Test Bank for Selling Today: Partnering to Create Value, 16th Edition (Chapters 1–17)

Test Bank For Selling Today Partnering to Create Value, 16tHEdition Chapter 1-17 Chapter 1 Relationship Selling Opportunities in the Information Economy

1.1 True/False Questions 1) Knowledge workers are people who succeed by adding value to information.

Answer: TRUE Diff: 1 Objective: LO5 2) Knowledge workers need selling skills to communicate information to consumers.

Answer: TRUE Diff: 1 AACSB: Written and Oral Communication Objective: LO5 3) Managers do not need sales skills because they need to obtain information from clients, not communicate information to clients.

Answer: FALSE Diff: 2 AACSB: Written and Oral Communication Objective: LO5 4) Firms that hire professionals such as accountants and engineers always hire separate sales staff so the professionals do not have to sell.

Answer: FALSE Diff: 1 Objective: LO5 5) Once an entrepreneur's company is successful, the entrepreneur no longer has to sell.

Answer: FALSE Diff: 1 Objective: LO5 6) Another name for missionary salespeople is "detail salespeople."

Answer: TRUE Diff: 1 Objective: LO3 7) Salespeople today need to have more education and skills than salespeople did in the past.

Answer: TRUE Diff: 1 Objective: LO3

8) Salespeople who are promoted to management make more money than do their coworkers who stay in sales.

Answer: FALSE Diff: 2 Objective: LO3 9) Sales positions can be a good track for promotion to supervisory-management positions.

Answer: TRUE Diff: 2 Objective: LO3 10) The highest compensation for salespeople generally goes to those focusing on transactional sales.

Answer: FALSE Diff: 2 Objective: LO3 11) Examples of industries in the service channel include convention centers, banking, and advertising.

Answer: TRUE Diff: 1 Objective: LO4 12) The growth rate for service companies continues to be much higher than the growth rate for companies that are product-led.

Answer: TRUE Diff: 2 Objective: LO4 13) The primary goal of a detail salesperson is to develop goodwill and stimulate demand for products.

Answer: TRUE Diff: 2 Objective: LO4 14) A sales representative for Dell who is selling a new form of sophisticated routing-to-server software would probably be classified as a sales engineer.

Answer: TRUE Diff: 1 Objective: LO4 15) Born salespeople have an advantage over people who learn selling skills through training.

Answer: FALSE Diff: 2 Objective: LO5

1.2 Multiple-Choice Questions 1) Which one of the following people would LEAST likely be considered a "knowledge worker"?

A) someone who performs research to discover new information B) someone who takes current research and uses it to facilitate a task C) someone who relays information from one party to another without changing it D) someone who puts information in a format that allows others to access it E) someone who uses information to solve a problem Answer: C Diff: 1 AACSB: Analytical Thinking Objective: LO5 2) Salespeople are most likely considered knowledge workers because they: A) position and lay out information in a way that helps buyers understand it B) gain knowledge of the product before they can sell it C) repeat a script that they are given by their managers D) develop an understanding of the best practices of sales E) create products themselves before they sell them Answer: A Diff: 2 Objective: LO5 3) Tamara Grindel is a doctor who practices with a group of other physicians with the same specialty. She is considering taking a course on selling skills. What is the most important way in which this will help her medical practice?

A) Learning selling skills will give Dr. Grindel an alternate career once she retires from medicine.

B) Learning selling skills will help Dr. Grindel bring new patients to her practice.

C) Learning selling skills will aid Dr. Grindel in communicating effectively with pharmaceutical reps who show her new medications.

D) Learning selling skills will show Dr. Grindel how to ensure that her patients take the medications she prescribes them.

E) Learning selling skills will require Dr. Grindel to understand the financial pressures of running a practice.

Answer: B Diff: 2 AACSB: Analytical Thinking Objective: LO5 4) The CEO of SwiftLink spends one week each month going to sales appointments with various salespeople in the company. In addition to assisting the salespeople with presentations, a likely reason the CEO goes on sales calls is to: A) gather information on customer needs and preferences B) deduct mileage on his vehicle as a way to offset taxes C) undercut the salespeople in underperforming divisions of SwiftLink D) ensure that the salespeople do not give volume discount pricing E) trade information to customers in exchange for information on competitors

Answer: A Diff: 1 AACSB: Analytical Thinking Objective: LO5 5) Peter Kumar has developed a software application that will reduce costs and increase server speed for corporations of all sizes. Even with this useful application, Peter still needs to develop personal selling skills in order to: A) understand and write a business plan for his company B) explain his application to potential buyers C) apply for a patent on his application D) maintain the discipline and stamina required to develop such a complicated piece of software E) ensure that only corporate users buy his application Answer: B Diff: 2 AACSB: Analytical Thinking Objective: LO5 6) Salespeople use social media to: A) design web pages with product features B) learn to use administrative software C) create and maintain customer contact D) set up mobile offices from their vehicles E) automate selling so they do not have to make client contact Answer: C Diff: 2 AACSB: Information Technology Objective: LO2 7) Which of the following is an activity that would most likely be performed by a customer service representative (CSR)?

A) processing employee paperwork B) delivering supplies to the factory floor C) providing telephone support for installation D) calling on prospects to sell them the product E) reconciling bank statements with accounting records Answer: C Diff: 1 AACSB: Analytical Thinking Objective: LO4 8) Which of the following trends in sales has led to an increase in both the education and skills a salesperson needs?

A) an increase in commission per sale B) an increase in the time spent on personal relationships C) an increase in web-based selling channels D) a shift from in-person to telephone sales E) a shift from "selling" to "consulting" Answer: E

Diff: 2 Objective: LO3 9) Of the following activities routinely performed by salespeople, which one contributes LEAST financially to both the salesperson and the company?

A) service calls B) face-to-face selling C) telephone selling D) waiting and traveling E) billing clients Answer: D Diff: 3 AACSB: Analytical Thinking Objective: LO3 10) Some top-performing salespeople earn more than their managers. This compensation is most likely made up of: A) bonuses only B) base salary, commissions, bonuses, and incentives C) commissions and charge-backs D) bonuses and dividends E) IPOs and base salary Answer: B Diff: 1 Objective: LO3 11) On average, an experienced, high-performing salesperson will find the highest compensation opportunities with which approach?

A) feature/benefit B) transactional C) value-added D) solution E) directed Answer: C Diff: 3 Objective: LO3

12) Psychic income in selling most likely refers to which one of the following?

A) visibility provided by working in the sales department B) satisfaction of being on a commission payment plan C) high commissions earned because of successful "intuitive" selling D) opportunity to be a member of the sales team E) job recognition afforded sales personnel Answer: E Diff: 2 Objective: LO3

13) Salespeople have an advantage over workers in other positions when being considered for promotion to positions of greater responsibilities because salespeople: A) have limited opportunities for advancement in the sales department B) are compensated primarily through psychic income C) have worked for many companies in their careers D) have numerous opportunities to advance to middle-management ranks E) have high visibility within companies already relative to other positions Answer: E Diff: 2 Objective: LO3 14) There is a pay gap between men and women in the field of sales, with men earning more than women do. Despite this, sales represents an excellent financial opportunity for women for which of the following reasons?

A) The pay gap in sales is less than the pay gap in the workforce overall.

B) The pay gap varies from company to company.

C) The pay gap is only an issue in certain industries.

D) The psychic income from sales is equivalent to the value of the pay gap.

E) The psychic income from sales cannot be quantified.

Answer: A Diff: 3 AACSB: Multicultural and Diversity Understanding Objective: LO3 15) The duties of inside salespeople may overlap heavily with the duties of: A) sales managers B) account managers C) product developers D) supply buyers E) internal auditors Answer: B Diff: 2 AACSB: Analytical Thinking Objective: LO4 16) Alan Karbashian spends all day driving from customer site to customer site for sales meetings in his job with a national medical parts manufacturer. Alan is considered a/an: A) inside sales rep B) outside sales rep C) alignment rep D) distributing rep E) interchange rep Answer: B Diff: 1 AACSB: Analytical Thinking Objective: LO4 17) In a well-structured sales department, inside and outside salespeople often: A) compete for sales and customers

B) duplicate their efforts and increase the company's cost per sale C) work together to generate leads, close sales, and provide service D) exchange leads depending on what the expected sales will be E) combine their monthly sales figures to increase commissions Answer: C Diff: 2 Objective: LO4 18) Trade selling and missionary (detail) sales are both examples of sales: A) directly from the manufacturer to the consumer B) from the distributor to the consumer C) bypassing the manufacturer to the distributor D) inside the supply chain but not to the consumer E) externally from the consumer to the supplier Answer: D Diff: 2 Objective: LO4 19) Sales opportunities in the service sector are most likely expanding because: A) service providers connect directly with consumers B) the service industry has a higher growth rate than the product industry does C) modern consumers need help with activities that they used to be able to do on their own D) the service industry is starting to saturate the market relative to the industrial and product industries E) the service industry provides a higher commission rate for salespeople than other industries Answer: B Diff: 2 Objective: LO4 20) Which of the following sectors would NOT be considered to be part the service industry?

A) hotel B) insurance C) banking D) real estate E) chemicals Answer: E Diff: 1 Objective: LO4 21) What event contributed most to the increased need for telecommunications salespeople?

A) deregulation of telephone service B) anti-trust suits brought against the telecommunications industry C) financial improprieties in the telecommunications industry D) creation of a national regulatory committee for telephone service E) development of voice-over-IP (VOIP) technologies Answer: A Diff: 3 Objective: LO4

22) Sales engineers are people with extensive knowledge of their product who also: A) provide service on the product after the sale B) develop the product as part of the research and development team C) communicate the benefits of the product to the customers D) have advanced degrees in science or technology E) have graduate-level sales training Answer: C Diff: 2 Objective: LO4 23) Which of the following describes a category of sales personnel in the field of manufacturing?

A) sales engineer B) field researcher C) comptroller D) technical support representative E) research and development director Answer: A Diff: 1 Objective: LO4 24) Salespeople in the U.S. report that they work in sales primarily to: A) be promoted to management B) avoid working traditional hours C) have greater flexibility with retirement D) make more money E) generate pension credits Answer: D Diff: 1 Objective: LO4 25) Terri Milano, employed by a manufacturer of home electronics, offers assistance to retailers in such areas as credit policies, pricing display and store layout. She also collects information regarding acceptance of her firm's products. She is performing the duties of a(n): A) detail salesperson B) retail salesperson C) inside salesperson D) field representative E) manufacturer's representative Answer: A Diff: 2 AACSB: Analytical Thinking Objective: LO4 26) Well-trained salespeople can add value to the traditional retail shopping experience. Selling for a retailer might involve which of the following products?

A) personal computers, automobiles and assembly line robotics equipment B) photographic equipment, industrial specialties and recreational equipment C) fashion apparel, personal computers and recreational vehicles D) microchips, musical instruments and automobiles

E) software back-end integration services, jewelry, and motorcycles Answer: C Diff: 2 Objective: LO4 27) Network (multilevel) marketing is different from traditional sales in that it: A) creates a pyramid with the CEO at the top and the salespeople at the bottom B) eschews growth of the salesforce for a given product C) relies on an interconnected network of independent salespeople to sell the product directly D) focuses on paid advertising instead of word-of-mouth publicity E) allies itself with competing products and service providers Answer: C Diff: 3 Objective: LO4 28) Corporate-sponsored sales training usually includes training on: A) CRM software B) accounting methods and theory C) shipping systems and logistics D) operating production machinery E) competitors' products Answer: A Diff: 1 Objective: LO6 29) Commercial vendors who provide sales training offer courses based on: A) Universal Sales Theory B) the theories of Dale Carnegie and Napoleon Hill C) a variety of sales approaches dating back decades D) modern sales approaches that have been regression-tested E) graduate-level MBA sales work Answer: C Diff: 2 Objective: LO6 30) A training and education initiative with specific requirements delivered by an industry oversight organization to salespeople in that industry is an example of a(n): A) university sales methods class B) corporate-sponsored training class C) Internet-based training program D) certification program E) college concentration Answer: D Diff: 1 Objective: LO6

1.3 Short Answer Questions 1) ________ has no value until it is communicated effectively.

Answer: Information Diff: 1 AACSB: Written and Oral Communication Objective: LO5 2) ________ income helps satisfy our need for recognition and security.

Answer: Psychic Diff: 2 Objective: LO3 3) The ________ salesperson is usually not compensated on the basis of the orders obtained, but receives recognition for indirectly increasing sales.

Answer: detail Diff: 2 Objective: LO3 4) Convention center sales managers, investment securities brokers, and real estate salespeople all have one thing in common–they sell a(n) ________.

Answer: service Diff: 2 Objective: LO4 5) A(n) ________ works for the manufacturer. This salesperson must have detailed and precise technical knowledge.

Answer: sales engineer Diff: 2 Objective: LO4 1.4 Essay Questions 1) List and describe the four major employment settings for sales personnel.

Answer: Selling for a retailer - Retailers sell to the final consumer, so final consumer goods such as vehicles, apparel, appliances, furniture, and personal computers fit this category.

Selling for a wholesaler - Wholesalers employ over a million salespeople in the United States.

Responsibilities of wholesale salespeople might include determining and granting credit, maintaining inventories, and helping with promotional activities.

Selling for a manufacturer - These are highly technical sales. The category includes sales engineers, "detail" salespeople, field sales representatives, and inside salespeople.

Selling a service - This includes hotel and convention center services, financial services, advertising sales, business services, real estate, and insurance.

Diff: 2 Objective: LO4

2) List the four sources of sales training.

Answer: 1. Corporate-sponsored training.

2. Training provided by commercial vendors.

3. Certification programs.

4. College and University coursework.

Diff: 2 Objective: LO6 1.5 Applied Multiple Choice Questions Ray Sanchez began as a junior sales rep at industrial products maker DECA Corporation 10 years ago, and has worked his way up steadily to Senior Regional Sales Director for the entire Southwest region. He is good at his job, and his greatest personal satisfaction—also the cause of his steady rise in the company—is his ability to understand customers and their needs and to sell them appropriate solutions. As a manager and now Senior Regional Director, Sanchez injects his department with this same commitment to understanding the customer's needs as the key to longterm, profitable sales relationships.

1) Sanchez's success is due largely to the fact that: A) he was born with the personality of a successful salesperson and capitalized on that B) he understood the key factors involved in becoming an excellent salesperson and worked to develop skills to support those factors C) he has unlimited energy and makes more cold calls than any other salesperson at his level in the company D) he knows how to persuade prospects to buy the products he is selling E) men tend to be more successful at selling industrial products than women do Answer: B Diff: 3 AACSB: Application of Knowledge Objective: LO1, LO5 2) To become a successful salesperson, Sanchez had to adopt a personal selling philosophy.

Which of the three prescriptions of that philosophy is not only a mindset but a skill that he has practiced and honed to become successful?

A) adopt the marketing concept B) value personal selling C) assume the role of problem solver or partner in helping customers make informed and intelligent buying decisions D) focus on product knowledge and everything else will follow E) develop the ability to create rapport with customers so they are buying from a friend Answer: C Diff: 3 AACSB: Application of Knowledge Objective: LO1 3) Sanchez and his department are most likely using which of the following sales methods?

A) unified selling B) value-added selling

C) transactional selling D) traditional selling E) economy selling Answer: B Diff: 3 AACSB: Application of Knowledge Objective: LO2 4) Which of the following would be a reason for Sanchez to remain in his Senior Regional Sales Director position instead of moving to executive management?

A) Upper management makes a much larger salary than a Senior Regional Sales Director does.

B) The Senior Regional Sales Director position spends a significant amount of time traveling the territory every month.

C) He would be one of the only Latino members of the upper management team.

D) He has more freedom to direct his own business strategy in sales than he does in upper management.

E) The company likes to promote employees with sales backgrounds into upper management.

Answer: D Diff: 3 AACSB: Application of Knowledge Objective: LO3 5) Sanchez decides to try something new in the Southwest Region. He had been following the model of sending outside sales reps to follow up with prospects who expressed interest in the product by various prospecting methods. Now he will augment those efforts by hiring teams of sales reps to show the product to managers and buyers at stores that do not carry the DECA line but sell complimentary products, and to call these managers on the phone based on qualifying work the sales reps in the store have done. What two types of sales reps will Sanchez most likely hire to comprise these teams?

A) missionary salespeople and inside salespeople B) outside salespeople and inside salespeople C) competing salespeople and detail salespeople D) missionary salespeople and detail salespeople E) trade salespeople and detail salespeople Answer: A Diff: 3 AACSB: Application of Knowledge Objective: LO4 Roni Harris is a college student in the business department of her local university. She came in to college thinking she wanted to become an Accounting major, but discovered that she is interested in product marketing and in sales.

6) What essential quality will Roni need to have to be successful in sales?

A) She will need to enjoy interacting with potential customers and customers.

B) She will need to enjoy making money.

C) She will need to enjoy creating branding and marketing campaigns for products.

D) She will need to enjoy servicing customers who have purchased the product from the company.

E) She will need to enjoy competing fiercely with other salespeople for sales and commissions.

Answer: A Diff: 3 AACSB: Application of Knowledge Objective: LO1, LO5 7) Roni is taking a time management class as an elective in college because she feels she occasionally struggles with managing her time and tasks. What effect do time management skills have on a career in sales?

A) Time management skills are the key to sales, so someone who is not extremely organized cannot succeed in this career.

B) Time management skills are necessary to be able to set priorities and manage the various tasks of sales while setting one's own schedule.

C) Time management skills are difficult to learn if one is not born with them, so it is unlikely that someone without an internal sense of organization will be successful in sales.

D) Time management skills are not a huge issue for salespeople because the sales manager sets the list of tasks and priorities, so the salesperson just needs to follow the list and execute.

E) Time management skills do not intersect significantly with the tasks required to be good at sales.

Answer: B Diff: 3 AACSB: Application of Knowledge Objective: LO5 8) Despite her interest in sales, Roni is concerned when she learns that, on average, female salespeople make less money than male salespeople do. Which one of the following statements is most likely true?

A) Male salespeople have controlled the industry for almost a century, so there is no reason to think female salespeople will ever be able to equal male earnings.

B) Male salespeople would like to earn salaries equal to the salaries of female salespeople, but industry regulations have set their starting salaries at unequal rates.

C) Female salespeople will never earn as much as male salespeople will in certain industries, such as heavy industry and transportation.

D) Female salespeople make less money than male salespeople do because they must take care of their families and therefore cannot be as focused on their jobs as men are.

E) The difference between the average earnings of female and male salespeople is less than the difference between the average earnings of female and male workers in other professions.

Answer: E Diff: 3 AACSB: Application of Knowledge Objective: LO3 9) Roni sees a job posting for a "Business Development Manager in the hospitality industry."

Which of the following most accurately describes the duties of this position?

A) soliciting donations from charitable donors and foundations for an organization that promotes hospitality B) selling guest and conference hotel rooms and other hotel services to organizations C) working as a front desk clerk at a hotel D) servicing requests from guests at an upscale resort

E) managing the banquet hall at a large restaurant/catering facility Answer: B Diff: 3 AACSB: Application of Knowledge Objective: LO4 10) Right before graduation, Roni receives two job offers. One is for a sales position and offers a base salary of $30,000 plus commissions. The other is for a marketing assistant position and offers a straight salary of $40,000. Which of the following is likely to be true about the two positions?

A) The sales job could end up paying more than the marketing job if Roni does well and makes more than $10,000 in commissions.

B) The sales and marketing positions will have roughly equivalent duties, but different salaries.

C) Roni will need more training to do the marketing job than to do the sales job.

D) The marketing job pays more in salary because it is more demanding than the sales job is.

E) The sales job relies more on personality and the marketing job relies more on skills.

Answer: A Diff: 3 AACSB: Application of Knowledge Objective: LO3 A start-up has developed a business-to-business product that allows for integration of inventory, billing, shipping, teleconferencing, and webinar functions. This allows salespeople to demonstrate, check inventory, close a sale, and ship the product during a presentation with the client in person or by webinar.

11) Considering the product and the target market, what would be the best sales model for the company to most likely use?

A) Sell the product exclusively via self-service online, as it is a technology product.

B) Have the CEO of the company sell the product to prospects because he understands the importance of making sales.

C) Hire a salesperson with some experience understanding and selling technology products to sell the product.

D) Hire a highly experienced sales manager from the publishing industry to set up a sales department.

E) Sell the product through a telemarketing agency.

Answer: C Diff: 3 AACSB: Application of Knowledge Objective: LO4 12) To effectively and efficiently sell the product, what type of salespeople should the company hire?

A) inside sales reps B) outside sales reps C) detail reps D) missionary reps E) direct sales reps Answer: A

Diff: 3 AACSB: Application of Knowledge Objective: LO4 13) How does a sales rep most likely create value for the customer with this product?

A) Sell the customer the exact components that will integrate with the customer's current system.

B) Speed the transaction along so that the customer can purchase quickly.

C) Offer a lower price if the customer buys more than one system.

D) Offer to demonstrate the product in the customer's office.

E) Allow the customer to see a demo of the product online to see how they will be able to use the product.

Answer: A Diff: 3 AACSB: Application of Knowledge Objective: LO5 14) To train the sales reps, the company should most likely: A) ask the sales reps to read three classic sales texts and engage in a role-playing workshop B) hire a trainer who understands sales techniques to train the sales reps in groups of three C) send the sales reps to a standardized course that teaches sales theory D) develop an in-house training course focused on product knowledge supplemented by a refresher in sales techniques delivered by a hired company E) send the sales reps to shadow the product developers to learn how they develop products for the company Answer: D Diff: 3 AACSB: Application of Knowledge Objective: LO6 15) The customer service representatives employed by the company for after-sales support are likely to need: A) training to learn to speak standard American English and lose accents they have B) to be instructed in basic telephone manners and standards of politeness C) mileage allowances for the time they will spend visiting client sites to physically install the software D) special sales skills that allow them to close particularly difficult sales E) specialized technical skills to assist customer companies in installing and implementing the software Answer: E Diff: 3 AACSB: Application of Knowledge Objective: LO5

Selling Today, 16e (Manning/Ahearne/Reece) Chapter 2 Evolution of Selling Models That Compliment the Marketing Concept 2.1 True/False Questions

1) Customer relationship management (CRM) software aids salespeople in creating and maintaining relationships with customers.

Answer: TRUE Diff: 1 AACSB: Information Technology Objective: LO4 2) A company that ignores the marketing concept will not have any negative effects.

Answer: FALSE Diff: 2 Objective: LO1 3) Value-added selling can be defined as a series of creative improvements within the sales process that enhance the customer experience.

Answer: TRUE Diff: 2 Objective: LO5 4) Business firms vary in terms of how strongly they support the marketing concept.

Answer: TRUE Diff: 1 Objective: LO1 5) E-commerce has contributed to the decline in popularity of transactional selling.

Answer: TRUE Diff: 2 AACSB: Information Technology Objective: LO2 6) When measured by either the number of people employed or expenses as a percentage of sales, personal selling is often the major promotional method used by American businesses.

Answer: TRUE Diff: 2 Objective: LO1 7) Consultative-style selling practices have become popular because they can be easily mastered.

Answer: FALSE Diff: 2 Objective: LO2

8) A "strategy" can be best described as a collection of techniques, practices, or methods you use when you are face to face with a customer.

Answer: FALSE Diff: 2 Objective: LO3 9) Consultative-style selling, which emerged in the late 1960s and early 1970s, is an extension of the marketing concept.

Answer: TRUE Diff: 3 Objective: LO2 10) The four major strategies that form the strategic/consultative selling model are independent of one another.

Answer: FALSE Diff: 3 Objective: LO3 11) Typical salespeople spend about 30 percent of their time in actual face-to-face selling situations.

Answer: TRUE Diff: 2 Objective: LO3 12) The presentation strategy includes a reminder that outstanding service should be the overriding theme of every sales presentation.

Answer: TRUE Diff: 1 Objective: LO3 13) A major reason for the demise of the product solution is the growing number of look-alike products.

Answer: TRUE Diff: 2 Objective: LO4 14) The partnering concept, as an enhancement of personal selling, became very popular in the 1970s.

Answer: FALSE Diff: 3 Objective: LO4 15) The goal of strategic selling alliances is to achieve a marketplace advantage by teaming up with another company whose products fit well with your own.

Answer: TRUE Diff: 1 Objective: LO4 2.2 Multiple-Choice Questions

1) In consultative selling, the customer is seen as: A) a person to be served B) a prospect to be sold C) a point on the funnel D) progress toward a quota E) a challenge to be overcome Answer: A Diff: 1 Objective: LO2 2) The development of a personal selling philosophy most likely involves: A) a full acceptance of the limits of the marketing concept B) a full appreciation of the tenets of the free enterprise system C) a desire to sell internationally D) assuming the role of a problem-solver in helping customers make complex buying decisions E) assuming the role of a competitor for customers' business Answer: D Diff: 2 Objective: LO1 3) Sales departments and marketing departments often compete for: A) the largest number of employees in the company B) the biggest customers C) financial resources and budget share D) management's favor E) product to give away Answer: C Diff: 2 Objective: LO1 4) Which of the following statements accurately describes value-added selling?

A) Value-added selling has emerged as a response to the product strategy.

B) Value-added selling has emerged as a response to the customer economy.

C) Value-added selling surfaced during the era of transactional selling.

D) Value-added selling would not be an appropriate strategy in international markets.

E) Value-added selling is only appropriate for services, not products.

Answer: B Diff: 2 Objective: LO5

5) The ultimate goal of the "marketing concept" is: A) product diversification B) customer satisfaction C) brand loyalty D) rising profit margins E) efficiency of production Answer: B Diff: 2 Objective: LO1 6) Which of the following statements would NOT be an application of the marketing concept?

A) Let's speed up production and get these products to customers faster by eliminating the field test.

B) Let's show these product designs to some prospective buyers for their reactions.

C) Let's examine our points of distribution to see if we're reaching the market effectively.

D) Let's do some research to see which colors the consumers prefer.

E) Let's ask customers which products they used most heavily.

Answer: A Diff: 2 AACSB: Analytical Thinking Objective: LO1 7) When UPS was first established, founder Jim Casey described the firm's focus as follows: A) to become a leader in international shipping B) to become the world's most profitable company C) to render perfect service to our stores and their customers D) to become the world's most efficient shipping company E) to become the fastest shipper in the world Answer: C Diff: 3 Objective: LO1 8) The marketing mix consists of product, promotion, place, and: A) personnel B) principle C) perfection D) pride E) price Answer: E Diff: 2 Objective: LO1

9) The promotion element of a marketing program can be subdivided into the areas of: A) sales, promotion, and advertising B) market research, personnel, and product publicity C) product research, product design, product production, and product publicity D) public relations, place, personal selling, and personnel E) sales promotion, public relations, personal selling, and advertising Answer: E Diff: 2 Objective: LO1 10) In a market characterized by vigorous competition, look-alike products and customer loyalty that depends on quality relationships as well as quality products, the salesperson should fully utilize the: A) product strategy B) customer strategy C) presentation strategy D) relationship strategy E) marketing strategy Answer: D Diff: 2 Objective: LO3 11) A well-thought-out plan for establishing, building, and maintaining quality relationships is a: A) relationship strategy B) customer strategy C) product strategy D) presentation strategy E) personal selling philosophy Answer: A Diff: 2 Objective: LO3 12) Sharon Wiley is a sales representative employed by a leading producer of pharmaceuticals used in veterinary medicine. Recently she attended a university-sponsored seminar that focused on new research findings in selected areas of veterinary medicine. Ms. Wiley is most likely attempting to develop a: A) relationship strategy B) customer strategy C) service strategy D) presentation strategy E) product strategy Answer: E Diff: 2 AACSB: Analytical Thinking Objective: LO3

13) One broad strategic area of the Strategic/Consultative Selling Model is: A) marketing strategy B) research strategy C) customer strategy D) service strategy E) budget strategy Answer: C Diff: 2 Objective: LO3 14) Eric Villa obtained a license to sell real estate and then accepted a sales position with a local Century 21 agency. To prepare for this new position, he purchased and read a research report entitled "Buying Habits of Today's Home Buyers." Mr. Villa is most likely attempting to develop a: A) presentation strategy B) product strategy C) customer strategy D) relationship strategy E) price strategy Answer: C Diff: 2 AACSB: Analytical Thinking Objective: LO3 15) The four broad strategic areas of the Strategic/Consultative Selling Model are: A) connected to each other B) in conflict with each other C) independent of each other D) not independent of each other E) identical to each other Answer: D Diff: 2 Objective: LO3 16) Preparing objectives for the sales demonstration and a plan to reach those objectives is the: A) product strategy B) customer strategy C) presentation strategy D) relationship strategy E) marketing strategy Answer: C Diff: 2 Objective: LO3

17) The customer strategy always takes into consideration: A) maintaining a close partnership B) what the customer needs C) the profit margins of the product D) the relationship between the selling partners E) the company's sales quotas Answer: B Diff: 3 Objective: LO3 18) When a marketer decides to adopt partnering, emphasis will most likely be placed on: A) selling strategies B) product development C) selling tactics D) the customer E) the salesperson Answer: D Diff: 1 Objective: LO4 19) The evolution of strategic selling can most likely be traced to: A) a need to use fewer salespeople to sell more products B) the growing demand for less expensive products C) the need for salespeople to master sales force automation practices D) new sources of raw materials E) several trends that resulted in a more complex selling environment Answer: E Diff: 2 Objective: LO3 20) Customer loyalty depends on quality products and: A) quality relationships B) low prices C) free shipping D) custom installation E) little contact Answer: A Diff: 2 Objective: LO4

21) The highest form of partnering is the: A) marketing alliance B) value-added alliance C) partnering alliance D) customer partnership alliance E) strategic selling alliance Answer: E Diff: 2 Objective: LO4 22) A partnership is beneficial for both parties because the successive sales are: A) equal to the initial sales B) greater than the initial or repeat sales C) not necessarily guaranteed D) a function of the price of the product E) transactional in nature Answer: B Diff: 2 Objective: LO4 23) Account managers from Dentsply International help add value for their dentist customers by: A) giving them cheaper prices for larger orders B) selling more products than the competition C) helping them solve a workplace safety issue for hygienists D) providing various payment options E) expediting shipments during busier months Answer: C Diff: 2 Objective: LO4 24) Achieving a marketplace advantage by teaming up with another company whose products or services fit well with your own is referred to as a: A) marketing strategy B) customer strategy alliance C) sales strategy D) strategic selling alliance E) successive sales alliance Answer: D Diff: 2 Objective: LO4

25) For a strategic alliance to be successful, the first step is for a company to: A) enlist legal assistance to make sure its interests are protected B) talk to the customer to discover what its needs are C) assemble a team of product experts D) define the ethical guidelines that will apply to the alliance E) find out as much about the proposed partner as possible Answer: E Diff: 2 Objective: LO4 26) Maintaining high ethical standards: A) can strengthen your relationship with a customer B) should be secondary to closing a sale C) is rare in the world of sales D) will lead to lost revenue for a company E) often puts you in conflict with your customers Answer: A Diff: 1 AACSB: Ethical Understanding and Reasoning Abilities Objective: LO4 27) CRM software is used to manage information about: A) research and development B) competitors C) prospects and customers D) strategy E) market trends Answer: C Diff: 2 AACSB: Information Technology Objective: LO4 28) The process of building and maintaining strong customer relationships by providing customer value is called: A) marketing concept B) value-added selling C) customer relationship management D) personal sales philosophy E) customer strategy Answer: C Diff: 2 Objective: LO4

29) The effective exchange of information is the foundation of most economic transactions. This is known as: A) exchange theory B) personal selling C) the value-added economy D) the information economy E) the post-consumer economy Answer: D Diff: 2 Objective: LO5 30) Which of the following is a step to creating and delivering the customer value model?

A) creating the customer's value needs B) creating the value proposition C) quantifying the value proposition D) questioning the value proposition E) presenting the value proposition Answer: B Diff: 3 Objective: LO5 2.3 Short Answer Questions 1) ________ selling can be defined as a series of creative improvements within the sales process that enhance the customer experience.

Answer: Value-added Diff: 1 Objective: LO5 2) Peter Drucker stated that "the ________ defines the business."

Answer: customer Diff: 3 Objective: LO1 3) ________ evolved because of broader and more diverse product lines, demand for specific customized solutions, and more competition.

Answer: Strategic selling Diff: 2 Objective: LO3 4) A(n) ________ is a well thought-out plan for establishing, building and maintaining quality selling relationships.

Answer: relationship strategy Diff: 2 Objective: LO3

5) A(n) ________ is a carefully conceived plan that will result in maximum responsiveness to customers.

Answer: customer strategy Diff: 2 Objective: LO3 2.4 Essay Questions 1) List the four parts of the marketing mix.

Answer: Price, product, place, and promotion.

Diff: 1 Objective: LO1 2) List and describe the five strategic steps of the Strategic Consultative/ Selling Model.

Answer: 1. Developing a personal selling philosophy. This involves adopting the marketing concept, valuing personal selling, and assuming the role of problem-solver.

2. Developing a relationship strategy. Success in selling depends heavily on the salesperson's ability to develop, manage, and enhance interpersonal relations with the customer.

3. Developing a product strategy. Products and services represent the problem-solving tools available to salespeople.

4. Developing a customer strategy. Sales and marketing efforts must be organized around the needs and desires of the customer.

5. Developing a presentation strategy. The presentation is a critical part of the selling process because it is at this point that the salesperson determines whether the customer has a need for the product.

Diff: 2 Objective: LO3

2.5 Applied Multiple Choice Questions Jenny Johansson sells customized buses like the ones bands use while on road tours. Her company has recently assigned her to a new territory in the Upper Midwest, and she is reevaluating the sales strategies she used in her old territory in New England.

1) Jenny is working on her sales strategy for a mid-sized town in her territory. One of her ideas is to stretch out of the traditional prospect pool of traveling performers, who are not headquartered in the Upper Midwest, and open up new markets with corporations that need customized buses for executives.

This thinking process Jenny is participating in is called: A) the value proposition B) the marketing mix C) presentation strategy D) strategic planning E) optimization Answer: D Diff: 3 AACSB: Application of Knowledge Objective: LO3 2) During a presentation, when communicating the value proposition to the customer, Jenny should most likely focus on: A) the features that make the bus special B) how much money driving a bus saves over chartering a plane C) how the bus will solve problems for the customer D) the gas mileage the bus gets E) the materials used in the modification of the bus Answer: C Diff: 3 AACSB: Application of Knowledge Objective: LO5 3) Which of the following would be an example of partnering?

A) selling a customized bus to the CEO of the bus manufacturer B) renting customized buses to corporate customers through a car service agency that services corporations C) using the same brand of paint on all the buses they customize D) developing s standardized process to ensure the buses all receive the same steps, with differences within those steps E) creating two or more identical customizations for the same customer Answer: B Diff: 3 AACSB: Application of Knowledge Objective: LO4

4) At a party, Jenny talks to a flight attendant who mentions the passenger she had in first class who needed a second seat for his oxygen and other medical equipment. Jenny realizes that modifying buses for medical needs instead of luxury could open a whole new market. This is an example of: A) product strategy B) transactional selling C) the persuader stage D) the marketing mix E) the marketing concept Answer: E Diff: 3 AACSB: Application of Knowledge Objective: LO3 5) While making a sales presentation to the head of a local company, Jenny discovers that the head is routinely stopped and delayed at airport security because of a joint replacement that sets off alarms but doesn't show up easily in the x-ray machines. This adds another 3-4 hours to some trips, and has caused him to miss 10 flights in the previous year. This conversation is: A) need identification B) relationship building C) price negotiation D) qualifying the prospect E) post-sales service Answer: A Diff: 3 AACSB: Application of Knowledge Objective: LO1, LO3 A company has developed a calendar/messaging/paperwork center that helps working mothers organize their families' schedules and paperwork. All the mothers who have tried it have loved it, and it is priced comparably to normal planners, although it offers much more.

6) The product was developed by gathering focus groups of mothers and asking them what they need and what they wish normal planners offered them. This method of product development most likely: A) is costly and inefficient B) is performed by the marketing department C) subscribes to the marketing concept D) reduces the barriers to purchasing E) is a method developed in the last decade Answer: C Diff: 3 AACSB: Application of Knowledge Objective: LO1

7) As part of the marketing mix, the makers of the calendar will be running an advertising campaign directed at working mothers. Another part of the marketing mix is sending salespeople to sell: A) calendars to retail outlets B) calendars to working mothers C) organizational skills to working mothers D) nostalgia to organizers E) organizational skills to online reviewers Answer: A Diff: 3 AACSB: Application of Knowledge Objective: LO1, LO2 8) Because this product looks similar to other products and only differentiates itself when a customer uses it, customers might be more influenced to buy it because of: A) advertising on websites geared to women B) marketing campaigns in non-traditional outlets C) word of mouth endorsements from other mothers D) teacher recommendations E) telephone marketing campaigns Answer: C Diff: 3 AACSB: Application of Knowledge Objective: LO2 9) Company management is having a difficult time deciding whether to allot more money to a marketing campaign involving ad buys and promotional events, or to a staff of sales representatives to sell the organizers. What factor should they consider in allotting the budget?

A) A national marketing campaign can cost more than the yearly salaries of an entire sales department.

B) A marketing campaign can reach prospects in several geographic areas at the same time.

C) Salespeople can visit several retail outlets a day.

D) Salespeople work on commission.

E) Even with a marketing campaign, retail outlets will need to order through and be trained on product knowledge by salespeople.

Answer: E Diff: 3 AACSB: Application of Knowledge Objective: LO2

10) How can a salesperson add value to the transaction for a retail outlet buying the organizers to resell to customers?

A) by giving the outlet the same price rival calendars charge B) by helping the outlet place the order for the organizers C) by providing a free display stand and benefits list to outlets to help them sell D) by delivering the organizers to the outlets E) by penalizing outlets that do not sell many organizers with a smaller discount off retail price Answer: C Diff: 3 AACSB: Application of Knowledge Objective: LO5 XFormation is a company that develops and delivers custom trainings for products, procedures, and change at companies. XFormation developers have extensive knowledge of adult learning theory, and the trainers are dynamic, engaged teachers.

11) Salespeople for XFormation need to be able to successfully: A) convince a prospect to buy B) partner with the prospect to achieve the prospect's training goals C) communicate why XFormation trainers are the best D) make prospects like them so they will want to buy from them E) persuade prospects that the XFormation training course will serve their needs Answer: B Diff: 3 AACSB: Application of Knowledge Objective: LO4 12) Which of the following is an example of a relationship strategy salespeople for XFormation could use?

A) Use mirroring and other subtle methods to create rapport and a good relationship with the customer so the customer ultimately buys.

B) Understand all the training products they sell and how to customize a package for the customer.

C) Examine how they can add value for customers so the customers will continue to contract with XFormation on a long-term basis.

D) Give a presentation to the customer after planning out the objectives carefully ahead of time.

E) Understand the customer's needs and what and how they need to buy.

Answer: C Diff: 3 AACSB: Application of Knowledge Objective: LO3

13) Which of the following is the main goal for XFormation salespeople in terms of product strategy?

A) Create products that customers really want to buy instead of products that the company wants to sell.

B) Understand all the training products they sell and how to customize a package for the customer.

C) Examine how they can add value for customers so the customers will continue to contract with XFormation on a long-term basis.

D) Give a presentation to the customer after planning out the objectives carefully ahead of time.

E) Understand the customer's needs and what and how they need to buy.

Answer: B Diff: 3 AACSB: Application of Knowledge Objective: LO2 14) Which of the following is the customer strategy that XFormation salespeople should use?

A) Understand all the training products they sell and how to customize a package for the customer.

B) Examine how they can add value for customers so the customers will continue to contract with XFormation on a long-term basis.

C) Give a presentation to the customer after planning out the objectives carefully ahead of time.

D) Spend enough time with the customer that the salesperson lives and breathes the customer's business.

E) Understand the customer's needs and what and how they need to buy.

Answer: E Diff: 3 AACSB: Application of Knowledge Objective: LO2, LO3 15) As a presentation strategy, which of the following makes the most sense for XFormation sales representatives to follow?

A) Understand all the training products they sell and how to customize a package for the customer.

B) Examine how they can add value for customers so the customers will continue to contract with XFormation on a long-term basis.

C) Rehearse the standardized presentation so extensively that it is smooth and flawless, and any prospect would buy from the salesperson.

D) Give a presentation to the customer after planning out the objectives carefully ahead of time.

E) Understand the customer's needs and what and how they need to buy.

Answer: D Diff: 3 AACSB: Application of Knowledge Objective: LO1, LO2, LO3 Selling Today, 16e (Manning/Ahearne/Reece) Chapter 3 Ethics: The Foundation for Partnering Relationships That Create Value 3.1 True/False Questions

1) Many business organizations, professional associations and certification agencies have established written codes of ethics.

Answer: TRUE Diff: 1 AACSB: Ethical Understanding and Reasoning Abilities Objective: LO4 2) Individuals with high levels of emotional intelligence rarely display the qualities needed to be successful in sales because they appear untrustworthy.

Answer: FALSE Diff: 2 Objective: LO1 3) According to the text, one of the "half-truths" that has influenced the erosion of character in business is that: "Corporations exist to maximize shareholder value."

Answer: TRUE Diff: 2 AACSB: Ethical Understanding and Reasoning Abilities Objective: LO4 4) It is almost impossible for management to develop guidelines for sales personnel regarding the giving of gifts to customers.

Answer: FALSE Diff: 1 AACSB: Ethical Understanding and Reasoning Abilities Objective: LO5 5) Ethical standards tend to filter down from the top of a business organization.

Answer: TRUE Diff: 1 AACSB: Ethical Understanding and Reasoning Abilities Objective: LO3 6) The major outcome of a business agreement based on reciprocity is a mutual exchange of benefits.

Answer: TRUE Diff: 1 AACSB: Ethical Understanding and Reasoning Abilities Objective: LO3

7) The salesperson should use a standard entertainment activity for all customers to avoid the appearance of favoritism.

Answer: FALSE Diff: 3 AACSB: Ethical Understanding and Reasoning Abilities Objective: LO3 8) Product disparagement constitutes a type of business defamation.

Answer: TRUE Diff: 2 AACSB: Ethical Understanding and Reasoning Abilities Objective: LO3 9) Most people employed in the fast-paced business world, which is constantly changing, will adopt or discard values quickly.

Answer: FALSE Diff: 2 AACSB: Ethical Understanding and Reasoning Abilities Objective: LO4 10) A majority of the states have passed legislation establishing a cooling-off period during which the consumer may void a contract to purchase goods and services.

Answer: TRUE Diff: 2 Objective: LO3 11) The Uniform Commercial Code is a legal guide that strives to reduce the number of telemarketing calls.

Answer: FALSE Diff: 2 Objective: LO3 12) The role of the salesperson is to diagnose buyer need and determine how to extract value from the situation.

Answer: TRUE Diff: 2 Objective: LO5 13) If you are not breaking the law, then you are acting in an ethical manner.

Answer: FALSE Diff: 1 AACSB: Ethical Understanding and Reasoning Abilities Objective: LO5

14) The primary focus of trust in transactional sales is trust in the person who sells the product.

Answer: FALSE Diff: 2 AACSB: Ethical Understanding and Reasoning Abilities Objective: LO3 15) Culture is the sum total of beliefs, values, knowledge, ethnic customs, and objects that people use to adapt to their environment.

Answer: TRUE Diff: 1 AACSB: Diverse and Multicultural Work Environments Objective: LO4 3.2 Multiple-Choice Questions 1) Which of the following is LEAST likely a characteristic of a person with a high level of emotional intelligence?

