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 salesC. 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 CD. 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