Test Bank For Selling Building Partnerships 11th Edition by Stephen Castleberry and John Tanner. Cha

Test Bank For Selling Building Partnerships 11th Edition by Stephen Castleberry and John Tanner Chapter 1-17 Answer are at the End of Each Chapter Chapter 1 Student name:__________ 1)

How is being customer-centric different from the stereotypical image of salespeople?

2)

How is value measured for a seller and for a buyer?

3) Compare personal selling with other marketing communication methods in terms of control, flexibility, credibility, and cost.

4) Why do companies spend money on personal selling when there are so many lessexpensive alternatives?

5)

Why do many organizations use integrated marketing communications?

6)

What type of people would most likely be interested in selling?

7)

What is the role of a salesperson as an information provider?

8)

What six factors are used to describe sales jobs?

9)

How do field salespeople differ from inside salespeople?

10)

List the four aspects of emotional intelligence.

11) When selling a product, the collection of buyer-specific benefits that a seller offers to a buyer is known as

A) the customer value proposition.

B) budget bogey.

C) the seller's profit.

D) customer lifetime value.

E) the seller's kickbacks.

12) The cost of a good sold by a seller is $7,500. The selling cost involved in the sale is $150, and the selling price is $8,250. The buyer's profit is $150. The seller's profit is A) $500.

B) $300.

C) $750.

D) $450.

E) $600.

13) Valerie's goal as a sales representative is to __________, which is the total benefit that her company's products and services provide to buyers.

A) add creativity B) improve relationships C) maximize profits D) create value E) focus on sales numbers

14) The selling price of a product is $8,000. The cost and hassle involved in buying the product is $175. The benefit received from the product to a buyer is labeled "A." The seller's profit is $400. In this case, which of the following equations will accurately calculate the buyer's profit?

A) A + $8,000 B) $8,000 + $400 C) $8,000 − A D) A − ($8,000 + $175) E) (A + $400) − $175

15)

A seller's profit is A) the cost of goods sold minus the marketing margin.

B) the selling price minus the cost of goods sold and the selling costs.

C) the marginal difference between the asset price and the cost of sales.

D) the benefits received − (the selling price + the time and effort to purchase).

E) the relative price + the absolute cost.

16)

From a buyer's perspective, value in a purchase decision equals A) the cost of goods sold − the marketing margin.

B) the relative price + the absolute cost.

C) the marginal difference between the asset price and the cost of sales.

D) the benefits received − (the selling price + the time and effort to purchase).

E) the distribution benefits received − the production costs.

17)

Which of the following is an example of selling?

A) a college student asking a professor to let him enroll in a course that is closed for admissions B) an employee making a presentation at a job interview C) an engineer convincing his manager to support his R&D activity D) a salesperson talking about the advantages of the washing machines at his store E) All of the answers are correct.

18) Gwen is researching ways to sell her new product. She is considering Internet sales, hiring sales reps, using a manufacturer's rep, and several other options. Gwen is considering A) her multichannel mission.

B) her go-to-market strategies.

C) her customer-centric circle.

D) the lifetime marketing value of her customers.

E) her firm's integrated marketing communication system.

19) Sandra's marketing strategy is a go-to-market strategy. She relies heavily on salespeople for marketing her products. Sandra's organization is a(n) A) public relations organization.

B) organization that focuses exclusively on customer value.

C) sales force-intensive organization.

D) organization with a missionary strategy.

E) All of the answers are correct.

20)

Which of the following statements is true about sales promotion?

A) It is the cheapest method of personal communication.

B) It is more flexible than personal selling.

C) It offers incentives to customers to purchase products during a specific period.

D) It restricts a firm from controlling the content and exact delivery of its marketing message.

E) It is more reliable than the word-of-mouth method of marketing communication.

21) One of the advantages of personal selling is that it is the most __________ method used to communicate with customers.

A) credible B) reasonable C) generic D) defensive E) flexible

22) In the context of the content and delivery of a marketing message, which of the following methods of communication is more difficult to control than others?

A) television B) radio C) sales promotion D) advertising E) word of mouth

23) The reason information supplied through publicity is usually considered more credible than information supplied by a salesperson is that A) salespeople are considered unethical.

B) information supplied through publicity is perceived to be independent.

C) the general public has more information than the average salesperson.

D) publicity costs more than personal selling.

E) organizations have control over information when it is disseminated through publicity.

24) Even though personal selling is the most expensive method of communication on a perperson-reached basis, businesses continue to use personal selling because of advantages in

A) flexibility.

B) the number of people reached.

C) credibility.

D) efficiency.

E) control over the content of publicity.

25) In the context of the role of salespeople in a business, which of the following statements is true of personal selling?

A) It is less flexible than other communication methods.

B) It helps the salesperson discover the specific needs of each customer.

C) It is the least expensive method of sales communication.

D) It is disadvantageous in that it offers less control than publicity and word of mouth.

E) It is highly credible as it uses independent sources to communicate information.

26)

One of the advantages of personal selling over advertising is that

A) salespeople can be closely supervised.

B) salespeople can become very persuasive, since they give an identical sales presentation to so many different people.

C) salespeople can rely on puffery.

D) salespeople can change their message if they find their customers losing interest.

E) All of the answers are correct.

27) To promote its products, Valerie's firm has always depended exclusively on advertising in the local newspaper and occasional direct mail programs. Valerie suggests using integrated marketing communications because

A) no single communication vehicle is free of weaknesses.

B) it would reduce their advertising costs.

C) a sustainable competitive advantage can only be derived from alternative advertising.

D) it will lengthen their channels of distribution.

E) it will serve as a competitive intelligence tool.

28)

Compared with team selling, salespeople who work alone A) have higher job satisfaction.

B) have higher levels of emotional intelligence.

C) spend more than 90 percent of their time in internal selling.

D) have higher levels of confidence and optimism.

E) have higher turnover intentions.

29) When All-Star Productions Incorporated releases a new movie, it usually advertises on television, gives out sales promotion items at fast-food restaurants, creates a website for the movie, holds special showings, and encourages people to talk about the movie. This coordination of all the efforts is called A) generative marketing.

B) tactical marketing.

C) integrated marketing communications.

D) the marketing concept.

E) relationship marketing.

30)

Which of the following statements is true about a salesperson's job?

A) Salespeople spend over 80 percent of their time in face-to-face meetings with customers.

B) Most of the selling done by salespeople today is done over the telephone.

C) Salespeople's responsibilities end when a customer places an order.

D) Salespeople work with other people in their companies to ensure that customer queries are resolved on time.

E) None of the answers is correct.

31)

Which of the following is true of sales in today's world?

A) Many buyers now are buying from the lowest-cost suppliers.

B) Buyers are demanding 24/7 service.

C) Many buyers now are building competitive advantages by maintaining a distant relationship with their suppliers.

D) The salesperson's job ends as soon as the customer places an order.

E) All of the answers are correct.

32) After making two major sales calls, Jennifer spent time in her hotel room submitting information about the calls over the Internet to her company. Jennifer was providing information to her firm's A) distribution channel efficacy system.

B) customer relationship management system.

C) business simulation system.

D) NAICS control center system.

E) situational management system.

33) The set of people and organizations responsible for the flow of products and services from the producer to the ultimate consumer is called a firm's

A) selling function.

B) advertising force.

C) marketing organization.

D) distribution channel.

E) sales team.

34) Vincent is the sales manager of his company, which manufactures aluminum and alloys.

He contacts different spacecraft manufacturers and aviation companies that use these raw materials and sells them his company's products. This enables him to eliminate all levels of middlemen in his sales. Which of the following statements is most likely true about this scenario?

A) Vincent is a missionary sales agent.

B) Vincent is a retailer.

C) The manufacturing company uses word-of-mouth marketing.

D) The manufacturing company has monopoly over other companies.

E) Vincent is using a direct channel of distribution.

35)

__________ sell to firms that resell the products rather than using them within the firm.

A) Missionary salespeople B) Trade salespeople C) Sales engineers D) Manufacturers' agents E) Retail salespeople

36)

__________ sell products made by a number of manufacturers to businesses.

A) Distributor salespeople B) Sales engineers C) Inside salespeople D) Manufacturers' agents E) Retail salespeople

37) Jamal works for an automobile manufacturer. He explains the functionality of high-end automobiles to customers in simple terms and helps them resolve any problems they may have.

Jamal directly interacts with customers and generally travels to them. By facilitating conversations for such technologically advanced products, he aids the sales process. Which of the following terms best describes Jamal's role?

A) distributor salesperson B) sales engineer C) inside salesperson D) manufacturers' agent E) retail salesperson

38) __________ work for a manufacturer and promote the manufacturer's products to other firms that buy the products from distributors or other manufacturers, not directly from the salesperson's firm.

A) Distributor reps B) Industrial salespeople C) Missionary salespeople D) Trade partners E) Retail salespeople

39) Laura works for Seminole Textiles. As part of her job, she calls on upholsterers, towel and sheet manufacturers, and other customers of the Seminole distributors to encourage them to use more Seminole products that they would order from their distributor, not directly from Seminole. Laura is a

A) distributor rep.

B) trade salesperson.

C) missionary salesperson.

D) trade partner.

E) retail salesperson.

40)

Missionary salespeople

A) work for retailers.

B) are an essential part of consumer products' distribution channel.

C) frequently call on people who influence a buying decision but who do not actually place the order.

D) never directly contact consumers.

E) do not have any role to play in the business-to-business model.

41) Manufacturers' Representatives Incorporated (MRI) is an independent company that employs sales representatives to sell the products of many different producers. MRI's sales reps sell these products to wholesalers and retailers. MRI receives a commission from the producers for the products it sells. MRI is an example of a A) manufacturers' agent.

B) selling agent.

C) missionary sales agency.

D) partnership selling strategy.

E) production agent.

42) The difference between a distributor and a manufacturers' agent is that a manufacturers' agent

A) never owns the product.

B) does not receive a commission for the services provided.

C) does not work for more than one manufacturer.

D) does not transmit the sales order to the manufacturer.

E) never sells a service.

43)

Manufacturers' agents

A) actually take ownership of the products they sell.

B) are independent businesspeople.

C) are paid a monthly fee for their services.

D) typically call on people who may influence a sale and not those who actually place the order.

E) All of the answers are correct.

44)

Which of the following statements is true of the sales job continuum?

A) Sales jobs focused on taking orders require a much higher level of skill and creativity than headquarters selling.

B) Salespeople responsible for existing customers emphasize selling products over servicing and relationship building.

C) Sales jobs involving important decisions often require salespeople to interact with several people involved in the purchase decision.

D) Inside salespeople spend most of their time in the customer's place of business, communicating face-to-face with the customer.

E) Tangible benefits are generally harder to sell than intangible benefits and require greater involvement on the salesperson's part.

45) In the context of tangible benefits, which of the following products is easier to sell than the others?

A) investment products B) computer software C) toy cars D) music on mobile applications E) insurance products

46) Robert works long hours in his firm, making calls to household consumers. Unlike other salespeople in his team, he is not required to visit customers' residences to sell products. He also handles the customer grievance helpline of his firm. Which of the following statements is true about Robert?

A) Robert is an expert in field sales.

B) Robert is a distributor salesperson.

C) Robert is a manufacturers' agent.

D) Robert is a missionary salesperson.

E) Robert is an inside salesperson.

47)

Identify the situation in which the creativity level of a salesperson is low.

A) when customer participation in decision-making is high B) when new solutions are to be provided to customers C) when services rather than products are to be sold to customers D) when goods are to be sold to an existing customer E) when products sold to customers are intangible

48)

Which of the following is true of inside salespeople?

A) They spend considerable time in the customer's place of business.

B) They communicate with the customer face-to-face.

C) They are very involved in problem-solving with customers.

D) They typically communicate with customers by telephone or computer.

E) None of the answers is correct.

49) Jennifer and Selena are employed by their firm to sell its products. Jennifer is required to go to the customer's residence and demonstrate the features and benefits of the products, whereas Selena is required to conduct sales by calling existing customers. Which of the following statements is most likely true about the scenario?

A) Jennifer is a field salesperson.

B) Selena will be required to be more creative than Jennifer in selling the firm's product.

C) Selena has better communication skills than Jennifer.

D) Jennifer is more agile than Selena.

E) Selena is a manufacturers' agent.

50) Which of the following products would most likely be the hardest for a new salesperson to sell?

A) laptops for students B) horse trailers C) management consulting services D) office supplies to existing customers E) restaurant tablecloths

51) Vincent spends very little time explaining the features of a product to a customer. His colleagues state that salespeople need to be creative to generate sales. Vincent says that he is not required to be creative because of the type of customers he is required to handle. Which of the following strengthens Vincent's belief?

A) Vincent is selling to existing customers.

B) Vincent's customers are field customers.

C) Vincent is a senior salesperson.

D) Vincent is selling a service.

E) Vincent is selling a tangible product to new customers.

52) George is a new salesperson in his firm. He is assigned to attract new buyers by visiting their homes and demonstrating the features of the firm's products. Though he is insensitive and rude to most people, he is valued by his management because he is able to generate new ideas and tactics that retain existing customers. His ability to innovate has helped improve his performance at his firm. Which of the following statements is true about George?

A) George is an inside salesperson.

B) George has a high level of emotional intelligence.

C) George relies on team selling rather than selling alone.

D) George is a creative salesperson.

E) George specializes in internal selling.

53) __________ is the ability to effectively understand and use one's own feelings and the feelings of people with whom one interacts.

A) Emotional intelligence B) Adaptive learning C) Environmental awareness D) Generative learning E) Behavioral intelligence

54) When LeAnn called on a long-time customer, she realized that the man was upset about the loss of his pet and took the time to listen to his problem. She was able to sympathize with the customer's recent loss of a pet by using her

A) emotional intelligence.

B) adaptive learning.

C) environmental awareness.

D) generative learning.

E) behavioral intelligence.

55) __________ is the trait of having imagination and inventiveness and using them to come up with new solutions and ideas.

A) Emotional intelligence B) Agility C) Creativity D) Optimism E) Empathy

56)

Most of the skills required to be a successful salesperson A) are associated with intellectual achievement.

B) can be learned.

C) are the focus of six sigma selling programs.

D) create a value proposition.

E) are skills that people are born with and cannot be learned.

57)

A person who __________ would probably find a career in sales attractive.

A) wants a nine-to-five job B) wants to work in an office C) is not motivated by financial rewards D) likes independence and is willing to take responsibility E) does not like to take responsibility

58)

Salespeople are like entrepreneurs because A) they do not have to invest in themselves.

B) integrated marketing communications eliminate investment risks.

C) manufacturers trust salespeople to be corporate-centric.

D) of the unusual freedom and flexibility in doing their jobs.

E) they have to spend a lot of time in a structured work environment.

59)

Which of the following is usually the first step in the selling process of a product?

A) planning for the sales call B) explaining the benefits of the product to customers C) searching for prospective customers D) building partnering relationships with customers after the completion of a sale E) calculating the customer lifetime value of customers

60)

Which of the following is usually the last step in the selling process of a product?

A) making the sales call B) demonstrating the various features and benefits of the product to customers C) obtaining commitment from customers to purchase the product D) building partnering relationships with customers after the completion of a sale E) prospecting for new customers

61)

What is customer lifetime value?

62) Relative to advertising, what is the major advantage and disadvantage of personal selling?

63) Relative to publicity, what are the major advantages and disadvantages of personal selling?

64) On average, salespeople spend less than 50 percent of their time on face-to-face meetings with customers and prospects. What are they doing with the rest of their time?

65)

What are six sigma selling programs?

66)

What do distributor salespeople do?

67)

Who are manufacturers' agents?

68) How does the type of benefits provided by products and services affect the nature of the sales job?

69)

What sales situations require high creativity?

70)

Describe the personality profile of the ideal salesperson.

71) Personal selling is the craft of persuading people to buy what they do not want and do not need for more than it is worth. ⊚ true ⊚ false

72) Customers who use multiple channels or sources for gathering information are referred to as "omnichannel buyers." ⊚ true ⊚ false

73)

The goal of selling is merely to promote a product or service. ⊚ true ⊚ false

74) In a selling situation, buyers usually exclude the selling price of a good while calculating their profit. ⊚ true ⊚ false

75)

The personal value equation of a buyer is the selling price minus the benefits received. ⊚ true ⊚ false

76)

In a selling situation, the seller's profit is the benefits received minus the selling price. ⊚ true ⊚ false

77) Go-to-market strategies are used by buyers to select a suitable vendor in the buying process. ⊚ true ⊚ false

78) Organizations whose go-to-market strategies rely heavily on advertising and publicity are called sales force-intensive organizations. ⊚ true ⊚ false

79) firm.

Publicity is a form of unpaid marketing communication between buyers and the selling ⊚ ⊚

80)

true false

Advertising is the most costly method of communication for selling firms. ⊚ true ⊚ false

81) In the context of communicating marketing messages to customers, firms have more control when using unpaid methods of communication than when using paid methods of communication. ⊚ true ⊚ false

82) If salespeople want to sell effectively, they have to recognize that the buyer has needs that are met not only by the product but also by the selling process itself. ⊚ true ⊚ false

83) Activities such as prospecting for new customers, making sales presentations, demonstrating products, negotiating price and delivery terms, writing orders, and increasing sales to existing customers are part of a sales job. ⊚ true ⊚ false

84) Generally, salespeople spend more than 50 percent of their time on-site in face-to-face meetings with customers and prospects. ⊚ true ⊚ false

85) The phrase "customer-centric" means making the customer the center of everything a salesperson does. ⊚ true ⊚ false

86)

A salesperson's job does not end when a customer places an order. ⊚ true ⊚ false

87)

Salespeople coordinate the activities within their firms to solve customer problems. ⊚ true ⊚ false

88) Six sigma selling programs are designed to reduce and eliminate errors in the selling system. ⊚ true ⊚ false

89) A customer relationship management (CRM) system is a system that organizes information about customers, their needs, company information, and sales information. ⊚ true ⊚ false

90) Sales promotions use impersonal forms of mass media to provide information to customers, while advertising offers customers incentives to buy products during a specific period. ⊚ true ⊚ false

91) A missionary salesperson's job is to approach distributors and encourage them to sell the manufacturer's products. ⊚ true ⊚ false

92) Joshua represents a large drug manufacturer and calls on physicians to explain to them the benefits of prescribing his firm's products to their patients. Joshua is a missionary salesperson. ⊚ true ⊚ false

93) Normally, missionary salespeople and local distributor salespeople for the same firm are intensively competitive with each other as each strives to take business away from the other. ⊚ true ⊚ false

94) A salesperson is required to show high levels of creativity when he or she has to sell a service rather than a product to a new customer. ⊚ true ⊚ false

95) Most college graduates in sales work as a salesperson for a retailer rather than going into business-to-business selling.

⊚ ⊚

true false

96) Inside salespeople are increasingly being used to penetrate small to mid-market sized companies. ⊚ true ⊚ false

97) Inside selling typically is more demanding than field selling because the former entails more intense interactions with customers. ⊚ true ⊚ false

98) Customers develop long-term relationships with salespeople who are dependable and trustworthy. ⊚ true ⊚ false

99) Selling analytics is an attempt to gain insights into customers by using data mining and analytic techniques. ⊚ true ⊚ false

100) The financial rewards of selling are independent of the level of skill of the salesperson and the sophistication needed to do the job. ⊚ true ⊚ false

Answer Key Test name: chapter 1 11) A 12) E 13) D 14) D 15) B 16) D 17) E 18) B 19) C 20) C 21) E 22) E 23) B 24) A 25) B 26) D 27) A 28) E 29) C 30) D 31) B 32) B 33) D 34) E 35) B 36) A

37) B 38) C 39) C 40) C 41) A 42) A 43) B 44) C 45) C 46) E 47) D 48) D 49) A 50) C 51) A 52) D 53) A 54) A 55) C 56) B 57) D 58) D 59) C 60) D 71) FALSE 72) TRUE 73) FALSE 74) FALSE 75) FALSE 76) FALSE

77) FALSE 78) FALSE 79) TRUE 80) FALSE 81) FALSE 82) TRUE 83) TRUE 84) FALSE 85) TRUE 86) TRUE 87) TRUE 88) TRUE 89) TRUE 90) FALSE 91) FALSE 92) TRUE 93) FALSE 94) TRUE 95) FALSE 96) TRUE 97) FALSE 98) TRUE 99) TRUE 100) FALSE

Student name:__________ 1)

What is the difference between bribery and kickbacks?

2)

What is deception?

3) Jackson sells refrigeration units to hospitals, laboratories, and clinics. He really wants to make a sale to a group of hospitals all working under the Emory brand. He believes that if he gives the purchasing agent for the hospitals a very unique and costly gift, he will be more than likely to get the order. What advice would you give him?

4) Imagine John has a computer job with Hughes Hospital Supply, and he gets a job offer from IBD Incorporated What would be the ethical way for John to move from his job at Hughes to his new position with IBD?

5)

What is sexual harassment?

6) fact?

What is sales puffery and how can it be differentiated from warranties or statements of

7)

Discuss a sale as defined by the UCC in relation to salespeople.

8) What is an implied warranty and an expressed warranty? You have just filled your car with gasoline. Give an example of an expressed and an implied warranty that might have accompanied your purchase.

9)

What is the difference between a conspiracy and collusion?

10)

Distinguish between cultural relativism and ethical imperialism.

11)

Which of the following statements is true about ethics?

A) Ethics do not change with time.

B) There is no need for personal codes of ethics.

C) Ethical principles establish appropriate behavior.

D) What is ethical in the Middle East is also ethical in the United States.

E) If an act is unethical, it is also illegal.

12) Which of the following questions should one ask oneself to determine whether a sales behavior or activity is unethical?

A) Would my supervisor disapprove of this behavior?

B) Am I concerned about the possible consequences of this behavior?

C) Would society be worse off if everyone engaged in this behavior or activity?

D) Would I be embarrassed if a customer found out about this behavior?

E) All of the answers are correct.

13) Larry, an inexperienced sales rep, has asked you to suggest ways to deal with potential ethical problems. What should you suggest?

A) It's only unethical if it is illegal.

B) Do what the other sales reps do.

C) Do whatever earns profits for your company.

D) Perform whatever services your client requests.

E) Develop and maintain a personal code of ethics.

14) Javier, a new insurance agent, pays one of his customers to buy his firm's insurance product. Javier explains to the customer that he would pay the customer a few thousand dollars if the customer decides to invest in the policy recommended by Javier. This is an example of A) sales puffery.

B) a conspiracy.

C) kickbacks.

D) bribery.

E) collusion.

15) Rodney is a senior salesperson in a pharmaceutical company. Every time Jeff places an order of 2,000 units from the company, Rodney pays 7 percent of the total amount of sales to Jeff for helping him achieve his sales targets. This is an example of a A) bribe.

B) commission.

C) refund.

D) kickback.

E) rebate.

16) Which of the following statements is true about a noncompete clause in the United States?

A) It states that competing firms cannot engage in price discrimination.

B) It ensures that customer records are treated as trade secrets across all states.

C) It is defined in the same way in all states to ensure a consistent legal standard.

D) It guards against salespeople taking customers along when switching companies.

E) It states that competing firms should not buy from a single manufacturer.

17) Ray is a new salesperson in an automobile manufacturing company. In order to meet his sales target, he regularly steals potential customers of other salespeople in his team. This is an example of A) collusion.

B) a conspiracy.

C) insider selling.

D) poaching.

E) upselling.

18) In the context of the evolution of personal selling, which of the following statements is true of a salesperson's job after 1990?

A) A salesperson began focusing on the long-term needs of customers and sellers.

B) A salesperson's primary objective became satisfying customer needs.

C) A salesperson began focusing on sales and marketing rather than partnering.

D) A salesperson's role shifted from that of a problem solver to that of a provider.

E) A salesperson's primary activities began involving the coordination of delivery.

19) Calvin sells hospital supplies. When his company did not make it to the approved list of suppliers developed during a vendor analysis by a chain of nursing homes, he went against the purchasing department's policy and contacted nurses and other staff directly to persuade them to get the purchasing department to place his company on its approved list of suppliers. Calvin engaged in

A) backdoor selling.

B) expanded prospecting.

C) sales prospecting.

D) a lateral attack.

E) bypass selling.

20)

Which of the following statements is true about Lincoln Law?

A) It is commonly referred to as the Do-Not-Call law.

B) It was passed in 1863 and restricted salespeople in the United States from engaging in direct trade with its neighboring countries.

C) It removed the credulous person standard law during the Civil War in 1863.

D) It encouraged citizens to press claims against vendors that fraudulently sold to the U.S. government.

E) It repealed the noncompete clause in the southern U.S. states.

21) Jordon is a salesperson in a cosmetic firm. While selling a product to a customer, he lies to the customer that other competitors in the market use banned substances in their products.

This is an example of A) upselling.

B) browbeating.

C) collusion.

D) business defamation.

E) ethical imperialism.

22)

Which of the following acts may be considered sexual harassment?

A) Milton tells pornographic jokes to his secretary.

B) Nora repeatedly comments on her co-worker's sexual reputation.

C) Sybil shows a set of obscene playing cards to her subordinates.

D) Manning makes lewd comments to his colleague.

E) All of the answers are correct.