A) self-confidence B) professionalism C) adaptability D) optimism E) empathy Answer: B Diff: 2 Objective: LO1 2) Which of the following is a point of view that has most likely eroded character in business?

A) Innovation and aggressive development of markets should be rewarded.

B) Respect must be earned, not mandated.

C) Corporations exist to maximize shareholder value.

D) Integrity may not show immediate results but will eventually return to you.

E) Teamwork is a core value of successful companies.

Answer: C Diff: 2 AACSB: Ethical Understanding and Reasoning Abilities Objective: LO2 3) In the partnering-style seller/buyer relationship, what is the foundation for creating value?

A) emotional intelligence B) communication skills C) customer-oriented strategies D) organizational policies E) ethical decision making Answer: E Diff: 12 AACSB: Ethical Understanding and Reasoning Abilities Objective: LO1 4) If a potential client hints that they will give you a sale if you give them a gift, you should most

likely: A) give the potential customer a gift B) tell your sales manager you are giving the customer a gift in exchange for the sale C) report this to your sales manager and ask for help turning the customer down D) report the customer to the Better Business Bureau or other oversight group E) refer the potential customer to another vendor who will participate in bribery Answer: C Diff: 3 AACSB: Analytical Thinking Objective: LO2 5) Which of the following is most useful in guiding a salesperson in ethical behavior?

A) official company policies on bribes and kickbacks B) salesperson's actions at previous jobs C) role model provided by sales manager D) competitors' actions E) customer expectations and desires Answer: C Diff: 2 AACSB: Ethical Understanding and Reasoning Abilities Objective: LO3 6) When a customer reveals confidential information about a competitor to a salesperson, the preferred course of action is for the salesperson to: A) preserve the confidentiality of information they receive B) accurately relate the details to top management C) inform the competing company about the useful information in exchange for a sale D) request that the customer not comment further because of the conflict of interest E) clarify the details to make sure the information is correct Answer: A Diff: 2 AACSB: Ethical Understanding and Reasoning Abilities Objective: LO3 7) Which of the following statements is most likely true about conducting business in China?

A) Take the initiative and move quickly to close deals.

B) Bow slightly and shake hands when greeting others.

C) Making a toast during a banquet is considered bad luck.

D) The lowest ranking person in a room should be introduced first.

E) Handkerchiefs and clocks are appropriate gifts that suggest good luck.

Answer: B Diff: 2 AACSB: Diverse and Multicultural Work Environments Objective: LO3

8) The practice of reciprocity: A) involves an illegal exchange of cash B) is monitored closely by the FCPA C) results in improved competition among sales and marketing firms D) is illegal when one company pressures another company to join an agreement E) is another name for slander Answer: D Diff: 2 AACSB: Ethical Understanding and Reasoning Abilities Objective: LO3 9) Reciprocity, as a corporate policy, is: A) always a breach of ethics B) illegal in the U.S., but not in other countries C) only a worry if the heads of the companies know each other personally D) easier to navigate if the companies are in different industries E) occasionally a form of corporate blackmail Answer: E Diff: 3 AACSB: Ethical Understanding and Reasoning Abilities Objective: LO3 10) Which of the following would be the best application of principles regarding gift giving to customers?

A) Give gifts before doing business with a customer.

B) Determine the gift-receiving policy of the customer's company.

C) Once begun, maintain a regular and consistent pattern of gift giving.

D) Clearly explain the conditions you expect of the customer who accepts a gift.

E) Give a gift proportional to the sale you expect to make from the customer.

Answer: B Diff: 2 AACSB: Ethical Understanding and Reasoning Abilities Objective: LO3 11) Which of the following would be most helpful to salespeople in dealing with bribery?

A) a well-established corporate policy on bribing B) knowing that bribery is sometimes illegal C) knowing that bribery is often unethical D) a sales manager who has given bribes in the past E) college coursework on bribery Answer: A Diff: 2 AACSB: Ethical Understanding and Reasoning Abilities Objective: LO3

12) Teresa Fallon sends a written proposal to a customer. In the proposal, she compares the specifications of her product and a competing product. If the information about the competing product is not true, she is using a form of defamation called: A) business libel B) business slander C) product disparagement D) puffery E) bribery Answer: A Diff: 2 AACSB: Analytical Thinking Objective: LO3 13) What form of business defamation arises when an unfair and untrue oral statement is made about a competitor?

A) business libel B) reciprocity C) bribery D) puffery E) business slander Answer: E Diff: 2 AACSB: Ethical Understanding and Reasoning Abilities Objective: LO3 14) Yukie, a salesperson for a North American car manufacturer, told one of her prospects that Honda was being investigated in Japan for unfair labor practices. Although she had heard the rumor from someone else, she was confident it was false. Yukie is guilty of: A) libel B) product disparagement C) reciprocity D) false advertising E) slander Answer: E Diff: 2 AACSB: Analytical Thinking Objective: LO3 15) Which of the following is most likely a danger of Internet usage in sales?

A) changing information about products B) sorting customer information with data mining C) using extranets to place and monitor customer orders D) providing customers with information about competitors E) sending inappropriate emails to customers or to each other Answer: E Diff: 2 AACSB: Information Technology Objective: LO3

16) If you view your employer's instructions or influence as improper, then you should most likely: A) report your company to your industry's governing body B) do what everyone else is doing C) compromise your values in order to keep your job D) voice opposition to the practice if it is in conflict with your value system E) follow the lead of your colleagues Answer: D Diff: 2 AACSB: Ethical Understanding and Reasoning Abilities Objective: LO3 17) According to the text, ________ influence ________, which then influence ________.

A) attitudes; behaviors; values B) behaviors; attitudes; values C) values; attitudes; behaviors D) attitudes; values; morals E) morals; attitudes; values Answer: C Diff: 2 AACSB: Ethical Understanding and Reasoning Abilities Objective: LO3 18) Which of the following most likely has the LEAST influence on a salesperson's ethical behaviors?

A) sales manager's actions B) company policies and practices C) salesperson's personal values D) consumer group statements E) behaviors of top management Answer: D Diff: 3 AACSB: Ethical Understanding and Reasoning Abilities Objective: LO3 19) According to the author of Integrity Selling for the 21st Century, which of the following statements about values is true?

A) Our values change frequently throughout life.

B) Most people find it easy to clarify their values.

C) A salesperson's values contribute more to sales success than do techniques.

D) Values have only limited influence on our behavior.

E) Values should be aligned with the culture of the firm.

Answer: C Diff: 2 AACSB: Ethical Understanding and Reasoning Abilities Objective: LO3 20) Harold Timmons is in a position to close a large sale if he conceals certain information that the customer needs to make an intelligent buying decision. Harold's sales manager encourages

him to withhold the information and says, "You will not be breaking any law." Which of the following statements would most likely help Harold in this situation?

A) A salesperson's ethical sense must extend beyond the legal definition of right and wrong.

B) Cooling-off laws prevent customers from being harmed by unethical salespeople.

C) The code of ethics established by management justifies all ethical and unethical choices.

D) The firm's moral tone is established by salespeople who have daily customer contact.

E) An action is ethical if a salesperson can defend it successfully to a group of peers.

Answer: A Diff: 2 AACSB: Ethical Understanding and Reasoning Abilities Objective: LO3 21) Withholding information is most likely: A) another name for reciprocity B) legal and always ethical C) only unethical if done under duress D) the only logical course of action E) similar to lying in some cases Answer: E Diff: 2 AACSB: Ethical Understanding and Reasoning Abilities Objective: LO4 22) Which of the following is a general guideline that serves as a foundation for a personal code of business ethics?

A) Personal selling is a stepping stone to more legitimate careers.

B) Be honest with yourself and with others.

C) Tasks come first, relationships second.

D) Your values should not be in conflict with those of your employer.

E) Selling is about controlling the interaction and managing the relationship.

Answer: B Diff: 2 AACSB: Ethical Understanding and Reasoning Abilities Objective: LO5 23) Taking time to establish a proper rapport with customers will most likely lead to: A) guaranteed sales B) open communication C) a faster sales cycle D) a slower sales cycle E) lower commissions Answer: B Diff: 2 AACSB: Written and Oral Communication Objective: LO5 24) It is important to record the facts of an interaction with a customer in CRM software but not your conclusions, because: A) it is never appropriate to make conclusions from data without consulting the research

department B) recording conclusions is a breach of ethics C) coworkers could use this information to sabotage your sales D) this information could become available to the customer in the future E) the competition has access to the same databases you do Answer: D Diff: 2 AACSB: Information Technology Objective: LO2 25) CRM software can most likely help a salesperson to: A) develop better presentation skills B) negotiate long-term contracts C) fulfill commitments to customers D) increase transactional sales E) implement the marketing mix Answer: C Diff: 2 AACSB: Information Technology Objective: LO2 26) In transactional sales, the customer's primary focus is a trustworthy: A) product B) salesperson C) organization D) culture E) industry Answer: A Diff: 2 AACSB: Ethical Understanding and Reasoning Abilities Objective: LO3 27) In consultative sales, the customer's primary focus is a trustworthy: A) product B) salesperson C) organization D) culture E) industry Answer: B Diff: 2 AACSB: Ethical Understanding and Reasoning Abilities Objective: LO3

28) In strategic alliance sales, the customer's primary focus is a trustworthy: A) product B) salesperson C) organization D) culture E) industry Answer: C Diff: 2 AACSB: Ethical Understanding and Reasoning Abilities Objective: LO3 29) Which of the following statements about culture is most likely FALSE? A) Indirect communication is preferred in Africa.

B) Harmony is highly valued in Asian countries.

C) Gift giving is considered unethical in China.

D) Americans value promptness for business meetings.

E) Tactfulness is important when doing business in Arab countries.

Answer: C Diff: 3 AACSB: Diverse and Multicultural Work Environments Objective: LO3 30) In general, U.S. ethical codes when doing business in foreign countries tend to be: A) more accepting of bribery but less accepting of libel B) more accepting of libel but less accepting of bribery C) more relaxed than the codes of other countries D) the same as the codes of other countries E) stricter than the codes of other countries Answer: E Diff: 3 AACSB: Ethical Understanding and Reasoning Abilities Objective: LO3 3.3 Short Answer Questions 1) The term ________ can be defined as a mutual exchange of benefits, as when a firm buys products from its own customers.

Answer: reciprocity Diff: 2 AACSB: Ethical Understanding and Reasoning Abilities Objective: LO3 2) The major types of business defamation are business slander, business libel and ________.

Answer: product disparagement Diff: 1 AACSB: Ethical Understanding and Reasoning Abilities Objective: LO3 3) Business defamation incurred when an unfair and untrue statement is made about a company

in writing is known as ________.

Answer: business libel Diff: 1 AACSB: Ethical Understanding and Reasoning Abilities Objective: LO3 4) ________ are deeply held personal beliefs and preferences.

Answer: Values Diff: 1 AACSB: Ethical Understanding and Reasoning Abilities Objective: LO3 5) People with high levels of ________ tend to display the characteristics needed for success in sales, such as self-awareness, self-confidence, empathy, and adaptability.

Answer: emotional intelligence Diff: 2 Objective: LO1 3.4 Essay Questions 1) Differentiate between business slander, business libel, and product disparagement.

Answer: Business slander: This arises when an unfair and untrue oral statement is made about a competitor. The statement becomes actionable when it is communicated to a third party and can be interpreted as damaging the competitor's business reputation or the personal reputation of an individual in that business.

Business libel: This may be incurred when an unfair and untrue statement is made about a competitor in writing. The statement becomes actionable when it is communicated to a third party and can be interpreted as damaging the company.

Product disparagement: This occurs when false or deceptive comparisons or distorted claims are made concerning a competitor's product, services, or property.

Diff: 2 AACSB: Ethical Understanding and Reasoning Abilities Objective: LO3 2) Respond to the following idea: "Ethics are not a matter of law alone. A salesperson's ethical sense must extend beyond the legal definition of what is right or wrong."

Answer: To view ethics only in terms of what is legally proper encourages the question, "What can I get by with?" A salesperson must develop a personal code of ethics that extends beyond the letter of the law.

Diff: 2 AACSB: Analytical Thinking Objective: LO5

3.5 Applied Multiple Choice Questions 1) Daniel Santiago has just taken a job as a sales rep with a family-owned company that uses its ethics as part of its marketing campaign with the slogan, "Without integrity, service means nothing." After calling on several clients, however, he discovers that the sales rep who previously had his territory was giving kickbacks to customers in exchange for exclusive contracts with the company. Daniel is fairly certain that his sales manager is not aware of this arrangement. What should Daniel most likely do?

A) Daniel should say nothing and continue the kickback plan his predecessor started because it seems to be the norm in this industry.

B) Daniel should avoid causing waves with his sales manager and go along with the kickbacks for now, but tell his clients that he will not be able to continue them in the future.

C) Daniel should meet with his sales manager immediately to discuss the situation and ask for guidance in how to tell the clients that he cannot continue the kickbacks.

D) Daniel should tell the clients that he cannot continue the kickbacks and say nothing to the sales manager if he loses clients that his predecessor worked to develop.

E) Daniel should leave the company and look for a position in a firm that does not have a mechanism for giving kickbacks.

Answer: C Diff: 3 AACSB: Analytical Thinking Objective: LO2, LO3 2) Ron, a sales representative for a software firm, is giving a sales presentation to Mona, a buyer for a large manufacturing firm. Making a sale to Mona would double Ron's sales amount for the month and lead to a large commission. As they're engaging in small talk, Mona mentions to Ron that she's a huge fan of the local college football team. Ron's wife works at that college and can get season tickets for the games. What should Ron most likely do?

A) Ron should ask Mona more about her interest in the football team to discover if she would like tickets or if she already has her own.

B) Ron should ask his sales manager after the sales meeting if he should offer Mona tickets to the games.

C) Ron should assume that by mentioning the team, Mona is subtly letting him know what her preferences are so that he can give her a gift to win her business.

D) Ron should offer Mona season tickets to the games to influence her to buy the software product he is selling.

E) Ron should let the comment go and continue with the presentation to win Mona's business on the merits of the product and price.

Answer: E Diff: 3 AACSB: Analytical Thinking Objective: LO2, LO5

3) Accu-Tech, a small company in a tightly-contested market, discovers that sales reps of the firm's main competitor, Compu-World, have been making false and negative statements about Accu-Tech products and services. One of Accu-Tech's best customers calls the company's CEO asking about the rumors, and the CEO realizes that Accu-Tech may lose business from the Compu-World claims. What should Accu-Tech most likely do?

A) Take out a full-page ad in the local newspaper disputing the claims with facts and stating that Compu-World has been lying to customers.

B) Talk to Accu-Tech customers in person to give them the facts and research that support the truth about the firm's products and services.

C) Contact the Compu-World CEO and arrange to divide up the local market to avoid duplicitous sales tactics.

D) Take Compu-World to court for business libel and reciprocity unless the firm issues a public apology.

E) Engage in a mass media campaign to spread negative information about Compu-World.

Answer: B Diff: 3 AACSB: Analytical Thinking Objective: LO3, LO4 4) Martin, a sales representative for a computer firm, receives the latest performance report on the main product he sells. Unfortunately, Martin's product performs slightly behind that of the closest competitor, and Martin is afraid that this information will cause him to lose customers.

The research and development team has made some major improvements in the product, but the next performance report is not due out for another six months. What should Martin most likely do to prevent the loss of customers?

A) He should pretend that the recent performance report has not come out and tell his customers that he doesn't know when it will be out.

B) He should change the numbers on the performance report to indicate that his product performs better than the competition's product.

C) He should avoid direct contact with his customers until the next performance report comes out.

D) He should expose the performance report but explain to customers that the product has been improved and new data will be available in six months.

E) He should change the numbers for the competitor so it looks as if the two companies' products perform equally.

Answer: D Diff: 3 AACSB: Analytical Thinking Objective: LO5

5) A sales rep is in a foreign country and has spent several days with a buyer for a large chain of convenience stores there. At the end of the week, the sales rep feels confident that the buyer is ready to purchase, so he asks for the close. The buyer responds that he will be happy to place a large order for the chain as soon as the sales rep gives him an appropriately-sized gift. What should the sales rep most likely do?

A) The sales rep should give the buyer the gift.

B) The sales rep should tell the buyer that Americans are not allowed to give gifts in exchange for business.

C) The sales rep should convince the buyer that he will give him the gift after the papers are signed, and then refuse to give a gift after the order has been paid.

D) The sales rep should consult with his sales manager to determine if gift-giving is an ethical and acceptable practice within the confines of an international business situation.

E) The sales rep should give the buyer the gift but make this contingent on a longer-term relationships involving repeat orders.

Answer: D Diff: 3 AACSB: Analytical Thinking Objective: LO2, LO3 6) Accu-Tech, a small company in a tightly-contested market, discovers that sales reps of the firm's main competitor, Compu-World, have been making untrue and unfair oral statements about Accu-Tech products and services. Which term best describes the actions of Compu-World sales reps?

A) business libel B) business slander C) product liability D) product disparagement E) organizational reciprocity Answer: B Diff: 3 AACSB: Analytical Thinking Objective: LO3, LO4 7) Raj, a sales representative for a software firm, Orion, is giving a sales presentation to Marion, a buyer for a large manufacturing firm, Global-Tech. A sales agreement between the two firms would establish a partnering relationship and a strategic alliance. Which of the following questions is most important to Marion as she makes a buying decision?

A) Is Raj a well-qualified sales representative?

B) Can Raj be trusted to offer viable solutions?

C) Will Raj's product be delivered in a timely manner?

D) What competencies can Orion provide to Global-Tech?

E) Are the values and principles of Orion and Global-Tech similar?

Answer: E Diff: 3 AACSB: Analytical Thinking Objective: LO3

8) Edward, a pharmaceutical sales representative, tends to focus primarily on highlighting product features and making quick sales when interacting with customers. Sometimes, Edward misleads customers about the benefits and side effects of certain medications. Edward's sales manager has noticed that Edward's customer retention rate is very low and is concerned about Edward's personal code of ethics. What is the best advice that the sales manager could give to Edward?

A) View personal selling as transactional.

B) Develop strategic alliances for profitability.

C) Focus on tasks first and relationships second.

D) Build customer relationships based on honesty.

E) Behaviors are the foundation for values and attitudes.

Answer: D Diff: 3 AACSB: Analytical Thinking Objective: LO5 9) What would be an easy way a company could discourage unethical behaviors by its employees?

A) Have a zero tolerance policy so anyone suspected of unethical behavior would be immediately terminated.

B) Require all potential hires to have completed a privately-conducted ethics course before submitting their applications for employment.

C) Allow employees to unionize so their actions will be dictated by the union.

D) Change the Employee of the Month program to celebrate the employee with the fewest ethical violations.

E) Write up their ethical code, refer to it as a company value in the employee handbook and on the website, and ask management to adhere to it strictly to lead by example.

Answer: E Diff: 3 AACSB: Application of Knowledge Objective: LO3

10) Reciprocity is sometimes, but not always, unethical behavior. Which of the following situations is an example of reciprocity which is unethical behavior?

A) An architect refuses to allow any other builders to build her designs because she doesn't trust the quality of the jobs performed by other builders. The builder does not build designs by other architects because other architects cut corners in the designs.

B) A plastics company is willing to develop a special process for coating nonstick cooking equipment. As a thank-you, the cooking equipment company allows employees of the plastics company to use the same employee discount its own employees enjoy for purchases of cooking equipment.

C) A restaurant chef buys all his produce from the local farmers' market. The farmers and workers at the market eat their meals at that restaurant on the days they sell at the market.

D) A garbage hauling service requires that a hotel chain give a discount to employees of the garbage hauling service in exchange for discounted garbage hauling services for the hotels.

E) The merchants in one neighborhood of a large city have decided to engage in a "buy local" campaign and to patronize each other whenever possible, even if they could find slightly lower prices in other areas of the city.

Answer: D Diff: 3 AACSB: Ethical Understanding and Reasoning Abilities Objective: LO3 11) Of the following practices, which of the following is most likely to be viewed by both salesperson and customer as unethical?

A) The salesperson gives the customer a cut glass paperweight with the company's name engraved on it at the end of December.

B) A salesperson gives a potential customer tickets for front-row seats at a sold-out concert of the potential customer's favorite singer.

C) The company throws an annual party for its clients at company headquarters that includes a buffet and open bar.

D) At a software convention, a software sales rep takes its top five clients out for dinner at an expensive steakhouse.

E) A railway company gives all of its vendors a 20% discount on passenger rail services.

Answer: B Diff: 3 AACSB: Ethical Understanding and Reasoning Abilities Objective: LO2

12) A salesperson's sales manager exerts strong influence on whether the sales rep acts ethically or not. A sales manager may not even be aware of the influence she wields or the effect her words or management techniques have on her employees. Of the following actions by a sales manager, which one could most easily be construed by an employee as a directive to use unethical conduct?

A) offering an incentive or prize to salespeople who meet or exceed their quotas B) sending an email to the entire department whenever a sales rep closes a sale C) telling sales teams that they need to hit their quotas no matter what it takes D) modifying sales territories to ensure that key accounts are actively monitored E) contacting key accounts to let them know the company stands behind its product Answer: C Diff: 3 AACSB: Ethical Understanding and Reasoning Abilities Objective: LO3 13) A salesperson from Company A discovers that salespeople from Company B have been telling customers that Company A's safety records are falsified. The most ethical action a sales manager from Company A can take to remedy the situation is: A) have Company A's safety records audited and publish the results of the audit on their website, and ask Company A's salespeople to direct customers to them B) tell Company A's salespeople to match the actions of Company B's salespeople by implying that Company B's safety records may be falsified C) file an anonymous complaint with the Attorney General in the state in which both companies operate D) pay a visit to the corporate offices of Company B and threaten Company B's sales managers with a pricing war unless Company B's sales reps stop spreading false rumors E) create a website detailing the safety records of all the companies in the industry so consumers can compare easily Answer: A Diff: 3 AACSB: Application of Knowledge Objective: LO3

14) An American company has been working on a business deal in a developing nation. This deal will open an entirely new market to the American company, increase stability in the local economy, and provide jobs to thousands of local workers. When the deal reaches the final phases, the local government asks for a sizable bribe from the American company to move forward with the proper permits to continue with the project. Which of the following is the proper analysis of the situation?

A) Paying bribes violates U.S. laws, so the deal may fall through.

B) Reciprocity is illegal in most foreign countries but not necessarily in the U.S. C) U.S. bribery laws are suspended in foreign countries, so paying the bribe is acceptable.

D) According to U.S. laws, bribes are equivalent to gift giving, so they are an accepted aspect of conducting business.

E) The U.S. firm must consult the International Uniform Code of Business to determine the legality of the bribe.

Answer: A Diff: 3 AACSB: Analytical Thinking Objective: LO3 15) Anne, a sales representative for a software firm, is heading to Europe for a sales presentation.

Anne is unsure about the practice of gift giving and wants to make sure that she is perceived as ethical by the other firm. Which of the following should Anne LEAST likely do in this situation?

A) Check the company policy about gift giving.

B) Ensure that the gift is a small, thoughtful token.

C) Give the gift before doing any business with the customer.

D) Avoid giving the impression of buying the customer's favor.

E) Ensure that the customer views the gift as a gesture of goodwill.

Answer: C Diff: 3 AACSB: Application of Knowledge Objective: LO3 Selling Today, 16e (Manning/Ahearne/Reece) Chapter 4 Creating Value with a Relationship Strategy 4.1 True/False Questions 1) In the information age, building and maintaining relationships has little to no impact on sales success.

Answer: FALSE Diff: 2 Objective: LO1 2) Although developing relationships with customers frequently leads to repeat business, such partnering rarely triggers referrals.

Answer: FALSE Diff: 1 Objective: LO1 3) Traditional industrial age sales-training programs encouraged salespeople to make positive

first impressions with customers and then to push the product to make a quick sale.

Answer: TRUE Diff: 3 Objective: LO1 4) An empathizer is someone who understands the ways humans interact.

Answer: TRUE Diff: 1 Objective: LO1 5) Transactional selling is a strategically developed, high-quality, long-term relationship that focuses on solving the customer's buying problems.

Answer: FALSE Diff: 2 Objective: LO1 6) The role of a salesperson should move from supporting to selling.

Answer: FALSE Diff: 1 Objective: LO1 7) Maintaining a positive relationship with company support staff is a key element of building partnership relationships.

Answer: TRUE Diff: 1 Objective: LO1

8) Customers almost never buy products from someone they dislike.

Answer: TRUE Diff: 1 Objective: LO1 9) Win-win selling means that a salesperson sacrifices price to gain the sale.

Answer: FALSE Diff: 1 Objective: LO2 10) Ego drive is an inner force that propels a salesperson to attempt to close a sale.

Answer: TRUE Diff: 1 Objective: LO2 11) Research indicates that when two people communicate, verbal messages convey much more impact than nonverbal messages.

Answer: FALSE Diff: 2 AACSB: Communication Abilities Objective: LO3 12) Nonverbal messages can reinforce or contradict the spoken word.

Answer: TRUE Diff: 1 AACSB: Communication Abilities Objective: LO3 13) Most image consultants agree that male salespeople should always wear suits to make the best impression on customers even when customers are dressed casually.

Answer: FALSE Diff: 3 Objective: LO3 14) The CARE model helps salespeople add value to their relationships with customers.

Answer: TRUE Diff: 1 Objective: LO1 15) The steps of self-improvement include setting goal, engaging in visualization, using positive self-talk, and rewarding your progress.

Answer: TRUE Diff: 2 Objective: LO5

4.2 Multiple-Choice Questions 1) According to the text, emotional intelligence can most likely be increased by using: A) partnering relationships B) transactional sales methods C) non-verbal communication tools D) empathizing techniques E) self-development activities Answer: E Diff: 1 Objective: LO5 2) How would a CRM system most likely enable a salesperson to facilitate relationship building with numerous customers?

A) projecting a professional image on social media sites B) using letter templates to convey information C) developing leads for potential new sales D) integrating numerous accounting tasks E) adding value to mature products Answer: B Diff: 3 AACSB: Information Technology Objective: LO1 3) A series of creative improvements in the sales process that enhance the customer experience is known as: A) relationship modeling B) customer-oriented sales C) value-added selling D) transactional selling E) managing relationships Answer: C Diff: 2 Objective: LO1 4) Salespeople today are most likely encouraged by employers to: A) push products on customers for quick, short-term sales B) build careers that will translate across many industries C) maximize their time by automating most functions D) build long-term partnerships with customers E) focus more heavily on the product life cycle Answer: D Diff: 2 Objective: LO1

5) Developing a long-term relationship that focuses on solving the customer's buying problems is referred to as: A) executing B) consulting C) selling D) transitioning E) partnering Answer: E Diff: 2 Objective: LO1 6) According to Larry Wilson, there are three keys to a partnering relationship. To establish a partnership with a customer, he suggests: A) making sure everybody understands the purpose of the partnership B) being sure the relationship is primarily social rather than professional C) shifting the relationship from consulting to selling as quickly as possible D) convincing clients of the need for the product by using many nonverbal cues E) using closing methods that emphasize a rapid sale and future client referrals Answer: A Diff: 2 Objective: LO1 7) According to the text, high-performing salespeople build and maintain partnering relationships with all of the following key groups EXCEPT: A) secondary decision makers B) company support staff C) management personnel D) publicity specialists E) customers Answer: D Diff: 2 Objective: LO1 8) Which of the following would be considered a secondary decision-maker?

A) a credit department staffer employed by the same company as the salesperson B) the administrative assistant who works for the CEO of an established customer C) a shipping department worker employed by the same company as the salesperson D) the secretary who provides support services for the sales staff E) the accounts payable clerk who works for the vendor Answer: B Diff: 3 AACSB: Analytical Thinking Objective: LO1

9) According to the text, which type of selling situation relies most heavily on building a relationship with the customer?

A) transactional B) straight re-buy C) strategic alliance D) consultative E) outbound telemarketing Answer: C Diff: 2 Objective: LO1 10) The bundle of facts, opinions, beliefs, and perceptions that you have about yourself are referred to as which of the following?

A) self-concept B) self-love C) self-esteem D) self-reflection E) self-examination Answer: A Diff: 2 Objective: LO2 11) Which of the following is the best approach to improving your self-image?

A) Learn to develop a positive mental attitude.

B) Maintain a clear focus on past mistakes.

C) Spend time getting to know your competition.

D) Spend time each day contacting your current customers.

E) Develop a general level of knowledge on many topics.

Answer: A Diff: 2 Objective: LO2 12) The win-win strategy can best be summed up by which of the following statements?

A) Both buyer and seller come away from the negotiation having given up something they originally wanted.

B) Both buyer and seller come away from the negotiation feeling that their best interests have been served.

C) Both buyer and seller come away from the negotiation feeling that they have made a new friend.

D) Neither buyer nor seller comes away from the negotiation feeling that they have made progress.

E) Neither buyer nor seller comes away from the negotiation having given up anything.

Answer: B Diff: 2 Objective: LO2

13) Which of the following is considered an element of nonverbal communication?

A) rate of speech B) active listening phrases C) word choice D) e-mail signature E) posture Answer: E Diff: 1 AACSB: Communication Abilities Objective: LO3 14) Research indicates that when two people communicate, nonverbal messages convey: A) much less impact than verbal messages B) slightly less impact than verbal messages C) slightly more impact than verbal messages D) much more impact than verbal messages E) the same impact as verbal messages Answer: D Diff: 2 AACSB: Communication Abilities Objective: LO3 15) Research in the field of communications most likely reveals that: A) verbal messages carry more influence than nonverbal gestures B) nonverbal behaviors seldom reinforce verbal messages C) the meaning attached to words depends little on visual data D) nonverbal behaviors rarely contradict verbal messages E) words play a small role in the communications process Answer: E Diff: 2 AACSB: Communication Abilities Objective: LO3 16) Generally speaking, a firm handshake will most likely communicate: A) indifference B) ambiguity C) consideration D) abruptness E) calmness Answer: C Diff: 1 AACSB: Communication Abilities Objective: LO3

17) A full, deep grip in a handshake most likely communicates: A) fearfulness B) discomfort C) dominance D) friendship E) antagonism Answer: D Diff: 2 AACSB: Communication Abilities Objective: LO3 18) Which of the following is a good way to remember a customer's name?

A) introduce yourself in return B) repeat the name immediately C) ask the customer about his or her favorite hobbies D) ask if the person enjoys his or her job E) relate the name to another customer's name Answer: B Diff: 2 Objective: LO3 19) Which facial expression tends to inspire the most trust?

A) a contemplative look B) a smile C) a frown D) a look of concern E) a look of skepticism Answer: B Diff: 2 AACSB: Written and Oral Communication Objective: LO3 20) Which of the following is true of eye contact during a sales call?

A) Looking at papers in your briefcase indicates to the customer that you are listening.

B) Nodding constantly indicates sincere interest in a customer.

C) Eye contact is one of the best ways to say "I'm listening."

D) A fleeting glance at notes is insulting to the prospect.

E) A prolonged, direct stare is reassuring.

Answer: C Diff: 1 AACSB: Written and Oral Communication Objective: LO3

21) Which of the following should LEAST likely influence clothing decisions for salespeople?

A) color B) brand name C) quality and fit D) visual consistency E) appropriateness to the setting Answer: B Diff: 2 Objective: LO3 22) Mia is meeting a potential customer to give a sales presentation and is concerned about what to wear. Which of the following would most likely enable Mia to convey a professional image?

A) brightly colored dress B) loose fitting shirt C) layers of jewelry D) scuffed shoes E) tailored skirt Answer: E Diff: 1 AACSB: Analytical Thinking Objective: LO3 23) Which of the following is most important when selecting a wardrobe for sales work?

A) fabric content B) appropriateness C) current fashion D) comfort E) cost Answer: B Diff: 1 Objective: LO3 24) What is the best rule for salespeople to follow when choosing a wardrobe?

A) Business casual is acceptable in all corporate environments.

B) The salesperson should dress more formally than the client.

C) Men should wear blazers, and women should wear heels and skirts.

D) Salespeople should mimic the type and style of clothing worn by customers.

E) Clothing has no impact on job performance when salespeople act professionally.

Answer: D Diff: 2 Objective: LO3

25) In which communication setting is voice quality particularly important?

A) telephone B) face-to-face meeting C) webinar D) email E) instant message Answer: A Diff: 1 AACSB: Communication Abilities Objective: LO3 26) Which of the following is the best way of speaking to customers?

A) very quickly B) very slowly C) with energy D) with little feeling E) with a strong accent Answer: C Diff: 1 AACSB: Communication Abilities Objective: LO3 27) Which of the following is a rule of etiquette appropriate for salespeople?

A) Call a new prospect by their first name right away to break the ice.

B) Avoid offensive stories or comments unless you are meeting outside the client's office.

C) Do not express personal views on religion or politics until clients have first expressed their views.

D) When you invite a customer to lunch, do not discuss business before the meal is ordered unless the client initiates the subject.

E) Do not leave a voice mail; instead, call until you reach the client.

Answer: D Diff: 2 AACSB: Written and Oral Communication Objective: LO3 28) Which of the following is the best topic a salesperson can use to break the ice when talking with a prospect?

A) local sports teams B) product features C) shared interests D) current politics E) religion Answer: C Diff: 2 AACSB: Written and Oral Communication Objective: LO4

29) All of the following are components of the CARE model for building relationships with customers EXCEPT: A) convincing B) executing C) responding D) appreciating E) customizing Answer: A Diff: 1 Objective: LO4 30) Which of the following is most likely a strategy for self-improvement?

A) comparing your performance to others B) setting specific goals for yourself C) focusing on your obstacles D) clarifying your mistakes E) demanding help from others Answer: B Diff: 2 Objective: LO5 4.3 Short Answer Questions 1) Salespeople who have the ability to imagine themselves in someone else's position and understand what that person is feeling are known as ________.

Answer: empathizers Diff: 1 Objective: LO1 2) ________ can be defined as a strategically developed, high quality, long-term relationship that focuses on solving the customer's buying problem.

Answer: Partnering Diff: 1 Objective: LO1 3) ________ is the bundle of facts, opinions, beliefs, and perceptions about yourself that are present in your life every moment of every day.

Answer: Self-concept Diff: 1 Objective: LO2 4) ________ are a form of communication defined as "messages without words" or "silent messages."

Answer: Nonverbal messages Diff: 3 AACSB: Written and Oral Communication Objective: LO3 5) A(n) ________ is usually the only physical contact one makes during a sales call.

Answer: handshake Diff: 1 AACSB: Written and Oral Communication Objective: LO3 4.4 Essay Questions 1) Improving your self-image can be achieved with three practical approaches. List and describe each approach.

Answer: 1. Focus on the future and stop being overly concerned with past mistakes or failures. We should learn from past mistakes, but they should not immobilize us.

2. Develop expertise in selected areas. By developing "expert power," you not only improve your self-image, but also increase the value of your contributions to your employer and customers.

3. Learn to develop a positive mental attitude. Read books and listen to audiotapes that describe ways to develop a positive mental attitude.

Diff: 2 Objective: LO2 2) Describe and discuss the four steps in the self-improvement plan.

Answer: 1. Step one: Set goals - the goal setting process requires that you be clear about what you want to accomplish.

2. Step two: Visualization - this involves forming a mental picture of yourself succeeding in goal attainment.

3. Step three: Use positive self-talk - development and use of positive self-talk statements can keep you on target in terms of goal attainment.

4. Step four: Reward your progress - when you see yourself making progress toward a goal, or achieving a goal, reward yourself.

Diff: 2 Objective: LO5

4.5 Applied Multiple Choice Questions Roni Harris, a college student in the business department of her local university, originally planned to major in accounting. However, she discovered an interest in product marketing and sales and is taking courses in these areas.

1) Roni is carrying a full course load this semester, belongs to the Student Investment Club, is studying Mandarin Chinese, runs with the track team, and volunteers with an art therapy program to help homeless children process their emotions. Which of those activities will be of most help to her in a career in selling?

A) Studying is most important because she will know all the rules of selling correctly.

B) Investing is most important because she will understand how money works and will make good sales decisions.

C) Speaking Chinese is most important so that she can sell to international customers.

D) Staying physically fit is most important because a healthy appearance will attract customers to her.

E) Volunteering is most important because it will develop her sense of empathy and her relationships skills to understand customers and their needs.

Answer: E Diff: 3 AACSB: Application of Knowledge Objective: LO2 2) During an interview for part-time sales position with Compu-Tex, a firm that sells software subscriptions, Roni is asked to discuss a time that she partnered with another person or group to achieve the other party's goal. Which example should Roni most likely describe?

A) Roni sold her used textbooks to a friend who was taking a course Roni had taken the previous semester.

B) Roni audited the books of the Investment Club to make sure she had calculated earnings and fees correctly.

C) Roni spoke Mandarin to the server at her favorite Chinese restaurant so the server could understand her more easily.

D) Roni watched and analyzed the gait of a track teammate so the teammate could choose the best shoes for her stride.

E) Roni organized the volunteer schedule for the art therapy program to ensure a proper balance between her school and volunteer obligations.

Answer: D Diff: 3 AACSB: Application of Knowledge Objective: LO2

3) In Roni's new sales job with Compu-Tex, she talks with a prospect who is strongly interested in the product, but does not have the budget to purchase a full-year subscription. When Roni reports this to her manager, her manager says, "Turn it into a win-win!" The sales manager most likely wants Roni to: A) sell the product to the customer at wholesale cost.

B) work with the customer to sell a length of subscription the customer can afford.

C) work with the research and finance departments to find a way to reduce overall costs.

D) ask the prospect for a referral so that the time spent with this prospect won't be a loss.

E) express appreciation to the prospect for considering the proposal and then find a new lead.

Answer: B Diff: 3 AACSB: Application of Knowledge Objective: LO1 4) Roni, who lacks sales experience, has been assigned a mentor, Mark, who has been in the Compu-Tex sales department for ten years. Mark tells Roni that he believes the best way to build long-term relationships with customers is to follow the CARE model. What should Roni most likely do if she takes Mark's advice?

A) Emulate Mark's speech and gestures when he gives sales presentations to clients.

B) Ask Mark for a list of qualified prospects to improve her chances of closing a sale.

C) Use CRM systems to ensure that clients receive software updates.

D) Follow through on customer service commitments.

E) Use positive self-talk to build her self-esteem.

Answer: D Diff: 3 AACSB: Application of Knowledge Objective: LO4 5) Roni discovers that she and a prospect belonged to the same sorority at different colleges in different decades. Should Roni mention this to the prospect?

A) No. Roni should not attempt to use this commonality to gain an unfair advantage in selling.

B) No. The prospect will unlikely be interested in any commonalities she shares with Roni.

C) Yes. Roni should ask the prospect detailed questions about what sorority life was like ten years earlier in an attempt to understand the older generation.

D) Yes. Roni should mention the commonality as a way to establish initial rapport with the prospect.

E) Yes. Roni should exploit the commonality to become friends with the prospect and see each other socially so the prospect will definitely buy from Roni.

Answer: D Diff: 3 AACSB: Application of Knowledge Objective: LO4

Joelle Williams is a personal coach who works primarily with sales representatives at the Colotel Corporation, a company that manufactures and sells copiers and peripherals. Joelle works on manners, nonverbal cues, and personal goal setting with the Colotel sales reps. Colotel prides itself on hiring locally and using regional ties to advance relationships with customers.

6) Joelle most likely advises sales representatives to: A) speak more quickly during sales presentations to encourage fast sales B) maintain the same speech rate during all conversations with customers C) correct grammar problems to ensure that communication is clear and precise D) use technical terms and youthful phrases to convey an energetic personality E) employ the local accent, even if they are not from that area, to bond with local buyers Answer: C Diff: 3 AACSB: Application of Knowledge Objective: LO3 7) Joelle works with sales reps on projecting correct body language to set prospects at ease and convey a sense of honesty and trust. Learning to decipher body language can be more difficult because it requires: A) paying attention to signals the prospect projects while still interacting with the prospect B) intimate knowledge of the prospect's personality C) more knowledge of personal psychology than most salespeople have D) several meetings with the prospect to determine the prospect's baseline body language E) luck, as deciphering body language is not a skill that can be learned Answer: A Diff: 3 AACSB: Application of Knowledge Objective: LO3 8) Joelle works with sales reps on visualization, or guided imagery, and positive self-talk. What step is necessary first to be able to use these techniques effectively?

A) setting personal goals B) creating a mental picture C) rewarding progress D) using affirmations E) controlling mannerisms Answer: A Diff: 3 AACSB: Application of Knowledge Objective: LO5

9) What is the best advice Joelle can give to sales representatives regarding punctuality for appointments?

A) Lateness only matters if the prospect is on time and notices that the sales rep is late.

B) Lateness is relative, and prospects in certain areas will expect a sales rep to be late.

C) Lateness shows familiarity with the prospect, so it is a way to establish rapport.

D) Lateness is viewed as disrespectful to most prospects, so always arrive early.

E) Lateness can be overcome by offering excellent products at low cost.

Answer: D Diff: 3 AACSB: Application of Knowledge Objective: LO3 10) One of Joelle's challenges when coaching salespeople in listening skills is overcoming the misperception that salespeople need to be better at talking than at listening so that they can persuade customers to buy. Which of the following statements best identifies the benefits of listening?

A) Customers reject salespeople who do not display signs of active listening, like nodding the head and making encouraging sounds.

B) Customers are dubious of the signs of active listening, but are put off even more by a salesperson who does nothing but talk.

C) Salespeople should develop listening skills as part of an overall plan of personal development, and use visualization to help solidify their listening skills.

D) Salespeople who are good listeners develop better rapport with customers so they can more easily persuade them to buy.

E) Salespeople who are good listeners understand customer needs better to present a product configuration that solves customer problems.

Answer: E Diff: 3 AACSB: Application of Knowledge Objective: LO4 AdVance Corporation is a company that formulates and manufactures fertilizers for the farming industry. The company produces several standardized formulas that can be purchased directly through the retail arms of the company, but it also formulates custom fertilizers for farms.

11) The structure of AdVance's business model—formulating custom fertilizers for customers— relies on which of the following sales models?

A) partnering B) persuading C) cobranding D) body language E) transactional selling Answer: A Diff: 3 AACSB: Application of Knowledge Objective: LO1

12) AdVance focuses on traditional, chemical-rich fertilizers that deliver maximum yield for customers. With which of the following customers would AdVance be a good partner?

A) an organic heirloom grain farm B) a farm that grows the grain it feeds to the chickens it sells as "humanely raised, Earthfriendly" C) a farm that sells grain crops for export to the chemical processing industry that relies on volume D) a farm that acts as a learning lab for students in local elementary schools E) a hobby farm owned by residents of a nearby city Answer: C Diff: 3 AACSB: Application of Knowledge Objective: LO1 13) A sales rep from AdVance spends several months with the buyer for a company that owns a dozen farms understanding the buyer's needs, and puts together a proposal for several fertilizers produced for the company's specific needs. When the sale is about to close, the buyer decides to purchase a cheaper, pre-made, standardized formula from another supplier. What is the most likely explanation of the outcome of the interaction?

A) The salesperson saw the sale as a partnering relationship while the buyer saw it as a transactional sale.

B) The salesperson saw the sale as a transactional relationship while the buyer saw it as a partnering sale.

C) The salesperson and buyer did not get along personally, so the buyer did not buy from the salesperson on principle.

D) The salesperson did not understand the buyer's needs and proposed fertilizer formulas that weren't exactly right for the buyer.

E) The buyer never intended to purchase from AdVance.

Answer: A Diff: 3 AACSB: Application of Knowledge Objective: LO1 14) Which of the following is the best use of a CRM system for an AdVance salesperson in terms of relationship strategy?

