded insurance, an insurance agency stopped rewarding its agents for high sales volume and instead have them bonuses for high levels of customer satisfaction. Under this new plan, both customer satisfaction and the insurance agency's sales increased.

Each of the following, if true, helps to explain how the change in incentives for agents could have
resulted in increased sales EXCEPT:

A. Customers were so pleased that the insurance agency had responded to their complaints that they recommended the agency to their friends.
B. Agents listened more closely to customers of long standing and were able to sell them additional insurance policies that met new needs.
C. Agents more frequently postponed completing the attendant paperwork even after the terms for an insurance policy were settled to the satisfaction of the client.
D. Dissatisfied customers of other agencies, attracted by the reports of the change in agency policy, became customers of the agency.
E. Having come to trust the increased judiciousness of the agents' recommendations, customers approached the agency to discuss and ultimately to buy more supplementary
insurance than they previously had bought under pressure.

Originally posted by WaterFlowsUp on 21 Nov 2014, 12:13.
Last edited by gmat1393 on 02 Nov 2018, 04:35, edited 1 time in total.
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Re: After its customers complained about being pressured  [#permalink]

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New post 21 Nov 2014, 18:19
1
WaterFlowsUp wrote:
After its customers complained about being pressured to buy unneeded insurance, an insurance
agency stopped rewarding its agents for high sales volume and instead gave them bonuses for high
levels of customer satisfaction. Under this new plan, both customer satisfaction and the insurance
agency's sales increased.

Each of the following, if true, helps to explain how the change in incentives for agents could have
resulted in increased sales EXCEPT:

A. Customers were so pleased that the insurance agency had responded to their complaints
that they recommended the agency to their friends. Referring friends will increase sales
B. Agents listened more closely to customers of long standing and were able to sell them
additional insurance policies that met new needs. Sold additional insurance increase sales
C. Agents more frequently postponed completing the attendant paperwork even after the
terms for an insurance policy were settled to the satisfaction of the client. Nothing related to increase in sales. So C
D. Dissatisfied customers of other agencies, attracted by the reports of the change in agency
policy, became customers of the agency. Other agencies customers attracted towards this. More buying again increase in sales
E. Having come to trust the increased judiciousness of the agents' recommendations,
customers approached the agency to discuss and ultimately to buy more supplementary
insurance than they previously had bought under pressure. Buying more supplementary product. Again increase in sales
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Re: After its customers complained about being pressured  [#permalink]

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New post 29 Dec 2018, 07:06
Hello from the GMAT Club VerbalBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

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Re: After its customers complained about being pressured &nbs [#permalink] 29 Dec 2018, 07:06
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After its customers complained about being pressured

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