23)

Statutory laws A) include regulations developed by the Federal Trade Commission.

B) grow out of court decisions.

C) include regulations developed by the Better Business Bureau.

D) are based on legislation passed either by state legislatures or by Congress.

E) are established by local, state, and federal regulatory agencies.

24)

__________ laws are established by local, state, or federal regulatory agencies.

A) Common B) Administrative C) Functional D) Executive E) Statutory

25) The __________ is the most active regulatory agency in developing administrative laws affecting salespeople.

A) U.S. Patent Office B) Federal Trade Commission C) Environmental Protection Agency D) Federal Communications Commission E) Food and Drug Administration

26) The accounting of sales and costs of many new technology products has resulted in many ethical and legal controversies. Often, the shelf life of a new product is difficult to assess, and therefore, how to allocate sales and costs is debatable. A court decision provides guidelines to address these issues. The court decision is an example of A) UCC codification.

B) administrative law.

C) common law.

D) statutory law.

E) All of the answers are correct.

27)

Which of the following statements is true about the Uniform Commercial Code (UCC)?

A) It is one of the main statutory laws governing salespeople in the United States.

B) It is more specific than other laws and has little effect on salespeople.

C) It excludes domestic trade.

D) It was first published in 1998.

E) It is regulated by the Federal Trade Commission.

28) In the context of incentives given by a producer to a reseller's salespeople, a spiff is considered legal only if A) the producer's goods are sold on credit.

B) customers approve of the incentive structure.

C) the reseller approves of the incentives and it is offered to all the reseller's salespeople.

D) a salesperson engages in resale price maintenance.

E) the reseller includes the incentives in the selling cost of the product.

29) In the context of the Uniform Commercial Code (UCC), which of the following statements is true of a contract to sell?

A) It is said not to exist until the title passes from the seller to the buyer.

B) It is synonymous with a sale.

C) It exists when a salesperson quotes specific terms.

D) It exists anytime a salesperson makes an offer and receives an unqualified acceptance from the customer.

E) It passes the risk of loss or damage from the buyer to the seller.

30)

According to UCC, a sale is made A) when the salesperson makes an offer.

B) when the client accepts the offer and agrees to buy.

C) before the title exchanges hands.

D) when the contract is completed and the title exchanges hands.

E) when the contract is signed.

31)

According to UCC, orders become contracts to sell when A) the salesperson quotes the specific terms involved in the purchase.

B) goods are transferred from the seller to the buyer for a consideration known as price.

C) they are signed by an authorized representative of the salesperson's company.

D) money changes hands.

E) the title for the product is exchanged.

32)

In the context of the Uniform Commercial Code (UCC), an invitation to negotiate A) specifically states what a seller promises to deliver.

B) takes place when a salesperson quotes specific terms.

C) can be in the form of a sales presentation.

D) is a written agreement between a seller and a buyer.

E) is synonymous with a binding contract.

33)

If the terms of a contract specify FOB (free on board) destination, then

A) any loss or damage incurred during transportation is the responsibility of the seller.

B) the buyer is responsible for any loss during transportation.

C) the buyer assumes the responsibility and risk for the merchandise as soon as it leaves the factory.

D) the buyer gets the title to the goods as soon as the invoice is made by the seller.

E) the goods are being sold on consignment.

34) When James sold protective window bars for a nursing home complex, he specified in the contract that the bars would be shipped FOB factory. According to the UCC, this means that A) the bars will not leave the manufacturer until payment has been received in full.

B) the seller has full title to the bars until the nursing home director receives them.

C) the buyer assumes responsibility, cost, and risk for shipping of the bars.

D) the seller does not expect payment for the bars until they are installed.

E) the delivering company assumes title for the bars while they are in transit.

35)

If the terms of a contract specify FOB (free on board) factory, then

A) the seller has title until the goods are received at the destination.

B) the seller is responsible for any loss during transportation.

C) the buyer assumes the responsibility and risk for any loss during transportation.

D) the seller does not expect payment for the merchandise until it reaches its destination.

E) the goods are being sold on consignment.

36) When a purchasing agent bought an order of sheet aluminum (used to make cans) from a new supplier, the salesperson specified the details of the product's quality. However, when the purchasing agent received the order, he noticed that the aluminum sheets were of inferior quality.

Which of the following has the salesperson violated?

A) the tying agreement B) the impressed guarantee C) the binding contract D) the expressed warranty E) None of the answers is correct.

37)

Which of the following statements is true about tying agreements?

A) They usually increase competition among firms.

B) They become null and void when a buyer is required to purchase one product in order to get another product.

C) They are mandatory for verbal contracts.

D) They are illegal under the Clayton Act. E) They become legal only when they contain a noncompete clause.

38)

Which of the following statements is true about written agreements?

A) They are the same for all types of products.

B) They contain details about the seller's profits and the buyer's profits.

C) They exclude statements about a product's warranty.

D) They are normally required for sales over $500.

E) They are valid only if they contain a noncompete clause.

39)

The Foreign Corrupt Practices Act (FCPA) permits A) subordination payments when they are made by government officials.

B) spiffs when they are paid with the customer's approval.

C) small lubrication payments when they are customary in a culture.

D) backdoor selling when goods are selling below their resale price.

E) kickbacks when they are in the form of expensive gifts.

40) Kevin purchased a lawn mower. The blades were so dull that the mower could not cut the grass in his backyard. Because of existence of __________ warranties, Kevin can return the mower and expect to receive a replacement that will cut grass.

A) communicated B) applied C) functional D) implied E) codified

41) If the salesperson for a paint manufacturer promised a purchasing agent that a certain brand of paint was mildew-resistant (when it was not), the salesperson A) gave an expressed warranty.

B) resorted to collusion.

C) should have given further credibility to the statement by adding, "Let the buyer beware."

D) gave only an implied warranty.

E) None of the answers is correct.

42)

Who among the following salespeople is most likely engaging in an illegal sales practice?

A) Charles, who steals potential clients from other salespeople B) Ali, who uses spiffs to promote one product over another C) Mira, who uses persuasion to influence a buyer's decision D) Richard, who lies to a customer that a rival company is going bankrupt E) Sarah, who uses sales puffery to exaggerate the features of a product she is selling

43) A salesperson tells a customer that his firm's product will completely remove all rashes and burn marks on the human skin within seven hours of its application. This is an example of

A) puffery.

B) a spiff.

C) reciprocity.

D) an implied warranty.

E) a spam.

44) In Canada, where puffery is more closely monitored than in the United States, a salesperson told a customer a particular oven would cook meat better than any other oven in the market. The salesperson might be guilty of violating the A) conspiracy and collusion agreement.

B) competitive comparison law.

C) tying agreement.

D) caveat emptor law.

E) credulous person standard.

45) __________ occurs when salespeople make unfair or untrue statements to customers about a competitor, its products, or its salespeople.

A) Collusion B) Business defamation C) Conspiracy D) Reciprocity E) A tying agreement

46)

Which of the following is an example of reciprocity?

A) Jack reveals a competitor's secret formula for a plastic hardening compound.

B) Larry's Uniform Company agrees to buy Harry's landscaping services if Harry will rent its uniforms from Larry.

C) A purchasing agent bribes the receptionist to get him an appointment with the company's CEO. D) In order to carry a line of profitable wind chimes, Scott's Hardware Store also has to carry a less profitable line of hose nozzles made by the same company.

E) A group of kaolin (used in the whitening of paper) manufacturers agrees to a price freeze.

47)

Which of the following is an example of a tying agreement?

A) Jon refuses to buy office supplies from anyone but Bridget.

B) In order to carry a highly successful organic cleaning compound, Nature's Survival Store has to carry a much less successful line of laundry detergent made by the same company.

C) Traveler's Rest, a travel agency, agrees to buy its insurance from the Nathan Dean Insurance Agency if the agency agrees to let Traveler's Rest handle the owners' travel plans.

D) A paper supply company agrees to give Harridan Industries a free case of paper towels for every dozen cases it purchases.

E) A salesperson tells a contractor that his company's paint is mildew resistant when it is not.

48) Two alloy manufacturers agree to charge the same price for a product to a potential customer who is considering buying alloy from one of these manufacturers. This is an example of A) price discrimination.

B) a tying agreement.

C) sales puffery.

D) collusion.

E) upselling.

49) A group of uniform rental companies agreed that they would not charge less than $5 per week per uniform even before a newly opened chicken plant contacted them for bids. This is an example of A) business defamation.

B) a contrivance.

C) price discrimination.

D) collusion.

E) a conspiracy.

50) __________ refers to competitors working together while a customer is making a purchase decision.

A) Defamation B) A tying contract C) A conspiracy D) Reciprocity E) Collusion

51) When a perfume manufacturer establishes a minimum price below which a retailer may not sell its perfume, the manufacturer is engaged in A) a tying contract.

B) resale price maintenance.

C) price discrimination.

D) collusion.

E) reciprocity.

52) The manufacturer of Kingston freestanding greenhouses gives $100 as an incentive to a reseller's salespeople for each greenhouse they sell. This special incentive is known as

A) pull money.

B) puffery.

C) a perquisite.

D) a spiff.

E) entertainment allowance.

53) Court decisions related to the Robinson–Patman Act define __________ as a seller giving unjustified special prices, discounts, or services to some customers and not to others.

A) reciprocity B) a spiff C) price discrimination D) a tying contract E) business deception

54) The __________ Act requires written notification of customers regarding privacy policies.

A) Robinson–Patman B) Gramm–Leach–Bliley C) Sarbanes–Oxley D) FOB notification E) Federal Do-Not-Call Registry

55) To speed up the opening of a new factory in a Middle Eastern country, Micah gifted a pen and pencil set that he had purchased for $10 to an assistant in a local government. Micah hoped this gift would remove some of the red tape that was slowing down the building process.

This type of gift is referred to as

A) collusion.

B) subordination.

C) capitulation.

D) indemnification.

E) lubrication.

56) __________ involves paying large sums of money to higher-ranking officials to get them to do something illegal or to ignore an illegal act.

A) Collusion B) Subordination C) Capitulation D) Indemnification E) Lubrication

57) A steel manufacturing company helps the local government in a city build a railroad bridge. The company offers the city manager and the mayor a bribe of $50,000 to relax restrictions placed on the company's operations in the city. This is an example of A) extortion.

B) subordination.

C) embezzlement.

D) collusion.

E) lubrication.

58)

Which of the following statements is true about the Robinson–Patman Act of 1934?

A) It was introduced to eliminate sales puffery.

B) It protects national wholesalers and retailers from independent wholesalers and retailers.

C) It replaced the Federal Trade Commission Act of 1914.

D) It applies only to interstate commerce.

E) It was designed to limit the amount of information a firm could obtain about a consumer.

59) __________ involves small sums of money or gifts, typically made to low-ranking managers or government officials, in countries where these payments are not illegal.

A) Embezzlement B) Subordination C) Lubrication D) Collusion E) Extortion

60) __________ is the view that ethical standards in one's home country should be applied to one's behavior across the world.

A) Ethical imperialism B) Ethical ombudsmen C) Ethical solidarity D) Cultural relativism E) Cultural solidarity

61)

What is backdoor selling and what are its consequences?

62)

What impact do sales managers have on a salesperson's ethics?

63) What is the difference between free on board (FOB) destination and free on board factory?

64)

What is business defamation?

65)

Discuss the legality of tying agreements.

66)

What is reciprocity?

67)

Why did the Robinson–Patman Act become law?

68)

What are spiffs?

69)

What is subordination?

70)

What is cultural relativism?

71)

Ethics are defined universally and are consistent across the world. ⊚ true ⊚ false

72) In the early days of selling, companies studied and wrote down the sales pitches of their most successful people and created canned sales pitches. ⊚ true ⊚ false

73) In sales, manipulation is not unethical because it helps influence a buyer's decision without unfairly eliminating his or her choice. ⊚ true ⊚ false

74)

Most sales situations are not covered by laws. ⊚ true ⊚ false

75) Bribes typically have no negative consequences for the purchasing agent's firm—only for the purchasing agent as an individual. ⊚ true ⊚ false

76) A salesperson should only give a gift to a purchasing agent if that gift will foster a mutually beneficial, long-term relationship. ⊚ true ⊚ false

77)

Salespeople engage in backdoor selling only when they are about to get an order. ⊚ true ⊚ false

78) Because salespeople's activities in the field cannot be closely monitored, their employers trust them to act in the company's best interests. ⊚ true ⊚ false

79) It is easy to develop a reimbursement policy that prevents salespeople from cheating and yet allows them the flexibility to cover their territory and entertain customers. ⊚ true ⊚ false

80) When spending from their company's expense accounts, salespeople should act as though they are spending their own money. ⊚ true ⊚ false

81) A noncompete clause prevents employees from leaving the company until a specified amount of time has passed. ⊚ true ⊚ false

82)

Offering information about a customer's competitor in exchange for an order is unethical. ⊚ true ⊚ false

83) Unlike lying to customers, withholding information from customers is not an unethical sales practice. ⊚ true ⊚ false

84) Spreading rumors about a colleague's sexual conduct cannot be considered sexual harassment. ⊚ true ⊚ false

85) Tampering with a competitor's product in a store to make the product less appealing is unethical conduct. ⊚ true ⊚ false

86) Most salespeople are agents because they have the power to solicit even non-written offers from buyers. ⊚ true ⊚ false

87)

In many states in the United States, customer records are considered trade secrets. ⊚ true ⊚ false

88) The Uniform Commercial Code (UCC) is the only legal guide to commercial practice in the United Nations. ⊚ true ⊚ false

89) When an item is shipped under contract terms that call for FOB (free on board) factory, the buyer assumes responsibility for any loss or damage incurred during transportation.

⊚ ⊚

true false

90) Statements such as "The performance of this product is top-notch" can be classified as expressed warranties. ⊚ true ⊚ false

91) When a salesperson tells a customer that a product will last a lifetime, such a claim is most likely an example of sales puffery. ⊚ true ⊚ false

92) The credulous person standard in sales means that the company and the salesperson have to pay damages if a reasonable person could misunderstand the claims made in advertisements by the company and the salesperson. ⊚ true ⊚ false

93)

Tying agreements stipulate that a seller is only allowed to sell products to a single buyer. ⊚ true ⊚ false

94) The Robinson–Patman Act applies to intrastate sales transactions between buyers and sellers. ⊚ true ⊚ false

95)

U.S. privacy laws are more stringent than those of the European Union. ⊚ true ⊚ false

96) The rules of the federal Do-Not-Call Registry apply to business phones and to solicitations by nonprofits and political organizations. ⊚ true ⊚ false

97)

U.S. salespeople are subject to U.S. laws, regardless of the country they are selling in. ⊚ true ⊚ false

98) The Foreign Corrupt Practices Act (FCPA) made it legal for U.S. companies to engage in conspiracy. ⊚ true ⊚ false

99) One method that companies can use to protect themselves if an employee violates the law is to include the Foreign Corrupt Practices Act (FCPA) in the company's code of ethics. ⊚ true ⊚ false

100) The U.S. laws concerning bribery are much more restrictive than laws in Italy and Germany. ⊚ true ⊚ false

Answer Key Test name: chapter 2 11) C 12) E 13) E 14) D 15) D 16) D 17) D 18) A 19) A 20) D 21) D 22) E 23) D 24) B 25) B 26) C 27) A 28) C 29) D 30) D 31) C 32) C 33) A 34) C 35) C 36) C

37) D 38) D 39) C 40) D 41) A 42) D 43) A 44) E 45) B 46) B 47) B 48) D 49) E 50) E 51) B 52) D 53) C 54) B 55) E 56) B 57) B 58) D 59) C 60) A 71) FALSE 72) TRUE 73) FALSE 74) TRUE 75) FALSE 76) TRUE

77) FALSE 78) TRUE 79) FALSE 80) TRUE 81) FALSE 82) TRUE 83) FALSE 84) FALSE 85) TRUE 86) FALSE 87) TRUE 88) FALSE 89) TRUE 90) FALSE 91) TRUE 92) TRUE 93) FALSE 94) FALSE 95) FALSE 96) FALSE 97) TRUE 98) FALSE 99) TRUE 100) TRUE Student name:__________ 1)

How does the organizational buying process differ from the consumer buying process?

2)

When does a modified rebuy situation occur?

3) Samantha is the office manager for a dentist. Give an example of how she might experience a modified rebuy situation, a straight rebuy situation, and a new-task situation.

4)

Explain the role an initiator plays in the organizational buying process.

5) The city of Marowa is considering contractors to build a new sports complex. What factors will likely influence the university's buying decision?

6)

Discuss the economic and quality criteria that may influence buying decisions.

7) Brian is attempting to get a marketing professor to include his company's textbook into the professor's classroom teaching syllabus. Brian knows that the professor has been using a competing textbook and would have to spend considerable time adjusting her syllabus and classroom strategies if she adopts Brian's textbook. He points out that his textbook is newly revised, which means that the professor can use it for several years without having to make adjustments. What sales technique is Brian using?

8)

Describe a method that buying centers use to reduce risks.

9) What is supply chain management (SCM), and what is a salesperson's role in supply chain management?

10)

What is the multiattribute model of product evaluation and choice?

11) When P.C. Logic, a fax machine manufacturer, purchases ceramic printing heads from Kyocera to install in its fax machines, it is acting as a(n) A) reseller.

B) original equipment manufacturer.

C) "out" supplier.

D) end user.

E) acquisition expert.

12) Which of the following is usually considered a major financial commitment for manufacturers?

A) maintenance supplies B) services C) replacement parts D) repair and overhaul supplies E) capital equipment items

13) Clara is the head of the sales department of a firm. She wants to know the volume of sales generated by her sales department and how quickly the firm's products are sold in the regional market. In this case, Clara is most likely calculating the A) buyer's profit.

B) durability of the products.

C) turnover of the products.

D) depreciation of the products.

E) quality of the products.

14) Eva is considering adding new products to her store and is concerned about her profit margin. She is concerned about A) how much she will make on each sale.

B) the marginal turnover rate and the expected delivery time.

C) how to address the servicing requirements and the cost of repairs.

D) the need for MRO services and supplies.

E) the derived demand for the products.

15)

Effective selling to government agencies requires

A) advertising in the New York Times.

B) effective internal controls designed to maximize the just-in-time delivery of requests for proposals.

C) an advanced knowledge of 80-20 ordering procedures.

D) a thorough knowledge of their unique procurement procedures and rules.

E) active listening centered on gatekeepers' internal satisfaction requirements.

16) In an organizational buying decision process, which of the following types of purchase situations requires a longer time to arrive at a purchase decision in comparison with others?

A) a new-task situation B) a straight rebuy situation C) a customized rebuy situation D) a modified rebuy situation E) a computerized purchase situation

17) Salespeople need to understand that purchases made by their customers' customers are based on A) derived demand.

B) the competitive advantage offered by other sellers.

C) economies of scale in production.

D) just-in-time (JIT) inventory control.

E) direct demand.

18) Weston makes uniforms and overalls for employees in any industry where there is a risk of fire injury. It uses fabric from Indie Fabric Company. for all of the uniforms it manufactures.

If there is a decrease in the demand for products in the chemical industry, there will be a decrease in employment in that industry. This will lead to a decrease in the demand for Weston's uniforms. As fewer uniforms will be needed, the sales for Indie Fabric will decrease. This is an example of A) derived demand.

B) a competitive advantage for the seller.

C) economies of scale in marketing.

D) just-in-time (JIT) inventory control.

E) a direct demand.

19) Almac Aluminum is a large manufacturer of can sheets that are used to manufacture beverage cans. Its ability to sell to Pearl Brewing Company is directly related to how many people buy Pearl Beer. This is an example of

A) derived demand.

B) a competitive advantage for the seller.

C) economies of scale in marketing.

D) just-in-time (JIT) inventory control.

E) a direct demand.

20) The chief executive of Norell, an agency that supplies businesses with temporary workers, realizes that the health care industry requires temporary workers as much as, if not more than, goods-oriented businesses. Which of the following stages of the buying process does this illustrate?

A) preparation of a presentation B) evaluation of alternatives C) development of specifications D) recognition of a need E) evaluation of the result of sales calls

21) Alia is the logistics manager of a firm. She has recognized that her firm's poor performance is because of the faulty supply chain management software that the firm is currently using. According to the organizational buying process, which of the following should Alia do next?

A) Alia should search for qualified suppliers of a management software.

B) Alia should define the type of management software needed.

C) Alia should evaluate proposals from different software firms.

D) Alia should immediately place an order for any new management software available in the market.

E) Alia should develop detailed specifications for a new management software.

22)

The last step in the organizational buying process involves

A) developing detailed specifications.

B) recognizing a problem.

C) analyzing the vendor.

D) evaluating product performance.

E) placing the order.

23) Regan wants to develop a long-term relationship with his customers. To accomplish this objective, Regan will need to pay close attention to A) the acquisition and analysis of proposals.

B) the definition of the type of product needed.

C) the evaluation of product performance.

D) the receipt of an order.

E) the recognition of a need or problem.

24) Neil wants to buy raw materials for his automobile firm. After identifying the type of raw materials needed and their specifications, he compiles a list of new vendors. During the buying process, he becomes more involved with a specific vendor and focuses his attention more on buying from that vendor than from other vendors. This is an example of A) a straight rebuy.

B) collusion.

C) an ambush negotiation strategy.

D) browbeating.

E) a creeping commitment.

25) In the context of the types of organizational buying decisions, which of the following best exemplifies a new-task situation?

A) ArchiTechno Systems, a construction company, purchases a variety of high-end cranes that the company has not previously used.

B) AYR Fresh, a supermarket chain, uses an automatic reorder system to automatically generate purchase orders when supplies drop below a specified level.

C) Warritech Auto, an automobile manufacturer, wants to obtain information from its supplier of metal parts because of quality issues.

D) Windomax Incorporated, a computer manufacturer, contacts its supplier of processors to request information on a new type of recently launched processors.

E) Sour Sugar, a company that produces condiments, requests one of its suppliers to increase the frequency of supply of one of its products.

26) Kevin works for Irish Pub Company, a design and construction outfit that sells completely finished, made-in-Ireland pubs—with everything from beer taps to mosaic floors to decorative pieces like antique whiskey bottles—to American entrepreneurs. Kevin is trying to sell the Irish pub concept to a retired New York City business executive who wants to run his own business, but he is not an experienced pub owner and is reluctant to invest $300,000 in the project. Kevin should consider this a __________ buying situation.

A) new-task B) straight rebuy C) derived-demand D) value-added E) modified rebuy

27) Which of the following types of purchase situations requires the least number of people in the organizational buying decision process?

A) a new-task situation B) a straight rebuy situation C) a modified rebuy situation D) a first-time purchase situation E) a customized rebuy situation

28) Plasto is a Spanish company that manufactures stadium seating for sports venues. It is one of many such manufacturers. The city of Marsia, which is going to host the next Olympic Games, forms a committee to make purchases of equipment that would be required at its venues.

The committee has limited knowledge of the available products but eventually decides to purchase Plasto's stadium seating for the venues. This purchase by the recently formed committee is an example of a __________ situation.

A) derived demand B) just-in-time delivery C) modified rebuy D) straight rebuy E) new-task

29) A manufacturer of aquariums for consumers' homes is most likely to go through all eight steps of the organizational buying process when it is A) renewing subscriptions to trade journals.

B) purchasing a new computerized inventory system.

C) ordering glass sheets from its usual supplier.

D) restocking the glue needed to make tanks leak-proof.

E) buying cleaning supplies listed by the maintenance staff.

30) A salesperson for the Big Apple Sign Corporation is trying to get the owner of a hardware store to buy a new kind of advertising tool called floor graphics—an opaque vinyl film that applies directly to the floor, is easy to remove, and can be used to promote in-store specials.

As the store owner has purchased advertising tools before—just not this particular kind of advertising tool—this is an example of a __________ situation.

A) derived rebuy B) straight rebuy C) derived-demand D) value-added E) modified rebuy

31) The supervisor of an automated teller machine (ATM) facility learns that the machine is not functioning efficiently because it uses an old software. In the context of the organizational decision buying process, which of the following should the supervisor do next?

A) The supervisor should look for a new software.

B) The supervisor should place an order for an alternative software.

C) The supervisor should evaluate the performance of the existing software.

D) The supervisor should immediately buy a new machine.

E) The supervisor should identify and define the type of update needed.

32) Maynard, the head of logistics of a fast-food chain, rejects a sales proposal from a new vendor because of feasibility issues in transportation and delivery. According to Miller and Heiman, Maynard is most likely a(n) A) technical influencer.

B) economic influencer.

C) coach.

D) initiator.

E) decider.

33) Kenneth, the operations manager of a cosmetic firm, rejects a particular promotional strategy for use by the firm because he estimates that the financial costs of conducting such a campaign would be extremely high and the strategy would yield no return. According to Miller and Heiman, Kenneth is most likely a(n)

A) economic influencer.

B) buyer.

C) user.

D) technical influencer.

E) gatekeeper.

34) A hospital is considering changing its supplier of replacement joints. While surgeons make the final decision, the hospital's purchasing department is promoting Kyocera because it manufactures one of the cheapest and most durable hip joints in the market. In terms of the buying center, the purchasing department is a(n) A) decider.

B) influencer.

C) judge.

D) user.

E) demand deriver.