A) remembering customers' birthdays to send them cards to maintain a personal connection and request referrals B) sending regular emails to customers to check on the performance of a previously purchased AdVance fertilizer C) sending emails reminding prospects that AdVance can mix custom fertilizer formulations D) tracking the salesperson's activities and sales on a weekly and monthly basis E) determining what information is still needed to complete the customer's file Answer: B Diff: 3 AACSB: Application of Knowledge Objective: LO1

15) John Collins has been a sales rep for AdVance for 18 years. When he began his career with AdVance he followed the money and sold to any customer he could convince to buy. In the last 5 years, however, he has been focusing on acting with integrity in every selling situation. As a result, he has discovered that his immediate close rate on sales has gone down, but that he has developed a highly profitable group of long-term customers. What principle does this most likely demonstrate?

A) Transactional sales are built on lower prices.

B) Acting with integrity can be counterproductive to a salesperson.

C) No amount of professional success is worth sacrificing integrity.

D) A sales rep can have a long career even with low sales and few referrals.

E) Honesty and sincerity build long-term partnering relationships with customers.

Answer: E Diff: 3 AACSB: Application of Knowledge Objective: LO1 Selling Today, 16e (Manning/Ahearne/Reece) Chapter 5 Communication Styles: A Key to Adaptive Selling Today 5.1 True/False Questions 1) Communication style is an important aspect of our personality.

Answer: TRUE Diff: 2 AACSB: Written and Oral Communication Objective: LO1 2) The psychological continuum and the sociability continuum are the two main components that form the communication-style model.

Answer: FALSE Diff: 2 AACSB: Written and Oral Communication Objective: LO2 3) Communication-style bias can cause a feeling that we simply do not like another person, without knowing exactly why.

Answer: TRUE Diff: 1 AACSB: Written and Oral Communication Objective: LO1 4) Communication style is based on a combination of hereditary and environmental factors.

Answer: TRUE Diff: 1 AACSB: Written and Oral Communication Objective: LO1 5) An individual who is high on the sociability continuum tends to communicate in an ordered and measured manner.

Answer: FALSE Diff: 2 Objective: LO2 6) Sociability reflects the amount of control we exert over our emotional expressiveness.

Answer: TRUE Diff: 2 AACSB: Written and Oral Communication Objective: LO2 7) Emotive customers are frank, demanding, serious, and opinionated.

Answer: FALSE Diff: 2 Objective: LO3 8) In a selling situation, the reflective customer wants plenty of facts presented as rapidly as possible.

Answer: FALSE Diff: 2 AACSB: Written and Oral Communication Objective: LO3 9) Adapting to the customer's preferred communication style can enhance sales performance.

Answer: TRUE Diff: 1 Objective: LO4 10) In the communication-style model, people who fall into zone two display their unique behavior characteristics with less intensity than in zone one.

Answer: FALSE Diff: 1 AACSB: Written and Oral Communication Objective: LO4 11) The zones in the communication-style model might be thought of as "intensity zones."

Answer: TRUE Diff: 1 AACSB: Written and Oral Communication Objective: LO4 12) Style flexing is the deliberate attempt to accommodate the needs of your customer.

Answer: TRUE Diff: 2 AACSB: Written and Oral Communication Objective: LO5 13) Tone of voice can be a clue to identifying a customer's communication style.

Answer: TRUE Diff: 2

AACSB: Written and Oral Communication Objective: LO5 14) If the prospect's most preferred communication style is reflective, the salesperson should avoid actions that are too informal.

Answer: TRUE Diff: 2 Objective: LO5

15) If your customer's most preferred communication style is directive, you should keep the relationship as businesslike as possible.

Answer: TRUE Diff: 2 Objective: LO5 5.2 Multiple-Choice Questions 1) "Behavior style" and "social style" are other ways of referring to: A) communication style B) emotive style C) directive style D) higher dominance E) lower dominance Answer: A Diff: 1 AACSB: Written and Oral Communication Objective: LO1 2) Which of the following statements regarding communications-style bias is most likely true?

A) Communication-style bias is quite rare.

B) Communication-style bias can manifest as a general feeling of discomfort with another person.

C) Communication-style bias is commonly understood in our society D) Communication-style bias will not surface between two people with the same communication style.

E) Communication-style bias will make a consulting sales relationship impossible.

Answer: B Diff: 2 AACSB: Written and Oral Communication Objective: LO1 3) Communication-style bias is most likely to occur when a salesperson: A) has a different communication style than a customer B) is unable to understand a customer's regional accent C) fails to use standard terms when describing products D) lacks a grasp of social customs in the customer's culture E) talks too quickly during most sales presentations Answer: A Diff: 2 AACSB: Written and Oral Communication Objective: LO1

4) Which of the following is most likely true about our individual communication style?

A) It is formed in utero, before we are born.

B) It is formed during the first year of our life.

C) It is formed before we enter elementary school.

D) It is constantly changing throughout life.

E) It is based on environmental factors, not heredity.

Answer: C Diff: 2 AACSB: Written and Oral Communication Objective: LO1 5) Which of the following is a major principle supporting communication style theory?

A) Individual differences exist but are negligible in business conversations.

B) Successful business and social relationships require identical styles.

C) There are unlimited communication styles that are unique to each person.

D) Individual style differences change constantly.

E) A communication style is a way of thinking and behaving.

Answer: E Diff: 1 AACSB: Written and Oral Communication Objective: LO1 6) Which statement is most likely true about the communication-style model?

A) It is based on three important dimensions of human behavior.

B) Emotion and dominance are the two primary dimensions.

C) It is composed of four distinct quadrants.

D) It is based on a highly accurate self-rating system.

E) Successful salespeople tend to score high on dominance.

Answer: C Diff: 2 AACSB: Written and Oral Communication Objective: LO2 7) A customer who is higher in dominance tends to do which of the following?

A) display an eagerness to agree quickly B) curb a desire to initiate demands C) cooperate excessively with others D) attempt to control situations E) wait for others to speak first Answer: D Diff: 1 AACSB: Written and Oral Communication Objective: LO2

8) A customer who is lower in dominance would most likely be: A) deliberate B) hurried C) talkative D) cooperative E) decisive Answer: D Diff: 2 AACSB: Written and Oral Communication Objective: LO2 9) The scale designed to measure the amount of control we exert over our emotional expressiveness is the: A) communication bias B) emotional index C) sensitivity scale D) excess zone E) sociability continuum Answer: E Diff: 1 AACSB: Written and Oral Communication Objective: LO2 10) A customer who takes the social initiative in most cases and expresses feelings openly is displaying characteristics of which of the following styles?

A) dominant B) reflective C) supportive D) directive E) emotive Answer: E Diff: 2 AACSB: Written and Oral Communication Objective: LO3 11) The combination of high dominance and low sociability defines a style known as: A) communicative B) reflective C) supportive D) emotive E) directive Answer: E Diff: 1 AACSB: Written and Oral Communication Objective: LO3

12) A customer who displays the reflective communication style can accurately be described as: A) reserved B) sensitive C) frank D) sociable E) malleable Answer: A Diff: 1 AACSB: Written and Oral Communication Objective: LO3 13) The combination of low dominance and low sociability defines a communication style known as: A) mature B) supportive C) emotive D) reflective E) directive Answer: D Diff: 2 AACSB: Written and Oral Communication Objective: LO3 14) The words "aloof" and "stuffy" describe which side of which of the following styles?

A) the immature side of the supportive style B) the mature side of the supportive style C) the immature side of the reflective style D) the mature side of the reflective style E) the mature side of the directive style Answer: C Diff: 2 AACSB: Written and Oral Communication Objective: LO4 15) A customer who combines low dominance and high sociability displays which of the following styles?

A) emotive B) supportive C) directive D) reflective E) communicative Answer: B Diff: 2 AACSB: Written and Oral Communication Objective: LO3

16) The four-style communication model described in the text is: A) increasingly used in training programs B) applicable only to salespeople in the U.S. C) limited in its usefulness in the real world D) the basis for developing customer strategies E) based on research developed in the last decade Answer: A Diff: 1 Objective: LO3 17) The Platinum Rule is: A) Do Unto Others As You Would Have Them Do To You B) Do Unto Others As They Want Done Unto Them C) Do Unto Others As You Know You Should D) Ask Others To Do To You As You Would Do To Them E) Ask Others To Do To You As They Would Do To Themselves Answer: B Diff: 2 Objective: LO5 18) For each person, one of the four styles is usually: A) dominant but hidden B) dominant and easily detectable C) dominant and problematic D) recessive and easily detectable E) recessive and transitional Answer: B Diff: 2 Objective: LO3 19) If you have a preferred communication style, you will most likely: A) use that style exclusively B) change that style as you grow older C) display other communication styles at times D) be unable to understand people with other styles E) need to maintain that habitual style in all contexts Answer: C Diff: 2 AACSB: Written and Oral Communication Objective: LO3

20) An effective and practical way to minimize communication-style bias is to: A) choose customers based on their communication styles B) write presentation materials that appeal to all communication styles C) send trained communicators to talk to customers with unfamiliar styles D) adapt your style to the way the customer communicates E) focus more on the content of sales presentations than on message delivery Answer: D Diff: 2 Objective: LO4 21) Which term refers to the degree to which a salesperson is perceived as developing and maintaining buyer comfort throughout the sales process?

A) rigidity B) sensitivity C) maturity D) believability E) versatility Answer: E Diff: 1 AACSB: Written and Oral Communication Objective: LO4 22) The immature characteristics of each style can most likely: A) never be altered because of heredity B) overcome communication-bias issues C) enhance overall sales performance D) change with time and effort E) lead to increased sociability Answer: D Diff: 2 Objective: LO4 23) The idea that the characteristics that make others respect you can also make others frustrated with you is called the ________ paradox.

A) sociability B) dominance C) strength-weakness D) flexing E) communication-bias Answer: C Diff: 2 Objective: LO4

24) CRM software can most likely help a salesperson to do all of the following EXCEPT: A) remember the names of the customer's family members B) develop a partnering relationship with the customer C) track which products a customer prefers to purchase D) shift the customer from a reflective to emotive style E) adapt to the customer's communication style Answer: D Diff: 2 Objective: LO4 25) People who display their emotions with less intensity are said to be in: A) zone one B) zone two C) zone three D) zone four E) the excess zone Answer: A Diff: 2 AACSB: Written and Oral Communication Objective: LO4 26) Zone one, zone two, and the excess zone are used to describe which dimension of our communication styles?

A) maturity B) intensity C) predictability D) flexibility E) adaptability Answer: B Diff: 1 AACSB: Written and Oral Communication Objective: LO4 27) When we move into the excess zone, which of the following usually happens?

A) Stress levels decrease.

B) Style flexing decreases.

C) Style flexing increases.

D) Speech becomes more cautious.

E) Speech becomes erratic and slurred.

Answer: B Diff: 3 AACSB: Written and Oral Communication Objective: LO4

28) When a reflective salesperson moves into the excess zone, he or she is apt to: A) express highly emotional opinions B) become extremely competitive C) agree with everyone D) avoid making decisions E) make rash decisions Answer: D Diff: 2 AACSB: Written and Oral Communication Objective: LO4 29) Relative to Americans, Canadians are more likely to be: A) passive and stiff B) happy and casual C) sociable and casual D) educated and informal E) bilingual and formal Answer: E Diff: 2 Objective: LO5 30) Which style flexing technique is most appropriate for a salesperson to use in the presence of an emotive customer?

A) Cite research and statistics.

B) Avoid an open display of enthusiasm.

C) Avoid wasting time on rapport-building.

D) Take a slow, business-like, and formal approach.

E) Provide support for the customer's opinions and ideas.

Answer: E Diff: 2 AACSB: Application of Knowledge Objective: LO5 5.3 Short Answer Questions 1) Changing sales behaviors in order to improve communication with the customer is known as ________.

Answer: adaptive selling Diff: 2 AACSB: Written and Oral Communication Objective: LO1 2) ________ can be defined as the tendency to control or prevail over others.

Answer: Dominance Diff: 2 AACSB: Written and Oral Communication Objective: LO2 3) The ________ communication style combines high sociability and high dominance.

Answer: emotive Diff: 1 AACSB: Written and Oral Communication Objective: LO3 4) The words "reserved," "warm," and "compliant" describe the ________ style.

Answer: supportive Diff: 2 AACSB: Written and Oral Communication Objective: LO3 5) ________ is communicating in a way more readily understood by and more agreeable to persons of another communication style.

Answer: Style flexing Diff: 1 AACSB: Written and Oral Communication Objective: LO5 5.4 Essay Questions 1) The theory of behavioral- or communication-style bias is based on a number of underlying principles. List the principles.

Answer: 1. Individual differences exist and are important.

2. A communication style is a way of thinking and behaving.

3. Individual style differences tend to be stable.

4. There is a finite number of styles.

5. It is necessary to get in sync with the communication styles of the people you work with.

Diff: 2 AACSB: Written and Oral Communication Objective: LO1 2) Describe the difference between lower dominance and higher dominance.

Answer: Lower dominance describes people who tend to be quite cooperative and let others control things. They tend to be low in assertiveness. Supportive, reserved, accommodating, and quiet describes these people.

Higher dominance refers to people who tend to like to control things and frequently initiate demands. They tend to be more aggressive in dealing with others. Competitive, decisive, demanding, and bold describe these people.

Diff: 1 AACSB: Written and Oral Communication Objective: LO2

5.5 Applied Multiple Choice Questions 1) Jared James is a top salesperson at a leading manufacturer of agricultural machinery parts. He is a classic directive: decisive, fact-oriented, direct, and focused on closing the deal. He understands the importance of style flexing, however, as not all buyers respond to the directive style. Jared has been thinking about how to approach a new client, Alex Doyle, who is a buyer for a huge combine manufacturer. Alex has a supportive style. What adjustments should Jared make in his usual mode of communicating?

A) Jared should focus more on benefits and less on facts in his sales presentation to Alex.

B) Jared should make an effort to develop rapport with Alex and plan for several conversations before he attempts to close the sale.

C) Jared should take Alex out for dinner at a high-profile restaurant so they can develop a personal relationship before he begins to talk about the product.

D) Jared should be sure he has the facts to back up any claims he makes to Alex, and consider sending Alex the research and quality-control reports before their first meeting so Alex can examine the documentation.

E) Jared should hang back to let Alex guide the conversation during sales calls so that Alex doesn't feel overwhelmed by Jared's blunt presentation style.

Answer: B Diff: 3 AACSB: Application of Knowledge Objective: LO5 2) A salesperson is required by his employer to use a script when making a sales presentation.

The script includes standard jokes and repeated attempts at relationship-building, plus a rapid close to the sale. The salesperson recognizes that a potential client has a reflective communication style and may be offended by some of the elements in the script. What should the salesperson do?

A) The salesperson should omit the jokes and downplay the relationship-building attempts, while drawing out the close to give the potential client longer to decide.

B) The salesperson should abandon the script without telling her manager and be blunt and direct with the potential client.

C) The salesperson should double up on the research and facts she presents during the presentation to appeal to the potential client's deliberate side.

D) The salesperson should ask her sales manager to come with her to the first sales call so that the potential client knows the company is serious about winning the client's business.

E) The salesperson should stick with the script and timing as written, as it's been tested by her manager and has a high rate of success.

Answer: A Diff: 3 AACSB: Application of Knowledge Objective: LO5

3) A newly-hired salesperson, Jun-Hee Kim, is taking over the sales territory of Arvin Vasquez, a salesperson for her company who is moving out of the area. Arvin left detailed notes on the clients he'd made contact within the CRM system, so Jun-Hee is reviewing these notes. Jun-Hee reads the following about Bob Costello: "Bob is super-friendly and outgoing. He loves to deep-sea fish and goes on three trips a year to fish in the Caribbean. His wife is Carol and his kids are Taylor (4th grade) and Jordan (6th grade) (both girls). Bob's buying focus is durability and price, and he expects a relationship with a trustworthy sales rep. Bob can be impatient and doesn't like to waste time during meetings. He tends to maintain control and set the agenda."

Based on this summary, what communications style does Bob Costello most likely have?

A) sociable B) directive C) emotive D) supportive E) reflective Answer: B Diff: 3 AACSB: Application of Knowledge Objective: LO3, LO4 4) Craig is a classic emotive salesperson—friendly, interested in people, excited about the product he sells, and ready to sell to anyone who wants to buy. His sales manager cautions him to consider how he will approach the buyer for a major client, who is known to be blunt, humorless, and focused only on quality assurance reports and pricing. What aspect of Craig's normal approach should he consider altering the most?

A) Craig should consider lowering the prices he offers to this buyer from the beginning in order to make the sale.

B) Craig should consider presenting features instead of benefits, since the buyer will not respond to anything emotional.

C) Craig should consider advanced information-gathering to discover what the buyer's hobbies and interests are to be able to discuss them at the first sales call.

D) Craig should consider pulling back on the relationship-building moves, since the buyer is not interested in personal rapport.

E) Craig should consider waiting longer to ask for the close than he usually does to give the buyer adequate time to think thoroughly through the decision.

Answer: D Diff: 3 AACSB: Application of Knowledge Objective: LO3, LO5

5) A sales manager is writing the script for his salespeople to follow when approaching new potential clients. What part of the process is most important for the manager to leave open for sales reps to flex according to the communications style of the prospective client?

A) asking for the close B) presenting the benefits of the services C) developing rapport with the prospective client D) presenting the pricing structure E) discovering the prospective client's needs Answer: C Diff: 3 AACSB: Application of Knowledge Objective: LO5 6) Which combination of communication styles between salesperson and customer will likely result in a good relationship, but will LEAST likely lead to a firm sale?

A) directive salesperson with directive customer B) directive salesperson with supportive customer C) supportive salesperson with supportive customer D) supportive salesperson with reflective customer E) reflective salesperson with emotive customer Answer: C Diff: 3 AACSB: Application of Knowledge Objective: LO3 7) The stereotype of salespeople is that they are all Emotives: good at talking and influencing people into buying the product they are selling. It would most likely be harmful to the sales process to have an emotive sales representative if the: A) customer is low on the sociability continuum B) customer is high on the sociability continuum C) product being sold is viewed as costly by the customer D) product being sold is in the mature stage of the product life cycle E) salesperson engages in style flexing to accommodate the customer's needs Answer: A Diff: 3 AACSB: Application of Knowledge Objective: LO3, LO4

8) The quadrant model of communication styles assumes that most people: A) understand the quadrant model well enough to choose their point on the quadrant B) fit into four discrete, unchanging categories and can be easily assessed in that category by others C) change from quadrant to quadrant somewhat regularly D) are aware of their communication style and can alter it depending on the situation E) have a relatively consistent point on both the dominance and sociability continuums Answer: E Diff: 3 AACSB: Application of Knowledge Objective: LO1, LO2 9) A customer is rude to the salesperson during sales calls, requests additional research and market data, and refuses to accept courtesy calls from the salesperson. However, the customer places several large orders for the product from the salesperson. Which statement best explains the customer's discordant behavior?

A) The salesperson represents an inferior product that the customer does not need.

B) The salesperson has used the wrong approach by not establishing rapport with the customer.

C) The customer is not the ultimate decision maker for the account but would like to be.

D) The customer is a directive who dislikes extraneous contact with the salesperson but makes decisions rapidly based on data.

E) The customer is a reflective who cannot concentrate when the salesperson engages in frequent interruptions.

Answer: D Diff: 3 AACSB: Application of Knowledge Objective: LO3, LO4 10) Eli's position at Global-Mach involves purchasing complex manufacturing components, making decisions based on technical data, and creating detailed, scientific reports. Although Eli is very effective at his job, he experiences significant difficulty when engaging in communication with the highly sociable salesperson who services the account. When the salesperson wants to discuss personal matters, Eli appears aloof, reserved, and preoccupied. Eli most likely has a(n) ________ communication style.

A) emotive B) directive C) reflective D) passive E) supportive Answer: C Diff: 3 AACSB: Application of Knowledge Objective: LO3

11) A salesperson who is having trouble determining his own communication style most likely falls into: A) the Excess Zone B) Zone One C) Zone Two D) the Flex Zone E) the Bias Zone Answer: B Diff: 3 AACSB: Application of Knowledge Objective: LO4 12) On the communication style grid, the two communication styles with low dominance are reflective and supportive. Salespeople with these two communication styles would be best suited for sales situations in which: A) the product is simple to understand so the salespeople don't have to spend much time with potential clients B) the product is highly technical and requires a strong focus on partnering over the long term to discover solutions for the client C) the customers understand the low dominance of the salespeople and are willing to work with them despite their communication differences D) the customers are all reflective or supportive communication styles E) the salespeople are not required to have direct contact with potential clients Answer: B Diff: 3 AACSB: Application of Knowledge Objective: LO2, LO3, LO4 13) Gavin's position at Pharma-Tech involves purchasing complex manufacturing components, making decisions based on technical data, and creating detailed, scientific reports. Tanya, the sales representative assigned to work with Gavin, has experienced difficulties in the past when attempting to communicate with Gavin, who is precise, aloof, serious, and disciplined. Which of the following would most likely help Tanya build a relationship with Gavin?

A) Tanya should use both verbal and nonverbal communication styles to keep Gavin engaged in the sales presentation.

B) Tanya should express great enthusiasm for the products she sells and ask Gavin many questions to draw him into the presentation.

C) Tanya should give a quick-paced presentation and attempt to close the sale quickly to prevent wasting too much of Gavin's time.

D) Tanya should take time to learn about Gavin's personal and work life before giving a brief overview of the product she is selling.

E) Tanya should give a well-organized presentation with extensive documentation and avoid pressuring Gavin to make a quick decision.

Answer: E Diff: 3 AACSB: Application of Knowledge Objective: LO3, LO5 14) Which of the following is another benefit to a salesperson of learning to style flex, aside

from putting the customer at ease?

A) Style flexing improves a salesperson's acting skills, which helps the salesperson to persuade reluctant buyers to place orders.

B) Paying attention to the customer's communication style helps the salesperson better understand the customer's product or service needs.

C) Additional time spent with a customer helps the salesperson to create a positive relationship that will likely result in closing the sale.

D) Customers are more likely to purchase from salespeople who seem successful, so it is important for salespeople to make sure that their own personal styles are current.

E) Style flexing allows a salesperson to divide customers into four groups, write one script for each, and standardize sales calls.

Answer: B Diff: 3 AACSB: Application of Knowledge Objective: LO5 15) For a salesperson, why is style flexing more important in consultative sales than in transactional sales?

A) In consultative sales the buyer needs to be able to believe the claims of the salesperson about the product. In transactional sales, the buyer knows the claims about the product are likely to be exaggerated or untrue as a matter of course.

B) In consultative sales, sales managers are more likely to be assessing the salesperson's rapport with each customer, so proving that the salesperson is making the customer feel comfortable is key to receiving a good performance review. In transactional sales, performance reviews are based solely on hitting sales quotas.

C) In consultative sales, salespeople often have to service the customer once the sale is complete, acting as account managers as well as salespeople, which means flexing styles according to the roles they play. In transactional sales, there is often no follow-up to the sale.

D) In consultative sales, the salesperson and customer are building a relationship with each other toward the correct purchase, so they must feel comfortable with and trust each other. In transactional sales, a long-term relationship is not important.

E) In consultative sales the customer expects to be catered to, so salespeople must use the customer's preferred communication style, or else the customer will switch to another service provider. In transactional sales, the customer often has no say over the terms of the sales interaction.

Answer: D Diff: 3 AACSB: Application of Knowledge Objective: LO5 Selling Today, 16e (Manning/Ahearne/Reece) Chapter 6 Creating Product Solutions 6.1 True/False Questions 1) A product strategy involves becoming a product expert and configuring value-added solutions.

Answer: TRUE Diff: 1 Objective: LO1

2) A solution is a mutually shared answer to a recognized customer problem.

Answer: TRUE Diff: 1 Objective: LO1 3) With fewer products being introduced in the marketplace today, it is easier for customers to decide what to buy and who to buy it from.

Answer: FALSE Diff: 2 Objective: LO1 4) The product selection process is often referred to as "product configuration."

Answer: TRUE Diff: 1 Objective: LO1 5) Quotation management software enables firms to prepare written proposals that comply with federal RFP guidelines.

Answer: FALSE Diff: 2 Objective: LO1 6) Decision-making authority in the area of pricing gives the salesperson more responsibility but less power because firms profit from all sales.

Answer: FALSE Diff: 2 Objective: LO2 7) Before teaming up with another company, the strategic alliance buyer should learn about the firm the salesperson represents.

Answer: TRUE Diff: 2 Objective: LO3

8) Salespeople who can develop a sales proposal that contains specific information about the return on investment are more likely to get a favorable response from key decision makers.

Answer: TRUE Diff: 2 Objective: LO2 9) Prospects are likely to use past performance of a company to evaluate the quality of the current product offering.

Answer: TRUE Diff: 1 Objective: LO3 10) One way to neutralize a competitor's proposal that beats your price or terms is by employing a value-added approach.

Answer: TRUE Diff: 2 Objective: LO5 11) Plant tours do not represent a good source of product information.

Answer: FALSE Diff: 1 Objective: LO5 12) In the field of personal selling, customers represent an important source of product information.

Answer: TRUE Diff: 1 Objective: LO5 13) A general benefit shows how a feature can be helpful to a buyer, but it does not relate to a specific need expressed by the buyer.

Answer: TRUE Diff: 2 Objective: LO6 14) A benefit is whatever provides the customer with personal advantage or gain.

Answer: TRUE Diff: 1 Objective: LO6 15) One of the best ways to present benefits is to use a bridge statement.

Answer: TRUE Diff: 1 Objective: LO6

6.2 Multiple-Choice Questions 1) Most written proposals include all of the following components EXCEPT a(n): A) overview B) schedule C) objective D) hypothesis E) rationale Answer: D Diff: 2 Objective: LO1 2) A collection of beliefs, behaviors and work patterns held in common by people employed by a specific firm is a(n): A) organizational value B) organizational culture C) mission statement D) strategic philosophy E) corporate vision Answer: B Diff: 2 Objective: LO3 3) Throughout the sales presentation, it is usually best to: A) describe the weakness of competing products frequently B) discuss competing products even if you are unfamiliar with them C) avoid shifting attention away from your product to competing products D) refuse to answer any questions about competing products E) be proactive about discussing competing products Answer: C Diff: 2 AACSB: Written and Oral Communication Objective: LO5 4) Which of the following statements is most likely true about products and product knowledge?

A) Knowledge of a company's history is essential to selling that company's product.

B) Product knowledge is not as important as selling technique for a professional salesperson.

C) Knowledge of one's product or service is not important in all areas of professional selling.

D) The extensive variety of available products in the market complicates the buying process.

E) Salespeople who learn and impart too much product knowledge hinder the buying process.

Answer: D Diff: 3 Objective: LO1

5) Which of the following is an example of a bridge statement?

A) "You will get good gas mileage when you buy this car."

B) "These are the finest fund-raising donuts you can buy."

C) "This hotel has 24-hour room service and free parking."

D) "Buy one, get one at half price."

E) "We have trained technicians, so you will experience less downtime."

Answer: E Diff: 3 Objective: LO6 6) When customers ask, "What is the anticipated rate of return on this mutual fund?" they are requesting product information from the category of: A) performance data B) product design C) manufacturing process D) product application E) quality improvement Answer: A Diff: 2 AACSB: Analytical Thinking Objective: LO3 7) Successful sales presentations convert product features into: A) closed sales B) buyer benefits C) product applications D) selling appeals E) research statistics Answer: B Diff: 2 Objective: LO7 8) The speed rating assigned to a motorcycle tire is an example of product: A) qualities B) applications C) features D) benefits E) design Answer: C Diff: 2 Objective: LO7

9) Paula Hillison sells a line of copy machines that feature a "quick change" toner cartridge. The empty toner cartridge can be replaced quickly, without any mess, in a matter of seconds. Which of the following statements represents the most effective presentation of this feature?

A) "We have recently developed the only office copy machine that features a quick change toner cartridge."

B) "After years of research and development, our engineers have developed a quick change toner cartridge."

C) "If you purchase one of our copy machines, you will enjoy the benefits of a quick change toner cartridge."

D) "All of our copy machines are equipped with a quick change toner cartridge, which means you no longer waste time replacing an empty toner cartridge."

E) "We have set a new industry standard with the quick change toner cartridge."

Answer: D Diff: 3 Objective: LO7 10) Which of the following is a buyer benefit that could be used by a person selling automobile tires?

A) steel belted B) service in all fifty states C) 30,000-mile rating D) manufactured in the U.S.A. E) greater driving safety Answer: E Diff: 3 AACSB: Analytical Thinking Objective: LO7 11) Which of the following is NOT an example of performance data?

A) a list of product service centers available to customers B) the AHAM certification seal C) a label on a storm window that indicates the product's "R" value D) a window sticker on an automobile that lists the EPA gas mileage figures E) research sheets on server downtime and data transfer rates Answer: A Diff: 2 AACSB: Analytical Thinking Objective: LO2 12) Which of the following statements regarding product benefits is most likely true?

A) People do not buy benefits, they buy features.

B) A benefit provides the customer with a personal advantage.

C) Prospects usually display equal interest in features and benefits.

D) Product features and benefits are the same but presented differently to consumers.

E) Salespeople should avoid describing features and focus exclusively on product benefits.

Answer: B Diff: 3 Objective: LO7

13) Which of the following statements regarding general and specific benefits is most likely true?

A) Benefit statements linked to explicit needs are not especially effective for complex sales.

B) A feature statement is general, but any benefit is specific when presented as an advantage.

C) A general benefit is a product feature for which the buyer has not expressed a need.

D) Experienced salespeople focus on bringing attention to a product's general benefits.

E) Highlighting as many general benefits as possible during a presentation tends to lead to a sale.

Answer: C Diff: 3 Objective: LO7 14) In terms of product knowledge, salespeople: A) can know too much about the products they sell B) are often better off appearing to be "in the dark" at times C) should provide prospects with limited product information D) cannot, generally, know too much about the products they sell E) should assume the stance of novice users to develop customer empathy Answer: D Diff: 1 Objective: LO3 15) Ray Fernández is a sales representative employed by Computer Resources, a computer supplier that develops customer solutions that combine computer hardware, software, installation, and training. When Ray brings together many parts of the company's product mix in order to develop a customized customer solution, this is referred to as: A) developing a product configuration B) establishing a strategic priority C) qualifying product benefits D) quantifying product features E) creating a value statement Answer: A Diff: 2 Objective: LO1 16) Which of the following is most likely true of sales letters?

A) Sales letters should use the same format as an email.

B) Sales letters should minimize the use of white space.

C) Most sales letters include not more than two paragraphs.

D) Because a sales letter is an introduction, formal language is unnecessary.

E) The use of the personal pronoun "I" should be minimized as much as possible.

Answer: E Diff: 2 AACSB: Written and Oral Communication Objective: LO2

17) Using the pronouns "you" and "your" in a sales letter: A) assumes the customer will definitely buy B) conveys an informal tone C) keeps the focus on the customer D) should be avoided if possible E) follows standard business letter format Answer: C Diff: 2 AACSB: Written and Oral Communication Objective: LO2 18) The written proposal is best described as a(n): A) government formality that customers do not read B) standardized document that highlights pricing C) opportunity to demonstrate writing skills D) plan of action based on facts and assumptions E) analysis of competing products and services Answer: D Diff: 2 Objective: LO1 19) A manufacturer tests, modifies, and retests an original idea several times before offering it to the consumer. This process is called: A) data mining B) product development C) product application D) manufacturing analysis E) product configuration Answer: B Diff: 1 Objective: LO1 20) The "invisible" customer who receives a salesperson's written proposal should most likely be considered a(n): A) ideal customer B) current customer C) neutral party D) competing salesperson E) decision maker Answer: E Diff: 2 Objective: LO1

21) Which term refers to the process by which a salesperson uncovers and clarifies a customer's problem, works with the customer to create a vision of how things could be better, and then develops a plan for implementing the vision?

A) product development B) quality control C) field testing D) solution selling E) product configuration Answer: D Diff: 1 Objective: LO1 22) Which term refers to measuring products and services against established standards?

A) data mining B) quality control C) solution selling D) feature dumping E) product configuration Answer: B Diff: 1 Objective: LO2 23) The Whirlpool company most likely created a house filled with company products so that salespeople could: A) conduct tests with competing products B) see the full life cycle of the appliances C) become familiar with the products D) bring customers to see the products in use E) explore price configuration options Answer: C Diff: 2 AACSB: Analytical Thinking Objective: LO2 24) Customized service agreements add value to a sale by: A) allowing salespeople to charge more money for features that are usually free B) requiring salespeople to spend more time with customers C) convincing customers to spend more money on longer terms D) incorporating the customer's special priorities, feelings, and needs E) requiring that customers trust salespeople to keep their verbal promises Answer: D Diff: 2 Objective: LO2

25) Quantifying the solution can be performed with a cost-benefit analysis or with a(n): A) frequency analysis B) regression analysis C) feature-benefit presentation D) pricing model E) ROI calculation Answer: E Diff: 2 Objective: LO2 26) Which of the following statements about the sources of product knowledge is most likely true?

A) Company product literature is of less value to salespeople than it is to customers.

B) The best source of information on the product is the director of sales.

C) Plant tours would be of little value to people in retail and service selling.

D) A salesperson cannot really understand the product until spending time on the manufacturing line producing it.

E) Examining and using the product can give a salesperson in-depth knowledge of its features.

Answer: E Diff: 2 Objective: LO6 27) The primary benefit of providing online product information to salespeople is that the information: A) allows software integration B) builds customer relationships C) highlights product benefits D) can be accessed at any time E) can be redesigned easily Answer: D Diff: 1 Objective: LO6 28) A problem a salesperson could run into with regard to knowing the product extensively is: A) relying on written proposals B) conducting a thorough presentation C) knowing more than the other salespeople D) exhibiting a bad attitude at sales meetings E) misjudging the customer's product knowledge Answer: E Diff: 2 Objective: LO6

29) When developing a product strategy, the salesperson must: A) review information on consumer motivation B) adopt the marketing concept C) adopt the sure-win philosophy D) consider price above other aspects of the product E) use feature-benefit analysis Answer: E Diff: 2 Objective: LO7 30) Salespeople who love their products, and possess vast product knowledge, sometimes overload their customers with product data that is neither wanted nor needed. Which term best describes this practice?

A) product integration B) win-win selling C) customer overload D) feature dumping E) solution selling Answer: D Diff: 2 Objective: LO7 6.3 Short Answer Questions 1) The product selection process is often referred to as ________.

Answer: product configuration Diff: 1 Objective: LO1 2) The customer who asks, "How many miles per gallon does the Honda CRV get?" is requesting a type of product knowledge known as ________.

Answer: performance data Diff: 2 AACSB: Analytical Thinking Objective: LO3 3) ________ refers to the distinct norms, beliefs, behaviors, and work patterns of a company.

Answer: Organizational culture Diff: 2 Objective: LO3 4) In a sales presentation, your knowledge of the product's features and your company's strengths must be presented in terms of the resulting ________ to the buyer.

Answer: benefits Diff: 1 AACSB: Written and Oral Communication Objective: LO7 5) A(n) ________ is a transitional phrase that connects a statement of features with a statement

of benefits.

Answer: bridge statement Diff: 2 AACSB: Written and Oral Communication Objective: LO6 6.4 Essay Questions 1) Developing a product strategy in the Strategic/Consultative Selling Model involves using three prescriptions for successful sales. List each one.

Answer: 1. Become a product expert.

2. Sell specific benefits.

3. Configure value-added solutions.

Diff: 2 AACSB: Application of Knowledge Objective: LO1 2) Discuss the advantages of having in-depth knowledge of your product.

Answer: A salesperson whose product knowledge is complete and accurate is better able to satisfy customers. This is without doubt the most important justification for becoming totally familiar with the products you sell. It is simply not possible to provide maximum assistance to potential customers without this information. Additional advantages to be gained from knowing your product include greater self-confidence, increased enthusiasm, improved ability to overcome objections, development of stronger selling appeals, and the preparation of more effective written sales proposals.

Diff: 2 AACSB: Analytical Thinking Objective: LO2 6.5 Applied Multiple Choice Questions A customer walks into a ShipNow location with four boxes and a document envelope, all going to different destinations in different amounts of time with different security and notification needs.

1) The ShipNow salesperson's job is most likely to: A) convince the customer into shipping everything with ShipNow B) provide a solution for the customer's complex shipping needs C) explain the packaging features offered by ShipNow D) describe the many services offered by ShipNow E) build rapport with the customer Answer: B Diff: 3 AACSB: Application of Knowledge Objective: LO1 2) What should the salesperson focus on to differentiate ShipNow's product from other shipping services?

A) varying shipping speeds available to ShipNow customers B) ShipNow's lower than average prices for equally fast shipping speeds C) ShipNow's Internet tracking of packages through the company Website D) auxiliary products that ShipNow sells, like boxes, envelopes, and packing tape E) the added value the salesperson creates by making the shipping process easy for the customer Answer: E Diff: 3 AACSB: Application of Knowledge Objective: LO1, LO7 3) ShipNow requires every new store salesperson to ride along on deliveries with drivers for two weeks before beginning the sales course necessary to be able to have contact with customers.

What is the most likely purpose of the ride-alongs?

A) to enable the salesperson to empathize with drivers B) to assign a mentor to provide support to the salesperson C) to help the driver with deliveries during the rushed holiday season D) to give the salesperson in-depth knowledge of the delivery process E) to provide a trial period to determine if the salesperson will be a good employee Answer: D Diff: 3 AACSB: Application of Knowledge Objective: LO2, LO3, LO6 4) Sean, a ShipNow salesperson, has a meeting scheduled with Zippy Shoes, an online shoe retailer that ships hundreds of packages each day. Sean expects that price will be a significant barrier to closing the sale with Zippy Shoes. What should Sean most likely do to prepare for price objections?

A) Base the Zippy Shoes deal on prices offered to smaller ShipNow customers.

B) Calculate the commission on the Zippy Shoes deal to ensure that it is fair and equitable.

C) Refer all pricing questions to the ShipNow accounting department to ensure an accurate ROI. D) conduct a cost-benefit analysis to determine the savings Zippy Shoes should expect by using ShipNow. E) Ask a supervisor for the authorization to set a range of shipping prices for Zippy Shoes that are based on industry standards.

Answer: D Diff: 3 AACSB: Application of Knowledge Objective: LO2

5) Sean, a ShipNow salesperson, has a meeting scheduled with Zippy Shoes, an online shoe retailer that ships hundreds of packages each day. Sean is in the process of developing a written proposal that will be included with his sales presentation. Which of the following should most likely be addressed in the "Objective" component of the proposal?

A) how using ShipNow will benefit Zippy Shoes B) when ShipNow will create value for Zippy Shoes C) how ShipNow will fulfill obligations to Zippy Shoes D) which ShipNow features will be available to Zippy Shoes E) where ShipNow will be able to ship products for Zippy Shoes Answer: A Diff: 3 AACSB: Application of Knowledge Objective: LO1 Clyde, the owner of Quick-Clean, a laundromat, notices that the laundromat across the street, EZ Clean, offers free pick-up and delivery of laundry from Monday to Friday, 9-5. Clyde has observed that many Quick-Clean customers seem frazzled and overburdened both when they drop clothing off before work in the morning and when they pick up their clean laundry after work.

6) What service could Clyde most likely offer to eliminate stress for his customers that his competitor does not offer?

A) free fabric softener on any drop-off order B) free pick-up and delivery Monday to Friday from 9 am to 5 pm C) free pick-up and delivery seven days a week from 6 am to 11 pm D) drop-off and pick-up of laundry only on weekends, when customers are not as stressed E) keeping the laundromat open 24 hours a day Answer: C Diff: 3 AACSB: Application of Knowledge Objective: LO1, LO4 7) Given Clyde's observations about his customers, which of the following would be the best product configuration to increase Quick-Clean business?

A) offering extended hours and free pick-up and delivery of laundry B) training employees to fold clothes in a distinctive pattern C) using bags labeled with the laundromat logo and address D) using floral-scented laundry detergent on all orders E) hiring workers with extensive laundry experience Answer: A Diff: 3 AACSB: Application of Knowledge Objective: LO1

8) The other laundromat, E-Z Clean, offers free pick-up and delivery during a narrow time frame, which is most likely an example of: A) a product based on a company's resources, not customers' needs B) a product based on industry information, not company resources C) a product developed after trial and error D) a customer-facing sales staff E) a customer loyalty program Answer: A Diff: 3 AACSB: Application of Knowledge Objective: LO1 9) Clyde realizes that to improve sales he needs to fully understand the services and value offered by E-Z Clean and other laundromats in the area. Which of the following would be the LEAST useful resource for Clyde?

A) competitors' Websites B) competitors' press releases C) appliance brands used by the competition D) marketing materials used by the competition E) pricing and service structures of the competition Answer: C Diff: 3 AACSB: Application of Knowledge Objective: LO5 10) Which of the following should Clyde most likely emphasize when developing marketing materials for Quick-Clean?

A) environmental impact of Quick-Clean and E-Z Clean washing machines B) negative aspects of E-Z Clean services in comparison to Quick-Clean C) benefits to customers of using Quick-Clean D) statistical data about Quick-Clean sales E) features offered by Quick-Clean Answer: C Diff: 3 AACSB: Application of Knowledge Objective: LO7

The sales director of a medium-sized company selling chemicals to the lumber industry has analyzed sales and found serious problems with the closing rate of sales representatives relative to the number of prospects. The sales director commissioned a research company to analyze the numbers in the CRM system and conduct interviews with prospects who became customers as well as with prospects who did not buy from the company. He also hired a sales training consultant to analyze the sales representatives and the training they receive.

11) The training consultant finds that the sales representatives do not have a strong product strategy. Without a proper product strategy, sales representatives are most likely unable to: A) choose the correct products to sell to the customer B) develop a marketing campaign for a given product C) sell a product whether the customer needs it or not D) fulfill an order once it has been placed E) contact customers quickly Answer: A Diff: 3 AACSB: Application of Knowledge Objective: LO1 12) After analyzing information gathered from prospects who did not buy from the company, it becomes apparent that prospects felt that the sales representatives did not know about the full line of products they carried or understand their uses. The prospects most likely did not buy because they could not: A) ensure that the company's billing process was ethical B) understand what their business objectives were C) pay the high prices the company was charging D) store the chemicals once they were delivered E) trust the sales reps to sell them the correct products Answer: E Diff: 3 AACSB: Application of Knowledge Objective: LO2, LO3

13) To increase the sales representatives' product knowledge, the sales director arranges for each of them to rotate through the product development department for a month to understand the way the chemicals are developed. What is another department they should rotate through to gain more product knowledge that will help them configure the right mix of products for customers?

A) customer service, so that they can learn how the chemicals are implemented and used by the customer B) logistics, so that they can understand how the products are delivered C) billing, so that they understand the problems that arise when customers do not pay promptly D) warehousing, so they can understand exactly how much room the chemicals take up in storage E) human resources, so they can understand what characteristics a successful salesperson should have Answer: A Diff: 3 AACSB: Application of Knowledge Objective: LO2, LO6 14) The training consultant feels that the sales representatives need to understand the entire market to put their customers' needs and buying motives in context. To understand the entire industry, the training consultant recommends that the sales representatives learn more about: A) customers' business plans B) competitor companies' products and pricing C) management's five-year plan D) the history of the lumber industry E) the close rates of other sales reps in the company Answer: B Diff: 3 AACSB: Application of Knowledge Objective: LO5 15) The sales director and consulting team discuss changing the entire sales model for the company by eliminating the sales representatives altogether and allowing customers to order on their own from the company Website. What is the best argument against this plan?

A) The sales representatives rely on the income they receive from their jobs.

B) The products are complex and frequently require product configurations.

C) The company will need to alter its strategy to one based on e-commerce.

D) The products require quotation management systems for tax purposes.

E) A request for proposal is required for all government sales.

Answer: B Diff: 3 AACSB: Application of Knowledge Objective: LO1, LO3 Selling Today, 16e (Manning/Ahearne/Reece) Chapter 7 Product-Selling Strategies That Add Value 7.1 True/False Questions 1) Salespeople at the dealer level can play an important role in positioning an automobile for

competitive advantage.

Answer: TRUE Diff: 1 Objective: LO1 2) People buy products if they fulfill a problem-solving need.

Answer: TRUE Diff: 1 Objective: LO2 3) Salespeople have assumed an important and expanding role in differentiating products.

Answer: TRUE Diff: 1 Objective: LO3 4) Advertising directed toward a mass market is usually a good way to position a complex product.

Answer: FALSE Diff: 2 Objective: LO3 5) In most cases, the same sales strategy is used to sell a new and emerging product as a mature, well-established product.

Answer: FALSE Diff: 2 Objective: LO3 6) Mature and well-established products are usually characterized by intense competition as new brands enter the market.

Answer: TRUE Diff: 2 Objective: LO3 7) Pricing decisions are made primarily during the introductory stage of the product life cycle and rarely change.

Answer: FALSE Diff: 2 Objective: LO4

8) A potential consequence of using low-price tactics is lower profits.

Answer: TRUE Diff: 2 Objective: LO3 9) For a growing number of customers, short-term savings that result from low prices are more important than long-term value.

Answer: FALSE Diff: 2 Objective: LO4 10) Today, the primary goal of the value-added concept is to add value by lowering the price of the product.

Answer: FALSE Diff: 1 Objective: LO5 11) Value creation during the transactional sale is considerable.

Answer: FALSE Diff: 2 Objective: LO5 12) The generic product is the basic, substantive product you are selling.

Answer: TRUE Diff: 1 Objective: LO5 13) Positioning is the set of benefits and values the company promises to deliver to customers to satisfy their needs.

Answer: FALSE Diff: 1 Objective: LO1 14) The value-added product exists when salespeople meet the customer's expectation.

Answer: FALSE Diff: 1 Objective: LO5 15) Potential products are more likely to be developed by salespeople who regularly interact with customers.

Answer: TRUE Diff: 2 Objective: LO5

7.2 Multiple-Choice Questions 1) Which term refers to the decisions and activities that are intended to create and maintain a certain product concept in the customer's mind?

A) feature dumping B) product positioning C) product configuration D) value clustering E) strategic marketing Answer: B Diff: 1 Objective: LO1 2) Product positioning is largely a function of: A) product expertise B) pricing strategies C) industry standards D) market segmentation E) product differentiation Answer: E Diff: 1 Objective: LO1 3) A value proposition is best defined as a: A) set of benefits a firm promises to deliver to satisfy customer needs B) demand-based model for structuring the marketing mix C) strategy for aligning features and prices D) firm's international positioning strategy E) function of long term production costs Answer: A Diff: 1 Objective: LO2 4) The positioning process: A) must be continually modified to match customer wants and needs B) is a fixed value-added process conducted by the salesperson C) involves isolation from the competition D) is performed by the customer in the buying cycle E) should be performed every five years Answer: A Diff: 2 Objective: LO1

5) Your ability to separate yourself and your product from that of your competitors is referred to as: A) positioning B) differentiation C) value processing D) product placement E) marketing alliance Answer: B Diff: 2 Objective: LO1 6) Creating a value proposition is a way of: A) choosing prices for products B) scaling prices to different markets C) positioning your product in the marketplace D) keeping your product on the same level as others in the market E) choosing sales objectives that align with the firm's long-term goals Answer: C Diff: 2 Objective: LO1 7) Customer satisfaction most likely arises from: A) product price B) the product itself C) the company that makes or distributes the product D) the salesperson who sells and services the product E) a combination of the product, company, and salesperson Answer: E Diff: 2 Objective: LO2 8) Satisfactions can come from: A) research studies done on the product B) the board of directors of the company C) any company that makes a competing product D) the customer who buys the product E) the salesperson who sells the product Answer: E Diff: 1 Objective: LO2

9) Becoming familiar with a customer's satisfactions is necessary for a salesperson to move from: A) transactional selling to product selling B) solution selling to value-added selling C) new buy selling to constructive selling D) product selling to complimentary selling E) product selling to solution selling Answer: E Diff: 2 Objective: LO2 10) A good way to determine a customer's satisfactions is to: A) ask the customer questions about their needs B) find out what competitors are doing C) utilize a research database D) run statistical modeling E) conduct training sessions Answer: A Diff: 1 AACSB: Written and Oral Communication Objective: LO2 11) What is the most likely drawback of using too many technical terms during a sales presentation?

A) a salesperson making a misstatement B) the customer being too intimidated to purchase C) the customer knowing more about the product than the salesperson D) the customer wanting a product with fewer capabilities and benefits E) the customer asking the salesperson difficult questions that cannot be answered Answer: B Diff: 2 AACSB: Written and Oral Communication Objective: LO2 12) In order to bring the Walker Hotel and Convention Center up to industry standards, each guest room was redecorated with new wallpaper, drapes, carpeting, mattresses, and sofas.

Melanie Simms, sales manager for the Center, has recommended that guest rooms be upgraded with the addition of wide desks, free wi-fi, and 24-hour room service. From the viewpoint of most business travelers, these changes would result in the creation of a(n): A) potential product B) generic product C) expected product D) mature product E) value-added product Answer: E Diff: 2 Objective: LO5 13) Which of the following would most likely help a salesperson to position and differentiate a

product as better than other products in the market?

A) cost-benefit analysis worksheet B) ROI calculator C) competitive analysis worksheet D) analysis regression E) statistical model Answer: C Diff: 2 AACSB: Application of Knowledge Objective: LO2 14) The stages a product goes through from the time it is first introduced to the market until it is discontinued is called the: A) natural evolution B) amortization C) position D) product life cycle E) specific feature Answer: D Diff: 1 Objective: LO3 15) Which of the following is a factor that determines a product's life cycle stage?

A) the length of time the product sits in the warehouse before shipping B) the product's benefits and the importance of the needs it fulfills C) the competitors' compensation structure for salespeople D) changes in the product's production method E) the length of time a product has been around Answer: B Diff: 2 Objective: LO3 16) A salesperson would most likely use a CRM system to: A) categorize commission rates B) qualify potential sales leads C) file corporate bank records D) monitor competitors' customers E) send product information to customers Answer: E Diff: 2 Objective: LO5

17) The goal of selling strategies for new and emerging products is to: A) encourage current customers to rebuy B) build desire for the product C) create customer relationships D) sell more units at a lower price E) maintain consumer buying habits Answer: B Diff: 2 Objective: LO3 18) The goal of selling strategies for mature and well-established products is to: A) change buying habits B) build desire for the product C) maintain customer relationships D) sell more units at a lower price E) keep sales on an even level Answer: C Diff: 2 Objective: LO3 19) Which of the following statements about pricing policies is most likely true?

A) Very few companies maintain a pricing strategy that focuses on meeting competition.

B) Pricing strategies often reflect the opinion of the research department on correct pricing.

C) The ability to offer the lowest price is the most critical factor in the sale of products.

D) Price discounting is a competitive tool available to large numbers of salespeople.

E) Transactional sales rely primarily on personality alignment between buyers and sellers.

Answer: D Diff: 3 Objective: LO4 20) Which of the following is NOT a service-quality dimension?

A) responsiveness B) assurance C) durability D) reliability E) empathy Answer: C Diff: 2 Objective: LO1

21) Which service-quality dimension refers to the knowledge and courtesy of employees?

A) responsiveness B) empathy C) reliability D) tangibles E) assurance Answer: E Diff: 2 Objective: LO1 22) Which type of price discount would most likely be offered by a ski lodge during the summer months?

A) quality discount B) seasonal discount C) promotional allowance D) associate allowance E) functional discount Answer: B Diff: 2 Objective: LO4 23) Which of the following most likely covers transportation costs incurred by channel intermediaries?

A) seasonal discount B) associate allowance C) trade discount D) promotional allowance E) quantity discount Answer: C Diff: 1 Objective: LO4 24) Low-involvement buyers care mostly about: A) specifications B) durability C) loyalty D) brand E) price Answer: E Diff: 2 Objective: LO4

25) Money that a bank has available for customer loans would be an example of a(n): A) value-added product B) expected product C) generic product D) potential product E) customer product Answer: C Diff: 2 Objective: LO5 26) Research reported in the Harvard Business Review indicates that it is very difficult to build customer loyalty if a firm is selling only the ________ product.

A) generic B) expected C) potential D) value-added E) sales Answer: B Diff: 2 Objective: LO5 27) Yellow Freight Systems must provide clean, well-maintained trucks and well-trained drivers.

This is most likely an example of a(n): A) value-added product B) generic product C) potential product D) expected product E) customer product Answer: D Diff: 2 AACSB: Analytical Thinking Objective: LO5 28) As the level of competition increases, especially in the case of a mature product, salespeople should most likely consider future possibilities, known as the ________ product.

A) expected B) potential C) generic D) value-added E) well-established Answer: B Diff: 2 Objective: LO5

29) Value creation investments are the highest in: A) strategic alliance sales B) transactional sales C) generic sales D) consultative sales E) collaborative sales Answer: A Diff: 1 Objective: LO5 30) When setting professional fees, which of the following should LEAST likely be considered?

A) professional experience B) exclusivity of skills C) number of channels D) value to clients E) target market Answer: C Diff: 2 Objective: LO3 7.3 Short Answer Questions 1) Today's better educated and more demanding customers are seeking a(n) ________ of satisfactions.

Answer: cluster Diff: 1 Objective: LO2 2) Products are born, and then they grow up and become mature. In marketing, this process is known as the ________.

Answer: product life cycle Diff: 1 Objective: LO3 3) The first step in establishing a product price is to determine the firm's pricing ________.

Answer: objectives Diff: 1 Objective: LO4 4) The authors of The Discipline of Market Leaders encourage business firms to pick one of the disciplines — best price, best product, or best ________ to distinguish their offering in the marketplace.

Answer: service Diff: 2 Objective: LO4

5) The ________ product refers to what may remain to be done or what is possible.

Answer: potential Diff: 1 Objective: LO5 7.4 Essay Questions 1) List and describe the three parts of the Product Solutions Selling Model.

Answer: 1. Today's product meets and exceeds expectations by offering better quality, larger selection and/or new product improvements.

2. Today's salesperson acts as a partner by offering current product knowledge, awareness of the customer's needs and courteous service during and after the sale.

3. Today's company acts as a team to provide delivery and installation, orientation and training, quick-response times, credit options and outstanding service.

Diff: 2 Objective: LO1 2) Salespeople can benefit from viewing every product as being four-dimensional. List the four "possible" products.

Answer: 1. Generic product 2. Expected product 3. Value-added product 4. Potential product Diff: 2 Objective: LO5

7.5 Applied Multiple Choice Questions Just Candles, a supply house for scented and unscented tapers and other ceremonial candles to houses of worship, restaurants, and other establishments, has experienced a downturn in business in the last two years. Upon investigation, the owner of Just Candles learns that the same candles that they sell are available from online retailers for at least 10% less. The firm will not be able to survive if customers continue purchasing from competing e-retailers. Just Candles maintains a storefront for selling candles but does not provide other services or products.

1) Which of the following would most likely enable Just Candles to recapture their previous customers and gain new customers?

A) Just Candles could lower their prices on less popular candles to create "loss leaders" that would induce new customers to purchase regularly-priced candles from them.

B) Just Candles could shut down their retail location to cut overhead and move their business to the Internet, where they could charge lower prices and compete with other online candle retailers.

C) Just Candles could send out a mailing to all their customers reminding them that they carry a full line of candles.

D) Just Candles could move their store to a more visible and expensive location in the mall.

E) Just Candles could announce a "candle of the month" program to discount candles that traditionally haven't sold as well as their other candles.

Answer: B Diff: 3 AACSB: Application of Knowledge Objective: LO1, LO4 2) Which of the following would most likely be a value-added strategy that could boost sales for Just Candles?

A) eliminating most candle sizes to focus on only tapers B) visiting commercial customers to give them product brochures C) offering classes for new customers on decorating with candles D) lowering prices on all taper candles to compete with e-retailers E) selling to customers in the local area using a mass marketing campaign Answer: C Diff: 3 AACSB: Application of Knowledge Objective: LO1, LO5

A front desk clerk at a ReView Hotel receives a call from a ReView Gold Rewards Member guest complaining that the wireless Internet in her room is fading in and out. Without Internet access, she won't be able to make her deadline for this business trip.

3) What could the desk clerk do to maintain the guest's cluster of satisfactions?

A) The desk clerk cannot do anything, as the desk clerk does not have the technical skills to fix the wireless connection.

B) The desk clerk should not do anything, as the desk clerk is not a salesperson and therefore does not have responsibility for creating the cluster of satisfactions.

C) The desk clerk should offer to put the guest in an empty room as close to the original room as possible, to avoid inconveniencing the guest further.

D) The desk clerk should offer the guest the use of the lobby wireless, which the clerk knows to be problem-free, along with a discount off the charge for the room.

E) The desk clerk should refund the guest's full payment for the hotel room and find the guest a room at another hotel that can guarantee that its wireless service is problem-free.

Answer: D Diff: 3 AACSB: Application of Knowledge Objective: LO2, LO5 4) Why is it most likely important to maintain this guest's satisfaction with the hotel and the front desk clerk?

A) The guest is visiting the ReView Hotel during the off season and is paying a below average rate for the room.

B) The guest is already satisfied with the wireless service, so her cluster of satisfactions will be maintained if she is also satisfied with the hotel and the front desk clerk.

C) The guest's membership in the hotel's rewards club indicates a previous level of satisfaction that should be maintained by the front desk clerk to ensure customer loyalty.

D) The hotel maintains exclusivity through various pricing levels and room features.

E) The clerk is the only employee of the hotel with whom the guest will have contact.

Answer: C Diff: 3 AACSB: Application of Knowledge Objective: LO2, LO3

5) Abco Realty owns several rental apartment buildings in a working class but safe neighborhood that has recently become popular with young professionals because of its proximity to an express commuter train line. Abco has recently invested in the infrastructure of the buildings, adding laundry rooms, safety features to the lobbies, and new insulated windows to all the units.

Because of this, Abco cannot afford to match the unit rental prices of other buildings that have not made improvements.

How should the sales manager of Abco Realty most likely differentiate Abco's units from units offered in other buildings?

A) The sales manager can convince management to cut expenses on basic maintenance so the apartments can be rented at prices matching other buildings in the area.

B) The sales manager can promote the neighborhood as a safe place to live with a rich history.

C) The sales manager can convince the owners of the other buildings in the area to bring their rental prices up to the prices Abco charges.

D) The sales manager can promote Abco apartments as being worth more money because they are safer and have more services.

E) The sales manager can promote Abco apartments as being worth more money because the company has helped raise home values in the area.

Answer: D Diff: 3 AACSB: Application of Knowledge Objective: LO1, LO5 A grain supplier to cattle farmers has developed a new grain mixture, Green Grain, with nutritional additives that approximate the nutrient mixture in grass. Farmers who feed their cattle this enriched grain can sell beef and milk that taste similar to grass-fed beef and have many of the nutritional benefits to humans of grass-fed beef or dairy at a significantly lower production cost than actual grass-fed beef or dairy.

6) What would be the best way to position Green Grain relative to traditional grain?

A) as a higher-priced product that would allow farmers to make greater profits B) as a higher-priced product that is more socially responsible than traditional grain C) as an experimental product with which farmers could be the first on the market D) as a product that exceeds federal standards for cattle feed E) as a product that stores well throughout the winter Answer: A Diff: 3 AACSB: Application of Knowledge Objective: LO1, LO3, LO5

7) Which product-selling strategy would most likely be LEAST effective for selling Green Grain?

A) focusing on creating new markets B) developing new expectation levels C) establishing new standards D) stressing brand superiority E) changing habits Answer: D Diff: 3 AACSB: Application of Knowledge Objective: LO3 8) Green Grain marketers have established a positioning plan that stresses low price. Salespeople are expected to use transactional selling tactics and offer discounts and allowances to farmers as needed. Which type of discount would most likely be given to a farmer who agrees to put the Green Grain logo on the side of his barn and Green Grain signs along the road near his farm?

A) dealer allowance B) trade discount C) seasonal discount D) promotional allowance E) functional discount Answer: D Diff: 3 AACSB: Application of Knowledge Objective: LO4 A designer releases her fall line of handbags, including one that retails for $6,000. This bag is a limited edition; only 500 will be produced, and orders will only be accepted from clients who have previously purchased a handbag from the designer. Customers will be put on a waitlist in the order in which the handbag orders are received.

9) How is this handbag being positioned and differentiated from other handbags similar in manufacturing and look?

A) The handbag is being positioned on price.

B) The handbag is being positioned on exclusivity.

C) The handbag is being positioned on convenience.

D) The handbag is being positioned on design.

E) The handbag is being positioned on versatility.

Answer: B Diff: 3 AACSB: Application of Knowledge Objective: LO3

10) The handbag is finally available to customers on the waitlist. Tanya, who has been on the list for three weeks, picks up the handbag at the designer's store. When she opens the handbag, she finds that a wallet and a belt are included with the handbag, which both surprises and delights Tanya. The designer most likely maximized Tanya's satisfaction by: A) using a value-pricing strategy B) meeting customer requirements C) selling a value-added product D) creating a potential product E) providing the expected product Answer: C Diff: 3 AACSB: Application of Knowledge Objective: LO2, LO5 In recent years, the "fax attack" model of car shopping has become popular. In a "fax attack," a customer sends a fax to every car dealership within a certain radius listing the make and features of the car they would like, along with the price they are willing to pay, and asks dealerships that will match that price to contact the customer. In essence, the customers set both the features and the price for the car. McCall Automotive has experienced a sharp increase in the number of fax attacks, and Phil, the sales manager, is seeking methods for addressing the situation. Phil is also concerned about the dealership’s positioning strategies and market share.

11) How could Phil best respond to a "fax attack" and differentiate McCall Automotive positively from other dealerships?

A) Phil could respond to the fax with brief answers to all of the customer’s questions.

B) Phil could develop value-added solutions for the customer by building a relationship.

C) Phil could refer the customer to other dealerships that typically have lower car prices.

D) Phil could steer the customer to more expensive cars that have better safety records.

E) Phil could refuse to match the fax attack price because quality cars demand high prices.

Answer: B Diff: 3 AACSB: Application of Knowledge Objective: LO3, LO5 12) McCall Automotive sells a large number of well-established minivans, such as the Dodge Caravan and Honda Odyssey. Now, the dealership has a new vehicle that it must position–a hybrid minivan. What will be the best strategy for positioning the new hybrid minivan?

A) hiring a new sales team to sell the hybrid minivan B) focusing on key features of the hybrid minivan C) highlighting the service provided by the dealership D) creating a need and desire for a hybrid minivan E) sustaining the dealership’s current minivan market share Answer: D Diff: 3 AACSB: Application of Knowledge Objective: LO3

13) Phil believes that the dealership should lower car prices to capture a higher share of the market. Which statement best supports Phil’s argument?

A) Short-term profits will not be affected by lower prices if a firm is an e-retailer.

B) Competitors will lower prices to gain market share, and a price war will ensue.

C) Firms with large market shares are publicly owned but less strictly monitored.

D) A temporary reduction in profits could lead to long-term future profits because of greater market share.

E) A company with the largest share of the market can cut costs and raise prices without the public noticing or switching to competitors.

Answer: D Diff: 3 AACSB: Application of Knowledge Objective: LO4 14) Phil believes that the dealership should lower car prices to capture a higher share of the market. Competing on price will most likely work with which of the following car buyers?

A) a high-involvement buyer who values quality and durability B) a high-involvement buyer who is willing to research features and performance extensively C) a low-involvement buyer who has a tight budget D) a low-involvement buyer who is unwilling to purchase online E) a low-involvement buyer who asks an employee to make the buying decision Answer: C Diff: 3 AACSB: Application of Knowledge Objective: LO4 15) Phil has observed that today’s car buyers are more knowledgeable than car buyers in the past, primarily due to the Internet. Such car buyers gather information on all aspects of a car, from the manufacturing process to service contracts, and they respond best to a value-added selling strategy. What adviceshould Phil most likely give to his sales team when they are faced with such knowledgeable buyers?

A) Drop the price significantly under the list price.

B) Create rapport with the buyer to build instant customer loyalty.

C) Tailor the product to the buyer's needs and provide superior service.

D) Augment the product by adding extra features for only a minimal fee.

E) Appeal to the buyer's sense of style and luxury through differentiation.

Answer: C Diff: 3 AACSB: Application of Knowledge Objective: LO3, LO5 Selling Today, 16e (Manning/Ahearne/Reece) Chapter 8 The Buying Process and Buyer Behavior 8.1 True/False Questions 1) A habitual rebuy is characterized by perceived brand differences and high customer involvement.

Answer: FALSE

Diff: 1 Objective: LO2 2) Buyer behavior is often influenced by perception.

Answer: TRUE Diff: 1 Objective: LO5 3) Very few purchases are guided by emotional buying motives.

Answer: FALSE Diff: 1 Objective: LO5 4) The three prescriptions for developing a customer strategy focus on (1) the customer's buying process, (2) why customers buy, and (3) negotiating the transaction.

Answer: FALSE Diff: 2 Objective: LO1 5) The need to belong is really just an urge, not a basic human social need.

Answer: FALSE Diff: 2 Objective: LO5 6) One difference between organizational and consumer buyers is that organizational buyers' purchases are made for some purpose other than personal consumption.

Answer: TRUE Diff: 1 Objective: LO2 7) The person who withdraws money from a savings account and uses this money to buy government bonds at a higher return on investment is very likely guided by rational buying motives.

Answer: TRUE Diff: 1 Objective: LO5

8) Subcultures typically share value systems based on similar life experiences and situations.

Answer: TRUE Diff: 1 Objective: LO5 9) There are three types of organizational buying situations: new-task buy, straight rebuy, and modified rebuy.

Answer: TRUE Diff: 1 Objective: LO2 10) Patronage buying motives are particularly important when product offerings from several companies are very similar.

Answer: TRUE Diff: 1 Objective: LO5 11) "When should I buy?" is a consideration in the buyer resolution theory of personal selling.

Answer: TRUE Diff: 2 Objective: LO4 12) Systems selling appeals to buyers who prefer to purchase individual products from a variety of sellers.

Answer: FALSE Diff: 1 Objective: LO2 13) The three types of consumer buying situations are habitual buying decisions, complex buying decisions, and modified buying decisions.

Answer: FALSE Diff: 1 Objective: LO2 14) The first stage in the typical buying process is evaluation of solutions.

Answer: FALSE Diff: 2 Objective: LO3 15) Transactional buyers are well aware of their needs and usually know a great deal about the products or services they intend to purchase.

Answer: TRUE Diff: 1 Objective: LO3

8.2 Multiple-Choice Questions 1) In order for a customer to arrive at a buying decision, the salesperson should present the product according to: A) the individual customer's needs B) the salesperson's point of view C) a standardized procedure or presentation D) the buyer profile based on industry research E) the chronological timeline of the product Answer: A Diff: 2 AACSB: Written and Oral Communication Objective: LO5 2) The three major types of organizational buying situations are: A) new task buy, rebuy, and limited task buy B) new task buy, straight rebuy, and modified rebuy C) habitual buying decisions, variety-seeking buying decisions, and complex buying decisions D) transactional buy, consultative buy, and strategic alliance buy E) transactional buy, product buy, strategy buy Answer: B Diff: 2 Objective: LO2 3) Which influence on buying decisions is defined as a set of characteristics and social behaviors based on the expectations of others?

A) reference group B) social class C) role D) culture E) process Answer: C Diff: 1 Objective: LO5 4) Which buyer behavior theory focuses the salesperson's attention on five important factors that the customer is likely to consider before making a purchase?

A) buyer-action theory B) compulsive-buying theory C) need-satisfaction theory D) buyer-resolution theory E) feature-benefit theory Answer: D Diff: 2 Objective: LO4

5) Which type of selling appeals to buyers who prefer to purchase a packaged solution to a problem from a single seller, thus avoiding all the separate decisions involved in a complex buying situation?

A) modified selling B) bundled-option selling C) straight selling D) transactional selling E) systems selling Answer: E Diff: 2 Objective: LO2 6) Which type of consumer buying situation requires very little consumer involvement and brand differences are usually insignificant?

A) habitual buying decision B) straight rebuy decision C) complex buying decision D) modified rebuy decision E) partner buying decision Answer: A Diff: 2 Objective: LO2 7) According to the text, Ashley Pineda of the Pulte Group needs to do which of the following before meeting with customers?

A) Rehearse her sales presentation until she has it memorized.

B) Conduct research to determine each customer's specific needs.

C) Contact the home office to confirm the customer's address.

D) Meet with her sales manager about her flagging sales.

E) Implement a systems selling strategy director.

Answer: B Diff: 2 Objective: LO1 8) According to the buyer resolution theory, which of the following is an important factor that the consumer is likely to consider before making a purchase?

A) Where should I store the product after purchase?

B) What is a fair price?

C) How many sellers are in the market?

D) When should I make the payment?

E) From whom should I ask advice about the purchase?

Answer: B Diff: 2 Objective: LO4

9) Which of the following is an important limitation of the buyer resolution theory?

A) Salespeople find the theory too complex.

B) Customers already know what they should buy.

C) Few customers ask the question, "What is a fair price?"

D) Knowing which decisions are difficult for buyers is difficult.

E) Answers provide little insight into customer buying strategies.

Answer: D Diff: 2 Objective: LO4 10) Which of the following motives would most likely make a customer buy from the same business they have been buying from?

A) systems buying motives B) emotional buying motives C) brand loyalty motives D) product buying motives E) patronage buying motives Answer: E Diff: 2 Objective: LO5 11) Which stage in the typical buying process occurs after a customer has evaluated solutions but before a purchase is made?

A) resolution of problems B) needs awareness C) solution selling D) pre-purchase E) implementation Answer: A Diff: 2 Objective: LO3 12) A customer will tend to screen out or modify stimuli. This process is known as: A) conscious input B) selective attention C) discrimination D) selectivity E) sensation Answer: B Diff: 2 Objective: LO5

13) In Maslow's theory, after physiological needs have been satisfied the next need level is likely to be: A) self-actualization B) psychological awareness C) freedom from danger D) worthiness in the eyes of others E) food and shelter Answer: C Diff: 2 Objective: LO5 14) When a teenage girl asks her best friends for their opinions on a career opportunity, she is most likely seeking support from which of the following groups?

A) culture B) subculture C) social class D) reference E) mastery Answer: D Diff: 2 AACSB: Analytical Thinking Objective: LO5 15) Which of the following statements about social class is most likely true?

A) People in the lower classes purchase items less impulsively than upper class shoppers.

B) Social scientists agree that there are an unlimited number of social classes.

C) "New money" people possess inherited wealth, often acquired several generations before.

D) It is virtually impossible to move from one social class to another.

E) Social class is determined by a combination of factors such as income, education, occupation, and accumulated wealth.

Answer: E Diff: 2 Objective: LO5 16) A study of buying behavior reveals that most people make buying decisions based on: A) a combination of emotional and rational buying motives B) emotional buying motives only C) rational buying motives only D) social buying motives only E) group theory motives only Answer: A Diff: 1 Objective: LO5

17) Product buying motives include: A) engineering preference B) social preference C) method preference D) purchase preference E) frequency preference Answer: A Diff: 2 Objective: LO5 18) In which value creation selling approach do salespeople focus a great deal of attention on customers' needs awareness?

A) transactional selling B) strategic alliance selling C) consultative selling D) new task selling E) system selling Answer: C Diff: 2 Objective: LO4 19) According to Abraham Maslow, self-fulfillment is achieved through satisfaction of which of the following needs?

A) esteem B) social C) safety and security D) self-actualization E) fullness Answer: D Diff: 1 Objective: LO5 20) Which is most likely true regarding the differences between consumer and organizational buyers?

A) Consumer buyers focus on complex, technical specifications, while organizational buyers focus on brand reputation.

B) Consumers purchase for household consumption, while organizational buyers purchase for personal consumption.

C) Consumer decisions are usually made by individuals, while organizational decisions are frequently made by several people.

D) Consumer purchases are based primarily on rational criteria, while organizational purchases are based primarily on emotional responses to products or promotions.

E) Consumers mostly engage in a lengthy decision process, while organizational buyers make quick decisions.

Answer: C Diff: 3 Objective: LO2 21) What most likely leads a prospect to purchase one product instead of another?

A) product buying motives B) patronage affiliations C) buyer resolutions D) group emotional needs E) physiological concerns Answer: A Diff: 2 Objective: LO5 22) When products are indistinguishable or there is a prior relationship between customer and vendor, a purchase is most likely based on a(n): A) product buying motive B) patronage buying motive C) rational buying motive D) emotional buying motive E) group buying motive Answer: B Diff: 1 Objective: LO5 23) A purchase based on the result of an objective review of available information is based on a(n): A) product buying motive B) patronage buying motive C) rational buying motive D) emotional buying motive E) stable buying motive Answer: C Diff: 1 Objective: LO5 24) A purchase based more on feelings than on logic is a(n): A) product buying motive B) patronage buying motive C) rational buying motive D) emotional buying motive E) group buying motive Answer: D Diff: 1 Objective: LO5

25) Which of the following is a factor that would motivate a rational buyer?

A) prestige B) nostalgia C) celebrity endorsement D) durability E) branding Answer: D Diff: 1 Objective: LO5 26) An aroused need, drive, or desire is referred to as a(n): A) buying motive B) undifferentiated motive C) compelling motive D) rational motive E) personal motive Answer: A Diff: 1 Objective: LO5 27) Cross-generational selling is most likely a challenge because different generations: A) have different basic emotional needs B) prefer different forms of contact C) have different physiological needs D) feel mistrust for each other E) have power dynamic issues Answer: B Diff: 2 Objective: LO5 28) Which term refers to a cross-functional team of decision makers who often represent several departments in a company?

A) value chain B) task force C) reference group D) buying center E) virtual group Answer: D Diff: 1 Objective: LO2

29) Salespeople should most likely think of needs in terms of: A) the product B) the industry as a whole C) the typical customer D) each specific customer E) the competition Answer: D Diff: 2 Objective: LO3 30) Which step in the buying process most likely adds customer value after the sale?

A) need awareness B) evaluation of solutions C) resolution of problems D) purchase evaluation E) implementation Answer: E Diff: 1 Objective: LO3 8.3 Short Answer Questions 1) The process through which sensations are interpreted, using our knowledge and experience is called ________.

Answer: perception Diff: 2 Objective: LO5 2) Within most cultures are groups whose members share value systems based on common life experiences and situations. We call such a group a(n) ________.

Answer: subculture Diff: 2 Objective: LO5 3) A(n) ________ is a carefully conceived plan that will result in maximum customer responsiveness.

Answer: customer strategy Diff: 2 Objective: LO1 4) ________ is the first stage in the buying process.

Answer: Needs awareness Diff: 2 Objective: LO3

5) A first-time purchase of a product or service by a business-to-business customer is a(n) ________ buy.

Answer: new task Diff: 1 Objective: LO2 8.4 Essay Questions 1) List and describe the three types of consumer buying situations.

Answer: 1. Habitual buying decisions usually require very little consumer involvement and brand differences are usually insignificant. Typical for frequently purchased, lost-cost items (e.g., shampoo).

2. Variety-seeking buying decisions are characterized by low customer involvement, but important perceived brand differences. Brand switching is not uncommon because buyers can be influenced by advertising appeals, coupons, or lower prices to try a new brand. Brand switching is usually motivated by the desire for variety rather than dissatisfaction.

3. Complex buying decisions are characterized by a high degree of involvement by the consumer. Consumers are likely to be involved when the product is expensive, purchased infrequently, and highly self-expressive.

Diff: 1 AACSB: Analytical Thinking Objective: LO2 2) List the steps in the typical buying process.

Answer: 1. Need awareness.

2. Evaluation of solutions.

3. Resolution of problems.

4. Purchase.

5. Implementation.

Diff: 2 Objective: LO3

8.5 Applied Multiple Choice Questions RealPlan sells a calendar/messaging/paperwork center that helps working parents organize their families' schedules and paperwork. The product has received positive feedback from buyers, and it is priced comparably to normal planners even though it offers more features and benefits.

RealPlan has been selling various planning products to consumers for 10 years, and managers at the firm see an opportunity to move into the business market with a software version of the popular planner.

1) RealPlan marketers have developed advertisements that show images of families spending quality time together enjoying fun activities. The implication of the ads is that the RealPlan product enables families to organize their busy schedules so well that more time is available for bonding. What are the RealPlan marketers most likely trying to do with these advertisements?

A) Stimulate emotional buying motives.

B) Examine rational buying motives.

C) Appeal to working and single mothers.

D) Engage common reference groups.

E) Develop lifetime customer value.

Answer: A Diff: 3 AACSB: Analytical Thinking Objective: LO3 2) A consumer who purchases the RealPlan product for the first time would most likely be engaging in a(n) ________ buying decision.

A) straight rebuy B) variety-seeking C) modified rebuy D) habitual E) complex Answer: B Diff: 3 AACSB: Analytical Thinking Objective: LO2 3) What should the sales director of RealPlan most likely do before sending salespeople out to call on business buyers for the first time?

A) Make sure the salespeople have talked to businesspeople before.

B) Ask the salespeople to rehearse the standard customer presentation.

C) Adjust the sales forecast using the normal sales cycle for customers.

D) Build long-term strategic alliances by creating systems selling appeals.

E) Discuss the differences between consumer buyers and business buyers.

Answer: E Diff: 3 AACSB: Analytical Thinking Objective: LO2

4) The sales director of RealPlan has developed a sales team training session to address the differences between consumer and business buyers. Which of the following is a true statement that should be included in the training session?

A) In business sales, the initial contact is almost never the actual purchaser.

B) In business sales, more than one person may be involved in the purchasing decision.

C) In consumer sales, emotion plays a more significant role than logic in decision making.

D) In consumer sales, a new-task buy is the most common type of purchasing situation.

E) In consumer sales, even low-cost items involve significant consumer involvement.

Answer: B Diff: 3 AACSB: Analytical Thinking Objective: LO2 5) The sales director of RealPlan has observed that during the selling process the sales team primarily focuses on promoting product features and benefits to customers. Although the sales team has a high closure rate of initial sales, the team has a low rate of repeat business. Which stage of the typical buying process should RealPlan salespeople most likely focus on to improve customer retention rates?

A) needs awareness B) building rapport C) presentation skills D) purchase procedures E) self-actualization Answer: A Diff: 3 AACSB: Analytical Thinking Objective: LO2 6) On a customer satisfaction survey, which answer most likely suggests that RealPlan salespeople should focus on needs awareness?

A) "The product was not as sturdy as the salesperson said it would be."

B) "The product did not solve my primary problems."

C) "The product is not a good value for the money."

D) "The product arrived torn in the box."

E) "The product had a strange color."

Answer: B Diff: 3 AACSB: Analytical Thinking Objective: LO2

7) Sarah, a RealPlan sales representative, recently sold a software package to Mario, the owner of a small business. How can Sarah most likely create value for Mario now that the sale is complete?

A) sending Mario product brochures B) becoming personal friends with Mario C) continuing to contact Mario to ask for referrals D) providing additional software training to Mario E) explaining the many software benefits to Mario Answer: D Diff: 3 AACSB: Analytical Thinking Objective: LO4 Terrance Simpson is a sales representative for Swim-Tex, a swimming pool service and supply company. Swim-Tex sells the chemicals needed for pool maintenance as well as pool accessories like slides, ladders, and diving boards. Swim-Tex sells to both consumers and businesses.

8) Terrance has noticed that many of his customers become very frustrated with him when he attempts to use needs assessment, problem solving, or relationship building techniques. These customers typically know what product will meet their needs. What should Terrance most likely do when faced with such customers?

A) Highlight product benefits more than product features.

B) Ask the customer questions to identify unspoken wants.

C) Focus on the purchase stage of the buying process.

D) Spend more time building rapport with the customer.

E) Rework the presentation script to focus more on emotion.

Answer: C Diff: 3 AACSB: Analytical Thinking Objective: LO3 9) How would Terrance most likely benefit from aligning the sales process with the customer’s buying process?

A) lower advertising and marketing costs B) greater efficiency with fewer salespeople C) lower travel expenses due to fewer customer visits D) greater success in making sales due to understanding how buyers buy E) fewer returns from customers who felt pressured into making transactional purchases Answer: D Diff: 3 AACSB: Analytical Thinking Objective: LO3

10) Managers at Swim-Tex have informed members of the purchasing department to change straight rebuy situations to modified rebuys. What does this most likely mean for members of the Swim-Tex purchasing department?

A) renegotiating prices with vendors B) simplifying the buying process C) building strategic alliances D) forming a new value chain E) focusing on a decision in the process that is not an issue for the customer Answer: A Diff: 3 AACSB: Analytical Thinking Objective: LO2 11) Terrance relies on the buyer resolution theory to pursue sales. Terrance is most likely vulnerable to which of the following factors?

A) increasing the time it takes to close the sale B) spending too little time building rapport with the customer C) losing focus on the features and benefits of the product D) shifting all the power in the transaction to the customer E) focusing on a decision in the process that is not an issue for the customer Answer: E Diff: 3 AACSB: Analytical Thinking Objective: LO4 12) When giving a sales presentation to new customers, Terrance strives to convey that he is highly ethical and trustworthy and that Swim-Tex products are safe and will perform as expected. Terrance is most likely addressing which aspect of Maslow's hierarchy of needs?

A) security needs B) social needs C) esteem needs D) general needs E) physiological needs Answer: A Diff: 3 AACSB: Analytical Thinking Objective: LO5

13) Terrance has identified that a customer strongly identifies with social groups and is influenced heavily by her role, reference, social class, and culture. What would be important for Terrance to do to win the sale from this customer?

A) Position the product as being a luxury product.

B) Position the product as fitting with the groups the customer identifies with.

C) Position the product as being the standard across all groups.

D) Assume the mannerisms of the culture the customer identifies with.

E) Mimic the customer's speech patterns to create rapport.

Answer: B Diff: 3 AACSB: Analytical Thinking Objective: LO5 14) Terrance positions certain swimming pool accessories, such as slides and diving boards, to appeal to baby boomers with grandchildren. Which influence on buying decisions is most important in this situation?

A) role B) culture C) social class D) reference group E) organizational culture Answer: D Diff: 3 AACSB: Analytical Thinking Objective: LO5 15) Terrance should most likely understand a customer’s emotional buying motives because such motives are: A) only overcome by nonverbal communication B) foundations for rational buying motives C) influential in most buying decisions D) factors in cost/benefit analyses E) barriers to most high-end sales Answer: C Diff: 3 AACSB: Analytical Thinking Objective: LO5 Selling Today, 16e (Manning/Ahearne/Reece) Chapter 9 Developing and Qualifying Prospects and Accounts 9.1 True/False Questions 1) The goal of prospecting is to build a prospect base made up of current and potential customers.

Answer: TRUE Diff: 1 Objective: LO1

2) The use of friends and acquaintances is not an acceptable way to build a prospect base.

Answer: FALSE Diff: 1 Objective: LO2 3) When you build value into your sales process, you increase the odds that the customer will give you a referral.

Answer: TRUE Diff: 2 Objective: LO2 4) The "endless chain" prospecting technique is easy to use because it fits naturally into most sales presentations.

Answer: TRUE Diff: 1 Objective: LO2 5) It would be inappropriate to ask for the names of potential buyers immediately after closing the sale.

Answer: FALSE Diff: 1 AACSB: Written and Oral Communication Objective: LO2 6) Using an existing customer as an intermediary (presentation of a letter or note) can reduce the amount of time spent on prospecting.

Answer: TRUE Diff: 2 Objective: LO2 7) Cold calls should not be used to introduce a new product or service.

Answer: FALSE Diff: 2 AACSB: Written and Oral Communication Objective: LO2 8) Joe Girard's "Ferris Wheel" concept illustrates how many calls it takes to close a sale.

Answer: FALSE Diff: 2 Objective: LO1 9) CRM software cannot be used to track the likelihood that a sale will close.

Answer: FALSE Diff: 2 AACSB: Information Technology Objective: LO5 10) Experts recommend conducting business in the process of networking to ensure that solid prospects are developed quickly and efficiently.

Answer: FALSE Diff: 2 Objective: LO2 11) Qualifying is the process of identifying prospects who should be contacted.

Answer: TRUE Diff: 1 Objective: LO1 12) In most selling situations, prospecting begins with a study of the market for your product or service.

Answer: TRUE Diff: 2 Objective: LO3 13) Many banks, accounting firms, and consulting companies use seminars to generate new prospects.

Answer: TRUE Diff: 2 Objective: LO2 14) In most cases, technicians, receptionists, bank tellers, and other non-sales personnel can do little to help with prospecting.

Answer: FALSE Diff: 3 Objective: LO2 15) Networking is another word for prospecting.

Answer: FALSE Diff: 2 Objective: LO1

9.2 Multiple-Choice Questions 1) Which of the following questions is most relevant to qualifying a prospect?

A) How long has the prospect been interested in the product?

B) Does the prospect know the firm's decision maker?

C) Can the prospect make the buying decision?

D) Can the prospect pay in cash for the purchase?

E) Has the prospect purchased anything similar before?

Answer: C Diff: 2 AACSB: Application of Knowledge Objective: LO3 2) A typical company will lose approximately what percent of its customers every year?

A) 5 to 10 B) 15 to 20 C) 25 to 30 D) 35 to 40 E) 45 to 50 Answer: B Diff: 2 Objective: LO1 3) Joe Girard's "Ferris Wheel" concept assumes which of the following?

A) The optimal ratio of customers to prospects is 66 percent.

B) If the customers are sold the correct product and given good service, a company will not lose customers.

C) A certain number of customers will be lost every year by most companies.

D) Departing customers must be replaced by new customers at an equal rate.

E) Salespeople will do better prospecting when they think of the process as a roller coaster.

Answer: C Diff: 3 Objective: LO1 4) When a salesperson asks a customer to prepare a note or letter of introduction that can be delivered to the potential customer, this person is using which prospecting method?

A) networking B) mail inquiry C) cold canvass D) referral E) trade show Answer: D Diff: 1 Objective: LO2

5) A major barrier to prospecting is time. Therefore, salespeople should: A) try to avoid spending time available for actual selling on prospecting B) try to spend at least 50 percent of every week on prospecting C) get involved in prospecting only after completing all regular selling activities D) assign prospecting tasks to lower-level employees E) integrate prospecting activities with regular selling duties Answer: E Diff: 2 Objective: LO1 6) Which of the following efforts is used by progressive marketers to improve the quality of the prospecting process?

A) Shorten the sales cycle by quickly determining which new prospects are qualified.

B) Reduce the number of prospects who board the "Ferris wheel."

C) Avoid the temptation of developing quality standards, which disrupts the prospect flow.

D) Increase the use of telemarketing efforts to identify likely prospects.

E) Make more cold calls to increase the volume and quality of prospects in the pipeline.

Answer: A Diff: 3 Objective: LO4 7) Which one of the following is a guideline for effective networking?

A) Limit the number of people you meet in a given setting.

B) When you meet someone, tell the person what you do.

C) Follow up on every contact you meet.

D) Always conduct business while networking.

E) Only offer a business card if the other person asks for it.

Answer: B Diff: 2 Objective: LO2 8) Which publication would most likely provide a salesperson with detailed information on the citizens of a specific community?