35) __________ control the flow of information and may limit the alternatives considered in the organizational buying decision process.

A) Deciders B) Influencers C) Buyers D) Users E) Gatekeepers

36) The evaluation and selection of products and suppliers are affected by the needs of both the organization and the individuals making the decision. These needs are categorized as

A) emotional and rational.

B) formal and informal.

C) verbal and nonverbal.

D) external and internal.

E) behavioral and attitudinal.

37) Ruth markets rock concerts. She is looking for a company that will handle all of the various mailing needed to promote the purchase of concert tickets. She wants to use Graham Mail House because she is a good friend of the mailing house's operations manager, but others involved in the decision making want to take bids from other mailing houses. In this example, Ruth is expressing a(n) __________ need in the buying process.

A) emotional B) formal C) external D) impersonal E) rational

38)

Using the life-cycle costing approach, salespeople can demonstrate that

A) a product in the decline stage of its life cycle will have little, if any, service.

B) a product with a higher initial cost will have lower overall costs.

C) operational costs do not change over the lifetime of capital equipment.

D) a product in the introductory stage of its life cycle will have more problems than one in a later stage.

E) operational costs actually decrease over the lifetime of capital equipment because of increased familiarity.

39)

Which of the following statements is true of life-cycle costing?

A) It is most likely to be used for products that have short-term lives.

B) It is used to demonstrate that a high-cost product will probably also have high maintenance costs.

C) It is conducted when a buyer decides to buy from the same vendor for a long period of time.

D) It is calculated as the amount that is spent with each vendor and for what products.

E) It is mostly used while purchasing capital equipment.

40) Which of the following members of the buying center would typically be involved in a value analysis?

A) A representative from the engineering department B) Members of the purchasing department C) Technical experts from the production department D) Technical experts from the quality control department E) All of the answers are correct.

41) Which of the following sources of information would customers usually view to be less credible than the others?

A) trade publications B) colleagues C) outside consultants D) review sites on the Internet E) sales literature

42) LifeStream Industries has used BrightLight light bulbs for years. When it needs new light bulbs, it uses a straight rebuy. The distributor of Tungsram LED light bulbs would like an opportunity to get his product considered by LifeStream. A(n) __________ would be particularly useful for Tungsram, the out-supplier.

A) JIT analysis B) organizational audit C) environmental assessment D) value analysis E) multiattribute model

43) To reduce the uncertainty and risk involved in buying raw materials from multiple vendors, Miguel always buys the raw materials for his firm from a preferred vendor. From the perspective of an out-supplier, Miguel's account would be treated as A) a bad debt account.

B) a contra account.

C) an uncollectible account.

D) an "always a share" account.

E) a "lost for good" account.

44) The need for risk reduction is one of the factors affecting an individual making an organizational buying decision. To help reduce the risk, a salesperson can A) turn a straight rebuy situation into a modified rebuy situation.

B) provide the buyer with product information from independent sources not connected with the company for which the salesperson works.

C) send the buyer the complete portfolio of all collateral sales materials and follow it up with a phone call.

D) make the buyer understand that every buy should be a new-task buy situation.

E) persuade the buyer to not perform vendor analysis.

45) Foster has decided to buy all his maintenance, repair, and overhaul (MRO) supplies from Alexia's Supply House. For competitors, Foster's account is

A) always a share.

B) JIT. C) a modified rebuy.

D) lost for good.

E) a tying agreement.

46) Vincent has been purchasing goods for his firm from a single supplier for many years. On every purchase, the supplier gives him reasonable discounts. Even though other vendors sell the same goods at lower rates, Vincent states that he has never considered an alternate supplier because the quality of goods provided by his existing supplier has always been exceptional. This is an example of A) collusion.

B) insider selling.

C) a spiff.

D) reseller price maintenance.

E) vendor loyalty.

47) Trachion Incorporated is a company that manufactures electronics equipment. When purchasing metal parts for its equipment, Trachion sources 75 percent of the materials from one vendor and the remaining 25 percent from a different vendor. The company uses this strategy so that one vendor is always available to fulfil its needs even if the other fails to deliver. Which of the following strategies is Trachion using in this scenario?

A) lost for good B) always a share C) creeping commitment D) modified rebuy E) life-cycle costing

48) The business environment is changing dramatically, and organizational buying is also changing. As organizations are pressured to improve product quality, control costs, and minimize inventory, they are A) elevating the level of their purchasing directors to reflect the increasing importance of this function.

B) replacing just-in-time inventory control with a more practical technique.

C) using less global sourcing to reduce transportation costs.

D) using reduced value analysis.

E) All of the answers are correct.

49) Ryan wants a vendor who will provide ingredients for his restaurant each day according to the number of reservations he has for that evening. Ryan is looking for a vendor who will provide A) collusion pricing.

B) just-in-time inventory control.

C) material requirements planning.

D) a tying agreement.

E) None of the answers is correct.

50) Mike's Autos uses a supply chain management system to schedule the delivery of auto parts to arrive at its plants exactly thirty minutes before the parts are to be used in the assembly process. The company uses a(n) __________ system.

A) efficient consumer response B) total quality management C) just-in-time inventory control D) zero-defect management E) material requirements planning

51) To develop the close coordination needed for just-in-time (JIT) inventory control systems, manufacturers tend to rely on one supplier. Which of the following is the criterion based on which the supplier is selected?

A) lowest item-by-item cost B) the ability to be flexible C) product quality D) the size of the operation E) lowest overall cost

52) Hammond Incorporated supplies its retailers with handheld Crownlink electronic data interchange terminals. All of its retailers use these terminals to transmit merchandise orders to Hammond in Kansas City. Their inventories are always stocked as needed. Shipments are made daily as required by individual retailers. This is an example of a(n) __________ system.

A) efficient consumer response B) total quality management C) marketing information D) zero-defect management E) material requirements planning

53) TMV Auto uses a computer-to-computer linkage, called HarpLink, to manage its annual export of 65,000 vehicles. HarpLink provides worldwide control, invoicing, and information about ports, carriers, and custom documentation. HarpLink exemplifies A) a local area network.

B) material requirements planning.

C) a spreadsheet program.

D) electronic data interchange.

E) database marketing.

54) Which of the following statements is true about automatic replenishment (AR) management?

A) It is a form of zero defects management program used by small-scale distributors.

B) It is an inventory system in which retailers rather than distributors manage inventory levels for customers.

C) It allows suppliers to handle inventory in industrial settings.

D) It is the least used type of consumer response system.

E) It is a digital collateral management system used by salespeople to generate sales for a firm's products.

55) Rock-Tenn Corporation continually receives data on production schedules from its customers. It uses the information to determine the quantity of boxes to be shipped to them.

Rock-Tenn has established a(n) __________ relationship with its customers.

A) creeping commitment B) tying agreement C) reciprocal D) automatic replenishment (AR) E) life-cycle costing

56)

Automatic replenishment (AR) and electronic data interchange (EDI) are elements of A) just-in-time inventory control.

B) value analysis.

C) total quality management.

D) vendor analysis.

E) life-cycle costing.

57) In the context of changing the perceived value of a product, which of the following could be considered a dangerous strategy if employed by a salesperson?

A) decreasing the rating of a competitive product B) increasing the price of the product C) decreasing the price of the product D) adding a new dimension to the product E) increasing the performance rating of the product

58) When firms want to influence the perceived value of one of its products among customers, which of the following strategies is typically used as a last resort?

A) increasing the existing dimensions of the product B) decreasing the rating for a competitive product C) adding a new dimension to the product D) increasing the performance of the product E) decreasing the price of the product

59) __________ is a strategy by which organizational buyers evaluate the relative importance of suppliers and use that information to determine with whom they want to develop partnerships.

A) Customer relationship management B) Total quality management C) Just-in-time inventory control D) Supplier relationship management E) Efficient consumer response system

60) Vincent is trying to analyze how important his suppliers are to his business. He wants to know which supplier is best for a long-term relationship. If he has to apply the supplier relationship management (SRM) strategy, Vincent should most likely begin the analysis by first

A) conducting life-cycle costing for all the capital equipment used by his business.

B) determining the competition for his business's vendors in the market.

C) determining the benchmarking standards of his business against other businesses in the market.

D) calculating the amount that is spent with each vendor and for what products.

E) conducting a bottom-up forecasting of his business's products.

61)

Who are resellers?

62)

Who are end users?

63) What are the elements that resellers consider when making decisions about which products to sell?

64) Jack is a salesperson for a window and door distributor. Why should he pay close attention to the demand for new housing and the number of new high-rises getting building permits?

65) In the context of purchasing components or materials, what is early procurement involvement?

66)

What is creeping commitment?

67)

What is a new-task buying situation?

68)

What is a straight rebuy situation?

69) In the context of the factors that organizations consider when they make buying decisions, explain how can salespeople use the concept of life-cycle costing.

70)

What is automatic replenishment?

71) Salespeople selling original equipment manufacturer (OEM) products need to demonstrate that their products help customers produce products that will offer superior value. ⊚ true ⊚ false

72) Resellers consider two elements when making decisions about what products to sell: customer profiles and targeted return. ⊚ true ⊚ false

73)

End-user buying situations exclude the purchase of capital equipment and services. ⊚ true ⊚ false

74)

Global sourcing is a key factor in achieving a sustainable competitive advantage. ⊚ true ⊚ false

75)

Derived demand means demand is derived from an increase in GDP. ⊚ true ⊚ false

76)

The buying process starts when a proposal is acquired and analyzed.

⊚ ⊚

true false

77) Creeping commitment means that a customer becomes increasingly committed to a particular course of action while going through the steps in the buying process. ⊚ true ⊚ false

78) From a salesperson's point of view, the initial steps in the buying process are critical in straight rebuy situations. ⊚ true ⊚ false

79) When the office manager of an established dentist orders a case of the same brand of dental floss that the dentist's office has been using for years from the same source, it is considered a straight rebuy. ⊚ true ⊚ false

80) A buying center is an informal, cross-department group of people involved in a purchase decision. ⊚ true ⊚ false

81)

Gatekeepers are usually the ones who start the buying process. ⊚ true ⊚ false

82) In general, senior executives get more involved in important purchase decisions that have a greater effect on the performance of their organization. ⊚ true ⊚ false

83)

Life-cycle costing is also known as quality-based costing. ⊚ true ⊚ false

84) Emotional needs are directly related to the performance of a product rather than the personal gratification an individual gets from the product. ⊚ true ⊚ false

85) Service level agreements (SLAs) are standards for minimum service delivery for specific measures of how a vendor will perform services and are written into a contract. ⊚ true ⊚ false

86)

"Always a share" is a strategy for risk reduction employed by buying centers. ⊚ true ⊚ false

87) Customers usually view information from independent sources to be less credible than company advertising. ⊚ true ⊚ false

88) In automatic replenishment, a buyer pays the supplier for materials as soon as an order is placed. ⊚ true ⊚ false

89) The ultimate goal of just-in-time (JIT) inventory control is to eventually eliminate all inventory except products in production and transit. ⊚ true ⊚ false

90) In the context of developing the close coordination needed for just-in-time (JIT) inventory control systems, the selection criterion for manufacturers is the lowest cost rather than the supplier's ability to be flexible. ⊚ true ⊚ false

91) The first step in supplier relationship management is to determine end-user spending patterns. ⊚ true ⊚ false

92) One outcome of supplier relationship management (SRM) is the ability to consolidate purchases and negotiate better terms. ⊚ true ⊚ false

93) A disadvantage of supplier relationship management (SRM) is its lack of focus on improving pricing and inventory management. ⊚ true ⊚ false

94) The multiattribute model is usually not used in complex purchase decisions involving several vendors. ⊚ true ⊚ false

95) In the context of the multiattribute model of product evaluation and choice, a company's final decision to select a product from among its alternatives is based on the relationship between the performance evaluations of the product's characteristics and the company's needs. ⊚ true ⊚ false

96) During performance evaluations of various vendors, the importance weights of all characteristics are considered equal. ⊚ true ⊚ false

97) A person's overall evaluation of a product can be quantified by multiplying the sum of the performance ratings of the product by the importance weight of each characteristic. ⊚ true ⊚ false

98) By increasing the rating of a competitive product, salespeople can improve customers' perception of their product. ⊚ true ⊚ false

99) Salespeople should not focus on the areas of superior product performance that are not important to their customer. ⊚ true ⊚ false

100) Using the multiattribute model, salespeople decide how to alter the content of their presentation based on customer beliefs and needs. ⊚ true ⊚ false

Answer Key Test name: chapter 3 11) B 12) E 13) C 14) A 15) D 16) A 17) A 18) A 19) A 20) D 21) B 22) D 23) C 24) E 25) A 26) A 27) B 28) E 29) B 30) E 31) E 32) A 33) A 34) B 35) E 36) A

37) A 38) B 39) E 40) E 41) E 42) D 43) E 44) B 45) D 46) E 47) B 48) A 49) B 50) C 51) B 52) A 53) D 54) C 55) D 56) A 57) A 58) E 59) D 60) D 71) TRUE 72) FALSE 73) FALSE 74) TRUE 75) FALSE 76) FALSE

77) TRUE 78) FALSE 79) TRUE 80) TRUE 81) FALSE 82) TRUE 83) FALSE 84) FALSE 85) TRUE 86) TRUE 87) FALSE 88) FALSE 89) TRUE 90) FALSE 91) FALSE 92) TRUE 93) FALSE 94) FALSE 95) TRUE 96) FALSE 97) TRUE 98) FALSE 99) TRUE 100) TRUE Student name:__________ 1)

Describe the two-way flow of information. What causes communication breakdowns?

2)

How does noise inhibit communication, and how can salespeople overcome this barrier?

3) In the context of voice characteristics, explain how a salesperson's delivery of words affects how the customer will understand and evaluate his or her presentation.

4)

Describe active listening.

5) What is the benefit of repeating information received from the customer during a sales interaction? What are the drawbacks (if any) of this technique?

6)

Why is it important to "bite your tongue" at certain times during a sales presentation?

7)

Discuss the importance of nonverbal signals in communication.

8)

How should professional salespeople dress? Explain your answer.

9) When communicating via technology, explain how salespeople can use the telephone correctly and effectively.

10)

Discuss how international salespeople adjust for cultural differences.

11)

The translation of thoughts into words is called A) decoding.

B) interpreting.

C) encoding.

D) deciphering.

E) evaluating.

12) Which of the following guidelines should salespeople follow to send verbal messages effectively?

A) Use concise phrases and words to provide grace.

B) Make use of words such as "nice" and "good" to communicate eagerness and enthusiasm.

C) Use verbal pauses to ensure the buyer has sufficient time to think.

D) Always try to speak slower than the average rate of 140 words per minute.

E) Avoid using analogies to ensure that the buyer is not distracted.

13) Virginia sees Carl, her high school friend, at a traffic signal after 15 years. She honks and waves to say "hello." Carl does not recognize her and thinks that a stranger is honking because of the way he changed his lane. In this scenario, Carl is facing a problem __________ the message.

A) controlling B) suppressing C) sending D) decoding E) verbalizing

14) During a sales presentation, Kiara, the salesperson, informs the customer that the Zeus water reclamation system is the best system available in the market in the $50–$60 price range.

He misunderstands the description partly because of the unnecessary technical details and partly because of the distraction caused by his secretary who comes in during the presentation and asks for his signature. In the context of the communication process, Kiara is __________, the customer is __________, and the secretary is __________ in this scenario.

A) decoding; encoding; giving feedback B) decoding; giving feedback; creating noise C) encoding; decoding; giving feedback D) encoding; decoding; creating noise E) decoding; encoding; creating noise

15) Clara meets her client Jonathon for a business presentation at a café suggested by him. As soon as their meeting begins, the café gets very crowded and noisy. They are unable to concentrate on their discussion. Which of the following should Clara do to prevent a communication breakdown with her client?

A) continue with the presentation at the café as it has been suggested by her client B) suggest that they move to a quieter place C) speak loudly so that her voice can be heard D) focus on the use of nonverbal communication to make her presentation E) None of the answers is correct.

16)

Which of the following is a significant part of a salesman's voice characteristics?

A) inflection B) response time C) acculturation D) reliability E) validity

17) During sales presentations, salespeople should vary the loudness of their speech to essentially A) help in the production of recognizable sounds.

B) avoid uncertainty in thoughts.

C) help buyers visualize a point.

D) avoid monotony.

E) establish their expertise in selling.

18) When a speaker attempts to draw a parallel between one thing and another, he or she is using a(n) A) analogy.

B) inflection.

C) exaggeration.

D) puffer.

E) summary.

19) The 80–20 __________ suggests that salespeople should try to listen 80 percent of the time and talk no more than 20 percent of the time.

A) talking model B) personal–interpersonal differential C) body language agreement model D) listening rule E) inflection-articulation zone

20)

One way to define the speaking–listening differential is to say that

A) the skill of active listening makes better speakers.

B) customers can listen to words at a rate that is about five times faster than the rate at which salespeople can speak.

C) salespeople should try to speak 80 percent of the time and listen no more than 20 percent of the time.

D) speaking divided by listening equals communication.

E) articulation equals listening divided by speech rate.

21) One way to illustrate __________ is to say that Ned can speak at a rate of around 120 to 160 words per minute, but he can listen to more than 800 words per minute.

A) active listening B) the speaking–listening differential C) the lazy tongue syndrome D) the need for indirect questioning E) the need for open-ended questions

22)

Which of the following problems is associated with the speaking–listening differential?

A) The quality of a salesperson's handshake becomes highly important.

B) Customers are more likely to accuse salespeople of backdoor selling.

C) Buying centers are more likely to have multiple gatekeepers.

D) Salespeople often become lazy listeners.

E) Salespeople have trouble making appointments with prospects.

23) During a sales presentation, Clara, the salesperson, listens to her customer rather than describing her product to the customer. She nods her head and uses verbal cues such as "I see," "Uh-huh," and "That's interesting" to encourage the conversation. In this scenario, Clara is A) trying to figure out the appropriate time to close the deal.

B) engaging in passive listening.

C) engaging in active listening.

D) encouraging active speaking.

E) None of the answers is correct.

24) Tayler pays careful attention to what her client Jack says and sorts out important facts from irrelevant ones. While maintaining eye contact and nodding her head at appropriate intervals, she communicates that she is interested in and understands what is being said. In this scenario, Tayler is engaged in A) focused learning.

B) a presentation protocol.

C) active listening.

D) dynamic hearing.

E) passive listening.

25)

Which of the following is a suggestion for active listening?

A) Echo what a prospect has said.

B) Summarize the conversation.

C) Stay quiet while a prospect thinks.

D) Concentrate on ideas rather than just words.

E) All of the answers are correct.

26)

Which of the following is a suggestion for active listening?

A) To avoid repeating information B) To avoid summarizing information already provided C) To refrain from embarrassing a customer by rephrasing his or her comments D) To discourage any moment of silence during a sales pitch E) None of the answers is correct.

27)

Which of the following statements about active listening is false?

A) Paraphrasing what a prospect says is fine; never repeat things word for word.

B) The salesperson should listen to a customer's words from the customer's point of

view.

C) Additional questions can give the salesperson a better understanding of what a prospect is trying to communicate.

D) Tolerating silence gives a customer time to think.

E) Summarizing provides both the salesperson and a customer with an overview of what has been said.

28) As soon as Jennifer entered her customer's office, the customer started talking about his problems both at work and at home. Jennifer had planned to discuss the benefits of her company's newly launched product during this meeting. However, she listened quietly, asked questions where appropriate, and offered support when required. In this scenario, Jennifer is mostly likely practicing

A) the art of paraphrasing the customer's words.

B) active listening.

C) the body language agreement method.

D) the tolerating silence presentation format.

E) the art of nonverbal communication.

29) During a sales presentation, Ursula, the salesperson, is unable to understand what her customer means by his last statement. What should she do to verify her customer's intent?

A) restart her presentation B) quickly move to a trial close C) restate the customer's comment D) call her sales manager E) All of the answers are correct.

30)

Which of the following is an important element of active listening for salespeople?

A) focusing primarily on the content of the message B) listening with the objective of being able to respond correctly C) thinking about how the buyer is going to respond D) trying to understand the buyer's perspective and feelings E) evaluating the buyer's message while the buyer is speaking

31) Andrea works as a technical assistant for a software company. During a customer call, she asks her customer, "What is it that the new software fails to do?" In this scenario, Andrea is practicing the active listening skill of

A) summarizing to provide an overview of what has been said.

B) listening to the customer's words from the customer's point of view.

C) asking questions to gain a complete understanding of what the customer is trying to communicate.

D) tolerating silence to give the customer time to think.

E) None of the answers is correct.

32) During a sales presentation, Sabrina, the salesperson, tries to refrain from speaking after asking her customer a difficult question. Tolerating silence is often important to A) provide the customer time to think.

B) provide the customer with an opportunity to end the meeting.

C) help shift from the intimate to the social zone.

D) allow the customer to reveal underlying tension.

E) encourage the customer to show his or her anxiety.

33)

Which of the following statements about body language is true?

A) Voice characteristics account for a greater percentage of messages received than body language in face-to-face communication.

B) Customers look away from salespeople while they actively consider information in a sales presentation.

C) Hand gestures have the same meaning in all cultures.

D) A person rocking from side to side is conveying a positive outlook.

E) Broad, vigorous arm gestures indicate a lack of interest in the point being communicated verbally.

34)

Which of the following is a form of nonverbal communication?

A) noise B) emotional labeling C) inflection D) space E) articulation

35) During a sale presentation, Michael, the salesperson, notices that his prospect begins to move back and forth. In this scenario, the prospect's body language most likely indicates A) strong uncertainty.

B) a positive outlook.

C) boredom.

D) coldness or dislike.

E) an agitated state of mind.

36) During a sales presentation, Teresa notices that her customer shifts position in his chair.

In this scenario, which of the following can Teresa conclude about her customer?

A) The customer wants her to end the presentation.

B) The customer wants to place an order.

C) The customer strongly agrees with what she has said.

D) The customer strongly disagrees with what she has said.

E) All of the answers are correct.

37) Betty, a salesperson, presents her company's new luxury car to customers. During the presentation, she notices that some of the company's important customers are blinking rapidly, almost at a rate of 50–60 blinks per minute (bmp). In this scenario, Betty should be

A) excited because it suggests that the customers are highly interested.

B) concerned because it indicates high stress levels.

C) relaxed because it indicates that the customers are ready to close the deal.

D) agitated because it suggests coldness and dislike.

E) entertaining because her customers are getting bored.

38) In the context of evaluating thought process through customers' eye position during a sales presentation, eyes focused straight ahead mean that a customer is A) really concentrating on the presentation.

B) intensely concentrating, with an emotional consideration.

C) actually interested in closing the deal but wants to suppress his or her feelings to be able to bargain effectively.

D) passively receiving information but devoting little effort to analyzing the meaning of the presentation.

E) considering the logic and facts in the presentation.

39)

In the context of nonverbal messages, identify a true statement about cultural differences.

A) The thumbs-up gesture is acceptable in the Middle East.

B) In Japan the OK sign made by holding the thumb and forefinger in a circle symbolizes money.

C) Crossing one's feet and showing the bottoms of one's shoes are signs of confidence in Japan.

D) In the United States, the absence of eye contact is considered a sign of deal closure.

E) In the Middle East, crossed arms and legs are considered positive nonverbal signals.

40) When Reginald calls his favorite customer late in the evening, the customer invites him to a café near his office. Although the customer seems tired, he sits back with his hands and legs uncrossed during their meeting. In this scenario, Reginald can interpret his customer's nonverbal communication signal as

A) that of exhaustion.

B) positive.

C) that of boredom.

D) indifferent.

E) None of the answers is correct.

41) In the context of a salesperson's presentation, which of the following body language patterns can be considered a positive signal?

A) the customer crossing his or her arms B) the customer maintaining a single facial expression C) the customer shaking his or her head D) the customer leaning backward E) the customer displaying an animated excited reaction

42)

When sending messages with nonverbal communication, nothing creates a rapport like A) a smile that appears natural and comfortable.

B) direct eye contact.

C) a firm and overpowering handshake.

D) proper attire and grooming.

E) a socially acceptable warm hug.

43) In the context of sending messages with nonverbal communication, identify a true statement about shaking hands.

A) Shaking hands should be a prospect's choice.

B) The salesperson's eyes should be focused straight ahead when shaking hands with a prospect.

C) Women should offer their hand for a social handshake.

D) When a prospect offers a hand, the salesperson should respond with a firm and overpowering handshake.

E) Salespeople should automatically extend their hands to prospects, even if the prospects are seated.

44)

Which of the following is an accurate statement about nonverbal communication?

A) Hand gestures at chest level suggest that a salesperson is passionate about a topic.

B) Slicing hand movements can be used liberally during presentations.

C) By exposing the palm of the hand, a salesperson indicates closeness and rigidity.

D) An overly erect posture gives an impression of openness and receptivity.

E) Staring at a wall during presentations indicates sincerity, credibility, and trustworthiness.

45) Which of the following statements is a good advice for salespeople concerned about the proper use of hand gestures?

A) Avoid dropping your hands down by your sides and keeping them there while presenting.

B) Do not expose your palms to your prospect because this gesture sends negative or "stop" signals.