A) Middle Market Directory B) Thomas Register of American Manufacturers C) Polk City Directory D) Standard and Poor's Corporation Records Service E) Encyclopedia of Associations Answer: C Diff: 1 Objective: LO2

9) Which of the following is most likely a true statement regarding prospecting?

A) Personal observation is an unlikely prospecting technique.

B) Cold call prospecting is a systematic approach to identifying prospects.

C) The response rate for e-mails is high, so they are a valid source of prospects.

D) A salesperson cannot afford to spend time calling on persons who are not legitimate prospects.

E) Networking should be avoided as a source of prospects because it is unprofessional to mix business and friendship.

Answer: D Diff: 2 Objective: LO2 10) Networking, as it applies to the field of selling, is a method of prospecting that: A) utilizes the telephone and cold calling strategies B) remains popular only in the telecommunications field C) is seldom used today because of the rise of social media D) is considered unethical in most industries because of lawsuits E) relies on making contacts with people and profiting from the connections Answer: E Diff: 2 Objective: LO2 11) Which term refers to a salesperson's brief, cold call opener that summarizes the salesperson's product and company?

A) elevator presentation B) sales dashboard C) pipeline speech D) qualifying remarks E) sales blog Answer: A Diff: 2 AACSB: Written and Oral Communication Objective: LO2 12) Which of the following is true regarding prospecting at trade shows?

A) It is difficult to identify good prospects at trade shows.

B) It is easier to identify good prospects and close sales at a trade show.

C) Trade shows are too crowded to conduct presentations and close sales.

D) It requires over five sales calls to close a sale from a trade show prospect.

E) Trade show prospects are less motivated to buy than are other prospects.

Answer: B Diff: 3 Objective: LO2

13) At-a-glance visualizations that define, monitor, and analyze the relationships existing in the pipeline or sales funnel are referred to as: A) sales forecasts B) pipeline analytics C) pipeline dashboards D) regression models E) commission reports Answer: C Diff: 2 AACSB: Information Technology Objective: LO5 14) Which of the following is true regarding doing business in Germany?

A) Germany has been described as a "high context" culture.

B) Dinner is the most common meal for business meetings.

C) Flashy brochures have more impact than statistic-filled ones.

D) There is a strong emphasis on punctuality in Germany.

E) Non-verbal communication is more important than the words used to communicate.

Answer: D Diff: 2 AACSB: Multicultural and Diversity Understanding Objective: LO5 15) Which term best refers to a well-connected person who does not make the buying decision but has an impact on the person who does?

A) gatekeeper B) referral C) prospect D) intermediary E) center of influence Answer: E Diff: 1 Objective: LO2 16) To increase the odds that customers will give referrals, a salesperson should most likely: A) build value into the sales process B) offer free products or discounts for referrals C) motivate buyers through time pressure D) provide a rational buying motive E) ask sales managers for permission to cut prices Answer: A Diff: 2 Objective: LO2

17) The portfolio model of classifying prospects involves: A) assigning each prospect a rating B) using multiple factors to classify prospects C) determining where a prospect is in the sales process D) using a sales forecast to predict which prospects will buy E) using external industry research to identify and qualify prospects Answer: B Diff: 3 Objective: LO5 18) The sales funnel model of classifying prospects involves: A) assigning each prospect a rating B) using multiple factors to classify prospects C) determining where a prospect is in the sales process D) counting all prospects equally E) asking directed questions to prospects Answer: C Diff: 2 Objective: LO5 19) Educational seminars are most likely a good source of prospects because: A) people who pay for a seminar will buy product B) salespeople need help conducting demonstrations C) most seminar attendees are referrals D) product benefits and features can be showcased E) salespeople can build a close into the keynote speech Answer: D Diff: 2 Objective: LO2 20) Which of the following would most likely be used by a sales manager to estimate the sales potential of a prospect?

A) telemarketing B) qualifying C) trade show D) SWOT analysis E) account analysis Answer: E Diff: 1 Objective: LO5

21) The term social network most likely refers to a salesperson's: A) direct and indirect contacts B) co-workers and managers C) closest clients D) industry affiliation groups E) alumni organization Answer: A Diff: 1 Objective: LO2 22) A key concept in networking is to: A) follow up with every person you make contact with B) select who you will follow up with based on their usefulness C) send an email to every contact on a regular basis D) follow up on all emails with a phone call three days later E) offer a business card to select individuals Answer: B Diff: 2 Objective: LO2 23) Cold calling can be an effective technique for reaching: A) decision makers B) senior executives C) potential prospects D) buying centers E) qualified leads Answer: C Diff: 2 Objective: LO2 24) Salesforce.com is a leading provider of: A) industry research B) account metrics C) product development research D) CRM software E) payroll software Answer: D Diff: 1 AACSB: Information Technology Objective: LO4

25) The responsibility for entering customer information and contact records into the CRM database usually belongs to the: A) customer B) office manager C) data entry clerk D) sales manager E) salesperson Answer: E Diff: 1 AACSB: Information Technology Objective: LO4 26) CRM software is useful because customer information is most likely: A) shared with competitors B) available to many people in the company C) stored locally on the salesperson's computer D) updated automatically by the CRM provider E) changed only with the approval of a supervisor Answer: B Diff: 2 AACSB: Information Technology Objective: LO4 27) A salesperson with sales intelligence will most likely be able to create value for a prospect by having an understanding of the: A) software analytics of the firm B) product or service being sold C) culture and vision of the prospect's firm D) social and business background of the prospect E) special discounts available from the prospect's firm Answer: C Diff: 2 Objective: LO4 28) A downside to focusing too much effort on prospects with little potential is: A) the pipeline may become hard to keep track of with CRM software B) managers may assign some prospects to other salespeople C) too little resources are available to focus on prospects with high potential D) a salesperson may forget customers' names E) sales commissions may max out the compensation plan Answer: C Diff: 2 Objective: LO5

29) A prospect list from a CRM database is likely to include which kinds of information?

A) amount, date, and likelihood that a sale will close B) salesperson bonus information on closed sales C) dates of sales competitors have made to the prospect D) salesperson's conclusions on any calls made to the prospect E) which salespeople earned the highest commissions, in descending order Answer: A Diff: 3 AACSB: Information Technology Objective: LO5 30) A balanced funnel involves: A) aggressively eliminating non-productive leads B) combining technical sales with product sales C) entering prospects from an even balance of industries D) entering the "Ferris wheel" simultaneously E) having prospects at different stages of the sales cycle Answer: E Diff: 2 Objective: LO5 9.3 Short Answer Questions 1) Joe Girard, popular sales trainer and consultant, used the "________" concept to illustrate the relationship between prospecting and the loss of customers due to attrition.

Answer: Ferris Wheel Diff: 1 Objective: LO1 2) The practice of marketing goods and services through telephone contact is known as ________.

Answer: telemarketing Diff: 1 Objective: LO2 3) An ________ outlines expected sales for a product or service to a specific target group over a specific period of time.

Answer: sales forecast Diff: 2 Objective: LO5 4) The procedure used to obtain names of potential prospects from current prospects and customers is called ________.

Answer: referrals Diff: 2 Objective: LO2 5) The process of identifying prospects that should be contacted is called ________.

Answer: qualifying

Diff: 1 Objective: LO1 9.4 Essay Questions 1) Describe the major benefits of using a computerized database as a source of prospects.

Answer: 1. Can match product features with the needs of potential customers quickly and accurately.

2. Can accumulate a great deal of information about individual customers and use this information to personalize the selling process.

Diff: 2 AACSB: Information Technology Objective: LO2 2) What is qualifying? What are the basic questions that a salesperson should ask in the qualifying process?

Answer: Qualifying is the process of identifying prospects that appear to have a need for your product and should be contacted. The following questions should be addressed: * Does the prospect or account have a need for my product? * Does the prospect or account have the authority to buy my product? * Does the account or prospect have the financial resources to buy my product? * Does the prospect or account have the willingness to buy my product?

Diff: 3 AACSB: Application of Knowledge Objective: LO3 9.5 Applied Multiple Choice Questions Marco, a salesperson, prospects for new customers almost constantly but still has problems meeting his sales goals. Marco has consulted with his sales manager, who notices that once Marco has a meeting with a decision maker, Marco typically closes the sale.

1) What could Marco most likely focus on to better meet his goals?

A) more prospecting to make sure he has a steady supply of potential new customers to present the product to B) qualifying prospects to make sure that they have the desire and decision-making authority to make a purchase C) presenting to the prospect using a stronger emotional appeal and less logic D) presenting benefits to the prospect instead of features, and making sure the benefits are as specific as possible E) working with a more seasoned salesperson from his company to learn techniques for finding more prospects in less time Answer: B Diff: 3 AACSB: Application of Knowledge Objective: LO3 2) Marco asks his manager to listen in while he makes calls one day to help him figure out what he could be doing better. The manager concludes that Marco is doing an excellent job of building

rapport but is not qualifying prospects as he talks to them. The manager suggests that Marco spend less time talking about the prospect's personal details and: A) more time talking about the features of the product B) focus on non-verbal ways to build rapport with the prospect, such as making active listening noises C) keep a list of qualifying questions in front of him so he makes sure to ask each one of them during the call D) practice his elevator pitch so he can help the prospect understand the product more quickly, since they do not have time on the phone to do a long pitch E) instead, talk about himself so the prospect will be able to trust him more easily Answer: C Diff: 3 AACSB: Application of Knowledge Objective: LO3 A sales representative has contacted all companies in his territory in the target industry and is concerned that the territory may be saturated.

3) What should the salesperson most likely do to identify new prospects in the same territory and industry?

A) Contact people in different departments of current client companies.

B) Use the firm's Website to develop a global contact network.

C) Develop an elevator pitch for an educational seminar.

D) Write an article for a national trade publication.

E) Network with support staff at a competing firm.

Answer: A Diff: 3 AACSB: Application of Knowledge Objective: LO2 4) How could the sales representative use CRM technology to pinpoint companies that might have more untapped buyers?

A) Compare the names of the contacts for each company in the CRM to the names on the invoices paid by the companies.

B) Run a pipeline report to see how many potential sales could close within the next 60 days.

C) Run a pipeline report for this year and then one for the same month a year ago to compare numbers of prospects at each stage in the pipeline.

D) Look at the task list to see if there are prospects to be called that salespeople have missed.

E) Analyze sales reports in terms of company populations to find sales that are too small to be the entire company and may just be one department.

Answer: E Diff: 3 AACSB: Application of Knowledge Objective: LO4

Andrew McIlhern, a software sales representative, is not happy about giving up two days of making sales calls to work his company's booth in the exhibit hall of a major regional trade show. When Andrew consults with his company's exhibit manager, however, she urges him to use the time to prospect wisely.

5) How can Andrew use those two days in the exhibit hall to increase his pipeline?

A) spend time studying product literature to increase his product knowledge B) present to unqualified visitors to the booth to improve his elevator pitch C) make calls to current customers during breaks to provide after-sale service D) ask co-workers to call some of his prospects to obtain potential referrals E) qualify prospects with a few questions when they first enter the booth Answer: E Diff: 3 AACSB: Application of Knowledge Objective: LO1, LO2 6) From the base of prospects Andrew makes at the trade show, he closes twice as many sales as normal, and he cuts his sales cycle in half. What most likely explains this?

A) The prospects at the trade show were both qualified and interested in the product.

B) The prospects at the trade show had more money to spend than most customers.

C) The prospects at the trade show developed a high degree of trust in Andrew and his firm.

D) The trade show only attracted prospects that had been referred to Andrew and his firm.

E) The trade show required exhibiting companies to offer discounts to all attendees.

Answer: A Diff: 3 AACSB: Application of Knowledge Objective: LO3 Grackin Corporation is expanding into a new territory in which they are not as well-known as they are in their current territories. As part of this new push, the sales director decides to use a strategy that involves making aggressive cold-calls and hosting frequent educational seminars.

7) Because cold calling does not immediately result in a high level of closed sales, some companies feel that it is worthless. However, when done correctly—by researching the prospect and keeping the call bright and focused—it can be a(n): A) tool for making a quick transactional sale B) strategy for qualifying prospects with an elevator pitch C) way to introduce the prospect to the sales representative D) risk-free way to build rapport with a new prospect E) method of closing sales that have been pending Answer: C Diff: 3 AACSB: Application of Knowledge Objective: LO2

8) How will the sales cycle in this new territory most likely compare in length to the cycle in the established territories of Grackin Corporation?

A) It will be shorter, because the salespeople will be calling prospects to introduce the company.

B) It will be shorter, because Grackin Corporation will not have to overcome false impressions.

C) It will be longer, because the salespeople will have to introduce the company in cold calls instead of getting name recognition from prospects.

D) It will be longer, because consumers in the new territory have not expressed a need for Grackin Corporation's products before.

E) It will be the same, because sales presentations are independent of sales cycles.

Answer: C Diff: 3 AACSB: Application of Knowledge Objective: LO2 9) How does Grackin most likely benefit from hosting educational seminars?

A) engaging in socially responsible activities in the community B) helping sales representatives with their presentation skills C) providing shareholders with many educational benefits D) highlighting product benefits to potential prospects E) generating extra revenue from attendees Answer: D Diff: 3 AACSB: Application of Knowledge Objective: LO2 10) After an educational seminar, Grackin sales representatives are excited because they experience a major increase in the number of potential prospects. However, Anita, the Grackin sales manager, makes the following statement to the sales team: ―The sheer number of prospects a sales representative cultivates does not necessarily indicate the quality of the sales representative's pipeline.‖ What does Anita most likely mean?

A) A sales representative's pipeline is considered high quality when it contains prospects in multiple industries.

B) Prospects are only valuable if they are qualified, so a few qualified prospects are better than many unqualified ones.

C) Of all the prospects in a sales representative's pipeline, the only ones of value are the ones that make referrals to other buyers.

D) Prospects are more valuable at different points in the pipeline, so it is impossible to determine the value of a sales representative's pipeline.

E) A sales representative who works harder to convince prospects to buy will have a more valuable pipeline than one who simply tries to fill prospects' needs.

Answer: B Diff: 3 AACSB: Application of Knowledge Objective: LO3

Charles Lin has just been hired by Frederick Company to replace a sales representative who is retiring after 40 years with the company. The older representative is training Charles on procedures and customers in his territory for three weeks before he retires, and Charles knows this is a huge opportunity to learn about the prospect base. When Charles asks which CRM system the company uses, the older representative says, "Everyone else here uses some computer program called Salesforce, but I won't touch it. I know my customers like the back of my hand! I never needed to write anything down."

Charles is concerned. He used Salesforce in college and knows how vital it is to have customer information, sales records, preferences, and conversations recorded. He talks to the sales manager, who tells him the representative's sales were decent, and all his invoices came in, so they left him alone and never forced him to use the CRM system.

11) What should Charles most likely do?

A) He should quit the job because he cannot succeed in a territory that is disorganized and about which he has little information.

B) He should ask the manager for a list of orphaned customers and their contact information to develop potential referrals.

C) He should start fresh by developing his own prospect base and forget about the retiring representative's customers.

D) He should piece together his prospect base by asking the retiring representative for information and matching that information up with invoices from the billing department.

E) He should ask the other sales representatives in the department to each give him three or four of their prospects so that he can start to put together a prospect base.

Answer: D Diff: 3 AACSB: Application of Knowledge Objective: LO1, LO4, LO5 12) What will be the most likely outcome for Charles due to the retiring representative's lack of record-keeping?

A) Charles' sales will track way behind those of the retiring representative, and he will be docked pay and denied promotions.

B) Since Charles is starting from almost scratch developing a prospect and customer base, he will lose some current customers because he does not know about them.

C) Charles will be unlikely to develop sales presentation skills because of the time required to track referrals.

D) Since Charles does not need any information from the retiring representative, he will conduct more cold calls and develop a larger base of qualified customers.

E) Charles will continue maintaining the retiring representative's accounts as usual without any changes in strategy or implementation.

Answer: B Diff: 3 AACSB: Application of Knowledge Objective: LO1, LO5

13) How does the retiring representative's decision to not use a CRM system most likely affect Frederick Company?

A) Customer knowledge is lost rather than passed on to the rest of the company.

B) The sales representative's territory is not maximized because of poor strategy.

C) The entire company's pipeline forecasts cannot be maintained or calculated.

D) Organizational culture is damaged because of a lack of team spirit.

E) Hiring practices are hindered because of poor mentoring methods.

Answer: A Diff: 3 AACSB: Application of Knowledge Objective: LO1, LO4 A sales manager runs what she calls "an all-out blitz" with her department to focus on closing sales in the last month of the third quarter. Her department exceeded its quota by 20%. The strategy involved a focus on closing as many pending sales as possible and moving customers in the evaluation stage to the buying stage.

During the fourth quarter, the team closed fewer sales than in the third quarter and only generated 50% of the amount that was made in the third quarter.

14) What is the most likely explanation for this difference?

A) The prospects the team worked with in the fourth quarter had maximized their budgets.

B) The manager didn't adequately train the team in how to conduct fourth-quarter sales.

C) Pending sales are the only sales that were tallied in the final figures for each quarter.

D) The team neglected the pipeline and prospect development.

E) The team failed to align the selling and buying process.

Answer: D Diff: 3 AACSB: Application of Knowledge Objective: LO5 15) What critical error did the sales manager most likely make in the all-out blitz month?

A) She focused on sales and forgot about modeling ethical behavior for her team.

B) She pushed the product too strongly and lost focus on the customers' needs.

C) She relied on the excitement of a sales promotion instead of focusing on personal selling.

D) She incorrectly calculated commissions relative to sales for her team members.

E) She failed to look at pipeline analytics and notice the lack of prospects in the pipeline.

Answer: E Diff: 3 AACSB: Application of Knowledge Objective: LO5 Selling Today, 16e (Manning/Ahearne/Reece) Chapter 10 Approaching the Customer with Adaptive Selling 10.1 True/False Questions 1) Team selling is ideally suited to organizations that sell complex and/or customized products and services.

Answer: TRUE

Diff: 1 Objective: LO3 2) A good way to get the prospect's attention would be to use the customer benefit approach.

Answer: TRUE Diff: 2 Objective: LO7 3) The presentation strategy should be developed before the relationship, product, and customer strategy in order to have an effective plan.

Answer: FALSE Diff: 1 Objective: LO1 4) In British business settings, a hard sell is the best approach Answer: FALSE Diff: 1 AACSB: Diverse and Multicultural Work Environments Objective: LO5 5) CRM software can help salespeople plan better sales calls.

Answer: TRUE Diff: 1 AACSB: Information Technology Objective: LO6 6) The objectives for the sales presentation are developed after completion of the presentation plan.

Answer: FALSE Diff: 2 Objective: LO5 7) The transition from the preapproach to the approach is sometimes blocked by sales call reluctance.

Answer: TRUE Diff: 1 Objective: LO7

8) The six parts of the presale presentation plan checklist represent new additions to the sales training literature.

Answer: FALSE Diff: 2 Objective: LO5 9) Sales teams can often uncover problems, solutions, and sales opportunities that no individual salesperson could discover working alone.

Answer: TRUE Diff: 1 Objective: LO3 10) Multi-call sales presentations are common in many areas, but not in the retail field.

Answer: FALSE Diff: 2 Objective: LO2 11) In most situations, the involvement of technical experts on a sales team lengthens the selling cycle.

Answer: FALSE Diff: 2 Objective: LO3 12) Using a combination of approaches tends to confuse prospects and rarely results in identifying customer needs.

Answer: FALSE Diff: 1 Objective: LO7 13) The premium approach involves giving the customer a free sample or an inexpensive gift.

Answer: TRUE Diff: 1 Objective: LO7 14) The survey approach is generally a non-threatening way to open a sales call.

Answer: TRUE Diff: 2 Objective: LO7 15) A well-rehearsed approach should be avoided because it will sound too impersonal.

Answer: FALSE Diff: 1 Objective: LO7

10.2 Multiple-Choice Questions 1) Raymundo is trying to develop a presentation strategy. One of the prescriptions he should follow is: A) prepare objectives B) become a product expert C) configure value-added solutions D) discover customer needs E) recognize closing cues Answer: A Diff: 2 AACSB: Analytical Thinking Objective: LO1 2) What are the steps in order of the six-step presentation plan?

A) rehearsing, initial contact, presenting, demonstrating, closing, and servicing B) approach, needs discovery, presentation, negotiation, close, and servicing the sale C) custom fitting, presentation, demonstration, negotiating, communicating, and closing D) initial contact, presentation, demonstration, communication, closing, and servicing E) preapproach, approach, rehearsing, presentation, negotiation, and closing Answer: B Diff: 3 Objective: LO5 3) The major purpose of the approach is to: A) quantify the prospect's interest in the product B) encourage the prospect to buy your product C) capture the prospect's full attention and build interest in the product D) gather facts about the prospect's authority to buy your product E) ensure that the prospect is a qualified lead Answer: C Diff: 2 Objective: LO7 4) Which of the following statements indicates the salesperson is using the survey approach?

A) "Would you be interested in a security system that is currently used by most major banks in America?"

B) "Tammy Williams, buyer for the Mayfield Company, has been very pleased with our line of drapes and suggested I arrange to show you our products."

C) "I am anxious to show you our newest copy machine."

D) "I want to study your traffic patterns to be sure that our product meets your needs."

E) "Please accept this sample of our floor cleanser."

Answer: D Diff: 2 AACSB: Analytical Thinking Objective: LO7

5) The referral approach is most likely effective because customers: A) appreciate prepared salespeople B) expect to ask and answer many questions C) tend to focus on benefits instead of features D) usually trust a salesperson who presents statistical data E) are impressed by product benefits presented by satisfied customers Answer: E Diff: 3 Objective: LO7 6) Which of the following statements concerning selling in England is true?

A) The British consider it rude to discuss business after the business day.

B) You should expect a quick decision on the part of the client.

C) The British appreciate very informal introductions.

D) Critiquing the competition's offering is acceptable.

E) The British tend to be very expressive and casual.

Answer: A Diff: 2 AACSB: Diverse and Multicultural Work Environments Objective: LO3 7) Which of the following prescriptions is part of the presentation strategy?

A) Build a strong prospect base by analyzing qualified customers.

B) Prepare a presale presentation plan needed to meet objectives.

C) Assume a role of mentor and associate.

D) Project a positive sales image.

E) Focus on relationships.

Answer: B Diff: 1 Objective: LO1 8) Which of the following statements is most likely true?

A) Following a tight script will help facilitate a sale in consultative selling.

B) Team selling is effective when firms sell complex or customized products.

C) Salespeople should concentrate on a single objective for each sales call.

D) The salesperson should only meet with the decision maker.

E) A receptionist is most likely to be the true decision maker.

Answer: B Diff: 3 Objective: LO1

9) The statement, "This product is convenient, priced right, and ready to use," is an example of which of the following approaches?

A) premium B) survey C) product D) benefit E) systems Answer: D Diff: 2 AACSB: Analytical Thinking Objective: LO7 10) Which is the first step in creating a presentation objective?

A) Obtain personal and business information to establish the customer's file.

B) Exchange personal information with the customer to break the ice.

C) Learn about the competition's most popular products.

D) Focus on networking in social situations.

E) Acquire information needed for a routing plan.

Answer: A Diff: 3 Objective: LO1 11) All of the following are recommended guidelines for effectively making social contacts EXCEPT: A) responding to the customer's comments B) making nonverbal gestures of listening C) discussing your personal experiences D) maintaining appropriate eye contact E) initiating the social contact Answer: C Diff: 2 Objective: LO6 12) One way to move from the social contact to the business contact is to thank the customer for taking time to meet with you and then review your goals for the meeting. Which of the following approaches is this?

A) product demonstration B) agenda C) social D) referral E) customer benefit Answer: B Diff: 2 AACSB: Analytical Thinking Objective: LO7

13) Which of the following is recommended when making a telephone contact with a prospect?

A) Avoid giving the receptionist or secretary too much information.

B) Confirm the telephone appointment with a pre-appointment call.

C) Avoid telling the person how much time the appointment may take.

D) State the purpose of your call and explain how the prospect can benefit from a meeting.

E) Avoid developing a written presentation, which may sound too structured for a telephone call.

Answer: D Diff: 2 AACSB: Written and Oral Communication Objective: LO2 14) Which of the following is an effective suggestion for dealing with sales call reluctance?

A) Try to avoid feeling anxious about the initial contact because anxiety is abnormal.

B) Do not anticipate success because you may become overconfident.

C) Avoid the loss of spontaneity that comes with a well-rehearsed approach.

D) Develop a deeper commitment to your goals.

E) Employ the premium approach method.

Answer: D Diff: 3 Objective: LO7 15) "The certificate of deposit represents a safe investment, but you may want to examine some options that will give you a better return on your investment. Completion of our Financial Planning Profile questionnaire can help us identify investment options." These statements are most likely an example of a(n) ________ approach.

A) observation B) question C) survey D) method E) combination Answer: E Diff: 3 AACSB: Analytical Thinking Objective: LO6 16) Which step in the presentation plan involves reviewing goals and making initial contact?

A) approach B) needs identification C) presentation D) negotiation E) close Answer: A Diff: 2 Objective: LO5

17) Which step in the presentation plan involves determining needs and selecting a product solution?

A) approach B) needs identification C) presentation D) negotiation E) close Answer: B Diff: 2 Objective: LO5 18) Which step in the presentation plan involves showing the product to the customer?

A) approach B) needs identification C) presentation D) negotiation E) close Answer: C Diff: 1 Objective: LO5 19) The step in the Presentation Plan involving anticipating buyer concerns and using the winwin method is the: A) approach B) needs identification C) presentation D) negotiation E) close Answer: D Diff: 2 Objective: LO5 20) The step in the Presentation Plan involving recognizing closing cues and initiating closing methods is the: A) approach B) needs identification C) presentation D) negotiation E) close Answer: E Diff: 1 Objective: LO5

21) An approach that involves using the good will of a third party to make contact with the prospect is the: A) referral approach B) question approach C) product demonstration approach D) survey approach E) premium approach Answer: A Diff: 2 Objective: LO7 22) An approach that gets the prospect thinking about a problem the salesperson can solve is the: A) referral approach B) question approach C) product demonstration approach D) survey approach E) premium approach Answer: B Diff: 2 Objective: LO7 23) An approach that goes directly to showing the product to the prospect is the: A) referral approach B) question approach C) product demonstration approach D) survey approach E) premium approach Answer: C Diff: 1 Objective: LO7 24) A non-threatening approach that allows the salesperson to gather information about the prospect before the call is the: A) referral approach B) question approach C) product demonstration approach D) survey approach E) premium approach Answer: D Diff: 2 Objective: LO7

25) An approach that involves giving the customer free samples of the product is the: A) referral approach B) question approach C) product demonstration approach D) survey approach E) premium approach Answer: E Diff: 2 Objective: LO7 26) Which of the following is the LEAST likely cause of sales call reluctance?

A) fear of rejection B) fear of group presentations C) fear of taking risks D) lack of self-confidence E) fear of networking Answer: E Diff: 2 Objective: LO7 27) Practicing an approach before making initial contact is most likely beneficial because: A) optimism is crucial to successful selling efforts B) rehearsal reduces the chances of making a mistake C) practicing ensures that transactional sales are profitable D) anxiety is normal for both new and experienced salespeople E) developing a deeper commitment to sales goals is important Answer: B Diff: 2 Objective: LO7 28) It is vital to treat secretaries, assistants, and receptionists with respect because: A) they are a key part of the buying center B) they usually have decision-making powers C) they control your access to the decision makers D) they have final sign-off on all purchases E) they will be the end-users of your product Answer: C Diff: 2 Objective: LO7

29) Preparing presale objectives, developing a presale presentation plan, and providing outstanding customer service are the three parts of: A) the customer alliance B) the presale approach C) the presentation plan D) the presentation strategy E) the follow up Answer: D Diff: 2 Objective: LO1 30) Before the salesperson makes an approach, he or she needs to plan the: A) implementation B) solution C) presentation D) close E) preapproach Answer: E Diff: 1 Objective: LO2 10.3 Short Answer Questions 1) Approach, needs identification, presentation, negotiation, close, and servicing the sale are steps in the Six-Step ________.

Answer: Presentation Plan Diff: 1 Objective: LO5 2) When you use the ________ approach, your opening statement should include a direct reference to the third party.

Answer: referral Diff: 1 Objective: LO7 3) ________, not to be confused with telemarketing, includes many of the same elements as traditional sales.

Answer: Telesales Diff: 1 Objective: LO2 4) Preparation for the actual sales presentation is a two-part process. Part one is referred to as the ________ and part two is called the ________.

Answer: preapproach; approach Diff: 2 Objective: LO2 5) Sales personnel who have adopted the consultative style use the survey and ________ approaches most frequently.

Answer: question Diff: 2 Objective: LO7 10.4 Essay Questions 1) List and explain the three prescriptions to developing a good presentation strategy.

Answer: 1. Establish objectives for the presentation. This is done in order to be able to accomplish several things during a sales call.

2. Develop the presale presentation plan. This is done in order to meet your objectives.

3. Provide outstanding customer service. This is done in order to obtain business and repeat business to aid the salesperson in his/her career.

Diff: 2 Objective: LO1 2) List and explain the steps in the Six-Step Presentation Plan.

Answer: 1. Prepare an effective approach in order to get the prospect's attention and make a good impression.

2. Perform needs identification in order to find out the prospect's needs and identify solutions.

3. Custom fit the presentation in order to allow the prospect to understand the benefits to his/her company.

4. Negotiate sales resistance in order to overcome objections.

5. Close and confirm sales, including spotting closing cues.

6. Service the sale, which adds value and develops a long-term relationship with the client.

Diff: 2 Objective: LO5 10.5 Applied Multiple Choice Questions Juan Alcobar is junior sales representative for a large equipment manufacturer. Sarah Gittins, a senior sales representative, has requested that Juan help her to prepare a sales presentation for a new prospect.

1) Given that Juan and Sarah will be working as a team, which of the following is most important for Juan to do?

A) Develop a price quote for the prospect before Sarah has the opportunity.

B) Confirm his percentage of the commission with his sales manager.

C) Develop the visual aids that will be used in the sales presentation.

D) Conduct Internet research on the prospect.

E) Clarify his role in the sales call.

Answer: E Diff: 3 AACSB: Application of Knowledge Objective: LO3 2) As Sarah and Juan begin to put together the actual presentation, what should they do first?

A) Clarify the objectives for the presentation using their company's standard form.

B) Anticipate the prospect's needs based on the financial data gathered through public records.

C) Search the CRM system for information on purchase records of similarly-sized clients.

D) Find the correct format and graphics for the physical PowerPoint presentation.

E) List all the features of the equipment they offer in a way that's easy for the prospect to read.

Answer: A Diff: 3 AACSB: Application of Knowledge Objective: LO1 3) Sarah has already made a brief call on the prospect. Which of the following objectives has she most likely achieved?

A) developed trust and presented solutions B) established rapport and asked basic needs discovery questions C) asked basic needs discovery questions and negotiated pricing D) negotiated pricing and closed the sale E) closed the sale and agreed on shipping terms Answer: B Diff: 3 AACSB: Application of Knowledge Objective: LO2, LO5 4) Sarah and Juan work together to analyze the answers to the questions Sarah asked the prospect about their needs. Based on this analysis, Juan and Sarah put together: A) a list of questions about the prospect's payment process B) a pricing discount schedule that involves a value chain C) a proposal of products that will solve the prospect's problems D) a plan for customer service to implement the products E) a relationship strategy based on the prospect's long-term needs Answer: C Diff: 3 AACSB: Application of Knowledge Objective: LO3, LO5 5) Juan and Sarah make a second call on the client to present the proposal. After thanking the prospect for agreeing to a meeting, Sarah says, "I would like to accomplish three goals during the time you've given us today." Which approach is Sarah most likely using?

A) customer benefit B) referral C) premium D) agenda E) survey Answer: D Diff: 3 AACSB: Application of Knowledge Objective: LO6 Web-Star makes Web conferencing software with features that integrate directly into users' backend systems such as inventory, order processing, shipping, tracking, CRM, and tech support.

Using this software, companies can hold internal meetings as well as give sales presentations that

allow them to check inventory in real-time and place customer orders during the presentation.

Quite often, Web-Star salespeople make sales presentations to prospects using the Web-Star product to show off its capabilities.

6) Why is understanding the Web-Star product absolutely essential for a salesperson who uses adaptive selling to sell the teleconferencing software?

A) The salesperson must know the product completely to be able to persuade prospects to purchase it.

B) The salesperson must know the pricing schedule for all products and volumes of sales to give a quote instantly to an interested prospect on the phone.

C) The salesperson must understand the ins and outs of the product to be able to quickly reevaluate the best configuration for a prospect based on new information from the prospect.

D) The salesperson must know the product to be able to point out the flaws in competitor's teleconferencing software to prospects.

E) The salesperson must know all about the product to be able to explain all the features during a presentation.

Answer: C Diff: 3 AACSB: Application of Knowledge Objective: LO5 7) Which question is most relevant to a Web-Star salesperson who is trying to tailor a presentation to a prospect's specific needs for Web conferencing software?

A) What is the prospect's budget for the purchase?

B) How familiar is the prospect with Web conferencing software in general?

C) What level of technical expertise does the prospect have with computer software?

D) Has the prospect been using paid or free Web conferencing software for meetings?

E) How will the prospect be using Web conferencing software with its clients and employees?

Answer: E Diff: 3 AACSB: Application of Knowledge Objective: LO5 8) A Web-Star salesperson is giving a sales presentation to a buying committee. What should the Web-Star salesperson most likely do in this situation?

A) Focus only on the technically knowledgeable members of the group.

B) State the adaptive selling objective for each group member.

C) Use technical specifics when speaking to silent members.

D) Utilize an elevator speech to develop rapport quickly.

E) Identify the primary decision makers in the group.

Answer: E Diff: 3 AACSB: Application of Knowledge Objective: LO3, LO5 9) In the morning, the Web-Star salesperson will give a sales presentation to a current client, and in the afternoon, the salesperson will give a sales presentation to a new prospect. How is pre-call planning different for the two presentations?

A) It is more important for new clients, as current clients have the same needs they did when

they originally purchased the product, but new clients' needs are unknown.

B) It is more important for new clients, as the salesperson must have a more polished, smoother manner with new clients to earn their trust.

C) It is useful to do pre-call planning with both old and new clients if you have the time, but a good salesperson can conduct an effective sales call without prior preparation.

D) It is equally important for both types of clients, as current clients' needs may have changed since the original purchase.

E) It is more important for current clients, as the stakes are higher that they will reject a proposal once they have used the product.

Answer: D Diff: 3 AACSB: Application of Knowledge Objective: LO1 10) A Web-Star salesperson is preparing a sales presentation for a British firm that is interested in purchasing Web conferencing software. What is the best advice for the salesperson?

A) Use aggressive sales techniques because British business people appreciate aggressiveness.

B) Remind the prospect of the disadvantages of competing Web conferencing products.

C) Immediately use first names with the prospect because British business people are informal.

D) Focus on objective facts about the Web conferencing product during the sales presentation.

E) Call the prospect frequently after the sales presentation to determine if a decision has been made.

Answer: D Diff: 3 AACSB: Application of Knowledge Objective: LO5 Emmanuelle Djubo is a sales representative for a firm that makes textiles using a traditional dyeing process. The firm exports its products to companies in the fashion and home decorating industries internationally. Emmanuelle is at a trade show and runs into Suzanne, one of the buyers for the largest home decor retailer in Australia.

11) At the trade show, Emmanuelle gives Suzanne her elevator pitch, which: A) establishes a deep rapport between Emmanuelle and Suzanne B) explains the product's features, benefits, and quality guarantees C) provides Suzanne with enough information to pique Suzanne's interest D) presents the benefits to Suzanne of purchasing the product for home décor retailers E) suggests that Suzanne will receive a discount if she purchases textiles from Emmanuelle Answer: C Diff: 3 AACSB: Application of Knowledge Objective: LO2

12) Emmanuelle calls Suzanne and arranges a meeting to discuss both organizations. Before Emmanuelle goes to the meeting, what should she most likely do?

A) Perform some visualization activities to help focus on winning the sale.

B) Break the ice with Suzanne by mentioning a mutual acquaintance.

C) Prepare a PowerPoint presentation about her firm's history and products.

D) Send Suzanne an email outlining the features of the textiles.

E) Research Suzanne's firm on the Internet to get basic information.

Answer: E Diff: 3 AACSB: Application of Knowledge Objective: LO2 13) Emmanuelle has made an initial approach to the largest home goods retailer in Australia and has gained some basic information about the retailer's buying process. She has also made contact and established rapport with key buyers for the retailer. What is Emmanuelle's next step in the presentation plan to the retailer?

A) making an initial introduction so the buyers know who she is B) talking to the buyers to determine their needs C) asking for the sale D) making a formal sales presentation, including presenting benefits E) negotiating the price the retailer will pay Answer: B Diff: 3 AACSB: Application of Knowledge Objective: LO5 14) During the sales presentation to the Australian firm, Emmanuelle should most likely: A) make adaptations based on the needs of the prospect B) highlight features that show her firm's superiority C) set a price high enough to leave room for negotiation D) raise strong reasons for not purchasing from competitors E) create a marketing campaign that will appeal to mass audiences Answer: A Diff: 3 AACSB: Application of Knowledge Objective: LO5

15) Emmanuelle enjoys the process of helping buyers discover reasons to purchase that they initially think are obstacles to purchasing her association's textiles. Another name for this process is: A) discovery B) marketing C) negotiation D) closing E) persuasion Answer: C Diff: 3 AACSB: Application of Knowledge Objective: LO5 Selling Today, 16e (Manning/Ahearne/Reece) Chapter 11 Determining Customer Needs With a Consultative Questioning Strategy 11.1 True/False Questions 1) Note taking is necessary in every sales presentation because it demonstrates active listening.

Answer: FALSE Diff: 1 Objective: LO5 2) An informative presentation is a type of need-satisfaction presentation.

Answer: TRUE Diff: 2 Objective: LO5 3) Tom Reilly, author of Value-Added Selling, says, "Value-added salespeople sell three things: the product, the company, and themselves."

Answer: TRUE Diff: 1 Objective: LO5 4) The question, "Do you use spreadsheet software?" is an example of a probing question.

Answer: FALSE Diff: 2 AACSB: Analytical Thinking Objective: LO3 5) Questions asked at the beginning of a presentation tend to be more general than are those asked at the end.

Answer: TRUE Diff: 2 Objective: LO5 6) Consultative selling focuses on identification of the customer's problem and finding a solution.

Answer: TRUE

Diff: 1 Objective: LO1 7) Paraphrasing the customer's meaning is an attempt to repeat the same words used by the customer.

Answer: FALSE Diff: 2 Objective: LO4

8) Need identification begins during the approach, if the salesperson uses a survey during the initial contact with the customer.

Answer: TRUE Diff: 2 Objective: LO1 9) Customer service provides little opportunity to add value.

Answer: FALSE Diff: 1 Objective: LO5 10) In most cases, firms profit from the first two sales made to customers, and their profits drop significantly on additional sales.

Answer: FALSE Diff: 2 Objective: LO1 11) A well-prepared salesperson will not find it necessary to recommend that a prospect purchase a product from another source.

Answer: FALSE Diff: 2 Objective: LO4 12) Probing questions help you to uncover and clarify the prospect's buying problem and the circumstances surrounding the problem.

Answer: TRUE Diff: 1 AACSB: Written and Oral Communication Objective: LO3 13) "Would this computer software meet your current business needs?" is an example of a confirmation question.

Answer: TRUE Diff: 2 AACSB: Analytical Thinking Objective: LO3 14) According to research, engaging in two-way communication and striking a balance between open and closed questions are effective methods for improving sales success.

Answer: TRUE Diff: 2 AACSB: Written and Oral Communication Objective: LO3

15) In a single sales call or a multi-call situation, the salesperson should always plan to go through all four parts of the Consultative Sales Presentation Guide during the initial contact.

Answer: FALSE Diff: 2 Objective: LO2 11.2 Multiple-Choice Questions 1) Active listening involves: A) indicating that you are paying attention to the speaker by giving verbal and nonverbal feedback B) saying "yes" and "I hear you" in response to the speaker C) nodding your head in rapid succession to indicate agreement with the speaker D) agreeing with what the speaker is telling you E) thinking of follow-up questions while the speaker is talking Answer: A Diff: 2 AACSB: Written and Oral Communication Objective: LO4 2) The process of sending back to the prospect what you as a listener think the person meant, both in terms of content and in terms of feelings, is referred to as: A) surveying B) active listening C) probing D) configuring a solution E) interaction Answer: B Diff: 1 AACSB: Written and Oral Communication Objective: LO4 3) A major reason for using summary confirmation questions is to clarify and confirm: A) product benefits B) product features C) customer buying conditions D) customer need perceptions E) organizational needs Answer: C Diff: 1 AACSB: Written and Oral Communication Objective: LO3

4) A(n) ________ question most likely helps the salesperson discover facts about the buyer's existing situation and is often the first step in the partnership-building process.

A) confirmation B) closed C) open D) general survey E) probing Answer: D Diff: 2 AACSB: Written and Oral Communication Objective: LO3 5) As a general rule, we can close more sales by: A) increasing the amount of time we spend telling customers about product features B) increasing the number of facts and figures we use in the presentation C) decreasing the time allocated to active listening D) decreasing the amount of detail in the sales presentation E) using confirmation questions to determine if we are on the right track Answer: E Diff: 2 AACSB: Written and Oral Communication Objective: LO3 6) Which type of questions are most likely used in conjunction with company supplied forms and are often used in service, retail, wholesale, and manufacturing selling?

A) preplanned B) problem C) implication D) organization E) specific benefit Answer: A Diff: 1 AACSB: Written and Oral Communication Objective: LO3 7) The dimensions of need discovery usually begin with: A) asking appropriate questions B) configuring a solution C) listening to customer response D) establishing a buying motive E) acknowledging customer response Answer: A Diff: 2 AACSB: Written and Oral Communication Objective: LO3

8) Trish asks her customer, "Who do you buy your supplies from now?" Which type of question is this?

A) confirmation B) probing C) survey D) need-satisfaction E) referral Answer: C Diff: 2 AACSB: Analytical Thinking Objective: LO3 9) Which type of question is best for clarifying and gaining commitment on several buying conditions?

A) open B) closed C) probing D) summary-confirmation E) need-satisfaction Answer: D Diff: 2 AACSB: Written and Oral Communication Objective: LO3 10) Which of the following is the last part of the Consultative Sales Presentation Guide?

A) selection of the solution B) servicing the sale C) need satisfaction D) need discovery E) strategic planning Answer: B Diff: 2 Objective: LO1 11) Which term refers to qualifications that must be available or fulfilled before a sale can be closed?

A) purchasing goals B) product configurations C) sales satisficers D) value components E) buying conditions Answer: E Diff: 1 Objective: LO3

12) Need-satisfaction questions are designed to focus on: A) emotional links with a product B) benefits of a solution C) bridge statements D) persuasive words E) product features Answer: B Diff: 2 AACSB: Written and Oral Communication Objective: LO3 13) According to the research of Neil Rackham, which stage of the sales process has the most impact on a buyer's decision to purchase a product?

A) pre-approach B) solution selection C) need discovery D) sales presentation E) product configuration Answer: C Diff: 2 Objective: LO3 14) Which of the following is an example of a probing question?

A) "How much time do you currently spend on the telephone?"

B) "What type of security system do you currently use?"

C) "Would you like me to write up the order to ensure quick delivery?"

D) "How does upper management feel about the employee turnover rate?"

E) "May I show you how our product works with your current offerings?"

Answer: D Diff: 3 AACSB: Analytical Thinking Objective: LO3 15) A major reason for asking survey questions is to: A) find out if the customer possesses a viewpoint that may hinder a sale B) find out if your message is getting through to the prospect C) qualify the prospect for making a purchase D) confirm that the prospect understands the basic facts about the product E) collect basic facts about the buyer's existing situation and problem Answer: E Diff: 2 AACSB: Written and Oral Communication Objective: LO3

16) Confirmation questions are most likely intended to reveal: A) mutual understanding B) pain and implications C) problems and situations D) negotiation capabilities E) pleasure satisfaction Answer: A Diff: 2 AACSB: Written and Oral Communication Objective: LO1 17) Although it seems counter-intuitive, one way to strengthen a customer relationship is to recommend that the customer: A) purchase large volumes B) purchase from another source C) pay a higher price D) implement new services E) expand operations Answer: B Diff: 2 Objective: LO5 18) A sales presentation that emphasizes factual information often taken from technical reports, company-prepared sales literature, or written testimonials from persons who have used the product is known as a(n) ________ presentation.

A) technical B) probing C) informative D) persuasive E) reminder Answer: C Diff: 2 Objective: LO5 19) What is the LEAST likely result of a salesperson who exhibits consultative problem-solving skills?

A) increased customer satisfaction B) increased number of closed sales C) increased business referrals D) decreased transactional sales E) decreased order cancellations Answer: D Diff: 2 Objective: LO1

20) A(n) ________ presentation is used by salespeople to ensure that current customers maintain an ongoing awareness and familiarity with a product.

A) technical B) probing C) informative D) persuasive E) reminder Answer: E Diff: 2 Objective: LO5 21) If a customer needs a solution the salesperson does not have available, recommending a competing company's solution will most likely: A) increase the customer's trust in the salesperson B) destroy the customer's relationship with the salesperson C) lead to a joint partnership between the two firms D) persuade the customer to buy the salesperson's solution E) reinforce the need to engage in more transactional sales Answer: A Diff: 2 Objective: LO5 22) Salespeople should most likely make benefit statements that: A) cannot be matched by competitors B) match the specific needs of the customer C) match the needs of the typical buyer D) are similar in every presentation E) align with recent research Answer: B Diff: 2 AACSB: Written and Oral Communication Objective: LO5 23) A salesperson who represents a company with many products will most likely need to: A) ask the customer many summary questions B) sell the customer the most popular products C) configure an appropriate solution for the customer D) create value by including all products in the solution E) engage in transitioning during the sales presentation Answer: C Diff: 3 Objective: LO5

24) If the customer is aware of the problem and the salesperson sells a product that can solve the problem, the salesperson should: A) recommend another source B) ask more probing questions C) end the sales call and ask for a future meeting D) recommend the solution immediately E) define the problem and recommend multiple options Answer: D Diff: 2 Objective: LO5 25) In a situation in which the customer may not be fully aware of a problem, the salesperson will most likely need to: A) recommend another source B) ask more probing questions C) end the sales call and ask for another meeting D) recommend a configured solution immediately E) define the problem and recommend the solution Answer: E Diff: 2 Objective: LO5 26) If the customer's problem is not solved by any of the products or services the salesperson sells, then it is most appropriate for the salesperson to: A) recommend another source B) ask more summary questions C) request a second meeting in the future D) repeat the need-satisfaction presentation E) conduct a team-selling presentation to persuade the customer Answer: A Diff: 2 Objective: LO5 27) According to the Action Selling training course, the key to sales success is: A) telling customers about product benefits B) asking customers effective questions C) closing deals with customers D) providing adequate reasoning E) making many sales calls Answer: B Diff: 2 AACSB: Written and Oral Communication Objective: LO4

28) Action Selling claims that there is a higher rate of successfully closing a sale when a salesperson can: A) introduce the product within the first five minutes of conversation B) persuade the customer to buy an unnecessary product C) uncover two or more needs during questioning D) summarize the technical details of installation E) customize product offerings at a low cost Answer: C Diff: 2 Objective: LO4 29) Which stage of the consultative sales process most likely increases a salesperson's opportunities to build repeat business?

A) need discovery B) solution selection C) need satisfaction D) sale servicing E) approach Answer: D Diff: 1 Objective: LO2 30) Which of the following most likely occurs during the need discovery stage of the consultative sales process?

A) matching benefits with product offerings B) conducting product configurations C) modifying a product solution D) establishing buying motives E) conducting a sales presentation Answer: D Diff: 2 Objective: LO2

11.3 Short Answer Questions 1) Through ________, a salesperson establishes two-way communication by asking questions and actively listening to the customer.

Answer: needs discovery, or need analysis, or needs assessment Diff: 3 Objective: LO2 2) ________ questions are intended to discover basic facts about a prospect's problem and existing situation.

Answer: Survey Diff: 2 AACSB: Written and Oral Communication Objective: LO3 3) ________ questions require a prospect to go beyond a simple yes/no response.

Answer: Open Diff: 1 AACSB: Written and Oral Communication Objective: LO3 4) "How do you feel about using a computer to keep your expense records?" is an example of a(n) ________ question.

Answer: probing Diff: 1 AACSB: Written and Oral Communication Objective: LO3 5) ________ questions help us to determine if there is mutual understanding of the problems and circumstances the customer is experiencing.

Answer: Confirmation Diff: 2 Objective: LO3

11.4 Essay Questions 1) List and discuss the four major parts of the Consultative Sales Presentation Guide.

Answer: 1. Need discovery. Salespeople who skillfully diagnose customer needs are in a better position to select the most suitable product.

2. Selection of the solution. Product selection is the key to maximum customer satisfaction.

3. Need satisfaction. This step can be achieved through informing, persuading, or reminding.

4. Servicing the sale. This step is necessary to ensure maximum satisfaction which results in repeat business and referrals.

Diff: 2 Objective: LO1 2) List and describe the four most common types of questions used in the field of personal selling.

Answer: 1. Survey questions—gather certain basic facts about the buyer's existing situation and problem.

General survey questions help the salesperson discover facts about the buyer's existing situation, and are often the first step in the partnership-building process. Specific survey questions are designed to give prospects a chance to describe in more detail a problem, issue, or dissatisfaction from their point of view.

2. Probing questions—are designed to uncover and clarify the prospect's buying problem and the circumstances surrounding the problem.

3. Confirmation questions—are used throughout the sales process to verify the accuracy and assure a mutual understanding of information exchanged by the salesperson and the buyer.

4. Need-Satisfaction questions—are designed to move the sales process toward commitment and action.

Diff: 2 AACSB: Written and Oral Communication Objective: LO3 11.5 Applied Multiple Choice Questions Women's swimwear designer Meli Kinaua'a designs high-end swimsuits. The suits are sexy in style, but fit a wide variety of body shapes and sizes, which is unusual in the high-end market.

Sales director Jeannie Park sells the suits to boutiques at exclusive resorts and hotels. These boutiques usually carry other high-end swimsuit lines.

1) How can Jeannie use a consultative model to sell Meli Kinaua'a swimsuits to boutiques?

A) Find out what needs the boutiques have that Meli Kinaua'a suits will fill.

B) Describe the reasons Meli Kinaua'a suits are superior to other lines.

C) Work with boutiques to develop new suits that will sell better.

D) Consider selling to big-box stores that don't carry swimsuits.

E) Give large discounts to get boutiques to try Meli Kinaua'a suits.

Answer: A Diff: 3 AACSB: Application of Knowledge Objective: LO1, LO2

2) Which of the following is a survey question Jeannie could ask a boutique buyer?

A) Can we arrange delivery for next Wednesday?

B) Are the limited sizes of the other swimsuits you carry affecting sales?

C) What are the most common swimsuit sizes sold to guests at the resort?

D) Is it correct that the swimsuit lines you currently stock do not appeal to older women?

E) What if we could give you a line to sell that is luxurious but also looks as good on older and bigger women as it does on smaller women?

Answer: C Diff: 3 AACSB: Application of Knowledge Objective: LO3 3) Which of the following is a probing question Jeannie could ask a boutique buyer?

A) Can we arrange delivery for next Wednesday?

B) Are the limited sizes of the other swimsuits you carry affecting sales?

C) What are the most common swimsuit sizes sold to guests at the resort?

D) What colors and sizes are primarily sold in your boutique?

E) Do you experience a fluctuation of sales throughout the year?

Answer: B Diff: 3 AACSB: Application of Knowledge Objective: LO3 4) Which of the following is a confirmation question Jeannie could ask a boutique buyer?

A) Can we arrange delivery for next Wednesday?

B) Are the limited sizes of the other swimsuits you carry affecting sales?

C) What are the shapes and sizes of the guests at the resort?

D) So, the swimsuit lines you currently stock do not sell to larger or older customers?

E) What if we could give you a line to sell that is luxurious but also looks as good on older and bigger women as it does on smaller women?

Answer: D Diff: 3 AACSB: Application of Knowledge Objective: LO3 5) Which of the following is a need-satisfaction question Jeannie could ask a boutique buyer?

A) Can we arrange delivery for next Wednesday?

B) Do the bigger guests buy the swimsuits you currently sell?

C) What are the shapes and sizes of the guests at the resort?

D) So, the swimsuit lines you currently stock do not sell to larger or older customers?

E) What if we could give you a line of suits that could increase your sales by 20%, would that be valuable?

Answer: E Diff: 3 AACSB: Application of Knowledge Objective: LO3 The Ferrante Company sells custom music mixes to retail stores for the purpose of creating a specific mood and increasing sales. Ferrante's major innovation is the ability to correlate sales

activity, customer movement, and customer behavior to the songs playing in the background.

Jeff Baliyut, a sales representative with Ferrante, is meeting with the merchandising director of a major retail chain that sells kitchen accessories and specialty foods.

6) Why is the ability to track purchases by song mix so important for Ferrante's clients?

A) Ferrante sells cheaper custom mixes than standard soundtracks available from other vendors.

B) It allows the clients to shape the store brand with music.

C) It gives them information on their competitor's products and services.

D) It allows them to increase sales by playing the songs that stimulate purchases.

E) It requires them to play certain songs no more than a few times in a shift.

Answer: D Diff: 3 AACSB: Application of Knowledge Objective: LO1, LO5 7) Which of the following is a survey question Jeff can ask the merchandising manager?

A) If I understand you, knowing only the song playing when the customer reaches the register doesn't take into account patterns of shopping, purchasing triggers, or waits in a checkout line?

B) Do you have point-of-purchase software that allows you to track time and amount of purchase?

C) How does your current music provider correlate songs and purchases?

D) Does knowing the song playing at the moment the customer gets to the register give you the information you really need to create an effective mix?

E) Would it help you to track songs as customers browse and shop?

Answer: C Diff: 3 AACSB: Application of Knowledge Objective: LO3 8) Which of the following is a probing question Jeff can ask the merchandising manager?

A) If I understand you, knowing only the song playing when the customer reaches the register doesn't take into account patterns of shopping, purchasing triggers, or waits in a checkout line?

B) Do you have point-of-purchase software that allows you to track time and amount of purchase?

C) How does your current music provider track the correlation between songs and purchases?

D) Would it help you to be able to track songs as customers browse and shop?

E) Does knowing the song playing at the moment the customer gets to the register give you the information you really need to create an effective mix?

Answer: E Diff: 3 AACSB: Application of Knowledge Objective: LO3

9) Which of the following is a confirmation question Jeff can ask the merchandising manager?

A) If I understand you, knowing only the song playing when the customer reaches the register doesn't take into account patterns of shopping, purchasing triggers, or waits in a checkout line?

B) Do you have point-of-purchase software that allows you to track time and amount of purchase?

C) How does your current music provider track the correlation between songs and purchases?

D) Would it help you to be able to track songs as customers browse and shop, as well as tracking mixes that lead to the actual purchase?

E) Does knowing the song playing at the moment the customer gets to the register give you the information you really need to create an effective mix?

Answer: A Diff: 3 AACSB: Application of Knowledge Objective: LO3 10) Which of the following is a need-satisfaction question Jeff can ask the merchandising manager?

A) If I understand you, knowing only the song playing when the customer reaches the register doesn't take into account patterns of shopping, purchasing triggers, or waits in a checkout line?

B) Do you have point-of-purchase software that allows you to track time and amount of purchase?

C) How does your current music provider track the correlation between songs and purchases?

D) Would it help you to be able to track songs as customers browse and shop, as well as tracking mixes that lead to the actual purchase, to be able to mix songs for better sales?

E) Does knowing the song playing at the moment the customer gets to the register give you the information you really need to create an effective mix?

Answer: D Diff: 3 AACSB: Application of Knowledge Objective: LO3

Nordic Fox Heavy Equipment imports heavy machinery used in regions of Europe and North America where heavy snowfall is an issue. This machinery is used by municipalities to clear roads during snowstorms. John Alexander is the senior regional sales manager for New England.

John goes into a meeting with the sanitation director of a large city that got slammed by a snowstorm a month previously. During the cleanup, operators of the city's plows destroyed a significant amount of city and personal property, which triggered public inquiry into the competence of the sanitation staff and director.

11) Of the following, what is the first thing John should do after hearing about the recent situation?

A) Choose equipment for the city that will solve the sanitation director's problem.

B) Ask questions to find out what the sanitation director's needs are.

C) Persuade the sanitation director to purchase the equipment.

D) Confirm the sale with the sanitation director.

E) Create value for the sanitation director by servicing the sale.

Answer: B Diff: 3 AACSB: Application of Knowledge Objective: LO2, LO3 12) Which of the following LEAST likely indicates that John is engaged in actively listening to the sanitation director?

A) paraphrasing the director's comments B) asking the director various questions C) nodding in agreement when appropriate D) telling the director about product features E) taking notes during the discussion Answer: D Diff: 3 AACSB: Application of Knowledge Objective: LO4 13) Based on what John learns during the discussion, John realizes that the director has some unique equipment needs that may involve developing a custom machine. John will most likely need to: A) ask more closed questions B) recommend a competing product C) develop a complex sales package D) use persuasive communication skills E) engage in product configuration Answer: E Diff: 3 AACSB: Application of Knowledge Objective: LO5

14) Which part of the need-satisfaction model is John performing when he explains to the sanitation director why the equipment he has selected will fulfill his needs?

A) Part 1: Need Discovery B) Part 2: Selecting a Solution C) Part 3: Need Satisfaction D) Part 4: Servicing the Sale E) Part 5: Leveraging Referrals Answer: C Diff: 3 AACSB: Application of Knowledge Objective: LO2 15) How is servicing the sale going to be the major way for John Alexander to create value?

A) Post-sale service from John and other Nordic Fox employees will make sure the sanitation employees can operate the machinery well, which will solve the sanitation director's problem.

B) By keeping in touch with the sanitation director after the sale, John may lower development costs.

C) John will personally train the employees on operating the machinery to ensure that safety is a priority.

D) By providing excellent post-sale service, John can charge more for the equipment, which increases profits for Arctic Fox. E) The more service John provides to the sanitation director, the less likely that reminder presentations will be necessary.

Answer: A Diff: 3 AACSB: Application of Knowledge Objective: LO2, LO5 Selling Today, 16e (Manning/Ahearne/Reece) Chapter 12 Creating Value with the Consultative Presentation 12.1 True/False Questions 1) There are several different types of presentations, and the salesperson should choose the one most likely to influence the prospect.

Answer: TRUE Diff: 1 Objective: LO2 2) Overstructured sales presentations may cause a customer to feel like a number.

Answer: TRUE Diff: 1 AACSB: Written and Oral Communication Objective: LO2 3) A need-satisfaction question can help move the sale forward.

Answer: TRUE Diff: 2 AACSB: Written and Oral Communication

Objective: LO2 4) Since graphs are usually quite descriptive, no interpretation is necessary for the prospect to understand the material.

Answer: FALSE Diff: 2 Objective: LO5 5) Letters from satisfied customers are ineffective sales tools.

Answer: FALSE Diff: 1 Objective: LO5 6) In some cases, it is not practical to demonstrate the product itself.

Answer: TRUE Diff: 2 Objective: LO5 7) It is almost impossible for clients to understand some products without a well-planned presentation.

Answer: TRUE Diff: 1 Objective: LO2

8) Most prospects are willing and eager to participate in a presentation held off premises.

Answer: FALSE Diff: 1 Objective: LO2 9) A working model can be a satisfactory substitute for demonstrating the product itself.

Answer: TRUE Diff: 2 Objective: LO5 10) The salesperson should personally inspect all equipment and products before a sales presentation to ensure everything is working properly.

Answer: TRUE Diff: 1 Objective: LO2 11) Rehearsal of a sales presentation is not important if the presentation is well planned.

Answer: FALSE Diff: 1 Objective: LO2 12) An effective sales presentation involves showing the prospect how the product fills specific needs.

Answer: TRUE Diff: 1 Objective: LO2 13) Sight is considered the most powerful attention-attracting sense; therefore, it is the most important motivating force in every selling situation.

Answer: FALSE Diff: 2 Objective: LO2 14) Some of the most effective sales presentations combine telling, showing, and involvement of the prospect.

Answer: TRUE Diff: 1 Objective: LO2 15) As the quality of audiovisual presentations improves, the salesperson's importance will diminish.

Answer: FALSE Diff: 1 Objective: LO5

12.2 Multiple-Choice Questions 1) When a prospect simply cannot imagine how a product can be used, a salesperson's best strategy is to: A) use a product demonstration B) convert features to benefits C) cover one idea at a time D) appeal to more than one sense E) use more technical terms Answer: A Diff: 2 Objective: LO3 2) Mario Cortez is preparing a sales presentation for a buying team made up of health care personnel. It is most important that he: A) recognize that printed documents provide the only credible form of proof for the audience B) understand that communication via the spoken word alone is very difficult C) conduct the demonstration at a neutral location D) develop a highly structured demonstration to save time E) save all the questions for the end of the presentation Answer: B Diff: 3 AACSB: Analytical Thinking Objective: LO2 3) When prospects participate in a sales presentation, they most likely: A) bond with the salesperson B) ask more summative questions C) understand the product better D) use more nonverbal communication E) talk more often than the salesperson Answer: C Diff: 2 Objective: LO2 4) Which of the following is an accurate statement regarding the sales presentation?

A) It is best to communicate all you know about the product.

B) The location of the sales presentation is an irrelevant factor.

C) Each product feature is of equal importance to every customer.

D) Appealing to the prospect's senses makes the sales presentation more powerful.

E) A sales presentation that does not use technology is not likely to be successful.

Answer: D Diff: 2 Objective: LO2

5) The components of a typical presentation worksheet are the features to be demonstrated, proof device to be used, what you will say, and: A) when to ask for the close B) when you will involve the prospect C) when you will show and tell D) what the customer is likely to say E) what you or the customer will do Answer: E Diff: 2 Objective: LO2 6) The best selling tool is most often: A) the product B) a photograph or illustration C) testimonials of satisfied customers D) videocassette recordings E) a referral Answer: A Diff: 1 Objective: LO5 7) Test results are most effective as a demonstration tool when they: A) are part of a bound paper presentation B) come from a respected independent agency C) have been presented to the prospect in a spreadsheet or chart D) demonstrate that the product is superior to the competition E) have been sponsored by the vendor Answer: B Diff: 2 Objective: LO5 8) Paolo Rodrigues is a sales rep employed by Montano Travel Services. He is preparing to demonstrate a very complex computerized reservation system at a meeting with a corporate client. Which of the following guidelines would be most helpful as Paolo conducts the demonstration?

A) Use showmanship to build product interest.

B) Use a portfolio to organize the key sales goals.

C) Offer one idea at a time with an appropriate amount of detail.

D) Be sure the sales demonstration gives the prospect a temporary feeling of ownership.

E) Use the customer's own computer and equipment to demonstrate the product's features.

Answer: C Diff: 3 AACSB: Analytical Thinking Objective: LO2

9) An effective sales demonstration is the result of both: A) showmanship and visual stimulation B) timeliness and talent C) confidence and congeniality D) planning and practice E) personality and skills Answer: D Diff: 2 Objective: LO2 10) If a salesperson was attempting to develop a feeling of ownership in a prospect shopping for a diamond ring, the salesperson should most likely: A) explain the concept of the four C's in terms of diamonds B) explain the store's installment payment plan for jewelry C) lay the ring on black velvet to enhance its brilliance D) inform the customer of the gem's clarity E) encourage the customer to try on the ring Answer: E Diff: 2 AACSB: Analytical Thinking Objective: LO2 11) Jeremiah knows that it is possible to prepare a sales demonstration that is so structured and mechanical that the prospect feels like a number. Marketing people refer to this as what effect of the selling-buying process?

A) depersonalization B) personalization C) focalization D) massification E) concentration Answer: A Diff: 2 Objective: LO2 12) Which of the following is true of doing business in Italy?

A) Businesspeople tend to be quite informal in terms of introductions and dress.

B) Entertaining clients at your home is considered better than doing so in a restaurant.

C) Gifts are considered bribes and will insult the recipients.

D) Most Italian businesspeople are in a hurry, so quick decision making is important.

E) Professional titles are used quite often in business dealings.

Answer: E Diff: 3 AACSB: Diverse and Multicultural Work Environments Objective: LO5

13) Which of the following statements regarding audiovisual presentations is true?

A) Focus your presentation on the features that have the greatest "wow factor."

B) At the conclusion of the presentation, persuade the prospect to buy.

C) Show the entire presentation and then answer questions.

D) Be sure the prospect knows the purpose of the presentation.

E) Avoid previewing the material which ruins the surprise factor.

Answer: D Diff: 2 Objective: LO5 14) Which of the following statements concerning laptop computers is true?

A) Laptop computers cannot access crucial systems remotely.

B) Laptops require salespeople to use strict scripts instead of customized demos.

C) Most salespeople use laptops during sales presentations.

D) Smartphones have replaced the use of laptops in sales presentations.

E) Presentation tools such as PowerPoint presentations rarely run well on laptops.

Answer: C Diff: 2 AACSB: Information Technology Objective: LO5 15) Technical reports, company-prepared sales literature, and writer testimonials from customers are most likely provided in ________ presentations.

A) value B) sensory C) reminder D) persuasive E) informative Answer: E Diff: 2 Objective: LO1 16) Statements, reports, testimonials, customer data, and photographs are all examples of: A) proof devices B) presentation software C) PowerPoint slides D) product literature E) presentation strategies Answer: A Diff: 1 Objective: LO2

17) The primary goal of a ________ presentation strategy is to influence the prospect's beliefs, attitudes, or behavior and to encourage buyer action.

A) value B) sensory C) reminder D) persuasive E) informative Answer: D Diff: 2 AACSB: Written and Oral Communication Objective: LO1 18) When using graphs and charts, the salesperson should most likely: A) assume the customer will understand them B) move past them quickly C) interpret them for the customer D) assume the customer will read them after the presentation E) bring only one or two hard copies, even when presenting for a group Answer: C Diff: 2 AACSB: Written and Oral Communication Objective: LO5 19) PowerPoint enables salespeople to provide customers with: A) product brochures B) interactive demonstrations C) numerous product samples D) professional-looking presentations E) valid and reliable research summaries Answer: D Diff: 2 AACSB: Information Technology Objective: LO5 20) Web-based demonstrations can be an effective way to present when it is: A) imperative that a customer see a full product demonstration B) important to meet face-to-face C) important to impress the buyer with technology D) necessary to provide factual data and research E) impossible or expensive to present in person Answer: E Diff: 3 AACSB: Information Technology Objective: LO4

21) Which term refers to a communication process by which you motivate someone else to voluntarily do something you'd like them to do?

A) persuasion B) rhetoric C) articulation D) negotiation E) enunciation Answer: A Diff: 2 AACSB: Written and Oral Communication Objective: LO1 22) Which type of sales presentation would most likely occur after a sale to ensure that current customers are aware of a firm's services and additional product offerings?

A) persuasive B) reminder C) informative D) interactive E) canned Answer: B Diff: 2 Objective: LO1 23) Which type of sales presentation is built around a standard set of steps and tends to ignore the unique needs of each customer?

A) persuasive B) reminder C) informative D) consultative E) canned Answer: E Diff: 2 Objective: LO1 24) Which method of quantifying a solution involves calculating savings as a percentage of the original investment?

A) SWOT analysis B) cost-benefit analysis C) value-savings calculation D) return on investment E) customer lifetime benefit Answer: D Diff: 2 Objective: LO2

25) Which of the following is a characteristic of technical communication?

A) influence-driven B) benefit emphasis C) emotional D) subjective E) objective Answer: E Diff: 2 AACSB: Written and Oral Communication Objective: LO3 26) Which of the following is a guideline for presenting in front of a group?

A) Identify and present primarily to the main decision-maker.

B) Identify the titles and roles of the people who will attend.

C) Arrive exactly in time for the presentation.

D) Be sure your presentation is characterized by technical depth and detail.

E) Be ready to "wing it" on questions the audience might ask.

Answer: B Diff: 2 AACSB: Written and Oral Communication Objective: LO4 27) One danger of relying too heavily on a technical presentation is: A) bringing along heavy equipment B) missing the opportunity to create a relationship with the customer C) impressing the customer with your technical savvy D) failing to convey product knowledge E) using unnecessarily expensive devices Answer: B Diff: 2 Objective: LO4 28) A successful sales presentation is: A) the result of careful script-writing B) conducted the same way each time C) a model of good two-way communication D) more about the salesperson than the customer E) one that ends in a close Answer: C Diff: 3 AACSB: Written and Oral Communication Objective: LO5

29) During a sales presentation, successful salespeople are most likely prepared to: A) stick to a standard script B) meet a wide range of buyer responses C) conduct a one-way presentation to the buyer D) limit the number of questions asked by prospects E) identify the same problems for each different prospect Answer: B Diff: 3 AACSB: Written and Oral Communication Objective: LO5 30) The ability to visualize an object, concept, or action not actually present is referred to as: A) audio-visual aids B) concentration C) visualization D) imaging E) mental imagery Answer: E Diff: 1 Objective: LO4 12.3 Short Answer Questions 1) ________ are the connectors between your messages and the internal emotions of the prospect.

Answer: Emotional links Diff: 1 Objective: LO2 2) ________ enhance credibility and can take the form of a statement, a report, or a photograph.

Answer: Proof devices Diff: 2 Objective: LO2 3) Words or phrases that suggest pictorial relationships between objects or ideas are known as ________.

Answer: metaphors Diff: 2 AACSB: Written and Oral Communication Objective: LO3 4) A survey conducted by Selling Power magazine found that 87 percent of salespeople use ________ to deliver their sales presentations.

Answer: laptop computers Diff: 3 Objective: LO5

5) A(n) ________ is a portable case or loose-leaf binder containing a wide variety of salessupporting materials.

Answer: portfolio Diff: 1 Objective: LO5 12.4 Essay Questions 1) What are the guidelines for preparing and conducting a group sales presentation?

Answer: Preparing a sales presentation for a group is more demanding than one-on-one sales calls. Meeting the diverse needs of the audience can be very challenging. Therefore, Rule One is to identify the titles and roles of the people who will attend. Rule Two is to check out the meeting room in advance. What are the room configurations, audiovisual capabilities, seating options, lighting, and heating or air conditioning? Rule Three is to be sure your presentation is characterized by clarity and simplicity. Minimize the number of features and benefits you present.

Diff: 2 AACSB: Written and Oral Communication Objective: LO4 2) List the guidelines that should be followed when planning a presentation that adds value.

Answer: 1. Adapt the Presentation to Meet Unique Needs of the Customer 2. Cover One Idea at a Time and Use an Appropriate Amount of Detail 3. Use Proof Devices to Demonstrate Buyer Benefits 4. Appeal to as Many Senses as Appropriate 5. Develop Creative Presentations 6. Consider the Use of Humor–in Moderation 7. Choose the Right Setting 8. Document the Value Proposition 9. Quantify the Solution 10. Check Sales Tools 11. Summarize Major Points Diff: 2 AACSB: Written and Oral Communication Objective: LO2

12.5 Applied Multiple Choice Questions Kaygo Tires, Inc. designs and manufactures tires for the trucking industry. Their products include tires for semi-cabs as well as trailers of various sizes and weight limits. Tyler, a sales representative for Kaygo, is meeting with a trucking company that delivers primarily lumber and other supplies to home improvement and construction retailers.

1) Tyler is bringing technical reports, company brochures, and written testimonials from customers to the sales meeting. Which need-satisfaction strategy is Tyler most likely going to use?

A) reminder B) persuasion C) informative D) adaptive E) canned Answer: C Diff: 3 AACSB: Application of Knowledge Objective: LO1 2) Of the following, which would be the most effective proof device to demonstrate the benefits of Kaygo tires?

A) a detailed PowerPoint presentation B) a test-drive in which the buyer can feel the difference in tires C) a testimonial from another buyer about the excellent post-sale service D) a research report showing decreased fuel costs from using the tires E) a series of questions designed to discover what the buyer needs Answer: D Diff: 3 AACSB: Application of Knowledge Objective: LO2, LO5 3) As part of the preparation for the presentation, Tyler should most likely: A) research the trucking company's operations and needs B) memorize the standardized presentation script C) install web conferencing software on the buyer's computer D) come up with a persuasive argument for the buyer E) include as many audio visual aids as possible in the presentation Answer: A Diff: 3 AACSB: Application of Knowledge Objective: LO1, LO2

4) By creating a spreadsheet that will allow the buyer to enter current fuel costs and see recalculations of fuel costs that would occur from using Kaygo tires, the sales representative is creating: A) an airtight argument against other tire vendors B) a way to involve the buyer in the presentation C) a program that should be created by the IT department D) an experience so elementary that it will patronize the buyer E) an ROI statement the buyer can take as a guarantee of savings Answer: B Diff: 3 AACSB: Application of Knowledge Objective: LO2, LO5 5) Tyler realizes that the trucking company can purchase tires from other tire companies. With this in mind, Tyler should most likely: A) promote Kaygo as the industry leader even if this is untrue B) ignore the features and benefits of the lowest-priced competitor C) point out quality problems with the firm's current tire provider D) highlight the drop in prices of Kaygo tires in the last five years E) focus on favorable differences between Kaygo tires and the next-best alternative Answer: E Diff: 3 AACSB: Application of Knowledge Objective: LO2 Angie Meecham works at the CosMetRx counter at a high-end department store. Her job is to give prospects a facial and makeover using CosMetRx products and then sell them the products she used. Angie always says that she's "in the business of making women feel good about how they look."

6) Which need-satisfaction strategy does Angie most likely use?

A) reminder B) canned C) persuasion D) adaptive E) informative Answer: C Diff: 3 AACSB: Application of Knowledge Objective: LO1

7) Since the majority of Angie's prospects are strangers who walk up to her counter out of the blue, what is the most important preparation Angie should do for the presentation?

A) Learn her products and how to give excellent facials and makeovers.

B) Practice the standardized presentation script.

C) Proofread her PowerPoint presentation to guarantee good grammar and spelling.

D) Quickly search for the prospect on the Internet to glean basic information.

E) Assume the prospect has never used makeup before.

Answer: A Diff: 3 AACSB: Application of Knowledge Objective: LO3 8) The proof device Angie is most likely to use is: A) FDA safety ratings for the ingredients used in the products B) the makeover itself C) testimonials by the other CosMetRx sales representatives at the counter D) survey results of satisfied CosMetRx users E) a tour of the manufacturing facilities Answer: B Diff: 3 AACSB: Application of Knowledge Objective: LO5 9) Of the following, a prospect will be most likely to buy products from Angie if: A) Angie emphasizes that she needs to earn her commission B) Angie gives the prospect a gift bag with a minimum purchase C) the prospect has seen a famous model advertising the brand D) the prospect can trust safety research about product ingredients E) the products make the prospect feel good about her appearance Answer: E Diff: 3 AACSB: Application of Knowledge Objective: LO3 10) Which of the following should Angie most likely focus on during her presentation?

A) the sleek packaging of CosMetRx products B) the history of the CosMetRx company C) the brightening facial effects of the product on the prospect D) the discounts the prospect can receive if she purchases now E) the toxin-free ingredients of CosMetRx products Answer: C Diff: 3 AACSB: Application of Knowledge Objective: LO3, LO5

ScranTone is a paper mill and supplier serving the Upper Midwest. Since the commercial paper market is saturated, the only room for growth is to expand existing accounts or to win over competitors' accounts. Kevin Salazar is a sales representative who has gotten another meeting with the head of purchasing for the copy centers at a large university system. The purchasing agent has been buying from ScranTone's main competitor for three years. Kevin met with the purchasing again two months ago but was unable to make a sale.

11) Which need-satisfaction strategy does Kevin most likely use?

A) canned B) persuasion C) informative D) reminder E) adaptive Answer: D Diff: 3 AACSB: Application of Knowledge Objective: LO1 12) Why would Kevin Salazar most likely meet with purchasing agent again after being denied a sale?

A) Kevin's sales manager requires that he use a canned presentation.

B) Kevin needs to meet a quota of sales presentations for the month.

C) The competition offers an inferior product to Kevin's company.

D) The previous presentation focused too much on customer needs.

E) Kevin wants to show a strong commitment to getting the buyer's business.

Answer: E Diff: 3 AACSB: Application of Knowledge Objective: LO1 13) The first step Kevin Salazar should take in preparing for the presentation is to: A) revisit the discount schedule for educational purchasers B) review his notes from the previous presentation he made to the buyer C) renew his personal commitment to pursuing the sale D) research the competition on the Internet E) revise the standard PowerPoint presentation Answer: B Diff: 3 AACSB: Application of Knowledge Objective: LO1

14) What is one possible pitfall Kevin Salazar should be aware of when giving the presentation?

A) He needs to promote the benefits of ScranTone without saying anything negative about the current supplier.

B) The buyer must have disliked Kevin not to have purchased from him in the past.

C) He needs to talk down to the buyer to make sure the buyer understands.

D) A successful presentation could end up with an order bigger than ScranTone can handle.

E) This account could make or break his quota for the month.

Answer: A Diff: 3 AACSB: Application of Knowledge Objective: LO1 15) If the head of purchasing does not respond to Kevin Salazar's sales presentation by placing an order, Kevin should most likely: A) remove the buyer from the CRM system B) send the purchasing agent a letter outlining the weaknesses of the competition C) make contact with the purchasing agent again in six months D) call the purchasing agent to ask for the order in two weeks E) send the purchasing agent a bound paper presentation for further review Answer: C Diff: 3 AACSB: Application of Knowledge Objective: LO1 Selling Today, 16e (Manning/Ahearne/Reece) Chapter 13 Negotiating Buyer Concerns 13.1 True/False Questions 1) Negotiation is defined as "working to reach an agreement that is satisfactory to either the buyer or the seller."

Answer: FALSE Diff: 1 Objective: LO1 2) The foundation for win-win negotiations is a relationship with the customer built on trust and rapport.

Answer: TRUE Diff: 2 Objective: LO1 3) Direct denial may be appropriate when a customer's objection is based on misinformation.

Answer: TRUE Diff: 2 Objective: LO3 4) If you believe in your product and understand its unique features, then preparing for price resistance is unnecessary.

Answer: FALSE

Diff: 2 Objective: LO4 5) The direct-denial method of negotiating objections is a very common approach used in the field of selling.

Answer: FALSE Diff: 2 Objective: LO3 6) A growing number of professional buyers have completed training in negotiation.

Answer: TRUE Diff: 1 Objective: LO5 7) Traditional selling principles stressed that the "we versus they" and the "win-win" were similar concepts for negotiating sales resistance.

Answer: FALSE Diff: 2 Objective: LO1

8) According to the text, you usually get what you deserve, no matter how you negotiate.

Answer: FALSE Diff: 2 Objective: LO2 9) Customers who perceive added value are less likely to choose a competing product simply on the basis of price.

Answer: TRUE Diff: 2 Objective: LO2 10) In some cases the statement, "I don't need your product," is a conditioned response.

Answer: TRUE Diff: 2 Objective: LO2 11) Research shows that a neutral third party's testimony tends to provide a weak argument when answering a customer's concern.

Answer: FALSE Diff: 3 Objective: LO3 12) The "budget limitation tactic" is often used by buyers who have been trained in negotiation.

Answer: TRUE Diff: 2 Objective: LO5 13) Sales resistance is a natural response that tends to provide the salesperson with valuable information about the consumer.

Answer: TRUE Diff: 1 Objective: LO5 14) A stall tends to mean that the customer appreciates the benefits of a product but is unwilling to engage in negotiations.

Answer: FALSE Diff: 2 Objective: LO2 15) When people say, "Your price is too high," they probably mean, "You haven't sold me yet."

Answer: TRUE Diff: 2 Objective: LO2

13.2 Multiple-Choice Questions 1) Which tactic would most likely be used by buyers trained in price negotiation?

A) product compromise B) sixty-forty C) budget limitation D) cards on the table E) maybe...if Answer: C Diff: 2 Objective: LO5 2) Which of the following is an acceptable method of negotiating the price objection?

A) Make price the focal point of your presentation.

B) Clarify the link between price and quality.

C) Focus on an individual product feature.

D) Apologize for the product's high prices.

E) Lower the price if the customer balks.

Answer: B Diff: 2 Objective: LO4 3) Adding value with a cluster of satisfactions would be an effective way to deal with: A) time resistance B) adaptive selling C) price resistance D) third-party testimonials E) decision postponements Answer: C Diff: 2 AACSB: Application of Knowledge Objective: LO4 4) A buyer's resistance to a salesperson's product is usually caused by: A) the salesperson failing to negotiate well B) another product satisfying the buyer's needs C) friends and acquaintances recommending the product D) the product's advanced stage in the product life cycle E) the product's price being equal to the buyer's current product Answer: B Diff: 2 Objective: LO2

5) When a prospect has voiced an objection, it is most likely best for the salesperson to: A) suggest postponing the negotiations B) divert attention to a product feature C) illustrate the product's high quality D) deny the accuracy of the objection E) clarify the true nature of the problem Answer: E Diff: 3 AACSB: Application of Knowledge Objective: LO1 6) The "feel-felt-found" method is used in conjunction with which of the following?

A) indirect denial B) direct denial C) trial offer D) superior benefit E) demonstration Answer: A Diff: 2 Objective: LO3 7) When a customer raises a valid objection that cannot be answered with a denial, the salesperson should most likely take which of the following actions?

A) discuss superior benefits B) engage in back-pedaling C) begin a pricing approach D) re-start the presentation E) criticize the competition Answer: A Diff: 2 AACSB: Application of Knowledge Objective: LO3 8) The best way to overcome a sincere need objection by a business prospect is to: A) explain how the prospect should engage in comparison shopping B) make the price the major selling point of the sales presentation C) prove that the product will improve the prospect's profits D) compare the product to others on the market E) reiterate all the features of the product Answer: C Diff: 2 AACSB: Application of Knowledge Objective: LO2

9) One of the most common buyer concerns in the field of selling is: A) lack of need recognition for the product B) personality conflict with the salesperson C) loyalty to another firm D) resistance to price E) customer service Answer: D Diff: 2 Objective: LO2 10) If you are familiar with your product as well as your competition's product, which method of negotiating buyer resistance is best for overcoming buyer skepticism?

A) defamation B) feel-felt-found C) third-party testimony D) indirect denial E) demonstration Answer: E Diff: 2 AACSB: Application of Knowledge Objective: LO3 11) Which of the following is an acceptable way to cope with the loyalty objection?

A) Work on recruiting internal champions to build more support for your message.

B) Point out, in specific terms, the weak points of the competing product.

C) Point out how dependence on just one supplier can be risky.

D) Encourage the prospect to quit the present supplier.

E) Undermine confidence in the current supplier by intimating that the company is having financial troubles.

Answer: A Diff: 2 Objective: LO2 12) A professional buyer says, "My final offer is $9,500, take it or leave it." The best way to cope with this type of resistance is to: A) lower your price, but make sure the sale still results in a profit for your company B) confidently review the superior benefits of your product and attempt another close C) make a counteroffer that is about 10 percent under your first price quote D) review the unique features of the product or service E) unbundle features of the product Answer: B Diff: 3 AACSB: Analytical Thinking Objective: LO5

13) When a customer says, "I would rather not tie up my money in a large order," the resistance most likely falls into which category?

A) time B) product C) price D) source E) process Answer: C Diff: 1 AACSB: Analytical Thinking Objective: LO2 14) If a customer tells a sales representative from Johnson Supply, "I've always purchased my supplies from the Ralston Company," this person is most likely raising an objection to: A) product B) time C) need D) source E) price Answer: D Diff: 1 AACSB: Analytical Thinking Objective: LO2 15) Which of the following is true with respect to negotiations in foreign cultures?

A) Different cultural expectations can cause miscommunication.

B) It is sometimes advisable to become antagonistic during negotiations.

C) Business rituals are largely the same across cultures.

D) German buyers are unlikely to look you in the eye.

E) In China, negotiations are less straightforward than in Japan.

Answer: A Diff: 2 AACSB: Diverse and Multicultural Work Environments Objective: LO3 16) Working to reach an agreement that is mutually satisfactory to both buyer and seller is also called: A) negotiation B) agreement C) practice theory D) tactics E) strategy Answer: A Diff: 1 Objective: LO1

17) A salesperson should most likely review the benefits of the product before making price concessions to a buyer who engages in ________ tactics.

A) budget limitation B) take-it-or-leave-it C) let-us-split-the-difference D) "if...then" E) "sell low now, make profits later" Answer: B Diff: 2 Objective: LO5 18) Which tactic most likely involves making a price concession to the buyer?

A) budget limitation B) take-it-or-leave-it C) let-us-split-the-difference D) "if...then" E) "sell low now, make profits later" Answer: C Diff: 2 Objective: LO5 19) Balance of power is most likely the issue a salesperson must consider when responding to a ________ tactic.

A) budget limitation B) feel-felt-found C) let-us-split-the-difference D) "if...then" E) "sell low now, make profits later" Answer: D Diff: 2 Objective: LO5 20) An agreement to keep the same price but reduce prices in the future is often a successful response to which of the following tactics used by buyers?

A) budget limitation tactic B) take-it-or-leave-it tactic C) let-us-split-the-difference tactic D) "if...then" tactic E) "sell low now, make profits later" tactic Answer: E Diff: 2 AACSB: Application of Knowledge Objective: LO5

21) Reducing the price by unbundling some items is an effective technique a salesperson can use with a buyer who uses which of the following tactics?

A) budget limitation tactic B) take-it-or-leave-it tactic C) let-us-split-the-difference tactic D) "if...then" tactic E) "sell low now, make profits later" tactic Answer: A Diff: 2 AACSB: Application of Knowledge Objective: LO5 22) If a company uses a low-price strategy, the company should most likely consider which of the following when negotiating with transactional buyers?

A) selling at the cost of manufacturing the product to improve economies of scale B) eliminating features that contribute to a higher selling price C) increasing the number of features of the product D) matching competitors' prices E) changing branding Answer: B Diff: 2 AACSB: Application of Knowledge Objective: LO4 23) Cost represents the: A) relationship between price and amortization B) initial amount the buyer pays for the product C) amount the buyer pays for a product as it is used over a period of time D) true value of the product in non-financial terms E) buyer's contribution to the negotiations Answer: C Diff: 2 Objective: LO4 24) Which of the following is most likely a true statement about price?

A) Transactional buying at a low price involves a strategic relationship with the seller.

B) Features and benefits are not always related to the price of a product.

C) Lower prices are equivalent to lower costs and higher quality.

D) The highest quality can never be obtained at the lowest price.

E) Paying too much is typically worse than paying too little.