C) When making a presentation before a group, keep hand gestures to a minimum so you will appear confident about your topic.

D) Using the hand in a slicing motion signals the other person to shorten their comments.

E) All of the answers are correct.

46) The physical space between two people who are interacting can be divided into four distance zones. The zone reserved primarily for a person's closest relationships is called the A) social zone.

B) personal zone.

C) public zone.

D) receptive zone.

E) intimate zone.

47) Jennifer, a salesperson, meets her customer for the first time. In this scenario, Jennifer should begin interactions at the A) social zone.

B) personal zone.

C) public zone.

D) distant zone.

E) intimate zone.

48) Identify a true statement about the four distance zones people use when interacting in business and social situations.

A) The social zone is reserved primarily for close friends and those who share special interests.

B) In general, salespeople should begin customer interactions at the public zone.

C) The exact sizes of the intimate and personal zones depend on age, gender, culture, and race.

D) Usually, salespeople should avoid moving closer even after an initial rapport has been established.

E) The public zone is used primarily for business transactions and other impersonal relationships.

49) In terms of touching, buyers fall into two touching groups: contact and noncontact.

Noncontact people view contact people as

A) cold.

B) obtrusive.

C) impersonal.

D) glacial.

E) unfriendly.

50) true?

Which of the following statements about appearance as a nonverbal communicator is

A) A salesperson should always wear professional attire.

B) It is much better to be underdressed than to be overdressed.

C) A salesperson's appearance is certainly impacted by the customers' industry.

D) In today's business world, ties are an unnecessary botheration and do nothing to add to a salesperson's potential for success.

E) Successful salespeople always wear fashionable clothes.

51) Which of the following would be the worst advice for Timothy, a salesperson, at an office supplies store?

A) Take note of how top executives in your firm dress.

B) Adjust to the geographic region in which you work.

C) Attempt to match the clothing choices of your typical customers.

D) If you look well dressed, you'll feel more confident.

E) Be a leader, and wear the latest fashions.

52) In the context of response time, which of the following statements is true about communicating via technology?

A) Voice mail allows a salesperson to hear the buyer’s verbal communications.

B) Both telephone and face-to-face communications have a fast response time.

C) Telephonic communications allows a seller to send the highest quantity of information.

D) Voice mail has a faster response time than telephone.

E) E-mail allows a salesperson to read the buyer’s nonverbal communications.

53)

Which of the following statements is true about response time?

A) Response time is the time between when a salesperson sends a message and when the prospect responds to it.

B) E-mails have a greater degree of interactivity and a faster response time than telephone communication.

C) A salesperson should use fax rather than using telephone communication because the former has a shorter response time.

D) Face-to-face communications have the slowest response time of all communication methods because of nonverbal communications.

E) Response time is the time when a prospect is most receptive of the sales message because of the absence of noise.

54) Which of the following is a valid suggestion for salespeople with regard to e-mail and text message communication?

A) Avoid any important message in the first few lines of an e-mail because receivers usually skip this part.

B) When receiving an important e-mail, avoid responding quickly.

C) White space in an e-mail is a good idea, as it can make reading the e-mail easier.

D) Delivering bad news via e-mail or texts is better than meeting face-to-face to discuss the issue.

E) Responding to an e-mail or text in an emotional state of mind helps build strong personal relationships.

55) In the context of using proper techniques and etiquette when leaving voice mail messages, callers should A) avoid even a little casual conversation up front.

B) speak slowly and leave a concise message.

C) ask for an option to talk to somebody immediately.

D) use a fresh greeting each day.

E) avoid asking for a call back.

56) Tara, a 50-year-old retired professor, wants to sell the fruits and vegetables produced in her organic farm. Her daughter advises her to use social media to them online. In this scenario, which of the following should Tara's first step be to ensure an effective sale?

A) She should become a member of organic farming communities.

B) She should first create her account and profile on all social media platforms.

C) She should identify where her target market is best represented and start there.

D) She should give the elevator pitch by posting a common message on relevant networks.

E) She should like, follow, and connect with potential profiles to generate leads.

57)

People who use English in international selling should A) use short phrases rather than complete sentences to reduce complexity.

B) be less strict than usual when using grammar rules.

C) use action-general verbs rather than action-specific verbs.

D) speak loudly to ensure clarity.

E) slow down when they speak.

58) In the context of communication in international selling, the phrase "tabling a proposal" in the United States means

A) bargaining effectively.

B) waiting for a salesperson to begin the presentation.

C) closing a deal successfully.

D) delaying a decision.

E) necessarily taking action within 24 hours.

59) For a sales presentation in a Latin American country, Kiara, the salesperson, reaches the venue at 9:45 a.m. because the meeting is scheduled to start at 10:00 a.m. Even after waiting for a couple of hours, Kiara's clients do not arrive. In this scenario, what should Kiara do?

A) send a text message to her manager mentioning that the company has lost the deal B) go back to her hotel room and wait for her clients to call and apologize C) send a text message to one of her clients and reschedule the meeting D) go to a coffee shop nearby and wait for her clients patiently E) leave without informing her clients because they behaved unprofessionally

60) In the context of eye contact, identify a true statement about adjusting for cultural differences during international selling.

A) Koreans look at people directly more than Brazilians do.

B) In Korea, direct eye contact is considered a sign of interest in what the customer is saying.

C) In Japan, looking directly at a subordinate indicates that the subordinate has done something wrong.

D) In Japan, when a subordinate looks directly into the eyes of his or her supervisor, the subordinate is displaying confidence.

E) In France, eye contact should be avoided between men and women even in business settings.

61)

What is encoding?

62)

What is decoding?

63)

In the context of barriers to communication, define noise.

64)

In the context of voice characteristics, describe articulation.

65)

Describe a word picture.

66)

What is the 80–20 listening rule?

67)

What is the speaking–listening differential?

68)

List the points to be kept in mind when engaging in active listening.

69) What are the three forms of nonverbal communication salespeople can use to convey messages to their customers?

70) Explain the four distance zones people use when interacting in business and social situations.

71)

Feedback in sales communication can be either verbal or nonverbal. ⊚ true ⊚ false

72) While describing a complex machine to a customer, Tiana notices that the customer looks puzzled. She asks the customer what part of the presentation needs further explanation. The customer replies, "I would like to know more about how the machine can help me save on electricity bills." Tiana then provides the requested details. This scenario best illustrates two-way communication. ⊚ true ⊚ false

73) When making her sales presentation to an important customer, Sarah is frequently interrupted by announcements coming through her company's speaker system. In this scenario, Sarah is most likely experiencing noise. ⊚ true ⊚ false

74) The 80–20 listening rule suggests that salespeople should try to speak 80 percent of the time and listen no more than 20 percent of the time. ⊚ true ⊚ false

75)

Great listeners avoid thinking while they listen so that they can focus on listening. ⊚ true ⊚ false

76) In the context of voice characteristics, articulation refers to the tone or pitch of speech and is used to reduce monotony. ⊚ true ⊚ false

77) During a sales interaction, the salesperson should verify the information he or she is collecting from the customer, and a useful way to do this is to repeat—word for word—what has been said. ⊚ true ⊚ false

78) Emotional labeling involves discovering and naming the emotions behind the statement of a buyer. ⊚ true ⊚ false

79) During face-to-face communication, voice characteristics account for 90 percent of the message received. ⊚ true ⊚ false

80) Studies have shown that the brain's ability to understand nonverbals increases as face-toface contact decreases. ⊚ true ⊚ false

81) Body movements directed toward a person indicate boredom, apprehension, or possibly anger. ⊚ true ⊚ false

82) In the context of nonverbal communication, side-to-side movements indicate a positive outlook, whereas back-and-forth motions suggest insecurity and doubt. ⊚ true ⊚ false

83) During a sales presentation, if the customer's eyes are positioned to the left, it suggests that the customer is considering the logic and facts in the presentation. ⊚ true ⊚ false

84) Broad and vigorous arm movements indicate that a customer is emphatic about the point being communicated verbally. ⊚ true ⊚ false

85)

The muscles around the eyes reveal whether a smile is real or polite. ⊚ true ⊚ false

86) During a sales presentation, a contemplative posture is considered a negative nonverbal signal. ⊚ true ⊚ false

87)

Mirroring is an act of practicing one's own nonverbal signals in front of a mirror. ⊚ true ⊚ false

88) Salespeople should avoid direct eye contact when addressing a group to avoid coming across as insincere. ⊚ true ⊚ false

89) Slicing hand movements and pointing a finger are mild gestures and should be used frequently during sales presentations. ⊚ true ⊚ false

90) Hand gestures presented at about the height of a salesperson's navel help the salesperson come across as truthful. ⊚ true ⊚ false

91) In the context of the four distance zones people use when interacting in business and social situations, salespeople should generally begin customer interactions at the public zone. ⊚ true ⊚ false

92) In the context of the four distance zones people use when interacting in business and social situations, the intimate zone is reserved for a salesperson's supervisor. ⊚ true ⊚ false

93) Physical appearance, specifically dress style, is an aspect of nonverbal communication that affects a customer's evaluation of a salesperson. ⊚ true ⊚ false

94)

In the context of appearance, an old rule is to dress one level below your position.

⊚ ⊚

true false

95) Active listening is as important when conversing over the phone as when conversing in person. ⊚ true ⊚ false

96) In the context of using proper techniques and etiquette when leaving voice mail messages, a little casual conversation up front is acceptable. ⊚ true ⊚ false

97) In the context of using proper techniques and etiquette when leaving voice mail messages, salespeople should avoid asking for a callback. ⊚ true ⊚ false

98) In the context of e-mail and text message communication, salespeople are discouraged from delivering bad news via e-mails or texts. ⊚ true ⊚ false

99) Salespeople should not send long e-mail messages or large attachments unless buyers are expecting them. ⊚ true ⊚ false

100) In the context of e-mail and text message communication, it is advisable to avoid using white space and in-line subheads in an e-mail because it hinders readability. ⊚ true ⊚ false

Answer Key Test name: chapter 4 11) C 12) A 13) D 14) D 15) B 16) A 17) D 18) A 19) D 20) B 21) B 22) D 23) C 24) C 25) E 26) E 27) A 28) B 29) C 30) D 31) C 32) A 33) B 34) D 35) B 36) E

37) B 38) D 39) B 40) B 41) E 42) A 43) A 44) A 45) A 46) E 47) A 48) C 49) B 50) C 51) E 52) B 53) A 54) C 55) B 56) C 57) E 58) D 59) D 60) C 71) TRUE 72) TRUE 73) TRUE 74) FALSE 75) FALSE 76) FALSE

77) TRUE 78) TRUE 79) FALSE 80) FALSE 81) FALSE 82) FALSE 83) FALSE 84) TRUE 85) TRUE 86) FALSE 87) FALSE 88) FALSE 89) FALSE 90) TRUE 91) FALSE 92) FALSE 93) TRUE 94) FALSE 95) TRUE 96) TRUE 97) FALSE 98) TRUE 99) TRUE 100) FALSE Student name:__________ 1) What are the differences among standard memorized, outlined, and customized sales presentations?

2)

What is the difference between performance feedback and diagnostic feedback?

3) How do salespeople acquire knowledge about company products and policies, customer needs, and selling situations?

4)

List and describe the two dimensions of the social style matrix.

5) Based on the social style matrix, describe drivers and expressives and the appropriate sales techniques for each category.

6) Based on the social style matrix, describe amiables and analyticals and the appropriate sales technique for each category.

7) List a few suggestions that might help salespeople accurately assess a prospect's social style.

8) Luke attended a course in which he was trained to apply the social style matrix to make better sales presentations. When he got home from the course, he tried to apply the techniques he had learned to determine his own social style. Why might his self-assessment be very misleading?

9)

How can salespeople improve their versatility in sales situations?

10) Henry attended a course in which he was trained to apply the social style matrix to make better sales presentations. When he got home from the two-hour course, he tried to apply the techniques he had learned to determine his customers' social styles. How successful do you think he will be? Why?

11) Jimmy works as a salesperson with Encyclopedia Incorporated and usually visits his clients' homes to sell his company's books. During all his client visits, he talks about his company, informs clients about the unique features of the books, and asks the same set of questions. Over a period of time, he has realized that memorizing the sales pitch and delivering it word for word has helped him perform his task better. Which of the following has most likely helped Jimmy improve his performance in this scenario?

A) the customized presentation B) diagnostic feedback C) the standard memorized presentation D) performance feedback E) personal selling

12) On her first day as a salesperson, Barbara was given a written sales presentation and asked to learn it so that she could recite it while talking to her prospects. Her sales manager insisted that she deliver this presentation word for word. In this scenario, Barbara will most likely be using __________ presentation during her sales calls.

A) a customized B) an adaptive C) a standard memorized D) an outlined E) a modified

13)

Which of the following is a benefit of the standard memorized sales presentation?

A) It ensures that salespeople will provide complete and accurate information about their firm's products and policies.

B) It is one of the most adaptive presentation techniques.

C) A salesperson's ability to speak spontaneously is enhanced when using this type of presentation.

D) It is based on a detailed analysis of an individual customer's situation and needs.

E) It provides a high degree of flexibility to sales representatives because they need to keep the changing needs of customers in mind.

14) In the context of the most common sales presentation types, which of the following statements is true about the standard memorized presentation?

A) Its applicability is an advantage because it lets a salesperson demonstrate empathy, which is an important step in developing a partnering relationship.

B) It is more informal and natural than the customized presentation.

C) It provides more opportunity for a customer to participate in the sales interaction than does an outlined presentation.

D) Its effectiveness is limited because it offers no opportunity for the salesperson to tailor the presentation to the needs of a specific customer.

E) It fails to help bring new salespeople up to speed quickly or to give them confidence.

15)

Which of the following statements is true of adaptive selling?

A) It disregards the marketing concept.

B) It is best exemplified by the canned presentation.

C) It fosters the trust and commitment of buyers.

D) It requires salespeople to put aside their personal feelings.

E) It tends to lower sales performance.

16) Harvey uses a prearranged presentation that includes a standard introduction and standard answers to common objections raised by customers. It also includes a standard method for getting a customer to place an order. In this scenario, Harvey is most likely using a(n) __________ presentation.

A) customized B) outlined C) adaptive D) canned E) cause-and-effect

17) Instead of using her company's standard presentation, Fiona has developed an outline presentation. She knows an outline presentation has the advantage of being A) informal and natural.

B) completely customizable to customers' needs.

C) simplistic and completely flexible.

D) gradual and powerful.

E) aggressive and sincere.

18) In the context of the most common sales presentation types, salespeople have the greatest opportunity to adapt their presentations to customer needs when using the __________ presentation.

A) memorized B) outlined C) exacting D) canned E) customized

19) Before Harley can make a(n) __________ presentation, he will need cooperation from his clients to conduct an analysis of their needs.

A) standard memorized B) canned C) customized D) outlined E) standardized

20) As part of his job, Leon travels from one prospective client's location to another and performs detailed analyses of their operations. Based on the data, he then helps his team prepare presentations on how the company's products can improve the clients' business. This scenario best exemplifies __________ presentations.

A) memorized B) outlined C) standardized D) canned E) customized

21) Before Janice calls her clients to sell her company's UPS system, she collects information about what they need. During her sales presentation, she focuses on the individual power consumption and power backup needs of her clients and explains how purchasing her company's product will be beneficial for their operations. In this scenario, Janice most likely uses the __________ method of sales presentations.

A) canned B) outlined C) question-and-answer D) customized E) informal

22) In the context of the most common sales presentation types, which of the following statements is true about the customized presentation?

A) It includes a set of standard answers to help salespeople resolve common customer queries.

B) It is the least expensive type of sales presentation.

C) It helps new salespeople gain confidence before they take up more complex types of presentation.

D) It limits the flexibility salespeople have in delivering sales presentations.

E) It enables salespeople to demonstrate empathy.

23) Luisa has worked as a salesperson for almost three years. During this period, she has learned that different sales presentations are necessary for different customers. She has often changed her presentation depending on the nature of the selling situation. In this scenario, Luisa is most likely using A) generalized selling strategies.

B) referral openings.

C) adaptive selling.

D) seeding.

E) standardized sales strategies.

24) Tony works as a salesperson at Franklin Delights, a company that specializes in laborsaving kitchen appliances. When Tony gives a presentation to the owner of a small but popular diner, he actually demonstrates how swiftly one can chop, slice, or grate vegetables and fruits using his company's product. However, when selling the same product to a luxury hotel, he informs the hotel manager about his existing client base. This ability to vary his sales presentation indicates that Tony is practicing __________ selling.

A) reactive B) fixed C) outlined D) adaptive E) methodological

25) __________ is similar to personal selling because it allows salespeople to tailor their presentations to each customer.

A) The standard memorized presentation B) The customized presentation C) Emotional labelling D) Routing E) The outlined presentation

26) During a sales presentation to the owner of Harold's Dress Shop about a window display, Scott realizes by observing nonverbal behaviors that the owner wants something different. Scott asks, "Would you be interested in a window display with less clutter that showcases some of your more expensive items?" When the owner confirms, Scott modifies his existing sales strategy to incorporate the owner's ideas for the window display. In this scenario, Scott is most likely practicing __________ selling.

A) standardized B) fixed C) outlined D) adaptive E) methodological

27) Which of the following statements is true about the importance of knowledge in adaptive selling?

A) Product knowledge is more important than the knowledge of sales situations.

B) Categorizing sales situations and customers is often done on an arbitrary basis.

C) The benefits of organizing knowledge into categories are limited to the group of salespeople developing these categories.

D) Most salespeople find that three categories are sufficient to classify their customers.

E) By developing categories of customer types or types of sales situations, salespeople free up their mental capacity to think more creatively.

28) "Your approach on that last call was off target. You emphasized low acquisition cost, while the prospect seemed more interested in durability and minimizing the need for regular maintenance," critiqued Robin's sales manager when evaluating a sales call they had made together. In this scenario, Robin is receiving __________ feedback.

A) reciprocal B) diagnostic C) performance D) generalized E) damage control

29) __________ feedback provides information about what you are doing right and what you are doing wrong.

A) Extrinsic B) Diagnostic C) Performance D) Intrinsic E) Fundamental

30) When Marty met his supervisor for his quarterly review, the supervisor congratulated him on closing four out of six sales deals. The manager also wished him luck for the next quarter.

However, Marty wanted his supervisor to help him figure out why he had been unable to close the other deals. In this scenario, Marty wanted __________ feedback, but his supervisor gave him __________ feedback.

A) intrinsic; extrinsic B) diagnostic; performance C) evaluative; primary D) performance; corrective E) positive; negative

31) Even before Michelle could explain why a prospect had not purchased her company's new line of ecofriendly outdoor furniture, her supervisor started explaining how she should have emphasized the fact that the furniture is made through a revolutionary recycling process and that the prices are justified by the furniture's quality and eco-friendly nature. In this scenario, the supervisor provided Michelle with __________ feedback by telling her how she could make better sales presentations.

A) reciprocal B) intrinsic C) performance D) evaluative E) diagnostic

32)

Studies have shown that using customer relationship management systems A) hinders the ability of salespeople to provide customized sales presentations.

B) has a positive impact on being adaptive while selling.

C) reduces the versatility of salespeople.

D) provides all employees of a company complete access to customers' details.

E) helps firms create automated relationship correspondence systems.

33)

Which of the following statements best describes style flexing?

A) Salespeople identify the unique features of their business and emphasize these features during their presentations.

B) Salespeople record their sales presentations to study their body language and improve.

C) Salespeople stand in front of a mirror and practice their elevator pitch.

D) Salespeople discover and name the emotions behind their customers' statements.

E) Salespeople adjust their behavior to mirror or match that of their customers.

34) The __________ matrix is a training program for building adaptive selling skills that uses two critical dimensions: assertiveness and responsiveness.

A) affinity B) social style C) personality D) sales approach E) prospect reference

35) are

In the social style matrix, the two critical dimensions used to understand social behavior

A) assertiveness and responsiveness.

B) passiveness and aggressiveness.

C) positivity and negativity.

D) aural and verbal cues.

E) domesticity and internationality.

36) In the context of the social style matrix, the degree to which people have opinions about concerns and publicly make their positions explicit to others is called

A) inflection.

B) responsiveness.

C) emotional intelligence.

D) articulation.

E) assertiveness.

37)

Which of the following best describes responsive people?

A) They are disciplined about time.

B) They tend to use facts rather than opinions.

C) They are informal and casual in social situations.

D) They devote a lot of effort toward controlling their emotions.

E) They are described as cautious, intellectual, serious, formal, and business like.

38) __________ is a dimension of social style that is based on how emotional people tend to get in social situations.

A) Assertiveness B) Attentiveness C) Receptiveness D) Awareness E) Responsiveness

39)

Unlike responsive people, less responsive people A) are disciplined about time.

B) use a number vocal inflections.

C) tend to gesture frequently.

D) are people-oriented rather than talk-oriented.

E) use opinions rather than facts.

40)

In the context of the social style matrix, which of the following best describes drivers?

A) They are efficient and swift decision makers.

B) They are low on assertiveness and high on responsiveness.

C) They are seen as warm and approachable individuals.

D) They tend to be undisciplined about time.

E) They tend to avoid taking risks.

41) Kevin works as a salesperson in a company that manufactures and sells luxury cars. He wants to present a luxury car to Simone, the owner of a luxury car showroom. The customer database team has informed him that she belongs to the expressive quadrant of the social style matrix. What should Kevin do to close the deal?

A) He should include a cost–benefit analysis in his presentation.

B) He should inform Simone that the car will be launched at her showroom.

C) He should focus on the automotive parts used and the features of the car in his presentation.

D) He should first build a personal relationship with Simone.

E) He should emphasize that the car comes with a two-year manufacturer's guarantee.

42) In the context of the quadrants of the social style matrix, which of the following should salespeople do when selling to expressives?

A) They should focus on sales presentations with factual statements and technical details.

B) They should demonstrate how their product will help the customers achieve personal status and recognition.

C) They should avoid presenting a product that will require the customers to be the first ones to use the product.

D) They should refrain from preparing sales presentations with product demonstrations and creative graphics.

E) They should avoid mentioning testimonials from well-known firms and people during their sales presentations.

43) Each quadrant of the social style matrix defines a different type of personality. People who are low on assertiveness and high on responsiveness are called A) drivers.

B) expressives.

C) amiables.

D) analyticals.

E) gatekeepers.

44) In the context of the quadrants of the social style matrix, which of the following should salespeople do when selling to amiables?

A) They should demonstrate how their product will help achieve personal status and recognition.

B) They should prepare sales presentations with product demonstrations and creative graphics.

C) They should stress their product's benefits in terms of its effects on the satisfaction of employees.

D) They should use solid, tangible evidence when making presentations.

E) They should prepare proposals that emphasize the effects of a purchase decision on monetary profits.

45) In the context of the quadrants of the social style matrix, which of the following best describes amiables?

A) They avoid building personal relationships with salespeople.

B) They are particularly interested in receiving guarantees about a product's performance.

C) They are extremely vocal about their personal opinions.

D) They are high on assertiveness and low on responsiveness.

E) They achieve their objectives by using power and authority while working with people.

46) James is best described as a risk avoider who moves deliberately and speaks slowly. He is supportive by nature, cool and aloof, and never shows any emotion. In which of the following quadrants of the social style matrix does James most likely belong?

A) drivers B) expressives C) amiables D) analyticals E) gatekeepers

47) Moira and Mariah are sisters. Both of them are risk avoiders. They speak slowly and softly in a monotone voice, move stiffly, and use few gestures. Both of them dislike people who tend to be slow, late, and inconsistent. They don't like the idea of dressing casually to work, and they appreciate lectures that include lots of facts and figures. In the context of the quadrants of the social style matrix, Moira and Mariah are most likely to be classified as A) analyticals.

B) drivers.

C) expressives.

D) amiables.

E) gatekeepers.

48) "With your gardening background, Ms. Black, I am sure you can see the time and energy you will save by investing in this new self-propelled tiller. You can work on an even bigger vegetable garden with the same energy, and have more vegetables to sell. You will be able to easily repay the initial investment after the first year, even when we factor in an assumed rate of interest of 12.5 percent." Based on the details provided in the salesperson's presentation here, Ms. Black most likely belongs to the __________ quadrant of the social style matrix.

A) drivers B) expressives C) amiables D) analyticals E) avoiders

49) As you enter a prospect's office, you see __________ and become fairly certain that you are dealing with a prospect who is most likely to be categorized as an amiable according to the social style matrix.

A) annual sales awards on the wall B) a prominently displayed calendar C) pictures of the prospect's family on the desk D) a graph of the projected sales for the quarter E) numerous sales charts

50) In the context of the quadrants of the social style matrix, which of the following best describes analyticals?

A) They are swift decision makers.

B) They strive to find a way to carry out a task by resorting to influential methods.

C) They value personal opinions.

D) They are low on assertiveness and low on responsiveness.

E) They tend to develop loyalty toward suppliers based on personal relationships.

51) When Kerry went to meet a new prospect, he found that the prospect was dressed in a flamboyant suit and his office had an open and friendly atmosphere. His desk was quite cluttered and unorganized. Furthermore, Kerry noticed the prospect waving at and greeting subordinates throughout the sales presentation. Kerry's prospect will most likely fall under the category of __________ according to the social style matrix.

A) drivers B) expressives C) amiables D) analyticals E) radicals

52) In the context of the quadrants of the social style matrix, which of the following best exemplifies an analytical prospect?

A) Smith, who speaks quickly and intensely B) Jonathon, who maintains direct eye contact throughout a presentation C) Keith, who dresses in business casuals D) Tiana, who has a playful and friendly disposition E) Kimaya, who leans backward during a sales presentation

53)

When identifying customers' social styles, Karen should

A) rely entirely on her first impression.

B) not let her own feelings cloud her judgment about a prospect's behavior.

C) assume that if a prospect is involved in a technical job, the prospect must be an analytical.

D) base her assumptions on feelings and intuition rather than rational thought.

E) never doubt her assessment once she has made one.

54) a(n)

In the context of the social style matrix, the best social style for a salesperson is that of

A) driver.

B) amiable.

C) analytical.

D) expressive.

E) None of the answers is correct.

55) In the context of the quadrants of the social style matrix, a significant weakness of expressive salespeople is that A) they can seem opinionated, undisciplined, and unstable.

B) customers can find them pushy and dominating.

C) customers can view them as cold, calculating, and stuffy.

D) they can be perceived as undisciplined and inflexible.

E) they can be extremely orderly and serious.

56) In the context of the quadrants of the social style matrix, __________ is most likely a strength of driver salespeople.

A) efficiency B) submissiveness C) enthusiasm D) creativity E) modesty

57) Jake, a sales trainee, has been working with his manager Tiana for almost a year. He has been helping her prepare presentations and accompanying her during all her sales presentations.

During this period, Tiana has found him to be consistently dependable, supportive, and personable. However, she has noticed that he is usually undisciplined and rigid. In the context of the quadrants of the social style matrix, Jake is most likely a(n) __________ salesperson.

A) versatile B) analytical C) amiable D) expressive E) driver

58) In the context of the quadrants of the social style matrix, which of the following is most likely a strength of expressive salespeople?

A) efficiency and determinedness B) enthusiasm and creativity C) dependability and supportiveness D) orderliness E) thoroughness

59) In the context of the quadrants of the social style matrix, which of the following best describes analytical salespeople?

A) They are orderly, serious, and thorough.

B) They have enthusiasm, dramatic flair, and creativity.

C) They are dependable, supportive, and personable.

D) They are viewed as pushy and dominating by customers.

E) They are viewed as undisciplined and inflexible by customers.

60) In the context of the quadrants of the social style matrix, identify a similarity between analyticals and amiables.

A) Both are high on assertiveness.

B) Both tend to develop loyalty toward suppliers.

C) Both have enthusiasm, dramatic flair, and creativity.

D) Both are viewed as pushy and dominating.

E) Both seem opinionated and unstable.

61) The effort people make to increase the productivity of a relationship by adjusting to the needs of the other party is known as A) dependability.

B) resilience.

C) maneuverability.

D) versatility.

E) compatibility.

62)

Unlike less versatile people, more versatile people A) stick to principles.

B) look at a single side of an issue.

C) are unpredictable.

D) are specialists.

E) have well-defined interests.

63) In the context of the types of sales presentations, what are the advantages of the standard memorized presentation?

64) While selling to Linda, Brett appears to be friendly and outgoing. He begins the presentation by inquiring about Linda's family and encourages her to talk about business. While selling to Victoria, he gets right down to the purpose of his call, does not engage in small talk, and uses charts and tables to support his selling points. In this scenario, what kind of selling do you think Brett does?

65) What do purchasing agents rate as one of the most important attributes of good salespeople?

66)

How does diagnostic feedback help salespeople?

67)

What is the social style matrix?

68) What are the two dimensions that the social style matrix uses to understand social behavior?

69) Does simply having strong opinions make an individual assertive? Provide a reason for your response.

70) Natalie uses facts, is serious, and often speaks in a monotone voice. In the social style matrix, how would Natalie be categorized?

71) Gwen prepared a 20-minute sales presentation for Mr. James and included facts and figures to show him how her company's anti-theft system will help improve his business by reducing shoplifting and inventory shrinkage. She knew that she would have his decision within 15 minutes of starting the presentation. In which category of the social style matrix would you place Mr. James?

72) Ms. Arnold, an inventory manager at HospitalHealth, met two salespeople to finalize a supplier for the hospital's oxygen machines. She met the first salesperson and told him that she really liked his products and that she hoped to do business together in the future. She met the second salesperson and told him the same thing. Afterward, she told her secretary to find another supplier because neither salesperson actually had the product quality that the hospital desired. In which category of the social style matrix would you place Ms. Arnold?

73) Hylana walks into a prospect's office and sees a diploma from California Polytechnic College, a number of models of company products, and a library of reference manuals. She also notices a meticulously organized desk and brochures of her competitors that her prospect has most likely been using to conduct a thorough market research. In which category of the social style matrix would you place Hylana's prospect?

74) Luke walks into a prospect's office and sees a series of motivational posters, a cluttered desk, and his prospect dressed in flamboyant clothes. In which category of the social style matrix would you place Luke's prospect?

75) Brad frequently adjusts his sales presentation to meet the needs of different customers.

What quality does Brad possess that helps him be a successful salesperson?

76)

Effective salespeople adapt their selling strategies and approaches to the selling situation. ⊚ true ⊚ false

77) Personal selling is the most effective marketing communication medium because it allows salespeople to manipulate customers.

⊚ ⊚

true false

78) A canned presentation provides more opportunity for the customer to participate in the sales interaction than does an outlined presentation. ⊚ true ⊚ false

79)

A canned presentation is one of the best examples of adaptive selling. ⊚ true ⊚ false

80)

An outlined presentation can be very effective because it is well organized. ⊚ true ⊚ false

81) A customer recognizes a sales representative giving a customized presentation as a professional who is helping provide real value, not just selling products. ⊚ true ⊚ false

82) Customized presentations can be delivered at a low cost by unskilled salespeople with little training. ⊚ true ⊚ false

83) Practicing adaptive selling does not mean salespeople should be dishonest about their products or their personal feelings.

⊚ ⊚

true false

84) Knowledge about sales situations is equally important to having product knowledge for a salesperson. ⊚ true ⊚ false

85) Salespeople need to know about their competitors' products as well as their own because they are frequently asked to compare their products to competitors' offerings. ⊚ true ⊚ false

86) Successful sales managers give their salespeople performance feedback rather than diagnostic feedback. ⊚ true ⊚ false

87) The Challenger Sales model suggests that the most successful salespeople create winning proposals because they actually understand a prospect's world better than the prospect understands it. ⊚ true ⊚ false

88) Performance feedback provides information about what you are doing right and what you are doing wrong. ⊚ true ⊚ false

89) A sales manager says, "Let us talk about why you did not achieve your goals last month."

In this scenario, the sales manager is providing diagnostic feedback. ⊚ true ⊚ false

90) It is important for salespeople to be able to retrieve brochures and other business collateral from their knowledge management systems. ⊚ true ⊚ false

91) Teddy has very strong opinions about whether his local senator should be reelected in the upcoming election, but he keeps them to himself. Because his opinions are so strongly held, it is correct to describe him as assertive. ⊚ true ⊚ false

92) Lauren can be described as assertive because she has strongly held convictions and expresses her convictions publicly. ⊚ true ⊚ false

93) not.

Assertive people readily express joy, anger, and sorrow, whereas responsive people do ⊚ ⊚

94)

true false

Highly responsive people devote a lot of effort toward controlling their emotions.

⊚ ⊚

true false

95) In the context of the social style matrix, drivers are low on assertiveness and high on responsiveness. ⊚ true ⊚ false

96) The slogan best suited to individuals classified as "drivers" is "Let us not make any hasty decisions." ⊚ true ⊚ false

97) According to the social style matrix, individuals classified as "drivers" have a great desire to get ahead in their companies and careers. ⊚ true ⊚ false

98) In the context of the social style matrix, individuals classified as "expressives" focus on the present and value practical information. ⊚ true ⊚ false

99) According to the social style matrix, people with an expressive style focus on the future, directing their time and effort toward achieving their vision. ⊚ true ⊚ false

100) In the context of the social style matrix, amiables do not take risks and stick to their opinions. ⊚ true ⊚ false

101) According to the social style matrix, amiables' loyalty toward suppliers is based on their feeling that well-reasoned decisions do not need to be reexamined. ⊚ true ⊚ false

102) According to the social style matrix, prospects who are categorized as "drivers" expect the atmosphere in sales interviews to be businesslike. ⊚ true ⊚ false

103) According to the social style matrix, prospects who are categorized as "analyticals" expect sales interviews to proceed at a quick pace. ⊚ true ⊚ false

104)

Being amiable is thought to be the best social style for a salesperson. ⊚ true ⊚ false

105) Salespeople who are specialists and adhere to their principles are more versatile and effective than other salespeople. ⊚ true ⊚ false

Answer Key Test name: chapter 5 11) C 12) C 13) A 14) D 15) C 16) B 17) A 18) E 19) C 20) E 21) D 22) E 23) C 24) D 25) B 26) D 27) E 28) B 29) B 30) B 31) E 32) B 33) E 34) B 35) A 36) E

37) C 38) E 39) A 40) A 41) B 42) B 43) C 44) C 45) B 46) D 47) A 48) D 49) C 50) D 51) B 52) E 53) B 54) E 55) A 56) A 57) C 58) B 59) A 60) B 61) D 62) C 76) TRUE 77) FALSE 78) FALSE 79) FALSE

80) TRUE 81) TRUE 82) FALSE 83) TRUE 84) TRUE 85) TRUE 86) FALSE 87) TRUE 88) FALSE 89) TRUE 90) TRUE 91) FALSE 92) TRUE 93) FALSE 94) FALSE 95) FALSE 96) FALSE 97) TRUE 98) FALSE 99) TRUE 100) TRUE 101) FALSE 102) TRUE 103) FALSE 104) FALSE 105) FALSE Student name:__________ 1)

What is the difference between a lead and a prospect?

2)

What determines a good prospect?

3)

Where can salespeople find sales leads?

4) Discuss the following statement: "A satisfied customer is a salesperson's most profitable resource."

5) James is a new salesperson. He is attending his first formal dinner party at the Chamber of Commerce. He knows that he will meet a lot of people who can help him become a successful salesperson, but he needs information on how to make the most of this networking opportunity.

What advice would you give him?

6)

Discuss the various ways in which companies are using the Internet to solicit leads.

7)

How can a firm's marketing department act as a source of acquiring leads?

8) A company that has developed biometric identification systems—using fingerprint and retina measurements—for PCs wants to hold a webinar for entertainment lawyers who are likely to have sensitive information stored on their computers. The webinar will focus on the ways in which one can protect office computers from hackers. What advice can you give the company as it sets up the webinar?

9) A source for leads is selling lists containing individuals' mailing addresses and phone numbers. You can even buy a list as specific as Catholic postal employees between the ages of 25 and 40. Even though lists are easy to obtain and use, many salespeople avoid using them.

Why?

10)

How can artificial intelligence help in sales prospecting?

11)

Explain the prequalification process in a lead qualification system.

12)

Why does a salesperson show reluctance to call a prospect?

13) Veronica is a new salesperson at an insurance company. Her primary task is to locate potential buyers of insurance products in a particular area. Veronica's activity is known as A) prospecting.

B) feature dumping.

C) forecasting.

D) cross-selling.

E) seeding.

14)

The process of locating potential customers for a good or service is termed A) adapting.

B) investigating.

C) prospecting.

D) anticipating.

E) inquiring.

15)

The process of prospecting usually begins with locating a A) change agent.

B) bird dog.

C) lead.

D) gatekeeper.

E) cross-seller.

16)

To which of the following salespeople would prospecting be most important?

A) a pharmaceutical sales rep selling heart medications B) a real estate salesperson specializing in residential property C) Jeff, a reseller of fighter aircrafts that has exclusive tie-ups with three of the world's most powerful nations D) an electric transformer salesperson working full time for Florida Power and Light Company E) a GoodStart cereal salesperson whose territory is the city of Denver

17) Robina received a memo with the name of a person who wrote to her company inquiring about the firm's radiology equipment. The person who made the inquiry is best classified as a A) qualified prospect.

B) client.

C) lead.

D) prospect.

E) customer.

18)

The process of determining if a lead is indeed a prospect is referred to as A) sourcing a lead.

B) brokering a deal.

C) precalling a customer.

D) qualifying a lead.

E) seeding a client.

19)

Which of the following statements about prospecting is true?

A) The value of all qualified leads is identical.

B) Not all leads will qualify to be prospects.

C) It is unethical to use friends or relatives as sources for leads.

D) Personal observation cannot be used to find qualified leads.

E) The process of qualifying leads usually results in an increase in the number of leads.

20) Everlast Tire Company has hired a consulting agency Waddell and Hartley to acquire the equipment needed to automate its second factory. Waddell and Hartley will be responsible for purchasing all the goods and services necessary for the plant, making sure that they are compatible, and turning them over to Everlast for a facility that will be the center of operations for the company. Waddell and Hartley would be called a(n) A) systems integrator.

B) decentralized agency.

C) functional supplier.

D) industrial facilitator.

E) industrial distributor.

21) Mason is the head of an automobile firm. The firm has two manufacturing units, one located in a city and the other located in a town. The manufacturing unit located in the town requires maintenance, repair, and operations (MRO) supplies to enable a smooth running of the manufacturing process. Mason delegates this task to an external consultant who buys necessary goods and services on behalf of the firm. In this case, the external consultant acts as a A) change agent.

B) lessor.

C) referral lead.

D) systems integrator.

E) spotter.

22) When the question, "Can the lead be approached favorably?" is asked to a salesperson, it refers to whether

A) the salesperson is able to make a good first impression on most prospects he or she approaches.

B) a prospect is merely a lead or a qualified lead.

C) the salesperson has anything to offer to a prospect.

D) a prospect has the authority to take a deal forward.

E) a prospect is accessible to the salesperson.

23) Mark and Vincent are efficient salespeople working for Nikelin Incorporated They are field salespeople who always generate the highest sales revenue for their teams. Mark is assigned to conduct sales specifically to prospects in New York, while Vincent is assigned to conduct sales specifically to prospects in Los Angeles. Jason, another salesperson at Nikelin Incorporated, handles only large customers in both New York and Los Angeles. Which of the following statements is most likely true about this scenario?

A) Mark and Vincent use the circular routing method to conduct sales.

B) Mark and Vincent specialize in handling house accounts.

C) Jason specializes in handling lost-for-good accounts.

D) Nikelin Incorporated employs Jason as a spotter for its firm.

E) Nikelin Incorporated uses exclusive sales territory to assign work to Mark and Vincent.

24) Wallace is a salesperson in the Nebraska Territory for a firm selling kitchen appliances to mobile home manufacturers. At a school reunion, an old friend approaches him and says, "What a coincidence! I'm the director of purchasing for Bilt-Tite Mobile Homes in Franklin, Georgia.

Why don't you contact me next week? Let's see if we can do business." Unfortunately, Wallace cannot do business with his friend because A) Wallace's friend does not need Wallace's products in his business.

B) companies discourage the use of personal contacts to generate leads.

C) Wallace's friend's business is not located within Wallace's authorized territory.

D) Wallace will not be able to approach his friend favorably.

E) Wallace's friend does not have the authority to buy Wallace's appliances.

25) To qualify as a prospect, it is imperative that a lead have all of the following characteristics except A) charisma.

B) authority to buy.

C) ability to pay.

D) eligibility to buy.

E) a need.

26) When a customer account is specifically assigned to a sales executive rather than to a salesperson who handles the territory containing that customer account, that customer account is usually known as a A) house account.

B) lost-for-good account.

C) turnover account.

D) contra account.

E) lead account.

27) When a salesperson can only sell to prospects located within a certain geographical location, the salesperson is said to be managing sales for a(n) A) deep seller.

B) exclusive sales territory.

C) star client.

D) national account.

E) system integrator.

28) When a large chain of stores such as Home Depot or Kmart buys items centrally from its home office, selling companies often designate it as a __________ account, which means that its needs are handled by their corporate offices and local salespeople need not attempt to solicit business from any of its branches that come within their territory.

A) house B) bounce-back C) functional D) limited E) generational

29)

In the case of insight selling, salespeople target those prospects who A) constitute their current and satisfied group of clients.

B) purchase stock centrally from the home office of their company.

C) demonstrate a sluggish approach toward making purchase decisions.

D) do not have a clear understanding of what they need and are in a state of flux.

E) require consultants or system integrators to begin their operations.

30) Kenneth regularly buys from a preferred seller. He always gives positive feedback to the reseller and also convinces his relatives and friends to buy goods from the seller. According to the seller, Kenneth is most likely a(n) A) bird dog.

B) jobber.

C) evangelist.

D) spotter.

E) poacher.

31) Judy is a local sales representative for an insurance company. The economy is stagnant, and a few new residents are moving into her territory. Consequently, Judy decides to assess the potential for additional sales among her existing customers. Judy is planning to use a(n) __________ strategy.

A) endless-chain B) data mining C) selling deeper D) cold calling E) seeding

32)

Which of the following statements is true of referrals in sales prospecting?

A) Referrals of leads in a different industry are more useful than those in the same industry.

B) Referral events can be used to help salespeople meet new prospects through current customers.

C) Referrals in cultures such as North America are more important than they are in cultures such as Japan.

D) A referred lead is generally considered the least successful type of lead by salespeople.

E) A customer who provides a negative referral is referred to as an evangelist.

33) Jonathan, a salesperson, sells laptops and desktop computers. Kevin regularly purchases these goods from Jonathan. Jonathan understands Kevin's buying behavior and makes additional sales to Kevin. Even though Kevin does not actually require these additional goods, he ends up buying them because he has always been satisfied with Jonathan's products. This is an example of A) backdoor selling.

B) selling deeper.

C) circular routing.

D) cloverleaf routing.

E) upselling.

34) A salesperson sells a mobile phone to Karen. Karen tells the salesperson that her friend Jenna is also interested in buying a similar mobile phone. The name provided by Karen—that of Jenna's—would be treated by the salesperson as a A) bird dog.

B) promoted lead.

C) qualified prospect.

D) referred lead.

E) listed evangelist.

35) Veronica buys a laptop from a local salesperson, but it turns out to be defective. She tells her friends and relatives about the poor performance of the laptop. From the perspective of the salesperson, this is an example of A) a lead disqualification.

B) a sneak attack.

C) browbeating.

D) a negative referral.

E) routing.

36) As Sandra concluded her sales interview with Burt, she said, "I'm pleased you see the value of this new software for managing your inventory. Can you suggest some other small business owners who might like to see it?" Sandra is using the __________ method of prospecting.

A) selling center B) endless-chain C) lists and directories D) spotter E) canvassing

37) Wallace represents a manufacturer of hearing aids. Lisa, an audiologist to whom Wallace sold his company's new Max-Ear 2001, is so pleased with performance of the product that she has written a testimonial and listed some other audiologists whom Wallace may approach for a purchase. This is an example of the __________ method used in prospecting.

A) endless-chain B) spotter C) insight selling D) cold call E) data mining

38) Ruth used her personal connections with a manager at Hampton Industries, a manufacturer of decorative paper items, to become the first salesperson in her firm to call on a company that was using recycled paper to make posters. Ruth used her __________ abilities to make this sales call possible.

A) seeding B) zoning C) canvassing D) networking E) telemarketing

39) Roger is a sales representative for a farm equipment supplier. Almost twice a month, he visits Frank Copeland's farm. Copeland has not bought a new piece of equipment from Roger's firm in the last 20 years, but he always seems to know who is looking to buy Roger's goods.

Copeland likes to gossip and shares his information with Roger freely. Frank Copeland is a good example of a A) deep seller.

B) driver.

C) center of influence.

D) free canvasser.

E) spotter.

40) Which of the following statements about the use of the Internet as an effective lead generator is true?

A) An advantage of Web-based promotions is their ability to attract numerous international leads.

B) A disadvantage associated with using the Internet to generate leads is the high cost.

C) The Internet cannot transmit business information in different languages.

D) Extranets are created for general marketing efforts with no defined target markets.

E) Companies cannot use the Internet to build relationships with current customers.

41)

Which of the following is a way that companies use the Internet to generate leads?

A) by developing an extranet B) by using bulletin boards C) by using newsgroups D) by using e-mail messages E) All of the answers are correct.

42) When Grant visited his supplier's Web site, he entered a code provided to him and went to a customized site that listed his recent purchases, sale items, and complementary products he might need. Grant was most likely visiting a(n) A) spam filter.

B) extranet.

C) blog.

D) sponsor.

E) intranet site.

43)

Often the primary function of salespeople at trade shows is to

A) engage in cold calling.

B) study customers' responses to product features and benefits.

C) make customized and individualized presentations for all interested buyers.

D) make use of the Internet to popularize their products.

E) discover and qualify leads for future follow-up.

44)

Identify an accurate statement about merchandise markets.

A) They involve the direct sale of goods to public.

B) They are places where defective goods received from customers are returned to the manufacturers.

C) They are places where only old and unsold stock is sold at low prices.

D) They involve the sale of goods to retailers.

E) They are places that typically exclude a supplier's sale office.

45)

The primary purpose of webinars is to A) generate leads and provide information to prospective customers.

B) promote new products to all potential customers.

C) enhance cold-calling initiatives among a sales force.

D) expand databases for effective data mining.

E) reduce search engine costs and sell deeper.

46)

Which of the following is an example of a secondary source of sales leads?

A) industrial trade directories B) cold calls C) centers of influence D) buying communities E) All of the answers are correct.

47)

Which of the following statements about cold calling as a method of prospecting is true?

A) It is a relatively new technique.

B) It requires a large amount of information about a prospect before making the initial contact.

C) Most purchasing agents prefer cold calling as a method of prospecting.

D) It can waste a lot of a salesperson's time.

E) All of the answers are correct.

48) Harold needs to sell a new drug to physicians and doctors in a locality. Without even checking with the doctors and physicians, he visits the clinics and hospitals in the locality, assuming that someone would be interested in buying the new drug. This is an example of A) cold calling.

B) deep selling.

C) lowballing.

D) ambush marketing.

E) routing.

49) In which of the following methods of prospecting is a salesperson likely to know the least about the prospects called on before meeting them?

A) networking B) endless-chain method C) center-of-influence method D) cold calling E) seeding

50) Vindurem Incorporated has developed a software that would reduce the time taken by manufacturers to identify suppliers of raw materials and distributors of finished goods for a particular region. The company assigns its sales team to call on all potential customers that exist within a two-mile radius of the city's shipping port to market this new software. The company conducts this cold calling for a period of two days. This type of cold canvassing is called A) browbeating.

B) lowballing.

C) a blitz.

D) leapfrog routing.

E) a boomerang.

51)

The purpose of a blitz is to A) build partnerships between a selling firm and a buying firm.

B) increase a company's sales budget.

C) generate leads for a local salesperson through cold calling.

D) blanket a particular geographic area with sales letters.

E) improve a salesperson's ability to make custom sales presentations.

52) A __________ is an individual who, for a fee, will provide the names of leads for a salesperson.

A) cold caller B) bird dog C) hawker D) jobber E) prospect

53) Which of the following is an effective practical suggestion that successful networkers offer?

A) Spend most of your initial conversation with a new contact discussing your own business.

B) Use notes and cards to regularly follow up with new contacts.

C) Remember that the goal of networking is to try selling your idea to potential leads.

D) Behave like a guest rather than a host at networking events.

E) Avoid talking about a new prospect's nonbusiness interests.

54) Horizon Gifts is involved in corporate gifting solutions for large companies. Cal is a long-time user of the service provided by Horizon Gifts, and he often suggests possible clients to the service's sales representatives. Every time a lead Cal has provided actually makes a purchase, Cal receives a free gift, which might be anything from a can of assorted nuts to a wool muffler.

Cal acts as a __________ for Horizon Gifts.

A) driver B) spotter C) gatekeeper D) negotiator E) mediator

55)

Which of the following statements is true about bird dogs?

A) They are individuals who usually delegate the purchase decisions of a firm to an external consultant for a fixed fee.

B) They are individuals who work for a salesperson and are usually able to find out if someone is ready to make a purchase decision.

C) They are individuals who buy goods directly from a seller and resell the goods to a reseller at a high price.

D) They are individuals who make purchase decisions on behalf of a consumer for a fee.

E) They are individuals who usually draft the sales pitch for the salespeople in a firm.

56)

The opening paragraph of a sales letter should

A) explain why the reader should purchase a product.

B) draw attention to the rest of the letter.

C) clearly explain what action is to be taken by the reader.

D) propose a timeline for specific actions.

E) be used to exchange greetings.

57)

After a sales letter gains a prospect's attention, the next thing it must do is

A) explain why the reader should or should not take the desired action.

B) create curiosity about the product being sold.

C) ask the reader to take a specific action.

D) point out a deadline to take an action.

E) tell the reader when to expect a follow-up visit or a phone call from the sales representative.

58)

In the final paragraph of a sales letter, the writer should A) wait until the last sentence to demand money.

B) seek commitment to the desired course of action.

C) use expressions like "Why not buy now?" to give the reader the feeling of having a

choice.

D) remind the reader that the offer being made in the sales letter will never be canceled.