Answer: D Diff: 3 Objective: LO3

25) The iceberg metaphor shows that many customers try to negotiate on price because: A) price is often inflated to attempt to maximize profits for the company B) price is the most easily quantifiable characteristic of any product C) they were trained to negotiate on price and price alone D) they feel that they are not fulfilling their duties as buyers if they do not attempt to get lower prices E) they do not realize that other factors, such as service and terms, can be more important to long-term satisfaction Answer: E Diff: 3 Objective: LO4 26) In negotiations, the walk-away point that represents the lowest offer a party would be willing to accept is known as the ________.

A) reservation value B) best alternative C) peak price point D) price objection E) zone of possible agreement Answer: A Diff: 1 Objective: LO1 27) What is the most likely benefit of using indirect denial to handle a prospect's concerns?

A) identifying the main concerns of the prospect B) showing respect for the prospect's opinion C) countering inaccurate information D) resolving the issue conclusively E) preventing price resistance Answer: B Diff: 2 AACSB: Written and Oral Communication Objective: LO3 28) Which of the following best describes a misunderstanding?

A) a failure to ask enough probing questions to identify a problem B) a failure to agree even when both sides understand each other C) a failure to accurately understand the other person's point D) an inability to reach a win-win agreement E) an inability to negotiate across cultures Answer: C Diff: 2 Objective: LO1

29) Logrolling refers to: A) selling customers new products B) expanding sales territories and shifting customers C) asking customers to pay full price in the short term D) offering an alternate solution to a negotiation problem E) increasing customer service to reach a win-win solution Answer: D Diff: 2 Objective: LO1 30) Determining your BATNA and ZOPA will help you in negotiations because: A) the process will be delayed and you may be able to wear the buyer down B) you will have a leg up on buyers, who are restricted from performing these assessments C) you will only make the sale if your BATNA determination matches your buyer's exactly D) they determine the best fair price for a product based on economies of scale in production E) they tell you what you will be willing to accept before you walk away from the negotiation Answer: E Diff: 3 Objective: LO1 13.3 Short Answer Questions 1) A(n) ________ is a benefit that will, in most cases, outweigh the customer's specific concern.

Answer: superior benefit Diff: 2 Objective: LO3 2) The ________ method of negotiating buyer resistance is one of the most convincing ways to overcome buyer skepticism.

Answer: demonstration Diff: 2 Objective: LO3 3) The ________ method of negotiating an objection is popular with customers because they can get fully acquainted with the product without making a major commitment.

Answer: trial offer Diff: 2 Objective: LO3 4) One way to empathize with the client's objection and turn objections into sales is to use the "feel-felt- ________" strategy.

Answer: found Diff: 1 Objective: LO3

5) When a salesperson bends a little and acknowledges that the prospect is at least partially correct, the salesperson is using the ________ method of negotiating an objection.

Answer: indirect denial Diff: 2 Objective: LO3 13.4 Essay Questions 1) List five common types of buyer concerns.

Answer: 1. Concerns related to need for the product.

2. Concerns about the product.

3. Concerns about source.

4. Concerns related to price.

5. Concerns related to time.

Diff: 2 Objective: LO2 2) Professional buyers often learn to use specific tactics in dealing with salespeople. List three tactics that were identified in Homer Smith's book, Selling Through Negotiation.

Answer: 1. Budget limitation tactic.

2. Take-it-or-leave-it tactic.

3. Let's split the difference tactic.

Diff: 2 Objective: LO5 13.5 Applied Multiple Choice Questions The sales director of a food supply house to restaurants has been analyzing sales for the past two years and has discovered that sales representatives have been losing sales, giving larger discounts than they should, and giving away too many "freebies" to clients.

1) What area of the sales process are the sales representatives weak in, according to the results of the sales director's analysis?

A) price calculations B) negotiation skills C) presentation skills D) rapport building E) showmanship Answer: B Diff: 3 AACSB: Application of Knowledge Objective: LO1, LO3

2) A salesperson who goes into a negotiation process without any preparation is likely either to lose the sale or to: A) make concessions to the buyer too quickly B) create a win-win solution for both parties C) sell a product that lacks superior benefits D) give the prospect too much information E) promote the competition's product Answer: A Diff: 3 AACSB: Application of Knowledge Objective: LO1 3) The sales director could most likely help the sales representatives to understand the firm's financial objectives by clarifying: A) cold calling methods B) trial close techniques C) reservation values D) logrolling rules E) unbundling tools Answer: C Diff: 3 AACSB: Application of Knowledge Objective: LO1 4) As part of negotiation skills training, the sales representatives learn about handling customer objections. A common customer objection regards the quality of produce and meat. How should a sales representative most likely address this objection?

A) Emphasize the firm's commitment to customer service after a sale.

B) Offer a specific delivery time so restaurants know when to expect products.

C) Engage in transactional selling methods to develop a strategic relationship.

D) Offer a discount on the first years' orders to gain the buyer's trust.

E) Deny that a quality problem exists by showing certifications from local farmers.

Answer: A Diff: 3 AACSB: Application of Knowledge Objective: LO1, LO2, LO3, LO4 5) The negotiation training stresses that sales representatives should avoid making price the focal point of the presentation. This requires the sales representatives to refocus on: A) positioning the product on quality instead of price B) using the postponement method when asked about price C) timing the presentation to mention price last instead of first D) using the pricing sheet to create tiers of discounts E) targeting sales to buyers with less money Answer: A Diff: 3 AACSB: Application of Knowledge Objective: LO2, LO3, LO4

Karyn Fleishman is the lead sales representative on a team selling super-powered microscopes to research laboratories and other research institutions. She and her team just made a presentation to the buying team of a large lab, and they are about to enter the negotiation process to work toward closing a deal.

6) Karyn's team has already uncovered the lab's needs during the consultative questioning stage of the presentation. Which of the following is most likely true?

A) The team should practice debating features and benefits before the negotiation.

B) The team should continue to gather as much information on the lab and the lab's buying team as possible before the negotiation.

C) The team has already missed their best window of opportunity for negotiations.

D) The team should be more aggressive about offering discounts to achieve a fast close.

E) The team is more prepared than they need to be for the negotiation process.

Answer: B Diff: 3 AACSB: Application of Knowledge Objective: LO1, LO2, LO4 7) The selling team should most likely be prepared to: A) deal with buyers that have well-developed negotiation skills B) give concessions quickly to show good will to the buyers C) settle most of the points of contention right away D) revalue the microscope to make the sale E) stick to the most important consideration: price Answer: A Diff: 3 AACSB: Application of Knowledge Objective: LO1, LO5 8) During the negotiations, it became apparent that the buyer had not understood the delivery schedule correctly. This most likely made the situation: A) more difficult, as the sales team clearly cannot communicate details effectively B) more difficult, as the sales team must start the whole negotiating process again C) more difficult, as the buyer was not capable of agreeing to the complex terms D) easier, as the buyer gave in to the seller with an apology for misunderstanding E) easier, as the sales team needed to clarify details instead of renegotiate Answer: E Diff: 3 AACSB: Application of Knowledge Objective: LO1, LO3

9) Which of the following would be an example of logrolling in this negotiation?

A) The sales team gives the buyer a lower price than in the initial proposal.

B) The sales team creates a whole new proposal with different terms and pricing.

C) The sales team offers the buyer an advantageous payment schedule.

D) The sales team holds firm on the original price.

E) The buyers pit two sellers against each other.

Answer: C Diff: 3 AACSB: Application of Knowledge Objective: LO1, LO3 10) The negotiations are stalled until Karyn's team discovers that the buyers are concerned about the costs of training laboratory employees to use the new microscope. What response would most likely move the negotiations forward?

A) The sales team offers to demonstrate the microscope to the lab supervisors.

B) The sales team provides testimonials on the efficacy of the microscope.

C) The sales team ignores the concern and offers expedited delivery instead.

D) The sales team offers discounted training from the firm's implementation team.

E) The sales team assures the buyers that the microscope is easy to use.

Answer: D Diff: 3 AACSB: Application of Knowledge Objective: LO3, LO4 Kelly Addison is a designer clothing buyer for a chain of department stores. She has gone through several negotiation certification programs and is considered an expert negotiator by her peers.

11) When Kelly sees value in a product but does not want to pay the suggested price, she often offers to split the price difference with the seller. If a salesperson finds Kelly's offer unacceptable, the salesperson should most likely: A) agree to split the difference B) make a pricing counteroffer C) provide a trial demonstration D) walk away from the negotiations E) show sourcing documents as proof Answer: B Diff: 3 AACSB: Application of Knowledge Objective: LO3, LO5

12) Because Kelly is a tough negotiator, salespeople must be aware of how much flexibility they have in terms of price, specifications, and delivery schedules. Which of the following best helps a salesperson with determining the walk-away point when dealing with Kelly?

A) SWOT B) ZOPA C) ROI D) PLC E) CRM Answer: B Diff: 3 AACSB: Application of Knowledge Objective: LO1 13) Kelly's bottom line is price, but she has wiggle room if the seller can move on terms such as tiered discounts for subsequent orders. Which of the following would most likely appeal to Kelly?

A) personalized service agreement for the product B) implementation of the product C) free training on use of the product D) a delayed payment plan E) using a different manufacturer Answer: D Diff: 3 AACSB: Application of Knowledge Objective: LO4, LO5 14) Kelly often tells sellers that her budget will not allow her to pay the price they are asking.

What is the most effective way a seller could counter that claim?

A) offering to reduce the price through unbundling B) telling her to request a larger budget from her manager C) offering her the product for what she says she can spend D) asking to see proof of the limit of her budget E) convincing her of the benefits of the product Answer: A Diff: 3 AACSB: Application of Knowledge Objective: LO3, LO4, LO5

15) If Kelly and the seller cannot come to terms on pricing or any other equivalent factors, which of the following is the most likely outcome of the negotiation?

A) The seller will give in and accept the price the buyer wants to pay.

B) The buyer and seller will use a random method to decide whose terms to use.

C) The buyer and seller will walk away from the negotiation without closing a sale.

D) The buyer and seller will take the disagreement to an outside mediator.

E) The buyer will give in and pay the full price asked by the seller.

Answer: C Diff: 3 AACSB: Application of Knowledge Objective: LO1, LO5 Selling Today, 16e (Manning/Ahearne/Reece) Chapter 14 Adapting the Close and Confirming the Partnership 14.1 True/False Questions 1) Hard-sell closing methods that involve manipulating the customer have fallen out of favor in the last few decades.

Answer: TRUE Diff: 2 Objective: LO1 2) The close is a good time to deal with controversial areas and problems.

Answer: FALSE Diff: 2 Objective: LO2 3) When doing business in most of Latin America, your business card should be translated into Spanish.

Answer: TRUE Diff: 1 AACSB: Diverse and Multicultural Work Environments Objective: LO2 4) Lack of self-confidence prevents some salespeople from asking for the order.

Answer: TRUE Diff: 2 Objective: LO2 5) Requirements posed by the customer may indicate readiness to buy.

Answer: TRUE Diff: 2 AACSB: Written and Oral Communication Objective: LO3 6) Most nonverbal closing clues are easy to detect and interpret.

Answer: FALSE Diff: 2

AACSB: Written and Oral Communication Objective: LO3 7) An example of a trial close is when the salesperson says, "Can I get your signature here?"

Answer: FALSE Diff: 2 AACSB: Analytical Thinking Objective: LO4

8) As a general rule, a salesperson should ask for the sale no more than three times.

Answer: FALSE Diff: 1 Objective: LO2 9) One of the least subtle buying signals displayed by the customer is the question.

Answer: TRUE Diff: 2 Objective: LO3 10) The direct appeal close is avoided by most salespeople because it adds complexity to a selling/buying situation.

Answer: FALSE Diff: 2 Objective: LO4 11) When you are working on a large, complex sale you should try to achieve incremental commitment.

Answer: TRUE Diff: 1 Objective: LO2 12) After closing the sale, it would be proper to say, "Do you know anyone else who might be interested in this product?"

Answer: TRUE Diff: 1 Objective: LO5 13) When a customer says "no," there is no chance that the decision can be changed, so a salesperson should leave the office quickly.

Answer: FALSE Diff: 1 Objective: LO5 14) The direct appeal works best if it occurs early in sales presentation before a prospect shows clear interest in a product.

Answer: FALSE Diff: 2 Objective: LO4 15) Role playing is the best-known way to experience the feelings that accompany closing and to practice the skills needed to close sales.

Answer: TRUE Diff: 1 Objective: LO4

14.2 Multiple-Choice Questions 1) Difficulties closing the sale are most likely to arise when: A) the salesperson is not strategically prepared for the close B) the "magic moment" has elapsed before the close has been attempted C) verbal and nonverbal clues contradict each other D) the customer responds positively to the trial close E) the salesperson has too much confidence in the close Answer: A Diff: 2 Objective: LO1 2) Which of the following is one of the buying anxieties that make customers reluctant to commit, according to Gene Bedell, author of 3 Steps to Yes? A) lack of strategy B) lack of loyalty C) fear of making a mistake D) fear of asking for the close E) fear of public speaking Answer: C Diff: 2 Objective: LO1 3) During the close, attention should be focused on: A) a more detailed analysis of customer objections B) the information gathered in the pre-approach stage C) the single benefit that generates the most excitement D) the ceremonial and visual aspects of the sales presentation E) the features the product has that set it apart from the competition Answer: C Diff: 2 Objective: LO2 4) Matt, a computer salesperson, tells a prospect, "As I described earlier, we have two financing methods available. Which of them do you prefer?" Matt is most likely using which closing method?

A) step-by-step B) special concession C) direct appeal D) multiple options E) assumptive Answer: D Diff: 2 AACSB: Analytical Thinking Objective: LO4

5) When you are working on a large, complex sale you should most likely try to achieve: A) joint partnership B) special concessions C) immediate commitment D) transactional synergy E) incremental commitment Answer: E Diff: 2 Objective: LO2 6) A salesperson who says, "If you will sign the order today, I can guarantee delivery within five days," is using which of the following closing methods?

A) direct appeal B) assumption C) limited choice D) summary-of-benefits E) combination Answer: A Diff: 2 AACSB: Analytical Thinking Objective: LO4 7) Which is true of doing sales work in Latin America?

A) You might receive a hug and pat on the back as part of the greeting process.

B) Your interactions with decision makers will be direct and efficient.

C) Lunch with the client tends to be brief and productive.

D) Brazilian clients conduct business in Spanish or Portuguese interchangeably.

E) Latin Americans tend to be very punctual for appointments.

Answer: A Diff: 2 AACSB: Diverse and Multicultural Work Environments Objective: LO3 8) You have covered the major points of the sales presentation and detected considerable buyer interest, but you feel that the prospect will not be able to put the entire picture together without help. Which type of closing would be most appropriate?

A) balance sheet close B) management close C) summary-of-benefits close D) trial close E) assumptive close Answer: C Diff: 2 AACSB: Analytical Thinking Objective: LO4

9) After closing a sale, the salesperson should do which of the following?

A) Discuss the customer's family and other personal matters.

B) Describe the satisfaction that will come from owning the product.

C) Ask the customer to write a testimonial about the value of the product.

D) Initiate a general conversation about the industry and economy.

E) Discuss other products the buyer could have purchased instead.

Answer: B Diff: 2 AACSB: Application of Knowledge Objective: LO5 10) Prior to the introduction of consultative selling and the partnering era, closing was often presented as: A) less relevant than strategy B) a type of win-win negotiation C) an unnecessary aspect of selling D) a minor component of personal sales E) the most important aspect of the sales process Answer: E Diff: 2 Objective: LO1 11) Which of the following is a major step to be followed when using the multiple options close?

A) Review methods of payment.

B) Create one solid product configuration for the client.

C) Include all the bestselling products in the configuration.

D) Introduce new products during a lull in the conversation.

E) Concentrate on the options the prospect seems to be interested in.

Answer: E Diff: 2 Objective: LO4 12) Michael LeBoeuf, author of How to Win Customers and Keep Them for Life, says that a surprising number of yes responses occur: A) during the first trial close B) on the fourth or fifth closing attempt C) during the approach stage of the sales process D) after the salesperson asks for the order twice E) after the salesperson gives up the sale as lost Answer: B Diff: 2 Objective: LO2

13) A closing clue can be described as a(n): A) indication that the customer is undecided about the buying decision B) indication you should speed up the sales presentation C) verbal or nonverbal form of feedback from the customer D) indication that the prospect fully understands the merits of your product E) request from the customer for more information Answer: C Diff: 2 AACSB: Written and Oral Communication Objective: LO3 14) The statement, "We have always wanted to own a travel trailer like this one," is a closing clue that falls into which category?

A) benefits B) requirements C) questions D) recognitions E) assumptions Answer: D Diff: 2 AACSB: Analytical Thinking Objective: LO3 15) If the prospect says "no," which of the following should a salesperson LEAST likely do?

A) Thank the prospect sincerely.

B) Ask the prospect for future consideration.

C) Review the chain of events to identify weaknesses.

D) Try to reopen the presentation to confirm the decision.

E) Seek general feedback from the prospect through probing.

Answer: E Diff: 2 AACSB: Application of Knowledge Objective: LO5 16) To close a sale more effectively, it helps to look at the value proposition: A) from the customer's point of view B) from the competition's point of view C) as a made-up concept D) as the objective to reach for E) to determine which type of close to use Answer: A Diff: 2 Objective: LO1

17) An incremental close is especially appropriate for a product: A) with a direct sales cycle B) with a long, complex sales cycle C) that is extremely expensive D) that involves a buying committee E) that involves few closing clues Answer: B Diff: 2 Objective: LO2 18) Withholding information from customers and revealing it at the close would most likely: A) violate federal truth in advertising laws B) cause the customer to buy more units C) jeopardize the completion of the sale D) be considered an assumptive close E) minimize the incremental close Answer: C Diff: 2 Objective: LO2 19) Salespeople should be confident at the time of the close if they can answer "yes" to all of the following questions EXCEPT: A) Do you believe in your product?

B) Do you believe in your company?

C) Do you believe in yourself?

D) Are you ready to give discounts if they are needed?

E) Have you identified a solution to the customer's problem?

Answer: D Diff: 2 Objective: LO2 20) An indication, either verbal or nonverbal, that the prospect is preparing to make a buying decision is called a(n): A) assumptive close B) trial close C) approach D) direct close E) closing clue Answer: E Diff: 1 Objective: LO3

21) Which of the following is most likely a nonverbal clue indicating that a prospect is prepared to purchase the product?

A) The prospect asks about the terms of the sale.

B) The prospect's facial expression becomes closed off.

C) The prospect crosses her arms over her body.

D) The prospect leans forward and appears to be intent on hearing your message.

E) The prospect begins to examine the product as a way to tune out the salesperson's voice.

Answer: D Diff: 1 AACSB: Written and Oral Communication Objective: LO3 22) The best closing method is: A) the one the sales manager prefers B) the one that is appropriate to the customer C) the one the salesperson has rehearsed most often D) either the assumptive or the summary-of-benefits close E) the multiple options close Answer: B Diff: 2 Objective: LO4 23) Putting pressure on a buyer with a(n) ________ communication style will most likely make the buyer more indecisive.

A) directive B) rational C) supportive D) emotive E) reflective Answer: C Diff: 2 AACSB: Written and Oral Communication Objective: LO4 24) A buyer with a(n) ________ communication style most likely needs support and social acceptance from a salesperson.

A) directive B) rational C) supportive D) emotive E) reflective Answer: D Diff: 2 AACSB: Written and Oral Communication Objective: LO4

25) A buyer with a(n) ________ communication style is influenced by emotion and should not be pressured to make a quick decision.

A) directive B) rational C) supportive D) emotive E) reflective Answer: E Diff: 2 AACSB: Written and Oral Communication Objective: LO4 26) Salespeople should persist if the first effort to close is rejected, as this type of buyer admires persistence. Which communication style does this buyer have?

A) directive B) rational C) supportive D) emotive E) reflective Answer: A Diff: 2 AACSB: Written and Oral Communication Objective: LO4 27) The confirmation step is most likely important because it: A) assures that the customer cannot back out of the purchase B) reassures buyers that they made the right decision C) means that the salesperson can collect a commission D) leads into the service step of the process E) signals an end to buyer's remorse Answer: B Diff: 2 Objective: LO5 28) An emotional response that can take various forms such as feelings of regret, fear, or anxiety is: A) Saturday-morning syndrome B) buyer's high C) buyer's remorse D) closing reluctance E) closing reserve Answer: C Diff: 1 Objective: LO5

29) When a sale is lost, it is important to review the chain of events because: A) a client that has been lost once will be lost again B) the sales manager must take disciplinary action against the salesperson C) the salesperson should determine how to retaliate against the competition D) the salesperson will be able to learn from mistakes E) the client must decide to offer referrals Answer: D Diff: 3 Objective: LO5 30) Once a salesperson has lost a deal, the salesperson should: A) remove the client's records from the CRM system B) send the client an email expressing displeasure with the negotiation process C) avoid any future contact with the client D) make sure the client knows about the weaknesses of the competitor E) keep the door open for future sales Answer: E Diff: 2 Objective: LO5 14.3 Short Answer Questions 1) A(n) ________ is any positive statement regarding your product or some factor relating to the sale, such as credit terms or delivery date.

Answer: recognition Diff: 2 Objective: LO3 2) ________ is an emotional response that can take various forms such as feelings of regret, fear, or anxiety.

Answer: Buyer's remorse Diff: 2 Objective: LO5 3) A(n) ________ is an indication, either verbal or nonverbal, that the prospect is preparing to make a buying decision.

Answer: closing clue Diff: 2 AACSB: Written and Oral Communication Objective: LO3 4) ________ are closing attempts made at opportune times during the sales presentation to encourage the customer to reveal readiness or objection to buying.

Answer: Trial closes Diff: 2 Objective: LO4

5) The ________ close offers the buyer something extra for acting immediately.

Answer: special concession Diff: 2 Objective: LO2 14.4 Essay Questions 1) There are a number of factors that will increase the odds that you will close the sale. List the guidelines for closing the sale that have universal application.

Answer: 1. Focus on dominant buying motives.

2. Recognize that longer selling cycles are a fact of life.

3. Negotiate the tough points early.

4. Avoid surprises at the close.

5. Display a high degree of self-confidence at the close.

6. Ask for the order more than once.

7. Recognize closing clues.

Diff: 2 Objective: LO2 2) What suggestions would you give to a salesperson that does not successfully close a sale?

Answer: 1. Make sure the deal is really dead. There is always a chance that the customer's decision can be changed.

2. Review the chain of events. Try to benefit from the experience.

3 Interview the client. The key is to couch your questions in neutral terms.

Diff: 2 Objective: LO5 14.5 Applied Multiple Choice Questions Ahmed ElShatif sells life and disability insurance to members of a large union in the Willamette Valley region. His company is the only approved insurance vendor for the union. Although he is not competing against other insurance agents, his prospects are not required to buy any insurance coverage at all. He spends an average of 20 minutes with each prospect, learning about their needs and explaining the various insurance products, and choosing the right combination for each prospect.

1) When attempting to close a sale, Ahmed should most likely do all of the following EXCEPT: A) focus on a single point of greatest interest B) recognize verbal and nonverbal closing clues C) keep the prospect involved in the presentation D) accommodate the buyer's communication style E) reveal additional service and transaction fees Answer: E Diff: 3 AACSB: Application of Knowledge Objective: LO1, LO2

2) Ahmed knows the insurance he sells is a good value and that it is beneficial to customers.

Moreover, Ahmed is confident that most prospects have already decided to purchase the insurance. What type of close will Ahmed most likely use?

A) assumptive B) direct appeal C) trial D) special options E) management Answer: A Diff: 3 AACSB: Application of Knowledge Objective: LO4 3) Which statement from a prospect is best categorized as a requirement clue?

A) "I don't understand the purpose of disability insurance."

B) "When is the first payment due?"

C) "My entire family will need dental coverage."

D) "Will this insurance cover hospitalization?"

E) "I have coverage through my wife's job."

Answer: B Diff: 3 AACSB: Application of Knowledge Objective: LO3 4) Which of the following statements most likely illustrates a trial close?

A) "How close are we to completing this sale?"

B) "Since we have all the information, let's place the order."

C) "Would you prefer paying on the first or the fifteenth every month?"

D) "You can pay the premium in full or monthly. Which do you prefer?"

E) "May I have you sign this information release form to complete the process?"

Answer: C Diff: 3 AACSB: Application of Knowledge Objective: LO4 5) Even if a prospect who does not buy from Ahmed now, Ahmed should most likely: A) delete the prospect's record B) mark the prospect's file "Sale Lost" C) ask another sales representative at the firm to approach the prospect D) call the prospect every week until the prospect buys the insurance E) continue to make contact once a year with the prospect Answer: E Diff: 3 AACSB: Application of Knowledge Objective: LO5

Lacey Abrams is the sales representative for the Brook Park Zoo. She sells events, such as wedding receptions, corporate dinners, and fundraisers that are held on zoo grounds. She has just finished negotiating all the details of Anne Mason's upcoming wedding reception and is preparing to close the sale.

6) Anne is considerably interested in having her wedding at the zoo but seems to need help envisioning the process and benefits. What type of close should Lacey most likely use?

A) summary of benefits B) trial C) direct appeal D) assumptive E) special options Answer: A Diff: 3 AACSB: Application of Knowledge Objective: LO4 7) Which of the following is a signal that Anne is ready to sign the contract to book the reception?

A) She looks at her watch.

B) She checks her phone for messages.

C) She asks, "How much do I need to put down now to reserve the date?"

D) She asks, "Why don't you offer pre-set desserts?"

E) She says, "The country club offers a chocolate fountain at no extra cost."

Answer: C Diff: 3 AACSB: Application of Knowledge Objective: LO3 8) Which statement most likely indicates that Lacey is implementing a summary-of-benefits close?

A) "Are you ready to purchase the package and provide us with the down payment to reserve the date?"

B) "We've got you in the African Savannah room from six to midnight, with a four-course dinner for 200, cake-cutting and plating, and full bar for $16,000. Is that correct?"

C) "If you sign the contract now I can give you a champagne toast for free."

D) "Do you have any questions about pricing or package options?"

E) "As soon as you sign the contract, your date will be booked!"

Answer: B Diff: 3 AACSB: Application of Knowledge Objective: LO4

9) Anne seems to be experiencing buying anxiety, so Lacey creates a two-column chart. One column is titled "Reasons for Buying Now" and another column is titled "Reasons for Not Buying Now." Lacey is most likely engaging in a(n) ________ close.

A) multiple option B) combination C) impending event D) management E) balance sheet Answer: E Diff: 3 AACSB: Application of Knowledge Objective: LO5 10) Why is it most likely important for Lacey to engage in the confirmation step after closing a sale with Anne?

A) Establish a long-term strategic partnership with Anne.

B) Facilitate payment before Anne changes her mind.

C) Gather feedback from Anne about the sales process.

D) Prevent Anne from having buyer's remorse.

E) Ensure that Anne provides many referrals.

Answer: D Diff: 3 AACSB: Application of Knowledge Objective: LO5 Shane Chadwick is a sales representative for the Metropolitan Commuter Rail Service, selling ad space inside commuter rail train cars and stations. He has presented and negotiated to a representative from new church trying to attract members by advertising their philosophy and service times.

11) Which of the following would most likely help Shane close a sale with the church representative?

A) considering the value proposition from the prospect's point of view B) focusing on every benefit and feature of rail car advertising C) negotiating tough points during the close D) mentioning additional fees during the close E) asking for the order only one time Answer: A Diff: 3 AACSB: Application of Knowledge Objective: LO1

12) Shane feels the presentation and negotiation have gone well, so he decides to use a direct appeal close. What would Shane most likely say to the representative of the church?

A) "Do you have any more questions about ad runs?"

B) "It looks like I've covered all your questions."

C) "Are you ready to sign the contract so we can close the deal?"

D) "Is there anyone else we should present this information to?"

E) "What is your overall opinion of my sales presentation?"

Answer: C Diff: 3 AACSB: Application of Knowledge Objective: LO4 13) When it is time for the church representative to sign the contract, Shane mentions that printing costs are not included in the price he quoted during the presentation. The church representative feels deliberately misled by Shane and finds that the printing costs put the ads over the church's budget. At what point should Shane have discussed the price breakdown?

A) during the close B) during the pre-approach C) while building rapport D) during the presentation E) while servicing the sale Answer: D Diff: 3 AACSB: Application of Knowledge Objective: LO2 14) Shane and the church representative spend time talking about ways to structure the deal to make it possible for the church to buy the ads. Shane offers to discount the ad space if the church pays for the printing costs. This discussion is part of: A) an extended close B) negotiations C) rebuilding rapport D) logrolling E) partnering Answer: B Diff: 3 AACSB: Application of Knowledge Objective: LO2

15) Despite the discount Shane offers, the church representative walks away from the deal. What can Shane most likely learn from this experience?

A) Show less confidence at closing.

B) Engage in longer selling cycles.

C) Focus on individual buying motives.

D) Strive for incremental commitment.

E) Avoid surprises at the close.

Answer: E Diff: 3 AACSB: Application of Knowledge Objective: LO2, LO5 Selling Today, 16e (Manning/Ahearne/Reece) Chapter 15 Servicing the Sale and Building the Partnership 15.1 True/False Questions 1) People buy expectations, not products, according to Ted Levitt, author of The Marketing Imagination.

Answer: TRUE Diff: 1 Objective: LO1 2) According to Tony Allesandra, failure of a purchased product to perform as expected can be described as the "moment of truth."

Answer: FALSE Diff: 2 Objective: LO2 3) Full-line selling, sometimes called suggestion selling, should be spontaneous and unplanned in order to achieve naturalness in the selling situation.

Answer: FALSE Diff: 2 Objective: LO4 4) Cross-selling involves selling products that are directly related to products that you have sold to an established customer.

Answer: FALSE Diff: 2 Objective: LO4 5) When you deal with an unhappy customer, you should try to determine if their problem is real or perceived before attempting to resolve an issue.

Answer: FALSE Diff: 2 Objective: LO5 6) With full-line selling, it is beneficial to use demonstration or sales tools to build customer interest in the suggested item.

Answer: TRUE Diff: 1 Objective: LO5 7) Research indicates that about half of lost customers leave due to price considerations.

Answer: FALSE Diff: 2 Objective: LO1

8) Surveys show that poor service and lack of follow-up after the sale, both potentially valueadding activities, are the primary reasons customers stop buying from a salesperson.

Answer: TRUE Diff: 2 Objective: LO1 9) Full-line selling, or suggestion selling, should be viewed as a form of customer service.

Answer: TRUE Diff: 1 Objective: LO4 10) With B2B selling, responsiveness and reliability are essential service behaviors.

Answer: TRUE Diff: 1 Objective: LO2 11) A "moment of truth" can be described as a situation where the customer's expectations were met.

Answer: TRUE Diff: 2 Objective: LO2 12) A salesperson should plan for full-line selling during the preapproach step of the sales process.

Answer: TRUE Diff: 2 Objective: LO4 13) Business meetings in Russia typically start on time because Russians value punctuality.

Answer: FALSE Diff: 2 AACSB: Diverse and Multicultural Work Environments Objective: LO2 14) Satisfied customers who make product recommendations to others act as a firm's "auxiliary" sales force.

Answer: TRUE Diff: 2 Objective: LO1 15) In the Six-Step Presentation Plan, the "Servicing the Sale" step includes recognizing closing clues, expansion selling, and making follow-up calls.

Answer: FALSE Diff: 2 Objective: LO1

15.2 Multiple-Choice Questions 1) Quick & Reilly, a financial services company, was able to increase sales by 35 percent by implementing which of the following programs?

A) cross-selling B) customer service C) full-line selling D) extranet E) upselling Answer: A Diff: 2 Objective: LO4 2) A customer complaint should most likely be viewed as a(n): A) lost sale in the future due to customer frustration and anger B) opportunity to prove the firm's commitment to service C) problem that will require attention in the future D) issue associated with a single department E) misperception on the part of the customer Answer: B Diff: 2 Objective: LO5 3) When dealing with customer complaints, the salesperson should most likely: A) determine if the complaint is real or imagined B) point out the fallacy in the customer's argument C) decide what action must be taken to remedy the problem D) prevent customers from sharing their feelings and frustrations E) blame the problem on other departments in the company, such as shipping Answer: C Diff: 2 AACSB: Application of Knowledge Objective: LO5 4) The purpose of the follow-up communication between customer and salesperson is to express thanks for the order and to: A) introduce related products B) complete the call card form C) request referrals for other prospects D) determine if the customer is satisfied E) ask for full payment from the customer Answer: D Diff: 2 Objective: LO3

5) The major advantage of a telephone call over written correspondence is that: A) it is cheaper B) less time is involved C) it offers spontaneity D) the buyer is a "captive audience" E) two-way communication is involved Answer: E Diff: 1 AACSB: Written and Oral Communication Objective: LO3 6) Bradley Wholesale Foods purchased a new computer system for the personnel department. All of the equipment was delivered on time, installed properly, and the employees at Bradley were given effective systems training. The new equipment and the post-sale service surpassed the customer's expectations. The staff at Bradley Wholesale Foods has most likely experienced a: A) moment of magic B) moment of truth C) moment of misery D) remorseful moment E) cross-selling moment Answer: A Diff: 2 AACSB: Analytical Thinking Objective: LO2 7) A group of people who recommend customer-driven organizations to others could be called: A) disgruntled customers B) auxiliary salespeople C) a secondary salesforce D) missionary salespeople E) evangelist salespeople Answer: B Diff: 1 Objective: LO1 8) Which of the following is a current development in customer service?

A) Salespeople are spending less time monitoring customer satisfaction.

B) Incentives are used by salespeople to personalize customer relationships.

C) The personal follow-up visit has proven to be the only effective follow-up method.

D) Extranets enhance customer service by placing regular, automated calls to customers.

E) Salespeople criticize competitors for the purpose of creating magical moments with customers.

Answer: B Diff: 3 Objective: LO2

9) How can customer complaints provide the firm with great value?

A) Customer service representatives require on-the-job training.

B) Resolving complaints involves engaging in two-way communication.

C) Sorting profitable and non-profitable customers becomes easier.

D) Complaints provide information that is difficult to obtain by other means.

E) Complaints offer an opportunity to prove the company is legally and ethically right.

Answer: D Diff: 2 Objective: LO5 10) The moment of ________ refers to a situation when customer expectations are not met.

A) dismay B) magic C) truth D) reality E) misery Answer: E Diff: 2 Objective: LO2 11) According to Ted Levitt, author of The Marketing Imagination, people buy the: A) expectations of the benefits you promised B) specific product you offered C) promise of a long-term relationship D) products that offer a "no hassle" guarantee E) image of the product Answer: A Diff: 2 Objective: LO1 12) Expansion selling encompasses which of the following?

A) partial-line selling B) reselling C) suggestion selling D) undercutting the competition E) cross-purpose selling Answer: C Diff: 1 Objective: LO4

13) Which of the following is recommended when using suggestion selling?

A) Don't waste time suggesting low-profit items.

B) Don't hesitate to make suggestions before closing the sale.

C) Don't make suggestions until you have first satisfied the customer's primary need.

D) Show the suggested item only if the customer seems interested and profit margins are high.

E) Suggestion selling should be used to generate half again as much revenue as the primary product does.

Answer: C Diff: 3 Objective: LO4 14) A form that serves as a communications link with persons who can assist with customer service is called a: A) service card B) follow-up card C) product service card D) call report E) product service report Answer: D Diff: 1 AACSB: Written and Oral Communication Objective: LO3 15) Which of the following would LEAST likely help a salesperson earn a repeat sale?

A) providing professional looking business cards B) ensuring timely delivery of a product C) acting as the customer's advocate D) ensuring the accuracy of invoices E) offering technical expertise Answer: A Diff: 2 AACSB: Application of Knowledge Objective: LO1 16) According to Ted Levitt, author of The Marketing Imagination, once the customer buys your product, expectations: A) increase B) stay the same C) decrease D) are fulfilled E) become less important Answer: A Diff: 2 Objective: LO1

17) Of the customers that leave companies each year, approximately ________ % leave because of bad customer service.

A) 10 B) 20 C) 40 D) 60 E) 80 Answer: D Diff: 2 Objective: LO1 18) Diligence, an essential service behavior, combines responsiveness and: A) knowledge B) technical skill C) reliability D) persuasiveness E) precision Answer: C Diff: 1 Objective: LO2 19) According to sales trainer Tony Alessandra, there are three possible service outcomes.

Which one should salespeople strive for?

A) the moment of happiness B) the moment of truth C) the moment of misery D) the moment of magic E) the moment of expectation Answer: D Diff: 1 Objective: LO2 20) Salespeople should most likely do which of the following when a product is delivered to a customer?

A) Call the shipping agent to monitor delivery.

B) Mail an instruction manual to the customer.

C) Offer training in the use of the product.

D) Change the price charged to the customer.

E) Unpack the product by hand.

Answer: C Diff: 2 Objective: LO3

21) Value reinforcement means: A) getting credit for the value you create for the customer B) showing the customer the specific benefits of the product C) using bridge statements to clarify product information D) using the assumptive method to close a sale E) reiterating the features included with the purchase price Answer: A Diff: 2 Objective: LO3 22) A best practice by which salespeople can use technology to strengthen relationships with customers is by: A) allowing customers to cancel orders without having to talk to a person B) sending email confirmations of appointments or agreements C) sending form letters with business cards through the mail D) placing automated prerecorded phone calls to customers on a programmed schedule E) faxing large numbers of sales letters to potential leads Answer: B Diff: 2 AACSB: Information Technology Objective: LO3 23) The most likely reason for salespeople to make follow-up telephone calls to customers is that: A) follow-up calls are more efficient than e-mails B) sales managers cannot make all the calls themselves C) the customer may place repeat orders during a phone call D) customer service representatives cannot be trusted to make the calls E) the customers are certain to have complaints and issues that need to be addressed Answer: C Diff: 2 Objective: LO3 24) Full-line selling is also known as: A) approach selling B) upselling C) cross-selling D) suggestion selling E) expansion selling Answer: D Diff: 1 Objective: LO4

25) Cross-selling is most effective in those situations in which the: A) purchase is product-based B) sales type is transactional C) products are similarly designed D) relationship with the customer is new E) salesperson and customer have an established relationship Answer: E Diff: 2 Objective: LO4 26) The effort to sell better-quality products is called: A) upselling B) cross-selling C) full-line selling D) logrolling E) leveraging Answer: A Diff: 1 Objective: LO4 27) Which service behavior is LEAST important in B2B selling?

A) returning customer phone calls promptly B) communicating information concisely C) showing a willingness to be helpful D) speeding up the closing process E) demonstrating professionalism Answer: D Diff: 2 Objective: LO2 28) The best action to take to resolve a customer complaint is to: A) schedule a meeting with the customer B) pacify the customer by listening C) exceed customer expectations D) provide the customer with training E) encourage the customer to join a loyalty program Answer: C Diff: 2 Objective: LO5

29) An unhappy customer is most likely to complain to: A) the salesperson B) the sales manager C) government agencies D) potential customers E) competing firms Answer: D Diff: 1 Objective: LO5 30) When a customer service problem requires an apology, a salesperson should most likely: A) delegate the task to a customer service representative B) write and send a thoughtful, hand-written letter C) send a prompt e-mail to the customer D) send a text message to the customer E) call the customer personally Answer: E Diff: 2 AACSB: Application of Knowledge Objective: LO5 15.3 Short Answer Questions 1) ________ involves selling products that are not directly related to products that you have sold to an established customer.

Answer: Cross selling Diff: 1 Objective: LO4 2) Getting credit for the value you create for the customer is known as ________.

Answer: value reinforcement Diff: 2 Objective: LO3 3) The process of recommending products or services that are related to the main item sold to the customer is known as ________.

Answer: full-line selling or suggestion selling Diff: 1 Objective: LO4 4) The ________ provides a quick, efficient, and instantly interactive way to follow up a sale.

Answer: telephone Diff: 1 Objective: LO3

5) The effort to sell better-quality products is known as ________.

Answer: upselling Diff: 2 Objective: LO4 15.4 Essay Questions 1) The salesperson that is genuinely interested in helping customers can build goodwill with fullline, or suggestion selling. List the four guidelines to follow when using this method.

Answer: 1. Plan for full-line selling during the preapproach step.

2. Make recommendations after you have first satisfied the customer's primary need.

3. Make your suggestions thoughtful and positive.

4. When appropriate, demonstrate the suggested item or use sales tools to build interest.

Diff: 2 Objective: LO4 2) List and describe the five major customer follow-up strategies.

Answer: 1. Personal visit. Usually the most costly method, but it may produce the best results 2. Telephone. This provides a quick, efficient way to follow up a sale.

3. Letter or card. Written correspondence is an inexpensive, convenient form of follow up.

4. Call report. This serves as a communications link with persons who can assist with customer service.

5. E-mail messages. A quick way to contact the customer; some customers prefer this method.

Diff: 2 AACSB: Written and Oral Communication Objective: LO3 15.5 Applied Multiple Choice Questions Alana Pierce is the director of Membership Programs for the Tammerline Zoo. She develops the programs and sells them to zoo visitors. The programs are tiered and include discounts and special perks for members.

1) Which of the following is a simple tool that would most likely ensure that Tammerline Zoo provides excellent customer service?

A) blog B) extranet C) call report D) customer survey E) expansion selling Answer: C Diff: 3 AACSB: Application of Knowledge Objective: LO3

2) Which of the following actions by Alana would most likely provide a moment of magic for new members of the zoo?

A) sending an electronic receipt for payment B) providing a plastic membership card C) giving away zoo t-shirts to new members D) printing a schedule of zoo hours and events E) seeking donations for the zoo's outreach program Answer: C Diff: 3 AACSB: Application of Knowledge Objective: LO3 3) Alana has seen research showing that members who are contacted "meaningfully" at least once a month are more likely to renew their memberships. What form of contact would zoo members be most likely to find meaningful each month?

A) an automated phone call thanking them for their zoo membership B) an email invitation to an upcoming special event for zoo members C) a refrigerator magnet with a picture of a zoo animal on it D) a phone call from another zoo member requesting donations E) a postcard with reminders of the zoo's hours of operation Answer: B Diff: 3 AACSB: Application of Knowledge Objective: LO1, LO2, LO3 4) A member contacts Alana to complain about parking. Every time she brings her children to the zoo, the members-only parking lot is full, and she is forced to park farther away in the general admission parking lot. When Alana receives such calls, she should most likely: A) refer the problem to the maintenance department B) identify whether the complaint is real or perceived C) allow customers to express their feelings D) avoid explaining the cause of the problem E) offer to cancel the membership Answer: C Diff: 3 AACSB: Application of Knowledge Objective: LO5

5) In addition to free events for members only, Alana works with the zookeepers to create paid members-only events, such as marine mammal feeding sessions. This most likely creates which of the following?

A) greater loyalty of members to the zookeepers B) a revenue stream for the zookeepers C) a way to make members feel that they are doing something dangerous D) bad feelings in members who have already paid the membership fee E) increased member prestige plus the chance to upsell to members Answer: E Diff: 3 AACSB: Application of Knowledge Objective: LO3, LO4 Gail Sayers is a sales representative with Countrywide Transport, a company that provides chartered flights—airplanes, pilots, staff, and services—to client groups. She has just closed a large sale of several flights each week for four months to a service organization of Orthodox Jewish college students. The students are sent on work service projects all across the United States. The first flights will begin one week after the closing date.

6) Which of the following would most likely help Gail prevent post-sale problems?