E) assume that the reader is intelligent enough to know what needs to be done and avoid repeating information provided in the body of the letter.

59) Which of the following statements about the use of a postscript (PS) at the end of a sales letter is true?

A) Postscripts right after the greeting are most effective.

B) Postscripts should be used to ask about a prospect's family or some other element of his or her personal life.

C) Postscripts should be used to emphasize an important selling point.

D) Postscripts should not be used to highlight the requested action because the customer may resent feeling pressurized by the sales team.

E) Postscripts should ideally provide details of the sales representative to be contacted for queries.

60)

Which of the following statements about lead qualification and management is true?

A) Firms often engage in prequalification of leads for their field sales forces.

B) A lead management system can be used to grade leads and establish a priority call

list.

C) The judicious use of technology makes lead qualification and management more efficient and effective.

D) A lead qualification system can be used to offer a salesperson insight into a lead's value.

E) All of the answers are correct.

61) Robert works in a marketing firm. He verifies the phone numbers and residential addresses of all the leads generated by the firm before turning them over to the field salespeople in his firm. Which of the following statements is true about the scenario?

A) Robert is zoning the leads.

B) Robert is engaging in a blitz.

C) Robert is engaging in cold calling.

D) Robert is engaging in benefit opening with the leads.

E) Robert is involved in prequalification of the leads.

62)

A lead management system is used to

A) generate leads for a blitz.

B) generate leads from existing customers only.

C) analyze the relative value of each lead.

D) create an endless chain of referrals.

E) exclusively target customers for telemarketing campaigns.

63)

All of the following are reasons why a salesperson may suffer from call reluctance except A) a feeling of guilt for having a career in selling.

B) the need to meet a prospecting quota.

C) the concern about worst-case scenarios.

D) the concern about prospecting over the telephone.

E) the fear of losing friends.

64)

A salesperson may suffer from call reluctance if he or she A) feels intimidated by the corporate title assigned to a prospect.

B) is overly concerned with being successful.

C) spends too much time preparing for a sales call.

D) feels guilty for having selected a career in sales.

E) All of the answers are correct.

65) Which of the following is an effective way in which a salesperson can overcome the reluctance to call a prospect?

A) engaging in cold canvassing B) focusing on memorizing a canned presentation C) setting general rather than specific goals for prospecting activities D) refraining from making negative self-evaluations E) keeping the worst-case scenario in mind to stay prepared

66)

What is the first step a salesperson takes when he or she is prospecting?

67)

What is insight selling?

68)

What is the difference between an exclusive sales territory and a house account?

69) Veridcom Incorporated is a leader in the creation of fingerprint identification software and hardware for laptops. It sells the technology to businesses that want to protect any intellectual property they have stored on their computers. After overseeing the installation of the system in 1,230 laptops for a large pharmaceutical company, the salesperson asked the company's vice president of information whether he knew of another company that could use the Veridcom technology. The VP suggested Max Jordan, a business acquaintance of his who uses laptops to communicate with a large, scattered work force. What method of prospecting did the Veridcom salesperson use, and what term can best be used to describe Jordan?

70) Other than camaraderie and public service, why would a computer salesperson be part of a Rotary Club, participate in the local Chamber of Commerce, and volunteer at the local library?

71) Gina has met a well-known and influential engineer who is willing to provide the names of several leads. In the context of sales prospecting, what is this person called?

72)

What are merchandise markets?

73)

What is a blitz?

74)

How can the repair staff of a company help salespeople by providing leads for them?

75)

What part of their jobs do most salespeople dislike performing the most?

76)

What do salespeople usually do to determine if their leads meet the criteria of a prospect?

77)

Prospecting is the process of making a successful sale to a customer. ⊚ true ⊚ false

78) If a salesperson determines that an individual is a good candidate for making a purchase, the individual is called a lead. ⊚ true ⊚ false

79) John, a salesperson, can consider Harriet to be a lead because he is certain that she will buy his company's products. ⊚ true ⊚ false

80) Systems integrators usually assume complete responsibility for a project from its beginning to follow up servicing. ⊚ true ⊚ false

81) A 17-year-old high school student in the United States is not a prospect for a salesperson selling alcoholic beverages because the student is not eligible to buy alcohol.

⊚ ⊚

true false

82) An exclusive sales territory is managed by corporate executives, while a house account includes only certain prospects in an area. ⊚ true ⊚ false

83) Regardless of what product a salesperson sells, prospecting techniques are basically the same. ⊚ true ⊚ false

84) Referrals by customers in some cultures, like Japan, are less important and insignificant than they are in North America. ⊚ true ⊚ false

85)

Salespeople use seminars and online webinars to finalize deals. ⊚ true ⊚ false

86) Satisfied customers, particularly those who are truly partners with the seller, are the most effective sources for leads. ⊚ true ⊚ false

87) The idea that existing customers are usually prospects for additional sales is the basis of a method of prospecting called the endless-chain method. ⊚ true ⊚ false

88) In the endless-chain method of selling, a salesperson considers a satisfied customer a prospect for additional sales. ⊚ true ⊚ false

89) Successful networkers spend most of their initial conversation with a new contact discussing their own business. ⊚ true ⊚ false

90) When using social media to find prospects, salespeople trying to apply a pull strategy should use tactics like seller blogs, wikis, and video blogs. ⊚ true ⊚ false

91)

Extranets are external databases that salespeople use for data mining purposes. ⊚ true ⊚ false

92)

Trade shows last usually longer than a month. ⊚ true ⊚ false

93) Trade shows are places where suppliers have sales offices and buyers from resellers visit to purchase merchandise. ⊚ true ⊚ false

94) In merchandise markets, sellers are the manufacturers or distributors and sell only to resellers, not to the public. ⊚ true ⊚ false

95) In selling, networking simply means establishing connections to other people and then using those networks to generate leads, gather information, generate sales, and so on. ⊚ true ⊚ false

96) Instead of inviting a special group of prospects, seminars should be open to the public and discuss topics of general interest. ⊚ true ⊚ false

97)

Webinars, trade fairs, and shows are examples of cold calling. ⊚ true ⊚ false

98) The North American Industry Classification System (NAICS) code is useful for salespeople researching using secondary sources. ⊚ true ⊚ false

99) Cold calling is usually considered rude by many purchasing agents and other professionals today. ⊚ true ⊚ false

100) Salespeople should refrain from showing their expertise about a topic by writing blogs because blogs are an unacceptable way to reach professionals. ⊚ true ⊚ false

101) Spotters are individuals who conduct business purchases on behalf of customers for a fixed fee. ⊚ true ⊚ false

102) Salespeople can overcome their reluctance to call prospects by engaging in sales training and role-playing activities to improve their prospecting skills. ⊚ true ⊚ false

103) In a lead qualification system, leads are filtered and assessed after they are turned over to the field sales force. ⊚ true ⊚ false

104) Every lead that is generated by a firm's marketing department is usually followed up by salespeople.

⊚ ⊚

true false

105)

Lead prequalification helps salespeople use their time wisely. ⊚ true ⊚ false

106)

The relative value of each lead that is qualified is analyzed by a lead management system. ⊚ true ⊚ false

Answer Key Test name: chapter 6 13) A 14) C 15) C 16) B 17) C 18) D 19) B 20) A 21) D 22) E 23) E 24) C 25) A 26) A 27) B 28) A 29) D 30) C 31) C 32) B 33) B 34) D 35) D 36) B 37) A 38) D

39) C 40) A 41) E 42) B 43) E 44) D 45) A 46) A 47) D 48) A 49) D 50) C 51) C 52) B 53) B 54) B 55) B 56) B 57) A 58) B 59) C 60) E 61) E 62) C 63) B 64) E 65) D 77) FALSE 78) FALSE 79) FALSE

80) TRUE 81) TRUE 82) FALSE 83) FALSE 84) FALSE 85) FALSE 86) TRUE 87) FALSE 88) FALSE 89) FALSE 90) FALSE 91) FALSE 92) FALSE 93) FALSE 94) TRUE 95) TRUE 96) FALSE 97) FALSE 98) TRUE 99) TRUE 100) FALSE 101) FALSE 102) TRUE 103) FALSE 104) FALSE 105) TRUE 106) TRUE

Student name:__________ 1) Martin is planning his first sales call on F&S Industries. He has decided to postpone the call until he knows everything there is to know about the company and the prospects on whom he will be calling. What's wrong with this idea?

2) Amy is given the name of a potential prospect. What general sources of information should she consider checking before approaching the prospect?

3)

What is a primary sales call objective?

4)

Why should salespeople consider cultural factors when setting sales call objectives?

5)

Describe a customer value proposition.

6) Why should a salesperson make an appointment after gathering precall information and setting call objectives?

7) Differentiate between a person who is the focus of receptivity, the focus of dissatisfaction, and the focus of power.

8)

Discuss the best time for a salesperson to call on a prospect.

9)

What is the right place for a salesperson to meet a prospect?

10) Sales strategists have identified three basic ways to interact with a screen or barrier to a prospect. List and briefly describe them.

11) Glenda, a salesperson, fails to plan her sales call in advance. Which of the following is Glenda most likely to do?

A) She will obtain the prospect's commitment and have more time to make additional calls.

B) She will focus on areas that diverge from what the buyer needs to hear.

C) She will provide a good demonstration.

D) She will win the buyer’s respect and confidence.

E) She will cover material in which the prospect has interest.

12) In the context of obtaining precall information regarding making a sale, which of the following is a situation in which a lot of additional information is least likely to be required?

A) when the salesperson is using cold canvassing B) when the salesperson has not set call objectives C) when the salesperson has notes from previous calls D) when the salesperson is well acquainted with the focus of power E) when the salesperson can work "over the screen"

13) Which of the following statements would be of value to insurance salespeople collecting information about prospects?

A) The prospect graduated with a marketing degree from Kennesaw State University.

B) The prospect is divorced with two children.

C) The prospect is a friendly and easygoing person.

D) The prospect is a member of the local Rotary Club.

E) All of the answers are correct.

14) In which of the following types of buying situations is it usually unnecessary for a salesperson to educate a prospect about the common features of a product?

A) when the prospect is buying a smartphone for the first time B) when the prospect is buying a new car from a famous automobile outlet C) when the prospect is buying capital equipment to run the operations of his or her firm D) when the prospect is buying an insurance product for his or her family E) when the prospect is buying the same laptop he or she purchased previously with the salesperson

15) Jason and his son Ryan supply laptop accessories to customers in their neighborhood.

They have been approached by a salesperson for a laptop manufacturing firm that wants to sell them laptop products and accessories at a huge discount. Unfortunately, the owner of the laptop manufacturing firm had once refused to work with Ryan because he was inexperienced. While Jason may want to buy the products, his son will act as a(n) __________ in this situation.

A) influential adversary B) actual competitor C) potential competitor D) poacher E) bird dog

16) A farm machinery salesperson has spent the last three weeks gathering information about a prospective customer. He has researched the customer's existing machinery and buying potential. However, he delays the actual meeting with the customer because he feels that he requires a couple of weeks more to gather enough information to make the sales call. In this scenario, the salesperson is experiencing a(n) A) acute shortage of data about the customer.

B) phenomenon called analysis paralysis.

C) problem in meeting the client directly because of the existence of a screen.

D) obstacle in finalizing the deal because of an influential adversary.

E) problem in contacting the focus of power in the farm because of gatekeepers.

17) Kenneth is a new salesperson in a firm. He collects all relevant data about his prospects, including their needs, buying behavior, and ability to buy. He thinks too much about these data points and never calls his prospects because he is never sure whether he has enough information to initiate a sales call. Kenneth is most likely experiencing the phenomenon known as A) buyer's remorse.

B) analysis paralysis.

C) boomerang.

D) wicked problem.

E) customer style flexing.

18) Brandi, a sales trainee, watched as her sales supervisor chatted with a prospect's secretary in a very friendly manner. Brandi felt that such behavior was inappropriate in a business situation and she did not understand why her supervisor was asking the secretary about what sports the prospect follows closely. Brandi is unable to understand her supervisor's actions. Which of the following statements would help her understand the functional value of such interactions in a sales situation?

A) Brandi's supervisor has found a meaningless way to pass time while waiting for the appointment.

B) The prospect will see Brandi and her supervisor more quickly if they prevent the secretary from getting any work done.

C) Secretaries are a rich source of information about a prospect and are important for successful sales calls.

D) Salespeople should talk to secretaries in order to appear to be working.

E) Secretaries are poor sources of information about the prospect.

19)

If a salesperson does not know the basics about a prospect's company, then the A) prospect will not meet the salesperson at all.

B) prospect's receptionist will prevent the salesperson from meeting the prospect.

C) prospect may justifiably refuse to take the deal forward.

D) salesperson may begin to experience a phenomenon called "analysis paralysis."

E) salesperson should make "getting the deal" the formal objective of the first sales call.

20)

The most important step for a salesperson in planning a sales call is to A) design a flexible sales presentation.

B) discover personal information about the prospect.

C) plan an after-sales service package for the prospect.

D) set objectives for the call.

E) take an appointment with the prospect.

21)

Which of the following statements about sales call objectives is false?

A) The primary objective of every sales call is to make a sale.

B) An objective should be established for every sales call.

C) Sales call objectives should be specific.

D) Sales call objectives should be measurable.

E) Sales call objectives should be aimed at customer action.

22)

As the first step in setting sales call objectives, a salesperson should A) review the steps of the selling process.

B) review the customer's marketing goals.

C) determine his or her progress toward meeting the sales targets.

D) review what has been learned from the precall information gathered.

E) review the available inventory in his or her own company.

23)

Which of the following statements about sales call objectives is true?

A) Sales call objectives should always be expressed in monetary terms.

B) Sales call objectives are unnecessary for missionary salespeople.

C) Sales call objectives are unnecessary when the sales rep is cold calling.

D) Sales call objectives should be limited to one objective per sales call.

E) Sales call objectives are based on strategic decisions about an account.

24)

Effective call objectives must be A) expressed only in monetary terms.

B) specific, realistic, and measurable.

C) standardized for all sales representatives in a company.

D) independent of any cultural influences.

E) All of the answers are correct.

25) Gary, a new salesperson for a reputed cellphone manufacturer, meets the owner of a transport company that employs 50,000 people as cab drivers. On his first meeting, he plans to sell mobile phones to all the 50,000 cab drivers because he believes his firm's mobile phones are the best in the market. Which of the following is a drawback of this primary call objective?

A) It is too qualitative.

B) It is unrealistic.

C) It is irrelevant.

D) It is less optimistic.

E) It cannot be measured.

26) Jonah, a salesperson, hears of a lead and decides to pursue the lead. He determines getting acquainted with the client to be his call objective for the first sales call. As he reviews his notes after the sales call, he realizes that he does not have much information about the needs and the business potential of the lead despite having met most members of the buying center. Which of the following drawbacks of his call objective is most likely to explain this shortage of information faced by Jonah?

A) It puts too much emphasis on service.

B) It says nothing about the product being sold.

C) It is not measurable.

D) It is too personal.

E) It is unrelated to company goals.

27) Which of the following is a realistic sales call objective for a first call regarding a product that would require a large capital investment?

A) to secure an order B) to send the prospect a brochure that lists the products of the selling firm C) to get the prospect to identify all the other members of the firm who play key roles in the firm's decision-making process D) to get the prospect to change over to the new product being offered E) All of the answers are correct.

28) Tom, an experienced salesperson for road construction equipment, has been hired as the sales representative for Caterpillar Tractor Corporation in the state of Ohio. Tom is aware that his company makes products of high quality but is fairly new in the market. Which of the following objectives for Tom's first sales call with Faulkner Paving, a key prospect, meets the criteria of being realistic?

A) to get an appointment for a second call B) to persuade Faulkner to switch to Caterpillar's equipment next season C) to convince Faulkner to buy one of Caterpillar's large bulldozers for a trial run D) to get Faulkner to watch a two-hour videotape that shows the superiority of the construction of Caterpillar's products E) All of the answers are correct.

29)

Which of the following best exemplifies a measurable sales call objective?

A) to learn more about a prospect's needs B) to learn about a prospect's professional background C) to improve a prospect's perception of a salesperson's company D) to build rapport with a prospect E) to gain a buyer's trust

30) As a salesperson, a simple way to ensure that the sales call objectives determined are measurable is to

A) use a canned sales presentation.

B) follow the guidelines set by your sales supervisor.

C) set long-term goals based on your sales call objectives.

D) align your objectives with the strategic objectives of your company.

E) set objectives that require a buyer's response.

31) Ivan's actual goal from his sales call is to get 10 people to buy his firm's insurance policies. Ivan hopes to get more than 25 people to buy his insurance policies, get their relatives and friends to buy the policies as well, and develop a long-term relationship with these customers. This long-term relationship that Ivan hopes to build in the future is an example of his A) minimum call objective.

B) routing quota.

C) zoning quota.

D) optimistic call objective.

E) gross margin quota.

32) While setting objectives for a sales call, the actual goal a salesperson hopes to achieve is known as A) an optimistic call objective.

B) the gross margin quota.

C) the zoning target.

D) a primary call objective.

E) the routing quota.

33) Veronica's goal for her upcoming sales call is to sell 70 chairs to an IT company. She would be willing to sanction an order for 30 chairs if the owner of the company is ready to make a small investment. She is also hoping to convince the manager of the IT company for 200 chairs and to sell them at a 15 percent discount. For Veronica, the sale of 70 chairs is her

A) minimum call objective.

B) routing quota.

C) gross margin quota.

D) primary call objective.

E) optimistic call objective.

34) Victor is calling on Meridian Cabinetworks. His goal is to close a deal for a customized profile sander valued at about $3,500. He'd be willing to accept if Meridian purchases one of his firm's ready-made sanders, which costs about $2,000. Victor wants to convince the owner of Meridian to use the sander and to provide his company with a testimonial that would help him approach other local wood workers. For Victor, the sale of the less expensive ready-made profile sander is his A) minimum call objective.

B) strategic mission.

C) sales quota.

D) primary call objective.

E) optimistic call objective.

35) Norah's goal for her upcoming sales call is to sell 10 cases of anchovies to Darby's Diner, though she would be willing to accept an order for just five cases, too. Additionally, she is planning to approach the owner to enter into an agreement to purchase anchovies only from her supplier. For Norah, setting up a straight rebuy situation with Darby's Diner is her __________ in this scenario.

A) minimum call objective B) strategic mission C) sales quota D) primary call objective E) optimistic call objective

36) Jeff is an experienced salesperson in a firm that manufactures agricultural equipment. His goal is to sell five tractors to farmers in a particular village. He is willing to accept orders for two tractors if the farmers are first willing to make a small payment of 10 percent on the cost of the tractor. Jeff would ideally like to sell more than 15 tractors and develop a long-term relationship with these customers. Nevertheless, he accepts the order for two tractors. This sales call objective, where Jeff is willing to adjust his actual goal, is most likely an example of his__________ call objective.

A) minimum B) optimistic C) primary D) actual E) unrealistic

37) In the context of planning a sales call, which of the following statements is true of sales call objectives?

A) The primary call objective should reflect the minimum goal a salesperson seeks to achieve.

B) The minimum call objective should reflect a salesperson's long-term goals.

C) A salesperson should set a single, clear objective rather than setting multiple objectives.

D) A salesperson's fear of failure tends to increase when multiple objectives are set.

E) The optimistic call objective tends to rarely be achieved.

38)

Salespeople who never fail to accomplish their optimistic call objective are most likely A) failing to set measurable objectives.

B) setting their goals too low.

C) setting the ideal level of goals.

D) not setting multiple call objectives.

E) failing to set realistic objectives.

39) TECAmerica Incorporated sells electronic scales used for weighing meats and vegetables. A salesperson for TECAmerica is calling on the headquarters of Kroger supermarkets. He has set his sales call objectives to meet the members of the buying center, to have his product brochures sent to the appropriate geographic division managers of Kroger, and to be allowed to demonstrate the superiority of his company's scales. If he truly expects to achieve his objective of meeting the members of the buying center, then the others would be classified as __________ call objectives.

A) ideological B) primary C) visionary D) secondary E) minimum

40) Flora is a chief supplier of flowers to retailers in Dallas. Haley, a salesperson at Flora, is planning to call on a supermarket chain that stocks flowers but does not buy its supplies from Flora yet. Why would Haley set multiple call objectives including the goals of getting the company to buy its Valentine package for $129 and convincing them to display Flora's samples in some of its stores for her first meeting itself?

A) Multiple sales call objectives increase the fear of failure, making the salesperson try even harder.

B) Multiple sales call objectives allow the salesperson to avoid focusing on any one sales call objective for too long.

C) Multiple sales call objectives will force the salesperson to set his or her objectives too high.

D) Multiple sales call objectives are usually self-correcting in case the call objectives set are too high or too low.

E) There is no benefit inherent in setting multiple sales call objectives.

41) A(n) __________ is defined as a written statement (usually one or two sentences) that clearly states how purchasing a product or service being offered can help solve the customer's perceived business issue.

A) optimal sales call objective B) mission statement C) sales presentation synopsis D) statement of expectation E) customer value proposition

42) A(n) __________, which salespeople can share with the CEO of a buyer's firm, focuses on what an individual manager needs to address and resolve to be able to better contribute to overall company objectives.

A) optimal sales call objective B) mission statement C) sales presentation synopsis D) statement of expectation E) customer value proposition

43) A safety equipment salesperson calling on a prospect for the first time should try to schedule an appointment with the focus of __________, or the person who will listen to the salesperson and provide valuable information about the types of equipment that the company needs.

A) receptivity B) authority C) power D) expertise E) dissatisfaction

44) Julia, a salesperson of cosmetic products, is trying to make an appointment with a prospective client. She has already spoken to a person from the prospect's firm, who, after listening to her, has given her some important information and connected her to Ali, who has details about the common problems faced at the client's end. According to Neil Rackham, Ali is most likely

A) the focus of receptivity.

B) a screen.

C) the focus of power.

D) a barrier.

E) the focus of dissatisfaction.

45) In the context of finding the right person to make a sales call, Neil Rackham suggests that a salesperson should initially try to call on the person who is the A) focus of dissatisfaction.

B) focus of receptivity.

C) focus of expertise.

D) focus of power.

E) focus of satisfaction.

46) In the context of finding the right person to make a sales call, Neil Rackham suggests that the focus of dissatisfaction leads to the A) focus of receptivity.

B) focus of power.

C) focus of reciprocity.

D) focus of expertise.

E) focus of satisfaction.

47) In the context of finding the right person to make a sales call, which of the following was suggested by Neil Rackham?

A) A salesperson should initially try to contact the person who is the focus of dissatisfaction.

B) Going straight to the decision maker as quickly as possible is not necessarily effective selling.

C) A salesperson should first focus on initiating contact with the person who is the focus of expertise.

D) A salesperson should avoid initiating a conversation with people who are not in the buying center even if they are excellent listeners.

E) Salespeople who talk to the person who is the focus of dissatisfaction are effective salespeople.

48) If an industrial salesperson makes her first call on an employee at a client's company who is willing to listen and provide valuable information, she is most likely calling on the A) focus of dissatisfaction.

B) focus of receptivity.

C) focus of expertise.

D) focus of power.

E) focus of satisfaction.

49) In the buying center, the person who can approve, prevent, and/or influence action is called the A) focus of receptivity.

B) focus of dissatisfaction.

C) focus of power.

D) driver.

E) gatekeeper.

50) When making an appointment, it is important for a salesperson to identify an environment conducive to doing business. So, the salesperson should

A) choose a place free of distraction for all parties.

B) ensure the buyer's subordinates are not present at the meeting.

C) arrange the meeting at his/her own company.

D) plan the meeting during the company's annual review meetings.

E) All of the answers are correct.

51)

In a buying center, a screen can take on the role of a(n) A) seller.

B) decider.

C) user.

D) influencer.

E) gatekeeper.

52) As the CEO's personal assistant, Robert's job involves taking calls from sales representatives from different companies. He sorts them and selects the salespeople who get to speak directly to his boss. In this situation, Robert is acting as the A) point of dissatisfaction.

B) screen.

C) user.

D) risk-taker.

E) center of influence.

53) Billy is a charming sales representative. He uses his skills and persuades the prospect's secretary to get him a face-to-face meeting with the prospect. He convinces her that the product he is selling will greatly benefit her company. The technique that Billy is using is known as

A) ignoring the screen.

B) taking down the screen.

C) going under the screen.

D) going through the screen.

E) going over the screen.

54) Jenna, a seller of insurance products, is scheduled to meet her prospect, Jay. Jay's assistant always interferes and stops salespeople from contacting Jay. When Jay's assistant attempts to stall Jenna's effort, she tells the assistant that she has authority from Jay's superiors and the top management to meet Jay. The strategy used by Jenna is known as A) lowballing.

B) taking down the screen.

C) nibbling.

D) going over the screen.

E) going through the screen.

55) Al sells everything a company needs to market decorative balloons—the balloons themselves, ribbons, helium tanks, etc. He wants to talk to the owner of a large catering company because balloons are great decorations for birthday tables, baby showers, and other such social occasions. Unfortunately, every time he tries to talk to the owner of the catering company, he finds himself in an unnecessarily long conversation with the assistant caterer, who does not let him talk to the owner. The assistant caterer is assuming the role of a(n) A) barrier.

B) decider.

C) driver.

D) risk-taker.

E) arbitrator.

56) Veronica, a senior salesperson, has an appointment with a prospect. She tries to convince the prospect's subordinate with an eloquent narration about the implication of meeting with the prospect. She tells the subordinate that the meeting would greatly benefit the prospect. The strategy used by Veronica to meet her prospect is known as A) going through the screen.

B) going over the screen.

C) lubrication.

D) going under the screen.

E) lowballing.

57) Gareth, an insurance salesperson, has an appointment with Jeff. Jeff's subordinate is known to restrict salespeople from contacting or meeting Jeff during his work hours. Gareth tries to contact Jeff at lunchtime when his subordinate does not monitor these activities. In this case, the strategy used by Gareth is known as A) nibbling.

B) bypassing the gatekeeper.

C) going under the screen.

D) poaching.

E) seeding.

58) In the context of making an appointment for a sales call, which of the following statements is true of interacting with screens?

A) Salespeople work "over the screen" by convincing the gatekeeper that the prospect will benefit from the meeting.

B) Going "under the screen" involves the risk of potentially dissatisfying the prospect.

C) Inducing fear in the gatekeeper is part of going "through the screen."

D) When salespeople drop names of senior-level managers, they are attempting to work "under the screen."

E) Working "under the screen" helps cultivate a long-term relationship with the prospect.

59) Kerry, a sales representative from Spitz Incorporated, has a lead on a potential customer for her company's line of vacuum cleaners. She calls the prospect's firm and speaks to the secretary. What should be the primary goal of this call?

A) to make an appointment with the prospect B) to finalize the sale of the vacuum cleaners C) to make Spitz the sole supplier of vacuum cleaners to the prospect D) to engage in the practice of seeding E) to compromise the credibility of competing salespeople

60) Kumar is a salesperson for a cosmetic brand. Before meeting his prospect, he sends the prospect a few fashion and lifestyle magazines to improve the prospect's knowledge about cosmetic products. In this case, Kumar is most likely engaging in A) nibbling.

B) lowballing.

C) seeding.

D) cloverleaf routing.

E) cold calling.

61) What is the term used for people who can influence a purchase decision and are opposed to the seller's company?

62)

How can a salesperson know if he or she has enough information to make a sales call?

63)

How can the Internet help salespeople obtain precall information?

64)

Within a prospect's company, who is likely to be a rich source of information?

65)

What is the most important step when planning a sales call?

66) A salesperson for Otto Bock Orthopedic Industry is calling on an orthopedic hospital to sell his company's new computerized artificial limbs that can anticipate and regulate movement by the user. The salesperson's sales call objective is to sell 20 limbs after convincing the buyer that the limb is superior to all other prostheses available in the market. The total amount involved in the deal is around $50,000. The salesperson has been given 15 minutes to make his sales presentation. What is wrong with this objective?

67) SRC Refrigeration Company manufactures and sells refrigerator display units for flowers. Ronald, a salesperson for the company, is calling on a large supermarket chain in an attempt to provide a demonstration of SRC's new product that "bathes flowers in generous humidity and uniform air temperature." Ronald's sales call objective is to persuade the buyer to lease one refrigeration unit for 6 months and compare how it keeps flowers fresh longer than the other brand currently in use. In terms of the criteria for evaluating sales objectives, how would you rate this sales call objective?

68) Rotocast Display Products sells display accessories to be used on the sales floor and in store windows. One popular item it sells is the Corinthian columns ranging from 16" to 96". A Rotocast salesperson is calling on a company that specializes in designing store displays. Her goal is to sell the design company three dozen columns of various heights. If she can't achieve this goal, she wants to sell the design company at least six small columns. Identify the two types of sales objectives that the Rotocast salesperson has set.

69)

To whom should a salesperson present a customer value proposition?

70)

In the context of sales, what is Webcasting?

71)

Planning a sales call helps salespeople avoid wasting a prospect's time.

⊚ ⊚

true false

72) The more information a salesperson has about a prospect, the higher the probability of meeting the prospect's needs and developing a long-term relationship. ⊚ true ⊚ false

73) Collecting information about a prospect before making a call is a waste of the salesperson's time as doing so does not help him or her make a sale. ⊚ true ⊚ false

74) It is important to learn and maintain current knowledge about both the prospect as an individual and his or her firm. ⊚ true ⊚ false

75)

An influential adversary is a competing salesperson from another company. ⊚ true ⊚ false

76) Analysis paralysis refers to a situation where a salesperson cannot extract data about a prospect from the prospect's company's records because of the defective customer record system. ⊚ true ⊚ false

77) As part of the process of gathering precall information, salespeople must understand the policies and procedures followed by a prospect's firm. ⊚ true ⊚ false

78) According to the Marine Corps' teachings regarding making decisions, it is time to act as soon as 50 percent of the information is gathered and 50 percent of the analysis is done. ⊚ true ⊚ false

79) A buying center consists of all the people in the selling organization who participate in a selling opportunity. ⊚ true ⊚ false

80) A first place to look for information on the Internet about a prospect company would be the prospect company's Web page. ⊚ true ⊚ false

81) When setting sales call objectives, salespeople should discover what customers value and then find ways to improve customer value relative to their own products or services. ⊚ true ⊚ false

82) One of the best sources of precall information is a prospect's own salespeople because they empathize with the salesperson's situation. ⊚ true ⊚ false

83) Call objectives should be developed while taking into account a firm's goals, the sales team's goals, and the salesperson's goals. ⊚ true ⊚ false

84) The statement "spend quality time with prospects and customers" is a measurable call objective. ⊚ true ⊚ false

85) The first step in setting objectives for a sales call is to review what has been learned from the organization's mission statement. ⊚ true ⊚ false

86) A simple way to help ensure that call objectives are measurable is to set objectives that require a buyer's response. ⊚ true ⊚ false

87)

To be effective, a call objective must be generic and nonmeasurable. ⊚ true ⊚ false

88)

All sales objectives should be either specific or measurable. ⊚ true ⊚ false

89) It is recommended that salespeople avoid including suggested order quantities or dates for the closure of a deal in their specific objectives. ⊚ true ⊚ false

90)

For a sales call objective to be effective, it needs to be easy rather than specific. ⊚ true ⊚ false

91) The statement "sell a minimum of 10 boxes of a product to the customer" is a specific sales objective. ⊚ true ⊚ false

92)

"Get better acquainted with the prospect" is a measurable sales objective. ⊚ true ⊚ false

93) Ben, a salesman, would like to sell his prospect three dozen handheld mixers. However, he would be willing to settle for selling just six of them—that would be his minimum sales call objective. ⊚ true ⊚ false

94) Setting multiple sales call objectives can be disadvantageous because doing so tends to increase salespeople's fear of failure.

⊚ ⊚

95)

true false

A single sales call must have no more than one primary call objective. ⊚ true ⊚ false

96) It is important for salespeople to consider the company's overall promotional campaign when developing multiple call objectives for a prospect. ⊚ true ⊚ false

97) A customer value proposition is shared with middle managers rather than senior-level managers. ⊚ true ⊚ false

98) After gathering precall information and setting objectives, a salesperson's next step in planning the sales call is generally to make an appointment. ⊚ true ⊚ false

99)

Videoconferencing or webcasting has lost its popularity as a result of downsizing. ⊚ true ⊚ false

100)

Seeding is the process of finding the key decision maker within a buying center.

⊚ ⊚

true false

Answer Key Test name: chapter 7 11) B 12) C 13) E 14) E 15) A 16) B 17) B 18) C 19) C 20) D 21) A 22) D 23) E 24) B 25) B 26) C 27) C 28) A 29) B 30) E 31) D 32) D 33) D 34) A 35) E 36) A

37) E 38) B 39) D 40) D 41) E 42) E 43) A 44) E 45) B 46) B 47) B 48) B 49) C 50) A 51) E 52) B 53) D 54) D 55) A 56) A 57) C 58) B 59) A 60) C 71) TRUE 72) TRUE 73) FALSE 74) TRUE 75) FALSE 76) FALSE

77) TRUE 78) FALSE 79) FALSE 80) TRUE 81) TRUE 82) TRUE 83) TRUE 84) FALSE 85) FALSE 86) TRUE 87) FALSE 88) FALSE 89) FALSE 90) FALSE 91) TRUE 92) FALSE 93) TRUE 94) FALSE 95) FALSE 96) TRUE 97) FALSE 98) TRUE 99) FALSE 100) FALSE Student name:__________ 1)

What should salespeople do to make a good first impression?

2) If you want to be a successful salesperson, what should you do if you arrive for a sales appointment and your prospect asks you to wait thirty minutes before she can see you?

3)

What is the difference between an introduction opening and a benefit opening?

4)

How can a salesperson use a product opening effectively?

5) What is the best line of defense when you realize that you have spilled coffee on the prospect's briefcase during your presentation?

6) Why do salespeople need to ask both open and closed questions during a sales presentation?

7) Imagine that you sell display units and store fixtures to retailers. You are getting ready to call on a toy store retailer, and you want to use the SPIN technique. Prepare one of each type of question that would be appropriate for you to use in this sales presentation.

8) Imagine that you are trying to sell a new marketing textbook to your marketing professor.

Create two statements, each describing a feature and a benefit of your textbook.

9)

How can a salesperson build credibility during a sales call?

10)

Why should a salesperson use verbal probing during a sales presentation?

11) In the context of sales presentations, the process of asking questions to know the pulse of the situation throughout the sales presentation is known as A) sales puffery.

B) seeding.

C) style flex.

D) trial close.

E) value analysis.

12) Rob, a salesperson, meets his customers, Jake and Neil. He greets Jake, a new customer, and takes him out on a tour of the city because he wants to develop a relationship of trust with him. With Neil, an old customer, Rob tries to follow up on an order Neil had earlier placed. In the context of the Four As (acknowledge, acquire, advise, assure) of the selling process, which of the following statements is true of Jake and Neil?

A) Jake is at the advise stage, whereas Neil is at the acknowledge stage.

B) Jake is at the assure stage, whereas Neil is at the acquire stage.

C) Jake and Neil are at the acquire stage.

D) Jake and Neil are at the assure stage.

E) Jake is at the acknowledge stage, whereas Neil is at the assure stage.

13) Which of the following is a desirable course of action when a salesperson finds out that a buyer will not be able to meet him or her at the appointed time?

A) making use of the waiting time by completing other tasks B) leaving the buyer's office immediately C) trying to go over the barrier by directly meeting the buyer D) asking the receptionist to immediately contact the buyer requesting an explanation E) waiting for hours to meet the buyer

14) Nikola, a salesperson at a cosmetic firm, gives a sales presentation to Jarvis. When she begins her sales presentation, Jarvis assumes that she is a good and effective salesperson because she is polite and courteous to him. Since then, Jarvis always perceives Nikola to be good at her job. Which of the following phenomena best explains Jarvis's perception of Nikola?

A) the primacy effect B) the halo effect C) the hindsight bias D) the bandwagon effect E) the courtesy bias

15) Dawn walks into a customer's office with her sales presentation planned and immediately recognizes that the customer is upset about something. In this situation, Dawn should A) maintain a happy and cheerful demeanor.

B) sit down immediately and begin the presentation.

C) ask if she should come back some other time for the meeting.

D) say something funny in an attempt to lighten the customer's mood.

E) All of the answers are correct.

16)

For a salesperson trying to grab the attention of a new customer, it is desirable to

A) call the customer by a friendly nickname.

B) use the customer's name in every second sentence of the meeting.

C) learn to pronounce the customer's name correctly.

D) use standard language like "Sir" or "Ma'am" in order to show respect.

E) request the customer to introduce himself or herself in the sales meeting.

17) Just as Brian, a sales manager, walked into a prospect's office carrying samples and his portfolio for the demonstration, he tripped and fell right in front of the prospect. All his material for the presentation was scattered on the floor, and it took him almost five minutes to get things back on track. Because of the __________, the prospect is likely to permanently label Brian as clumsy and ineffectual.

A) contrast effect B) halo effect C) cue effect D) primacy effect E) mere exposure effect

18) Which of the following is a method designed to get a prospect's attention and interest quickly and make a smooth transition to the next part of the presentation?

A) opening B) style flexing C) probing D) canvassing E) seeding

19) "Ms. Hallgren, thank you for seeing me today. My name is Daniel Mundt, and I'm with ServiceMaster." In the context of a sales presentation, this is an example of a(n) __________ opening.

A) compliment B) curiosity C) product D) introduction E) referral

20) Michael is a salesperson for a company that manufactures television sets. He begins his sales presentation with a prospect by telling him that he was recommended by the prospect's friend, Vincent. Michael tells the prospect, "Vincent said that you would be interested in buying a television set with state-of-the-art technology. Our firm has just the right type of television sets that could cater to your needs." In this case, Michael is using a(n) __________ opening to get the attention of his prospect.

A) product B) compliment C) benefit D) introduction E) referral

21) In the context of openings that salespeople can use to get a prospect's attention during a sales call, which of the following statements is true of a product opening?

A) It is disadvantageous in that it does not involve a visual element.

B) It is simpler than using an introduction opening.

C) It involves beginning the call by mentioning a benefit of a product.

D) It helps create a sense of excitement in the prospect.

E) It involves initiating the conversation by asking the prospect a question.

22) Clara is a new salesperson for a pharmaceutical firm. When trying to get the attention of a prospect, she begins her sales presentation by stating her name and the name of the firm she represents instead of talking about the advantages of the firm's products. This is an example of a(n)

A) benefit opening.

B) product opening.

C) compliment opening.

D) introduction opening.

E) referral opening.

23) "This model, the 107 electric nail gun, will reduce the amount of time your crew spends roofing a 3,000 square foot home by 30 percent. This will lower your labor costs and allow you to bid more competitively in the market for your service." This opening statement is an example of a(n) __________ opening.

A) compliment B) curiosity C) referral D) introduction E) benefit

24) A(n) __________ opening involves actually providing a demonstration of a good or service as soon as a salesperson meets the prospect.

A) compliment B) curiosity C) product D) introduction E) referral

25) Marissa designs customized jewelry and wants to sell her products through Gaia, a chain of boutiques retailing women's accessories. During her first meeting with the owner of Gaia, even before they settle down to talk, Marissa opens cases of rings, pendants, and earrings that she has designed and asks her prospect to try some samples on. Marissa is using a(n) __________ opening method in this scenario.

A) implication B) referral C) compliment D) product E) positioning

26) Irene is a salesperson for Pro, a company selling sports and driving gear. Irene begins her meeting with a prospect by saying, "Driving an 18-wheel truck eight hours a day must be hard on you physically, but you can reduce some of that fatigue by putting this special cushion in your truck seat," and she hands a sample to her prospect. Irene is using a(n) __________ opening.

A) compliment B) curiosity C) product D) introduction E) referral

27) George tries to sell his firm's new air conditioner to a prospect. He opens his sales presentation by talking about how the new air conditioner reduces the average power consumption by 33 percent and how it would save nearly $150 a month if the prospect runs the air conditioner for six hours every day. In this case, George is using a(n) __________ opening.

A) benefit B) introduction C) compliment D) curiosity E) referral

28) Jordan, a senior salesperson for a steel firm, plans to get a huge investment from the owner of an automaker. He begins his sales presentation by saying to the owner, "Congratulations on being awarded the 'Innovative Automaker of the Year.' It is great to work with one of the pioneers in the automobile industry." Jordan is using a(n) __________ opening in this scenario.

A) introduction B) curiosity C) product D) compliment E) referral

29) The booking agent for Moser Midway Rides walked into the management office for the Ohio State Fair and said, "The average family of four will spend 5.5 hours at the fair and spend between $60 and $70. How would you like to have that same family spend between $90 and $100 at your fair?" Which of the following methods of opening was the salesperson using in this scenario?

A) question B) rapport C) product D) introduction E) referral

30) "Mr. Rogers, if I could show you a way to increase sales in your bookstore by 20 percent per year, would you be interested?" probed Leesa. In this example, Leesa is using a(n) __________ opening.

A) referral B) rapport C) product D) introduction E) question

31) Steve, a salesperson for KLN Machines, began his meeting with a prospect by saying, "I noticed that you have a collection of antique thermometers in your outer office. My father has been collecting soda pop thermometers for almost fifteen years. What got you interested in collecting them?" In this scenario, Steve was trying to A) describe his product's features in detail to his prospect.

B) engage the prospect in reviewing his company's credibility statement.

C) establish rapport with the prospect by talking of a common interest.

D) examine the prospect's needs through some closed questions.

E) establish whether the prospect has the buying potential for his goods.

32)

Which of the following pairs of individuals are most receptive to small talk?

A) amiables and expressives B) analyticals and drivers C) analyticals and amiables D) drivers and expressives E) amiables and drivers

33) A salesperson's best line of defense when something goes wrong during his sales presentation is to A) blame his assistant or secretary for not having prepared properly for the meeting.

B) ask the prospect if the meeting can be rescheduled for later.

C) continue the presentation as though nothing went wrong.

D) maintain the proper perspective and a sense of humor.

E) None of the answers is correct.

34)

Which of the following best exemplifies a closed question?

A) What are the challenges you have encountered in dealing with new employees?

B) How do you go about managing inventory requirements?

C) How many additional systems do you need?

D) What are some features of the product you are looking for?

E) How often do you upgrade your software and why?

35) __________ require a prospect to go beyond a simple yes–no response and share a great deal of useful information.

A) Question openings B) Introduction openings C) Closed questions D) Double-barreled questions E) Open questions

36)

Which of the following is an example of an open question?

A) Who invented this design?

B) Do you agree with new policy changes?

C) Do you believe in sharing access with your employees?

D) When did you last use the machine?

E) What steps do you take to remove the error?

37)

Which of the following is the best example of an open question?

A) Do you want your order to be delivered in the morning or in the afternoon?

B) Will you be buying three or four boxes of these customized candles?

C) Will you be paying cash or charging these items to your account?

D) Why do you consider June to be your most productive month?

E) Do you have a method to display the Christmas ornaments?

38) In the context of the SPIN (situation questions, problem questions, implication questions, and need payoff questions) technique, which of the following best exemplifies a situation question?

A) Do you intend to upsize your workforce in the near future?

B) Do you have trouble meeting inventory requirements?

C) Would you be interested if I promised you a 25 percent return on investment?

D) Have you been facing any bandwidth problems?

E) Does missing a deadline have serious implications for your firm?

39) A salesperson makes a sales presentation to two customers, Jake and Jason. During the presentation with Jake, the salesperson asks him, "How many people use your coffee machine?"

During the presentation with Jason, the salesperson asks him, "Is the cost of maintaining your coffee machine becoming an issue?" Classify the question type based on the SPIN (situations questions, problem questions, implication questions, and need payoff questions) technique used by salespeople to understand a prospect's needs.

A) The questions asked to Jake and Jason are need payoff questions.

B) The questions asked to Jake and Jason are problem questions.

C) The question asked to Jake is a need payoff question, whereas the question asked to Jason is an implication question.

D) The question asked to Jake is a situation question, whereas the question asked to Jason is a problem question.

E) The question asked to Jake is a need payoff question, whereas the question asked to Jason is a situation question.

40) Which of the following statements is true about situation questions used under the SPIN (situations questions, problem questions, implication questions, and need payoff questions) technique to identify a prospect's needs?

A) They are questions that are analytical in nature and analyze a buyer's reaction to a particular situation.

B) They are designed to understand how a buyer handles a situation effectively.

C) They are specific data-gathering questions about the attitudes and beliefs of a prospect toward his or her environment.

D) They should usually be answered through precall information gathering and planning.

E) They cannot be asked until some problem has been identified.

41) Viveca asked a supermarket manager, "How many dollars' worth of frozen food do you buy each month?" In the context of the SPIN technique, this question would be categorized as a(n) __________ question.

A) situation B) problem C) implication D) open E) indication

42) "Do you have trouble keeping your delivery trucks running?" is an example of a(n) __________ question in the SPIN technique.

A) situation B) problem C) implication D) necessary E) indication

43) Quinton is a sales representative for Hawk Eye Surveillance Solutions, and it is his job to sell the closed-circuit cameras his company manufactures. During a meeting with Jimmy, the owner of a very popular bookstore, Quinton wants to introduce his product. He asks Jimmy, "What is the result of having so many shoplifters at your store? Do you have a lot of inventory shrinkage because of shoplifting?" In the context of the SPIN technique, Quinton is using a(n) __________ question here.

A) rhetorical B) problem C) implication D) necessary E) indication

44) Quinton is a sales representative for Hawk Eye Surveillance Solutions, and it is his job to sell the closed circuit cameras his company manufactures. During a meeting with Jimmy, the owner of a very popular bookstore, Quinton wants to highlight the need for his product. He asks Jimmy, "What impact does inventory shrinkage have on your ability to make a reasonable profit?" In the context of the SPIN technique, Quinton is using a(n) __________ question here.

A) situation B) problem C) implication D) benefit E) need payoff

45) The goal of implication questions under the SPIN (situation questions, problem questions, implication questions, and need payoff questions) technique is to A) understand how well a salesperson responds to the prospect's problems.

B) identify the root cause of the prospect's problem.

C) help a prospect understand if a problem actually exists and if it requires a solution.

D) identify the current situation of the prospect.

E) find out if a salesperson can perform well under stressful conditions.

46) A salesperson for a logistics software company makes a sales presentation to customers Isabel and Sylvia. During the presentation with Isabel, he asks her, "Is your current software difficult to fix?" During the presentation with Sylvia, he asks her, "What happens if you fail to deliver your products due to software issues?" Classify the question type based on the SPIN (situations questions, problem questions, implication questions, and need payoff questions) technique used by salespeople to understand a prospect's needs.

A) The questions asked to Isabel and Sylvia are need payoff questions.

B) The question asked to Isabel is a situation question, whereas the question asked to Sylvia is a need payoff question.

C) The question asked to Isabel is a problem question, whereas the question asked to Sylvia is an implication question.

D) The question asked to Isabel is a need payoff question, whereas the question asked to Sylvia is a problem question.

E) The questions asked to Isabel and Sylvia are problem questions.

47) A salesperson for FS Tools asked Justin, a cabinet maker, "If I can show you how to cut melamine, high-pressure laminates, and fine veneer without any chips or breaks, would that save you any money?" In terms of the SPIN technique, this is an example of a(n) __________ question.

A) situation B) problem C) implication D) benefit E) need payoff

48) A salesperson from Dun-Rite Equipment Company asks a supermarket manager, "If I can provide your meat department with on-the-site training at no extra charge, would you be interested?" In terms of the SPIN technique, this is an example of a(n) __________ question.

A) situation B) problem C) implication D) benefit E) need payoff

49) In the context of the SPIN (situation questions, problem questions, implication questions, and need payoff questions) technique, which of the following statements is true of need payoff questions?

A) They should be answered in the precall information-gathering stage.

B) They help the salesperson understand the difficulties faced by a prospect.

C) They tend to be problem centered rather than solution centered.

D) They are general questions used to gather background data.

E) They are questions that salespeople ask about how useful it is to solve a problem.

50) A salesperson talks to customers Vincent and Lee. During his presentation with Vincent, the salesperson asks him, "Would a new computer with advanced features resolve all your issues?" During his presentation with Lee, the salesperson asks, "How many people use your computer?" Classify the question type based on the SPIN (situations questions, problem questions, implication questions, and need payoff questions) technique used by salespeople to understand a prospect's needs.

A) The questions asked to Vincent and Lee are problem questions.

B) The questions asked to Vincent and Lee are implication questions.

C) The question asked to Vincent is a problem question, whereas the question asked to Lee is a need payoff question.

D) The question asked to Vincent is a situation question, whereas the question asked to Lee is an implication question.

E) The question asked to Vincent is a need payoff question, whereas the question asked to Lee is a situation question.

51) Juan, a sales representative for Max Consultants, was trying to convince a retailer to outsource his telemarketing department to Juan's company. He said, "My company is providing outsourced call centers on behalf of Fortune 500 companies in 25 countries in North America, Europe, and Asia." Juan was emphasizing his company's __________ in this scenario.

A) strategic objectives B) features C) turnover D) system integrators E) benefits

52) Julia, a salesperson for an automobile firm, explains all the attributes and benefits of a car to a customer in her sales presentation. The customer loses interest in her presentation because Julia overloads the presentation with attributes the customer was not interested in knowing about and does not address the customer's needs. This is an example of A) cold calling.

B) a negative opening.

C) a blitz.

D) a creeping commitment.

E) feature dumping.

53) A(n) __________ is how a specific feature will help a particular buyer and is tied directly to the buying motives of the prospect.

A) agreement B) need C) benefit D) characteristic E) highlight

54) A salesperson for refrigerant leak monitors began her presentation to the Kroger buying agent as follows: "Our system will prevent your employees from being exposed to dangerous CFC emissions." At that point in her sales presentation, she was describing a(n) A) skill.

B) attribute.

C) benefit.

D) feature.

E) need.

55) Gloria is showing a prospect how her company's logistical support system will reduce the delivery time for the company's projects. Gloria is engaged in a A) feature presentation.

B) comparative advantage proposal.

C) customer relationship management simulation.

D) customer benefit proposition.

E) customer feedback exercise.

56) When applying the problem/solution selling model, __________ is the term used describing a customer's needs.