A) sending e-mails to other university groups referred to her by the client B) scheduling regular account reviews to assess the client's satisfaction C) asking the client to call her assistant with any questions D) submitting bills quickly to insure quick payment E) re-defining her service and product strategy Answer: B Diff: 3 AACSB: Application of Knowledge Objective: LO3 7) After the first flight, Gail would most likely build a long-term relationship with the new client by: A) e-mailing a new flight schedule B) sending an online customer service survey C) calling the client to ensure satisfaction with the flight D) requesting referrals from the client to engage in upselling E) checking with the billing department to make sure the client was invoiced Answer: C Diff: 3 AACSB: Application of Knowledge Objective: LO1, LO3

8) Every week, Gail puts together a summary of all the information about all the flights coming up in the next month and emails it to the client. This most likely allows her to: A) cover her tracks so she can provide a record of customer service B) save on the transmission time it would take to fax the information C) leave the details to the client to arrange D) keep the client informed in real time as arrangements are made E) keep the client informed without overwhelming them with multiple emails Answer: E Diff: 3 AACSB: Application of Knowledge Objective: LO1, LO2, LO3 9) Gail is always striving for the "moment of magic" with her clients. This means: A) fulfilling the basic spirit of the sales contract B) giving them what they paid for C) giving them what they paid for with excellent execution D) not only giving them what they paid for but creating a satisfying experience with attentive customer service E) not only giving them what they paid for but adding in free services and products Answer: D Diff: 3 AACSB: Application of Knowledge Objective: LO1 10) Gail ensures that all the meals served on the flights for the Orthodox Jewish client group are Kosher certified. This is most likely an example of which of the following?

A) an inducement to strengthen the customer relationship B) an upsell that encourages larger contracts C) reliability in providing updated communication D) flexible credit options for client payments E) sportsmanship in fulfilling the terms of the sale Answer: A Diff: 3 AACSB: Application of Knowledge Objective: LO1, LO2, LO3

John Bieland, the equipment buyer for Great Lakes Manufacturing, purchased two large riveting machines from Hoseke Corporation's sales representative, Lindell Ross. Because of a clerical error, the machines shipped a day later than scheduled, which put the delivery truck in the middle of a blizzard that shut down roads for several days. By the time the machines were delivered by Hoseke Corporation, they were a full week late. John Bieland sends an email to Lindell, cc'ing the CEOs of Great Lakes Manufacturing and Hoseke Corporation, expressing his dissatisfaction.

11) How should Lindell respond to John's email?

A) He should send a reply immediately, explaining that the delay was unavoidable because of the weather.

B) He should email the CEO of Hoseke Corporation to explain the situation and the weather delay.

C) He should ask the head of the shipping department to reply to John and accept responsibility for the delay.

D) He should offer to replace the machines free of charge.

E) He should call John immediately to apologize for the late delivery.

Answer: E Diff: 3 AACSB: Application of Knowledge Objective: LO1, LO5 12) Is there a way Lindell could have managed this situation better?

A) No. Sometimes things happen that are out of the sales representative's control.

B) No. If he had contacted John proactively that would have been an admission of guilt.

C) Yes. He could have apologized immediately for the late delivery and kept John apprised of the situation.

D) Yes. He could have offered to refund John's money and take the machines back.

E) Yes. He could have waited a few days to contact John about the delay.

Answer: C Diff: 3 AACSB: Application of Knowledge Objective: LO3, LO5 13) How should Lindell best help John to understand that the late delivery was not his fault?

A) Lindell should email John copies of news stories about the blizzard.

B) Lindell should ask the head of shipping to call John and take responsibility for the late delivery.

C) Lindell shouldn't worry about making John understand and should just refund his money.

D) Lindell shouldn't worry about making John understand and should just apologize and let John express his feelings.

E) Lindell shouldn't worry about making John understand and should try to sell John another machine.

Answer: D Diff: 3 AACSB: Application of Knowledge Objective: LO5

14) What should Lindell offer to John to rectify the situation?

A) Lindell should send John two new machines.

B) Lindell should consult with John to find out what would help him regain trust in Lindell and in Hoseke Corporation.

C) Lindell should refund John's money.

D) Lindell should discount any further purchases by half.

E) Lindell should demote the head of the shipping department.

Answer: B Diff: 3 AACSB: Application of Knowledge Objective: LO5 15) After this crisis is resolved, what should Lindell do?

A) Make a plan with Hoseke Corporation's customer service department to make extra service calls to John to ensure that he feels taken care of.

B) Ask John to buy another machine.

C) Talk to his CEO about the faults of the shipping department.

D) Rework his call schedule so he calls on fewer prospects and closes fewer sales until spring.

E) Ask John for a recommendation to other manufacturers he knows.

Answer: A Diff: 3 AACSB: Application of Knowledge Objective: LO5 Selling Today, 16e (Manning/Ahearne/Reece) Chapter 16 Opportunity Management: The Key to Greater Sales Productivity 16.1 True/False Questions 1) Salespeople need to know what their goals are to be able to manage their time effectively.

Answer: TRUE Diff: 1 Objective: LO1 2) The starting point for effective time management is forming a new attitude toward time conservation.

Answer: TRUE Diff: 1 Objective: LO2 3) Keeping a time log is an ineffective method of time management.

Answer: FALSE Diff: 1 Objective: LO2 4) Expense records are likely to be required not only by a salesperson's own company but by a government agency.

Answer: TRUE Diff: 2

Objective: LO4 5) Getting enough quality sleep is one of the most effective strategies for managing the negative aspects of stress.

Answer: TRUE Diff: 1 Objective: LO5 6) There is a close relationship between increased sales volume and spending more time in faceto-face selling situations.

Answer: TRUE Diff: 2 Objective: LO2 7) Laptop computers and PDAs enable salespeople to organize information, track expenses, and maintain customer contact information.

Answer: TRUE Diff: 1 AACSB: Information Technology Objective: LO4

8) A daily "to do" list is a waste of time for the salesperson who has a good memory.

Answer: FALSE Diff: 1 Objective: LO2 9) The telephone has proven to be a good method of making appointments, keeping customers informed, and expressing appreciation, but it is an ineffective tool for building customer goodwill.

Answer: FALSE Diff: 2 Objective: LO2 10) The first step in territory management is to classify all customers according to potential sales volume.

Answer: TRUE Diff: 2 Objective: LO3 11) There are no precise rules to observe in establishing a sales routing and scheduling plan.

Answer: TRUE Diff: 2 Objective: LO3 12) It is best to begin time conservation by picking one or two of the least wasteful areas and correcting those problems first.

Answer: FALSE Diff: 2 Objective: LO2 13) Most sales and marketing firms develop territories solely on the basis of geographical considerations.

Answer: FALSE Diff: 1 Objective: LO3 14) When tension builds, your most effective reaction is to choose whether to use the "fight" or the "flight" response.

Answer: FALSE Diff: 2 Objective: LO5 15) Frequency of visits to established customers should generally be related to sales potential.

Answer: TRUE Diff: 2 Objective: LO3

16.2 Multiple-Choice Questions 1) The two major methods for salespeople to increase their sales volume are by improving selling effectiveness and: A) spending more time in actual selling situations B) dispensing with tedious recordkeeping C) saving time with telephone calls D) developing a series of personal goals E) increasing prospecting activities Answer: A Diff: 2 Objective: LO2 2) Which of the following is a guiding principle used in establishing a sales routing and scheduling plan?

A) Develop a routing plan that gives equal attention to each customer.

B) If your territory is quite large, consider organizing it into two smaller zones.

C) Develop a schedule that best accommodates your personal and professional needs.

D) Avoid scheduling tentative calls, which may be distracting and costly.

E) Ask for assistance from other salespeople if you cannot complete your route.

Answer: B Diff: 2 Objective: LO3 3) Opportunity management consists of all of the following areas EXCEPT: A) records management B) territory management C) time management D) stress management E) needs management Answer: E Diff: 2 Objective: LO1 4) When drawing up a daily "to do" list, a salesperson should most likely: A) refer to the previous day's log for unaccomplished activities B) avoid listing more than five items for one day C) record more tasks than can be completed D) list activities in priority order E) rank items alphabetically Answer: D Diff: 2 Objective: LO2

5) Sales territories should, in most cases, be established on the basis of: A) seniority of salespeople B) prospects for new accounts C) mature product lines D) number of customers E) sales potential Answer: E Diff: 2 Objective: LO3 6) The primary objective of a sales routing and scheduling plan is to: A) increase actual selling time by reducing travel time B) have a written record of where you have been and where you are going C) determine the geographical distribution of customers D) initiate new contacts with potential customers E) visualize your territory on a map Answer: A Diff: 2 Objective: LO3 7) One of the most effective methods of dealing with stress is to: A) choose the "flight" response B) maintain an optimistic outlook C) initiate a crusade to alleviate all sources of stress D) throw yourself with renewed vigor into your job E) set up a home office so you can work more frequently Answer: B Diff: 2 Objective: LO5 8) The sales manager most likely uses information from the routing and scheduling plan to develop a: A) to-do list B) weekly sales report C) sales call plan D) customer contact card E) call record Answer: C Diff: 2 Objective: LO3

9) The best policy concerning recordkeeping is to: A) retain all records for three years before discarding them B) require written responses instead of substituting checkmarks C) record only those details that cannot be committed to memory D) require only records that provide positive benefits to those involved in the sales process E) require records on all details and processes in order to maintain sales process discipline Answer: D Diff: 2 Objective: LO4 10) What is a primary reason for requiring sales reports?

A) monitor personal selling B) facilitate customer service C) reimburse travel expenditures D) evaluate a salesperson's close E) analyze a salesperson's performance Answer: E Diff: 2 Objective: LO4 11) Which is true of doing business in Belgium?

A) Speaking Dutch will help you in the Flanders area.

B) Speaking French will help you north of Brussels.

C) One selling strategy will work for the entire country.

D) Dutch is spoken in the Wallonia area in the south of the country.

E) Belgians prefer to communicate in business English.

Answer: A Diff: 3 AACSB: Multicultural and Diversity Understanding Objective: LO3 12) One of the best ways to gain more time is to: A) delegate all recordkeeping activities to subordinates B) record how time is spent during a typical week C) reduce time spent on prospecting for new clients D) reduce time spent with each prospect by half E) engage frequently in long-term sales strategies Answer: B Diff: 2 Objective: LO2

13) Which of the following is a true statement regarding the appropriate use of the telephone in selling?

A) The telephone is an ineffective and time-consuming way to keep the customer informed.

B) The telephone provides instant communication at a lower cost than other methods.

C) The telephone is beneficial for building customer goodwill after a sale.

D) The telephone is preferred over email by nearly all customers.

E) The telephone should rarely be used to thank a customer.

Answer: C Diff: 2 Objective: LO2 14) Which of the following guidelines regarding territory management is most suitable?

A) Develop a routing plan that is based primarily on visiting new accounts.

B) Develop a routing plan that is based solely on potential sales volume.

C) Develop a routing plan that is based solely on geographical considerations.

D) Develop a routing plan that is based on a combination of potential sales volume and geographical considerations.

E) Visit only your best customers and ignore those with low potential sales.

Answer: D Diff: 2 Objective: LO3 15) The major purpose of a call report is to: A) record the time and date of all phone calls B) record the contact information of the customers the salesperson is due to call that day C) provide a summary of time spent with each customer D) provide a precise record of purchases by each customer E) provide a summary of what happened during the call and an indication of what future action is required Answer: E Diff: 2 Objective: LO4 16) Salespeople are most likely similar to entrepreneurs in that both of them must practice: A) long-term financial planning B) effective recruiting abilities C) multiplatform operations D) presentation skills E) self-management Answer: E Diff: 2 Objective: LO1

17) Julio Melara, top seller and motivational speaker, feels that growth and success are facilitated by having: A) plenty of luck, and the ability to act on it B) strong mentors who spend time with you C) natural talent, and the discipline to maximize it D) written goals, both personal and professional E) a strong organization in which to grow Answer: D Diff: 3 Objective: LO1 18) On average, salespeople spend most of their work time on: A) sales meetings and conference calls B) administrative tasks and travel C) face-to-face selling D) customer follow-up E) prospecting Answer: B Diff: 2 Objective: LO2 19) According to self-management experts, every moment spent planning saves how many minutes in execution?

A) one to two B) two to three C) three to four D) four to five E) five to six Answer: C Diff: 2 Objective: LO1 20) One of the simplest ways a salesperson can practice time management skills is to create a(n): A) daily to-do list B) personal Web site C) written file card system D) mentoring relationship with a senior salesperson E) support group of salespeople to keep each other on track Answer: A Diff: 1 Objective: LO2

21) Which of the following would LEAST likely be included in a firm's CRM system?

A) weekly sales call plans B) stress management techniques C) monthly planning calendar D) sales meeting notes E) customer information Answer: B Diff: 2 AACSB: Information Technology Objective: LO4 22) Salespeople with families can most likely balance work and family obligations by: A) traveling on the same days every month B) working for firms that sell services instead of products C) working for an organization that offers maternity leave D) delaying marriage and children until establishing a career E) maintaining a home office and communicating with clients remotely Answer: E Diff: 2 AACSB: Multicultural and Diversity Understanding Objective: LO2 23) Many salespeople schedule routing by using the 80/20 rule, meaning: A) 80 percent of their time on calls from the office and 20 percent on face-to-face calls B) 80 percent of their time on face-to-face calls and 20 percent on calls from the office C) 80 percent of their time on larger accounts and 20 percent on less profitable accounts D) 80 percent of their time on calls and 20 percent on prospecting E) 80 percent of their time on sales activities and 20 percent on paperwork Answer: C Diff: 2 Objective: LO3 24) A sales call plan is: A) a daily action plan initiated by the salesperson B) a weekly action plan, often initiated by the sales manager C) a monthly action plan, initiated by the salesperson D) a record of sales calls that have been made in the previous month E) a record of sales calls that are to be made that day Answer: B Diff: 1 Objective: LO4

25) Which of the following should LEAST likely be kept by salespeople?

A) shipping labels B) customer files C) call reports D) expense records E) sales records Answer: A Diff: 2 Objective: LO4 26) Maintaining accurate sales records can help a salesperson by putting current sales into: A) arrears B) escrow C) danger D) territories E) perspective Answer: E Diff: 1 Objective: LO4 27) An external stimulus called a stressor and the physical and emotional responses to that stimulus are called: A) emotionalism B) tension C) hypertension D) stress E) stimulus syndrome Answer: D Diff: 1 Objective: LO5 28) The fight or flight response is a typical response to: A) pessimism B) physical pain C) stress D) organizational culture E) office politics Answer: C Diff: 1 Objective: LO5

29) Which of the following would LEAST likely eliminate stress in a short amount of time?

A) visualizing a vacation spot B) organizing a schedule C) walking outside D) napping after lunch E) having a massage Answer: B Diff: 2 Objective: LO5 30) Which of the following is an effective way to manage stress?

A) Increase the focus on job tasks.

B) Work from home less frequently.

C) Maintain a realistic outlook to avoid disappointment.

D) Practice healthy emotional expression.

E) Fight or ignore most major problems.

Answer: D Diff: 2 Objective: LO5 16.3 Short Answer Questions 1) A(n) ________ is the geographic area where prospects and customers reside.

Answer: sales territory Diff: 1 Objective: LO3 2) ________ is a four-dimensional process consisting of time management, territory management, records management, and stress management.

Answer: Opportunity management Diff: 2 Objective: LO1 3) The primary objective of a sales ________ and scheduling plan is to increase actual face-toface selling.

Answer: routing Diff: 1 Objective: LO3 4) ________ refers to two simultaneous events: an external stimulus called a stressor, and the physical and emotional responses to that stimulus.

Answer: Stress Diff: 1 Objective: LO5

5) A(n) ________ is a weekly action plan that is used to record planned and completed sales calls.

Answer: sales call plan Diff: 1 Objective: LO3 16.4 Essay Questions 1) Sound time management techniques can pave the way to greater sales productivity. List and discuss four time-saving techniques used by time-conscious people in all walks of life.

Answer: 1. Develop a series of personal goals.

2. Prepare a daily "to do" list.

3. Maintain a planning calendar.

4. Organize your selling tools.

Diff: 2 Objective: LO2 2) List the guiding principles that can be used to develop a routing and scheduling plan.

Answer: 1. Obtain or create a map of your territory.

2. If your territory is quite large, consider organizing it into smaller zones.

3. Develop a routing plan for a specific period of time.

4. Develop a schedule that accommodates your customers' needs.

5. Think ahead, and establish one or more tentative calls in case you have extra time.

6. Decide how frequently to call on the basis of sales potential.

Diff: 2 Objective: LO3

16.5 Applied Multiple Choice Questions Braeden Innovations is a company that sells database systems and software integration packages to schools and universities. Victoria Canning is an inside sales representative with Braeden Innovations. As an inside sales representative, she makes sales presentations via webinar and contacts clients and prospects by phone, email, and instant messaging, all from her home office.

She says the best thing about her job is having a fulfilling professional career but never having to commute to an office.

1) Victoria needs to organize her territory. Which categories would make the most sense for Victoria to use to organize her territory to schedule her calls most efficiently?

A) zip code and type of organization B) time zone and size of organization C) time zone and zip code D) zip code and contact's position in the organization E) area code and contact's position in the organization Answer: B Diff: 3 AACSB: Application of Knowledge Objective: LO1, LO3 2) Which of the following would most likely help Victoria manage her time effectively?

A) preparing a "to do" list each day and prioritizing tasks B) creating a monthly sales log to submit to her manager C) making notes of customers she calls each week D) contacting customers by e-mail and text E) maintaining a separate home office telephone Answer: A Diff: 3 AACSB: Application of Knowledge Objective: LO2 3) Which of the following would answer the phone for Victoria when she is having a conference with a client?

A) fax machine B) electronic mail C) voice mail system D) audiovisual equipment E) personal digital assistant Answer: C Diff: 3 AACSB: Application of Knowledge Objective: LO2

4) Because Victoria and the account manager she partners with are not in the same space but need to have access to the same information, it is vital that they both use: A) the same type of computer, so they can share files seamlessly B) a web conferencing system that allows them to show each other files and documents C) mobile phones that allow them to send and receive text messages instead of landlines that do not allow for text messaging D) a computerized, Internet-based CRM system that allows them both to enter and access information about their clients E) the same email client so they can read emails from each other Answer: D Diff: 3 AACSB: Application of Knowledge Objective: LO4 5) An unfortunate by-product of working from home is that Victoria's work can blend into her personal space and time. In order to minimize stress, she should most likely: A) maintain a sales call report to ensure long-term job satisfaction B) ignore minor and major problems to avoid being overwhelmed C) hold a realistic outlook about task management duties D) consider working fewer hours or accept a demotion E) establish strict working hours in a home office Answer: E Diff: 3 AACSB: Application of Knowledge Objective: LO2, LO5 Braeden Innovations is a company that sells database systems and software integration packages to schools and universities. Jameson Kilpatrick is a field sales representative with Braeden Innovations. As a field sales representative, he makes sales presentations in person and contacts clients and prospects by phone, email, text, and in person. He enjoys the variety of his daily schedule, but is occasionally overwhelmed by the amount of travel he must do.

6) Jameson's territory stretches over eight states and two time zones. What is the first step Jameson should take to manage his sales territory?

A) develop a routing plan B) classify his customers C) create a scheduling plan D) identify potential prospects E) create a sales call plan for management Answer: B Diff: 3 AACSB: Application of Knowledge Objective: LO1, LO3

7) Since Jameson flies to many of his sales calls, it is far more efficient, from a time and expense standpoint, to schedule multiple calls in the same airplane trip. Once Jameson develops a routing plan for a specific trip, he should then: A) complete a travel expense report to ensure reimbursement B) develop the same presentation for all customers in the area C) notify customers of his anticipated arrival time D) focus on visiting small accounts in the area E) plan as many cold calls as possible Answer: C Diff: 3 AACSB: Application of Knowledge Objective: LO2, LO3 8) Since Jameson has to coordinate airline flights, rental car information, prospect addresses, contact information and appointment times, and emails and voicemails from current clients, all while in transit, he would most likely benefit from a(n): A) assistant B) laptop C) Rolodex D) smartphone E) atlas Answer: D Diff: 3 AACSB: Application of Knowledge Objective: LO2, LO4 9) One of Jameson's biggest challenges is keeping track of expense reports and reimbursements.

Braeden's policy is to have employees pay for expenses and then reimburse them when they submit receipts for their expenses. To make sure he is reimbursed for his trip expenses, Jameson should: A) ask the sales department's administrative assistant to complete and submit the reports when she has a chance B) invest in a machine that scans his receipts in so he can print out copies of them when he returns from his trip C) email his manager and cc the accounting department every week with a list of outstanding reimbursements D) take an online course in Excel to get better at keeping track of his expenses E) submit his expense reports and receipts immediately after completing each trip Answer: E Diff: 3 AACSB: Application of Knowledge Objective: LO4

10) One of the most stressful aspects of Jameson's life is scheduling his required work travel and still being present at home for his wife and children, who have expressed that they hate not knowing for sure when he will be home. Which of the following would most likely enable Jameson to balance home and career better?

A) telecommuting part of the week from a home office B) relying on the inside sales team to develop prospects C) sending form letters to customers and prospects D) segmenting his territory into two smaller sections E) seeking a mentor on the sales team Answer: A Diff: 3 AACSB: Application of Knowledge Objective: LO2, LO3 Braeden Innovations is a company that sells database systems and software integration packages to schools and universities. Po Komacho is a trade sales representative with Braeden Innovations. As a trade sales representative, she promotes the company and its products to software resellers and supports their sales representatives in selling Braeden's software to clients.

A large part of her job involves attending industry trade shows and working at the Braeden Innovations booth at the exhibit hall of the trade show.

11) Since Po covers both trade shows and resellers, it make most sense for her to organize her territory by: A) date of trade show and location of reseller B) date of trade show and complexity of reseller C) time zone of trade show and time zone of reseller D) size of trade show and size of reseller E) size of trade show and zip code of reseller Answer: A Diff: 3 AACSB: Application of Knowledge Objective: LO1, LO3 12) Because Po is not meeting with prospects, her time is divided into 2-3 day blocks of attending trade shows or training resellers. Which of the following is most likely true?

A) Po has a flexible job so maintaining a schedule is unrealistic.

B) Po should rely on floaters to record appointments and deadlines.

C) Po's situation is too unusual to fit into appointment calendars.

D) Po should return emails promptly but return calls every few days.

E) Po should plan to return emails and calls within her larger time blocks.

Answer: E Diff: 3 AACSB: Application of Knowledge Objective: LO2

13) Po has a bigger challenge in keeping track of brochures and literature than do other types of sales representatives. Which of the following would most likely enable Po to organize her selling tools better?

A) CRM system B) territorial organization C) portable filing system D) computer scanning equipment E) strategic partnership planning Answer: C Diff: 3 AACSB: Application of Knowledge Objective: LO2 14) Po does not sell directly to clients, but she is still responsible for keeping track of the interactions she has with resellers. Where should she keep track of these interactions?

A) in the notepad of her smartphone B) in a spiral-bound notebook she keeps in her laptop bag C) in a file on her laptop computer D) in her company's computerized CRM system E) in a monthly email to her manager Answer: D Diff: 3 AACSB: Application of Knowledge Objective: LO4 15) Although Po lacks the stress of meeting a sales quota, she experiences stress related to scheduling. Which of the following would most likely relieve Po's stress?

A) reducing her territory from two to one B) exercising and sleeping regularly C) filing expense reports promptly D) using a personal digital assistant E) conducing fewer follow-up calls Answer: B Diff: 3 AACSB: Application of Knowledge Objective: LO5 Selling Today, 16e (Manning/Ahearne/Reece) Chapter 17 Management of the Sales Force 17.1 True/False Questions 1) The sales manager who makes decisions promptly and firmly is displaying the dimension of leadership described as "structure."

Answer: TRUE Diff: 1 Objective: LO2 2) Effective sales managers set a good example and possess characteristics of both structure and

consideration.

Answer: TRUE Diff: 1 Objective: LO2 3) According to the text, if you fail the character test, you fail as a sales manager.

Answer: TRUE Diff: 1 Objective: LO2 4) The sales manager who treats each member of the sales force as an individual is displaying the dimension of leadership described as "consideration."

Answer: TRUE Diff: 1 Objective: LO2 5) A salesperson's performance evaluation is typically based entirely on qualitative items of measurement because quantitative criteria are viewed as unfair and subjective.

Answer: FALSE Diff: 2 Objective: LO7 6) The functions performed by sales managers include planning, recruiting, training, budgeting, developing compensation plans, and assessing sales force productivity.

Answer: TRUE Diff: 2 Objective: LO1 7) Today, selecting effective salespeople is more of a science and less of an art.

Answer: TRUE Diff: 2 Objective: LO3

8) The straight commission plan encourages salespeople to engage in long-term customer development.

Answer: FALSE Diff: 2 Objective: LO6 9) According to the authors of How to Hire and Develop Your Next Top Performer, about half of the people working in sales should be doing something else.

Answer: TRUE Diff: 2 Objective: LO3 10) The sales manager who appraises the performance of sales personnel regularly is displaying the leadership quality known as "consideration."

Answer: FALSE Diff: 1 Objective: LO2 11) The sales manager should not change the compensation plan, even if conditions in the marketplace warrant a change.

Answer: FALSE Diff: 2 Objective: LO6 12) Newspaper advertisements can attract well-qualified sales job applicants.

Answer: TRUE Diff: 1 Objective: LO3 13) The size of the firm should dictate the scope of the sales training program.

Answer: FALSE Diff: 2 Objective: LO4 14) In many cases, intrinsic motivators have a more long-term effect on the attitudes of salespeople than extrinsic motivators do.

Answer: TRUE Diff: 2 Objective: LO5 15) It is a good idea to field test compensation plans before full implementation.

Answer: TRUE Diff: 2 Objective: LO6

17.2 Multiple-Choice Questions 1) Scheduling a special luncheon to celebrate the closing of a large sale is a technique most likely characteristic of a supervisor who displays: A) high structure and high consideration B) high structure and low consideration C) low structure and low consideration D) self-expression tendencies E) high task orientation Answer: A Diff: 2 Objective: LO2 2) The supervisor who holds monthly sales force meetings to explain specific goals for the future and changes in policy and procedure is exhibiting: A) consideration B) structure C) performance analysis D) recognition E) strategy Answer: B Diff: 2 Objective: LO2 3) The first step toward identifying the type of applicant to be recruited for a sales job is to: A) determine the compensation plan B) consult the sales staff for recommendations C) determine the actual duties of the position D) develop personality and skills assessments E) search for applicants from traditional sources Answer: C Diff: 2 Objective: LO3 4) Some organizations are using ability or aptitude assessment instruments to determine future performance in certain types of sales jobs. Experts in the field of employment testing say that test scores: A) can be very misleading to the employer, so they should not be used B) should not be considered because of possible legal problems C) are not helpful for most firms because of validity issues D) can be helpful when used in conjunction with other criteria E) are excellent measures to determine future performance Answer: D Diff: 2 Objective: LO3

5) A sales manager screening applicants for a sales position should most likely seek an individual who: A) will close sales no matter what it takes B) is familiar with other employees at the firm C) can bring large accounts from a competitor D) has entrepreneurial ideas E) is self-motivated Answer: E Diff: 1 Objective: LO5 6) Newly hired salespeople are more likely to become productive staff members if they participate in a job orientation and a(n): A) training program B) college recruitment session C) tour of the production facilities D) introduction to corporate personnel E) induction ceremony Answer: A Diff: 2 Objective: LO3 7) Paolo dos Santos, a sales manager for Paronille Corporation, provides all of his salespeople with scheduled performance appraisals. This behavior indicates that he is attempting to incorporate the dimension of: A) feedback B) structure C) empowerment D) consideration E) responsibility Answer: B Diff: 2 AACSB: Analytical Thinking Objective: LO2 8) A compensation plan which will likely produce the greatest degree of company-centeredness and financial security for the employee is: A) straight commission plan B) guaranteed salary C) straight salary D) guaranteed salary plus a bonus E) straight commission plus a bonus Answer: C Diff: 2 Objective: LO6

9) What is the best motivation suggestion for sales managers?

A) Use external motivation methods exclusively because of their success.

B) Recognize that internal motives are consistent throughout a sales career.

C) Recognize that external motivation has almost no impact on performance.

D) Attempt to motivate with a mix of external rewards and internal satisfaction.

E) Employees who do not respond to external motivation will never perform well.

Answer: D Diff: 2 Objective: LO5 10) The training programs of both small and large marketing firms should incorporate three dimensions. One of them is knowledge of the product line, company marketing strategies, territory information, and business trends. What are the other two?

A) knowledge of personal selling skills; in-field sales training with supervision B) knowledge of personal selling skills; knowledge of self and others C) knowledge of company policies, procedures and benefits; stress management D) explanation of compensation methods; in-field sales training with supervision E) attitudes toward the company, its products, and its customers; application of personal selling principles and practices Answer: E Diff: 3 Objective: LO4 11) Which of the following characteristics of a sales manager provides evidence of structure?

A) Policies and procedures are clearly defined.

B) Each salesperson is treated as an individual.

C) Efficient communication is given a high priority.

D) Members of the sales force receive regular recognition.

E) Salespeople are encouraged to solve their own problems Answer: A Diff: 2 Objective: LO2 12) What is the best suggestion for assessing sales force productivity?

A) Recognize that frequency of sales calls is the best indicator of success.

B) Realize that sales call frequency must be compared to the profit earned on each account.

C) Recognize that assessing sales force productivity is more "art" than "science."

D) Compare salespeople with others on the sales force who have similarly-sized territories.

E) Compare a salesperson's current productivity with past productivity.

Answer: B Diff: 3 Objective: LO7

13) Situational leadership occurs when: A) the leader passes the character test B) good performance is properly rewarded C) the leader's style matches the situation D) the coach helps the salesperson recognize the need for performance improvement E) the leader guides the team through a changing situation Answer: C Diff: 2 Objective: LO2 14) According to Trudi Gallagher, people from which of the following countries are very punctual and private?

A) Italy B) Saudi Arabia C) Mexico D) Switzerland E) France Answer: D Diff: 1 AACSB: Diverse and Multicultural Work Environments Objective: LO5 15) Which compensation plan would appeal to a salesperson who likes the idea of "pay for performance," but also likes some job security?

A) guaranteed salary B) straight salary C) fixed salary plus bonus D) straight commission plan E) commission plan with a draw provision Answer: E Diff: 2 AACSB: Analytical Thinking Objective: LO6 16) Leadership is: A) a series of skills that can be acquired through study and practice B) a cluster of innate qualities that some people possess from birth C) malleable, so a leader in one situation may not be capable of leading in others D) synonymous with management E) more important in American culture than it is in other cultures Answer: A Diff: 2 Objective: LO1

17) The process of planning, implementing, and controlling the personal selling function is called: A) leadership B) sales management C) comptrolling D) organizational strategy E) motivation Answer: B Diff: 1 Objective: LO1 18) The Leadership Grid portrays dimensions of: A) leadership and management B) motivation and skills C) consideration and structure D) empathy and direction E) recruitment and training Answer: C Diff: 2 Objective: LO2 19) Consideration is most likely characterized by: A) prioritizing the group over the individual B) caring more about the welfare of employees than about self C) becoming personal friends with employees and their family members D) establishing a climate of good two-way communication between a leader and team members E) ensuring close supervision of each salesperson to make sure they adhere to company policies Answer: D Diff: 2 Objective: LO2 20) Coaching focuses on helping the salesperson recognize the need to improve his or her performance and: A) using specially-sequenced exercises B) tracking performance improvements carefully C) encouraging salespeople to focus on primary tasks D) creating space for salespeople to develop professionally E) developing the salesperson's commitment to improve performance Answer: E Diff: 2 Objective: LO2

21) Ken Blanchard says that the key to developing people is to: A) focus on catching them doing something right B) give them a clear path to follow for their careers C) mentor them closely for many years D) make sure they're in jobs that fit their skill sets E) use both internal and external rewards Answer: A Diff: 2 Objective: LO2 22) All of the following are good sources for recruiting quality candidates for sales jobs EXCEPT: A) Internet job sites B) mediation agencies C) newspaper advertisements D) employment agencies E) candidates within the company Answer: B Diff: 2 Objective: LO3 23) Which of the following questions is LEAST relevant when developing a job description for a sales position?

A) Will the person be developing a new sales territory?

B) Is the product well established in the marketplace?

C) What is the average rate of employee turnover?

D) Will the salesperson work independently?

E) What amount of travel will be required?

Answer: C Diff: 2 AACSB: Analytical Thinking Objective: LO3 24) What is the primary benefit of seeking job candidates within your own company?

A) Job descriptions are unnecessary.

B) Mentors are more willing to provide assistance.

C) Hiring requirements can be lowered for cost savings.

D) Current employees are familiar with company policies.

E) Private employment agencies charge fees for recruitment.

Answer: D Diff: 2 Objective: LO3

25) Managers using rewards to motivate employees should most likely bear in mind that: A) short-term motivation contests should be used frequently due to their success B) motivational goals should be impractical to ensure that employees work hard C) rewards should be balanced out by long-term disciplinary actions D) employees prefer financial rewards over non-financial rewards E) not all employees value the same rewards Answer: E Diff: 3 Objective: LO5 26) Managers who use rewards as external motivators for salespeople should most likely: A) set goals that are realistic B) set goals based only on final sales numbers C) give rewards at regular intervals D) give primarily financial rewards E) give the same rewards to all salespeople Answer: A Diff: 2 Objective: LO5 27) What is the first step in developing an effective sales training program?

A) measuring sales training interest levels B) conducting a training needs assessment C) establishing a sales training budget D) setting sales training goals E) selecting a training provider Answer: B Diff: 2 Objective: LO4 28) Which of the following would LEAST likely be an objective of a compensation plan developed for sales team members?

A) identifying sources for hiring new salespeople B) increasing sales by a specific percentage C) increasing the number of sales calls D) establishing new accounts E) selling specific products Answer: A Diff: 2 Objective: LO6

29) The primary purpose of measuring sales force productivity is to: A) calculate the number of calls each salesperson makes every quarter B) compare the number of sales presentations each salesperson makes C) calculate the firm's total sales volume for a specific period of time D) analyze the profitability of each salesperson's sales volume E) assess the ratio of profits to sales for the sales force Answer: D Diff: 3 Objective: LO7 30) The number of calls made on an account should most likely: A) equate to the maturity of the product B) correspond to the seniority of the salesperson C) be the same for all accounts in the territory D) vary from salesperson to salesperson E) relate to the sales potential of the account Answer: E Diff: 2 Objective: LO7 17.3 Short Answer Questions 1) Most successful supervisory management personnel display two important dimensions of effective leadership: ________ and ________.

Answer: structure; consideration Diff: 1 Objective: LO2 2) ________ represents the first step in helping a newly hired salesperson become a productive member of your staff.

Answer: Orientation Diff: 2 Objective: LO4 3) A(n) ________ is an explanation of what the salesperson will do and under what conditions the work will be performed.

Answer: job description Diff: 1 Objective: LO3 4) ________ is an interpersonal process between the sales manager and the salesperson in which the manager helps the salesperson improve performance in a specific area.

Answer: Coaching Diff: 1 Objective: LO2

5) ________ is an intrinsic reward that occurs when a duty or task is performed.

Answer: Internal motivation Diff: 1 Objective: LO5 17.4 Essay Questions 1) Rosalinda Goldstein, a sales manager, is rated very low in the quality described as "structure."

What steps should she take to incorporate more structure into her leadership style?

Answer: 1. Ensure that planning sessions take place on a regular basis.

2. Define all policies and procedures more clearly for members of the sales staff.

3. Make decisions promptly and firmly.

4. Evaluate the performance of sales personnel regularly.

Diff: 1 AACSB: Application of Knowledge Objective: LO2 2) Many companies are experimenting with some variation of their basic compensation plans such as awards in the form of cash or points that can be used to purchase prizes. Award programs can be styled to suit a variety of sales objectives. List and describe four possible objectives.

Answer: 1. Percentage sales increase. Sales levels can be established with points that are given only when those levels are reached.

2. Establish new accounts. A block of points can be awarded for opening a new account or for introducing new products through the existing outlets.

3. Specific product movement. Bonus points can be given for the sales of certain items during specified "push" selling periods.

4. Increased sales activity. For each salesperson, points can be awarded based on the number of calls.

Diff: 3 AACSB: Analytical Thinking Objective: LO6

17.5 Applied Multiple Choice Questions Victor Craig is sales director for a software company selling diagnostic software to automotive repair shops all across the country. He has been with the company for 14 months and manages a staff of six sales representatives. Victor also covers a four-state territory himself. On Monday the CEO of the company calls Victor into his office and states that management is dissatisfied with Victor's performance as sales director. Victor has 90 days to turn his performance around, or he will be fired.

1) The CEO suggests that Victor attend a training program for sales managers. If the program is like most others, which of the following topics will most likely be covered?

A) motivating salespeople B) forecasting short-term sales C) managing sales territories D) handling office politics E) calculating ROI Answer: A Diff: 3 AACSB: Application of Knowledge Objective: LO1, LO2 2) Since Victor spends part of his time on the road meeting with customers, which of the following would most likely help Victor manage his sales staff?

A) active listening principles B) videoconferencing tools C) territory management skills D) stress relief activities E) blogging capabilities Answer: B Diff: 3 AACSB: Application of Knowledge Objective: LO2 3) One sales representative complains that she never knows where she stands with Victor because he rarely provides feedback. The sales representative also indicates that Victor fails to communicate his expectations to sales team members. Victor most likely needs to work on the leadership dimension of: A) mentoring B) motivation C) organization D) structure E) consideration Answer: D Diff: 3 AACSB: Application of Knowledge Objective: LO2

4) Several sales representatives complain that Victor shows a lack of consideration for their ideas and feelings and treats them all like cogs.

Which of the following would most likely help Victor improve his consideration skills?

A) Make blanket policies to treat employees equally and consistently.

B) Take a communication skills class to learn how to read nonverbal clues.

C) Schedule face-to-face meetings with sales representatives on a regular basis.

D) Make decisions quickly and firmly to ensure the success of the entire sales team.

E) Make SMART goals to improve sales results and increase long-term organizational profits.

Answer: C Diff: 3 AACSB: Application of Knowledge Objective: LO2 5) Management sends Victor to a workshop about coaching employees to success. At the workshop, Victor learns that the first step in the coaching process is to: A) appeal to the salesperson's emotions by sharing personal experiences B) allow the salesperson to suggest ideas for improving performance C) enable a salesperson to admit that a performance problem exists D) create and implement a new presentation style for the salesperson E) observe and assess employee performance during actual sales calls Answer: E Diff: 3 AACSB: Application of Knowledge Objective: LO2 Johan Yee has been a sales representative at a medium-sized textbook publishing house for five years. He has just been promoted by the sales director of his company to sales manager of a new territory. As sales manager, he is tasked with hiring and training three new sales representatives for his team.

6) What should Johan do first to begin the process of hiring new team members?

A) Place job ads on Internet job search sites like Monster.com.

B) Write a detailed description of job duties and requirements.

C) Engage an employment agency to find qualified candidates.

D) Draft a training schedule of what skills employees need.

E) Sort through resumes to decide who should be interviewed first.

Answer: B Diff: 3 AACSB: Application of Knowledge Objective: LO3

7) Soon after receiving the promotion, Johan is approached by the administrative assistant of his former sales unit. She tells him that she wants to join his team as a sales representative. She points out that she has solid knowledge of the products and company procedures already, and that he knows that she is a hard worker. What other benefit would there be to Johan in hiring her as a sales representative?

A) He knows that she fits into the company culture and understands its mission.

B) He knows that he can pay her less than someone hired from outside the company.

C) He has a personal friendship with her, which means he will be able to manage her better.

D) He knows that she is outgoing, which is the primary characteristic of a good salesperson.

E) He has never had a disagreement with her, so there is no reason not to hire her.

Answer: A Diff: 3 AACSB: Application of Knowledge Objective: LO3 8) Johan crafts a descriptive ad and receives hundreds of resumes in response. He reads through them and chooses the 20 best candidates. To further screen candidates, he invites those 20 to take a test that profiles their skills. What is the best advice to give Johan about testing?

A) Rely solely on predictive assessment instruments which are more reliable than quantitative interviews.

B) Conduct testing online to ensure that candidates possess the technical skills needed for the position.

C) Use test scores to predict a candidate's verbal and nonverbal communication skills which are necessary in sales.

D) Provide candidates with multiple tests to ensure that results are both valid and reliable predictors of sales success.

E) Use test results in conjunction with information obtained from the personal interview and reference checks.

Answer: E Diff: 3 AACSB: Application of Knowledge Objective: LO3 9) During the interviewing process, Johan needs to determine if candidates have certain qualities that are necessary for sales success. Which of the following characteristics is most important for a sales job?

A) spatial skills B) physical stamina C) compliance D) self-motivation E) cognitive ability Answer: D Diff: 3 AACSB: Application of Knowledge Objective: LO3

10) Johan needs to determine the personal character and ethics of candidates. Which of the following interview questions would be LEAST relevant for this task?

A) "What are your three core values?"

B) "What does integrity mean to you?"

C) "How do you handle negotiations?"

D) "Who are your role models and why?"

E) "How would your previous manager describe you?"

Answer: C Diff: 3 AACSB: Application of Knowledge Objective: LO4 Aspen Stewart is one of five sales managers at a sports equipment company. She and the other sales managers are under pressure from management to keep their teams of sales representatives motivated and hitting their sales quotas. Because of that, Aspen has studied psychology and motivation, and is always looking for better ways to motivate her team.

11) The biggest factor in motivation for sales representatives is enjoying sales as a career. This means that the best way for Aspen to build a motivated sales team is to: A) teach employees to cold-call more efficiently B) implement a straight commission compensation plan C) offer cash bonuses for the top sellers each month D) provide all employees with the same benefits E) provide a mix of external and internal rewards Answer: E Diff: 3 AACSB: Application of Knowledge Objective: LO5 12) Aspen manages a team of sales representatives who have all chosen careers in sales because it allows them to make a living interacting with and helping people. One of the biggest sources of internal motivation for her sales team is most likely the ability to: A) convince people to buy products they don't need B) solve their customers' problems C) ask people to spend money on sports equipment D) discount prices when they need to make a sale E) explore sports they would otherwise not have tried Answer: B Diff: 3 AACSB: Application of Knowledge Objective: LO5

13) To provide external motivation, Aspen is considering a sales contest. What is the best advice to give Aspen as she designs the contest?

A) Keep contest time frames short to increase the number of winners.

B) Use contests frequently to ensure long-term motivation.

C) Expand territory sizes to ensure the contest motivates all salespeople.

D) Utilize the same reward for every sales contest to ensure equity.

E) Provide cash bonuses to all contest winners to ensure full participation.

Answer: A Diff: 3 AACSB: Application of Knowledge Objective: LO5 14) Each year, Aspen and the other sales managers meet with the director of sales to reevaluate the compensation plan for sales representatives. Last year they decided that the current compensation plan was tempting the sales representatives to compete too hard with each other and cross ethical lines. To maintain some healthy competition, provide employees with direct financial security, and encourage the sales representatives to act in the company spirit, a ________ compensation plan would be most appropriate.

A) straight commission B) commission with a guaranteed salary C) fixed salary D) bonus with a straight commission E) straight salary Answer: B Diff: 3 AACSB: Application of Knowledge Objective: LO6 15) The sales managers and director of sales need to evaluate sales production levels. The company's policy has been to compare each sales representative's sales to their sales the previous year. Which of the following is the strongest argument for changing this method of evaluation?

A) Sales representatives do not always sell the same amount each year.

B) Sales representatives should not be evaluated by the amount that they sell.

C) Changes in products or prices can change sales amounts, so yearly figures are not comparable.

D) Because of the product life cycle, amounts should be compared quarter to quarter, not year to year.

E) Comparisons should be made to the group as a whole, not to individuals themselves.

Answer: C Diff: 3 AACSB: Application of Knowledge Objective: LO7