A) features B) issues C) situations D) benefits E) business model

57) Phoebe, a sales representative, is so excited during her sales presentation that she does not hear the customer's question correctly. She gives a brief, inappropriate answer, and continues with her presentation. Phoebe's behavior in this scenario reflects the operation of

A) selective perception.

B) listening discrimination.

C) active listening.

D) deep selling.

E) feature dumping.

58) In the context of delivering a sales presentation, which of the following is an effective guideline for salespeople?

A) Use formal presentation methods when presenting to a group.

B) Ask open questions to get answers that are to the point.

C) Engage in selective perception during the presentation.

D) Alter the presentation based on the prospect's reactions.

E) Focus on asking situation questions rather than need payoff questions.

59)

A balanced presentation occurs when a salesperson A) creates very high expectations of the product or service in the prospect's mind.

B) allows equal speaking time for both the salesperson and the prospect.

C) provides adequate focus on all sides of the sales situation.

D) proves consistently that the competitor's products have nothing better to offer.

E) avoids any comparison of his or her offer with that of competitors.

60)

Which of the following statements about selling to groups is true?

A) Objectives should not be developed for the first group meeting.

B) Planning should not include developing special visual aids as it may be difficult to hold the attention of a group with aids alone.

C) Information must be gathered about the concerns of each and every person who will attend the meeting.

D) Attempts should not be made to assess the buyers' nonverbal cues because people are greatly inhibited in a group setting.

E) The salesperson should avoid informal presentations during a sales call with a group of buyers.

61)

What is the Four As (acknowledge, acquire, advise, and assure) selling process?

62) As he entered the prospect's office, Sam stumbled and almost fell. After composing himself, Sam mispronounced the prospect's name. After taking a break, Sam was able to make a great sales presentation, but he never got the prospect's full attention during the meeting. What concept describes the prospect's assumption that the clumsy salesperson would not be competent enough to provide efficient service?

63) A salesperson opens his sales presentation with a prospect by talking about another customer who recommended the prospect to him. In this example, what opening does the salesperson employ?

64) A salesperson from The Casket Royale walked into a florist retailer's office and said, "Funeral directors sell flowers. Why shouldn't you sell caskets?" What kind of opening is the salesperson using?

65) When a salesperson looks at a prospect's office wall hangings, photographs, and library collection for cues on how to initiate small talk, what is he engaging in?

66)

What is the best rule to you use when things go wrong in a sales presentation?

67)

Why do salespeople use open questions?

68) What is the purpose of a situation question in the SPIN (situation questions, problem questions, implication questions, and need payoff questions) technique used by salespeople to understand a customer's needs?

69) Imagine that you sell thermometers for infants. You simply place the tip of the thermometer in the infant's ear and the digital readout is easy to read in less than thirty seconds.

What is a benefit and what is a feature of this thermometer?

70) Alphonso uses the FAB method when he sells optical scanning equipment to merchants.

What do the letters "FAB" represent in this context?

71) In the context of a sales presentation, one of the most important ways to ensure a good first impression is to be well prepared. ⊚ true ⊚ false

72) Impression management refers to how salespeople can manage a buyer's impression of them. ⊚ true ⊚ false

73)

An opening is essentially a method that aims to secure buyer commitment. ⊚ true ⊚ false

74) In the context of a sales presentation, an advantage of an introduction opening is that it guarantees drawing the prospect's interest.

⊚ ⊚

true false

75) An advantage of a product opening is that it appeals to a prospect visually as well as verbally. ⊚ true ⊚ false

76) When Mike, a sales manager, tells Ruth that she can save at least $25 per month by changing her long-distance service to BellSouth, he is using a benefit opening. ⊚ true ⊚ false

77)

When using a compliment opening, a salesperson must get down to business right away. ⊚ true ⊚ false

78) Ultimately, the goal of every salesperson should be to establish rapport with each customer. ⊚ true ⊚ false

79) In the context of a sales presentation, the talk about current news, hobbies, mutual friends, and the like that usually breaks the ice for the actual presentation is often referred to as "small talk." ⊚ true ⊚ false

80) Drivers and analyticals enjoy nonbusiness conversations more than amiables and expressives. ⊚ true ⊚ false

81) When a sales representative makes a presentation, he or she should discuss product information right at the beginning before the buyer brings his needs and opinions into the picture. ⊚ true ⊚ false

82) Experienced salespeople attempt to uncover a prospect's needs and problems at the start of the relationship. ⊚ true ⊚ false

83)

Closed questions encourage prospects to open up and share a great deal of information. ⊚ true ⊚ false

84) Closed questions usually help paint the broad strokes of a situation, whereas open questions help zero in on specific problems and attitudes. ⊚ true ⊚ false

85)

Inexperienced and unsuccessful salespeople tend to ask too many situation questions. ⊚ true ⊚ false

86) Ultimately, the objective of using implication questions is to help a prospect realize the seriousness of the identified problem. ⊚ true ⊚ false

87)

Need payoff questions are essentially problem centered. ⊚ true ⊚ false

88) If a prospect responds negatively to a need payoff question, then the salesperson should not probe further. ⊚ true ⊚ false

89) Experienced and successful salespeople focus on asking situation questions during a sales presentation. ⊚ true ⊚ false

90) In the FEBA (features, evidence, benefits, agreement) approach to sales, salespeople mention the feature, provide evidence that the feature actually exists, explain the benefits, and then ask whether the buyer agrees with the value of the feature and benefit. ⊚ true ⊚ false

91) Buyers are not interested in facts about a product or a seller's company unless those facts help solve their wants or needs. ⊚ true ⊚ false

92) When selling to resellers, salespeople need to focus solely on the seller's company rather than the needs of the ultimate consumer. ⊚ true ⊚ false

93) Salespeople need to avoid assessing a prospect's reactions during a presentation as this can distract them from their sales pitch. ⊚ true ⊚ false

94) Probing questions encourage two-way conversation between a salesperson and a prospect. ⊚ true ⊚ false

95) A trial close refers to the process of allowing a customer to use a product for a specified trial period in order to gather feedback. ⊚ true ⊚ false

96) Selective perception is the act of hearing what one wants to hear, not necessarily what the other person is saying. ⊚ true ⊚ false

97) To establish credibility early in the sales call, a salesperson should clearly delineate the amount of time he or she will need and complete the presentation within the stated time frame.

⊚ ⊚

true false

98)

A way to establish credibility is to offer concrete evidence to back up verbal statements. ⊚ true ⊚ false

99)

The purpose of a credibility statement is to help prospects identify their needs. ⊚ true ⊚ false

100) A seller must expect less objections and interruptions in a group setting compared to selling to an individual. ⊚ true ⊚ false

Answer Key Test name: chapter 8 11) D 12) E 13) A 14) B 15) C 16) C 17) B 18) A 19) D 20) E 21) D 22) D 23) E 24) C 25) D 26) C 27) A 28) D 29) A 30) E 31) C 32) A 33) D 34) C 35) E 36) E

37) D 38) A 39) D 40) D 41) A 42) B 43) B 44) C 45) C 46) C 47) E 48) E 49) E 50) E 51) B 52) E 53) C 54) C 55) D 56) E 57) A 58) D 59) C 60) C 71) TRUE 72) TRUE 73) FALSE 74) FALSE 75) TRUE 76) TRUE

77) FALSE 78) TRUE 79) TRUE 80) FALSE 81) FALSE 82) TRUE 83) FALSE 84) FALSE 85) TRUE 86) TRUE 87) FALSE 88) FALSE 89) FALSE 90) TRUE 91) TRUE 92) FALSE 93) FALSE 94) TRUE 95) FALSE 96) TRUE 97) TRUE 98) TRUE 99) FALSE 100) FALSE Student name:__________ 1) What is the simplest nonverbal communication a salesperson can use to create a sense of product value?

2)

How can word pictures, stories, and humor be used to improve a sales presentation?

3)

What are the benefits of using visual aids in a sales presentation?

4) Colleen is preparing a presentation for a potential donor for a new building being constructed in her university. She is considering using visual aids in her presentation. Which visual aids would be most appropriate for her audience?

5)

What determines the effectiveness of testimonials?

6) Tarik is preparing a presentation for a hospital about his company's new linear accelerator cancer treatment machine. As the machine is large and expensive to bring in and demonstrate, he is unsure of which media to use in his presentation. Which visual aid would be most appropriate for his needs?

7) Other than reducing the chances that a product demonstration will fail, what other considerations should a salesperson take into account when developing a demonstration?

8)

List and describe the parts of a written proposal.

9) How could the owner of a movie theater calculate the profitability of buying a new selfbuttering popcorn machine today, rather than postponing the purchase?

10) Discuss how the concept of opportunity cost can be used to quantify the solution during a sales presentation.

11) During her presentation to a prospective customer, Lea informed the prospect about the superiority of the new wallboard she was selling. She also brought along a sample so that the building contractor could see and feel the superiority of the product. Lea used a __________ to improve the buyer's understanding of her product.

A) multiple-sense appeal B) standardized approach C) collaborative approach D) style-flexing appeal E) composite appeal

12)

Which of the following statements about a buyer's attention and understanding is false?

A) Vividly communicated features help buyers remember a seller's claims.

B) Salespeople should use humor to gain a prospect's attention during a presentation.

C) To strengthen impact, appeals should focus on only one of a prospect's five senses.

D) A buyer's attention span is affected by his or her personality.

E) Many buyers have difficulty forming clear images from the written or spoken word.

13) In which of the following instances is the salesperson using the multiple-sense appeals approach?

A) Rhonda uses a canned presentation to deliver a standardized talk about her firm's sanitation systems.

B) William creates a customized sales presentation for a Webcasting session with an overseas client.

C) Jason leaves behind some brochures of his company's modular kitchens at the client's office for circulation among members of the buying center.

D) Norah uses a video to demonstrate the manner in which her company manufactures hospital goods that meet all quality control standards.

E) John makes a joke during his presentation when he notices that the main member of the buying center is visibly bored.

14) Which of the following statements is true of the guidelines that a seller should keep in mind when tailoring a sales presentation to the buyer's unique style?

A) Expressives find strong, intense colors aversive.

B) Analyticals like to see lots of photos and relatively few details in presentations.

C) Both amiables and analyticals prefer fast-moving presentations.

D) Both drivers and amiables prefer visuals with cartoons rather than people in them.

E) Drivers like presentations in which important points are highlighted with bold lettering.

15)

Which of the following statements about the use of humor in sales presentations is true?

A) Humor should never be used in sales presentations.

B) It is best to avoid recounting humorous experiences from one's own life.

C) It is recommended that salespeople practice telling jokes so that they are confident when using the jokes in a presentation.

D) Salespeople should not apologize before telling a joke.

E) All of the answers are correct.

16) Which of the following is an effective suggestion to keep in mind when using humor in a sales presentation?

A) Apologize before telling a joke to give the listener a heads up.

B) Avoid using humor from your own life.

C) Find the best way to deliver a joke by practicing it in different ways.

D) Refrain from animating your voice to keep a professional tone.

E) Make use of jokes that are available on the Web.

17)

Charts are particularly useful when

A) presenting copies of recent ads.

B) communicating large amounts of information.

C) attempting to summarize the key points of a sales presentation.

D) performing a what-if analysis using the information supplied by a prospect during a presentation.

E) All of the answers are correct.

18) For her sales presentation, Myra wants to design a chart which shows how much faster wounds heal when protected with SoloSite, a water-based ointment. To create the most effective chart, she should

A) use clip art instead of photographs.

B) use complete sentences to ensure clarity.

C) use tables rather than graphics to show trends and relationships.

D) place as much information as possible on a visual.

E) ensure consistency when using art styles and layouts.

19) __________ are rooms set aside to highlight a company's products and capabilities and are the ultimate presentation room.

A) Assessment centers B) Zoning centers C) Circular routing centers D) Collusion centers E) Executive briefing centers

20)

Which of the following is a guideline for the proper use of visual aids?

A) selecting a few visual aids from a portfolio for each presentation B) looking at the visual aids throughout the presentation C) placing a portfolio with the visual aids between the salesperson and the customer D) using all the visuals in a portfolio for every presentation E) using detailed videos that outline a product's features in about half an hour

21)

A salesperson can maximize the impact of his or her presentation by A) providing a lot of numerical data for a client to process and understand.

B) using tables instead of graphs, charts, and pie diagrams.

C) using current and accurate information.

D) designing slides using a standard red and white template for all clients.

E) using a lot of transition effects, clip art, and sound clips.

22) In the context of sales presentations, which of the following tools is a great way to encourage a group to interact or engage in a brainstorming session?

A) handouts B) flyers C) electronic whiteboards D) fact sheets E) digital charts

23)

For which of the following products would samples be most effective as a sales aid?

A) flame thrower B) funeral service C) carpet cleaner D) life insurance E) None of the answers is correct.

24)

For which of the following products would samples be least effective as a sales aid?

A) paper towels B) oil well drilling platforms C) stain removers D) automobile seat covers E) bottles and aluminum cans

25) Judith, a salesperson for an automobile firm, gives a presentation to a buying agent.

During her presentation, she gives the buyer a letter from a customer in New York. The letter praises the efficiency of the supply chain process of Judith's firm and compliments the punctuality and timely delivery of the products. This letter is an example of a(n)

A) fact sheet.

B) attestation.

C) sales flyer.

D) handout.

E) testimonial.

26) Jane, a stock analyst, is giving a sales presentation to a group of clients. She talks about the various investment options available. She gives each individual a few sheets of paper that contain all the important points covered in the sales presentation because it would help them remember what was discussed during the sales presentation. In this case, the bunch of papers is most likely known as a(n) A) proposition.

B) sales flyer.

C) testimonial.

D) attestation.

E) handout.

27)

Identify an accurate statement about testimonials.

A) Progressive sales organizations rarely use testimonials.

B) To be valid, testimonials must be sworn before a notary in public.

C) They are usually written by satisfied users of a product or service.

D) They are more interactive than electronic whiteboards.

E) The effectiveness of testimonials hinges on the seller rather than the needs of the consumer.

28)

Which of the following statements about portfolios is true?

A) Because of cultural and language differences, portfolios should be avoided in international selling situations.

B) A portfolio should not be placed, like a wall, between the salesperson and the buyer.

C) Items in a portfolio should be placed in the order in which they will be used to make sure none are omitted.

D) Only insurance salespeople place their portfolios in a binder.

E) Every portfolio should include a tangible product.

29)

Which of the following statements about the use of computers by salespeople is true?

A) Salespeople use collateral management systems to archive, catalog, and retrieve digital media and text.

B) Computers are generally not able to offer excellent visuals and graphics.

C) It is difficult to perform what-if analyses on computers.

D) A computer can store only a small amount of information.

E) Information in smaller computers is more difficult to retrieve than in larger computers.

30)

A product demonstration

A) automatically leads to a sale.

B) allows prospects to check if the product works the way the salesperson claims.

C) occurs only after a prospect has been assured a significantly high return on investment for a product.

D) often distracts a prospect from the reason for a sales call.

E) None of the answers is correct.

31) Which of the following is good advice for the use of demonstrations as part of a sales presentation?

A) practicing the demonstration B) planning for things that could possibly go wrong C) probing both during and after the demonstration D) keeping the demonstration simple, concise, and easily understandable E) All of the answers are correct.

32) During the course of a sales presentation, the customer is given the opportunity to see the performance of a sample product. The salesperson and the customer both observe how the product functions. This time period during a sales demonstration is usually known as the A) creeping commitment time.

B) encoding time.

C) routing time.

D) dead time.

E) zoning time.

33) Sunil was illustrating the ease with which his company's newly designed lawnmower can be operated. However, during the presentation, the lawnmower stopped working. What is the most appropriate way for Sunil to handle this situation?

A) Sunil should blame the production division of his company for this failure.

B) Sunil should try to convince the buyer that the lawnmower rarely fails.

C) Sunil should use humor and accept that such mistakes do happen.

D) Sunil should gain the buyer's sympathy by describing how badly he needs to close the deal with the prospect.

E) Sunil should end the sales presentation and start afresh by taking another appointment.

34) A salesperson who wants to make effective use of handouts during his or her sales presentation should

A) avoid keeping any white space in the handout.

B) let the goal of the presentation determine what information should be included in the handout.

C) discuss the contents of the handout while circulating copies among buyers.

D) avoid the use of graphics in the handout.

E) ensure that the content in the handout and the presentation are identical.

35)

A request for proposal (RFP) A) is used when a customer has a firm idea of the product needed.

B) is often referred to as a "payback period request."

C) is used when companies are looking at researching and designing new products.

D) is unlikely to discuss the cost and delivery schedules for a project.

E) is used when a salesperson has a firm idea of his or her company's product.

36)

Identify an accurate statement about RFPs (request for proposals).

A) They should contain a customer's specifications for the desired product.

B) They are typically known as proposed negotiation points (PNPs).

C) They are specifically issued by the local government to private buyers to conduct interstate commerce.

D) They should exclude delivery schedules.

E) They are drafted by a seller when he or she is looking for prospective buyers.

37)

Proposals that a buyer receives as a result of issuing an RFP should include A) a positioning map.

B) a postscript.

C) an index.

D) an executive summary.

E) All of the answers are correct.

38) A written proposal should have an executive summary, a brief description of the problem and solution, and A) a description of the current situation relative to the proposed solution.

B) a collection of testimonials from satisfied customers.

C) a statement of support from the buying committee.

D) photographs of the selling company's offices and buildings.

E) the selling firm's pro forma balance sheet.

39)

In which of the following situations is quantifying a solution likely to be most crucial?

A) when repair services are involved B) when part of a product is to be replaced C) when a brand-new service is involved D) when an existing successful product is involved E) when a plant's production capacity is to be expanded

40) Jorge is developing a presentation for a customer. He wants to show the customer how his product will meet the prospect's needs and how it is different from the offerings of competitors. Jorge is developing a(n) A) customer value proposition.

B) asset management statement.

C) customer relationship statement.

D) content analysis report.

E) credibility statement.

41) Salespeople can strengthen their presentations by showing the prospect that the cost of the proposal is offset by added value; this process is called

A) magnifying the benefit.

B) market analysis.

C) multiple-sense appeal.

D) value analysis.

E) content analysis.

42)

Identify a common method of quantifying a solution for a customer.

A) cost–benefit analysis B) return on investment C) net present value D) payback period E) All of the answers are correct.

43)

Which of the following is the correct expression for the calculation of profit margin?

A) Profit margin % = (Selling price − Cost) ÷ Selling price B) Profit margin % = Annualized cost of goods sold ÷ Average inventory at cost C) Profit margin % = Future cash inflows discounted into today's dollars − Investment D) Profit margin % = Investment ÷ Savings (or profits) per year E) Profit margin % = Net profits (or savings) ÷ Investment

44) Jordan, the owner of a motorcycle firm, wants to reduce the cost of maintaining the existing equipment of his firm. Joe, a salesperson, recommends a new type of equipment to reduce the maintenance costs. The cost of the new equipment is $50,000, but it would save Jordan $75,000 in total. If Jordan decides to purchase the new equipment, then his return on investment will be

A) 120 percent.

B) 150 percent.

C) 125 percent.

D) 175 percent.

E) 130 percent.

45) The __________ is the net profits expected from a given investment, expressed as a percentage of the investment.

A) net revenue B) return on investment C) net present value D) gross investment value E) opportunity cost

46) Jay purchases new capital equipment at his motorcycle factory. The new equipment costs $150,000, and the net savings he is likely to make is $75,000. Calculate Jay's return on investment (ROI).

A) 75 percent B) 150 percent C) 200 percent D) 50 percent E) 25 percent

47) By investing in a John Deere PowerTech engine for $3,200, a pallet manufacturer was able to show a net savings of $500 in annual maintenance costs. Calculate the return on investment for the engine.

A) 1.6 percent B) 6.4 percent C) 15.6 percent D) 21.3 percent E) 32 percent

48) The profit margin on the sale of a good is 20 percent, and the selling price of the good is $5,000. Calculate the cost of the good.

A) $4,750 B) $4,800 C) $3,750 D) $4,500 E) $4,000

49)

The payback period

A) indicates how quickly the investment money will be returned in the form of cash inflows or savings.

B) reflects the return a buyer would have earned from a different use of the same investment capital.

C) fails to quantify the personal risk involved in a buying decision made by a purchasing agent.

D) indicates the total value of all future sales with a customer.

E) pertains solely to those investments that pose a small risk to the buyer.

50) Jessica is investing in a capital equipment for her printing press. She wants to know how long it will take for her investment to be returned in the form of savings. The new equipment costs $600,000, and the maintenance costs of the new equipment will save her $120,000 per year. The payback period is

A) 5 years.

B) 6 years.

C) 2 years.

D) 11 years.

E) 20 years.

51) Goodman Woodworks has recently purchased a new saw costing $14,000. Because of a revolutionary new cutting blade, the new saw will not cause the veneer to splinter and will make clean cuts. This will save the firm $1,200 each year, which generally goes in wastage. Calculate the payback period for the $14,000 investment.

A) 1.67 years B) 8.6 years C) 11.67 years D) 86 years E) 13 years

52) Miguel sells high-end computers to clients in his neighborhood. The profit margin is 20 percent, and the cost of each unit of computer is $10,000. The selling price of each unit must be A) $12,000.

B) $15,000.

C) $12,500.

D) $14,000.

E) $13,250.

53) The __________ of an investment is the net value today of future cash inflows minus the investment.

A) net opportunity cost B) return on investment C) customer lifetime value D) net present value E) adjusted opportunity cost

54) A sportswear manufacturer usually keeps an average of 2,000 units of footwear in stock.

The total sale is 60,000 units. The inventory turnover is A) 40 units.

B) 12 units.

C) 30 units.

D) 18 units.

E) 24 units.

55) The __________ is the return a buyer would have earned from a different use of the same investment capital.

A) sunk cost B) fixed cost C) opportunity cost D) gross revenue E) net revenue

56)

The cost of a good is $1,500. A seller sells it at a markup of $500. The profit margin is A) 20 percent.

B) 30 percent.

C) 25 percent.

D) 15 percent.

E) 40 percent.

57)

Which of the following statements is true of the net present value (NPV)?

A) It is the net profit a reseller makes, expressed as a percentage of sales.

B) It fails to take into account the value of future cash inflows.

C) It should ideally be less than $0.

D) It is used to assess an opportunity's value.

E) It is calculated by dividing the annual sales by the inventory's average retail price.

58) Ramiro, the owner of a supermarket, decides to keep relatively high levels of inventory even though it is expensive. Ramiro most likely thinks that the cost of __________ is greater than the benefits of increasing his turnover rate.

A) collaterals B) portfolios C) stockouts D) asset management systems E) floor space

59) Fiona, the manager of a retail store, wants to know whether she is maximizing her return on space investment. She will have to calculate the __________ for the area of the store.

A) sales per square foot B) cost–benefit ratio C) return on investment D) QR correlation coefficient E) sales per employee

60) Which of the following is recommended as a good way to deal with the jitters when making a sales presentation?

A) realizing that professional salespeople do not get nervous B) apologizing to the buyer for being nervous before the presentation C) avoiding the use of visuals because they will distract the buyer during the presentation D) avoiding the use of stress management techniques before the presentation because it will alert the prospect of the nervousness E) None of the answers is correct.

61) Why would a salesperson for a wholesale flower distributor give the prospective client a bouquet of fragrant lilacs to smell and admire during his or her sales presentation?

62) When making a sales presentation, why should a salesperson handle his or her product carefully?

63)

What are handouts, and how can they be used in helping buyers retain information?

64)

What are electronic whiteboards?

65)

What is a simple definition of a salesperson's portfolio?

66) Lily wants to make sure that her customers remember all the benefits of using her company's water reclamation system long after her presentation is over. Which type of visual aid should she use for this purpose?

67) In developing a written sales proposal, one of the tasks of a salesperson is to provide a description of the current situation in relation to the proposed solution. What is the simplest method for quantifying this solution?

68) Devon invests $750,000 in equipment for his steel firm. He calculates that this investment would save his firm $150,000 in maintenance costs. Calculate the return on investment (ROI).

69) How can sellers prove to resellers that the resellers can improve inventory turnover if they buy from them?

70) Jay divides the annualized cost of goods sold at his firm by the average inventory at cost.

What is Jay calculating?

71) Salespeople who sell machinery are limited to appeals that will affect a buyer's senses of hearing, sight, and touch. ⊚ true ⊚ false

72) To increase a buyer's understanding of a product, sellers should use the multiple-sense appeals approach. ⊚ true ⊚ false

73) A salesperson promoting a new brand of tomato ketchup gives free samples to his prospects at the end of his presentation. The salesperson appeals to more than one sense of the prospects in this case. ⊚ true ⊚ false

74)

Amiables prefer visuals without people in them and a relatively fast-moving presentation. ⊚ true ⊚ false

75) While using visuals, salespeople must use tables and clip art instead of graphics and highquality drawings. ⊚ true ⊚ false

76)

Gift giving must be done with care and not violate the rules of a buyer's company. ⊚ true ⊚ false

77) Salespeople should avoid using electronic whiteboards in their sales presentation because they limit two-way communication between a salesperson and a customer. ⊚ true ⊚ false

78) Photos are easy to prepare, are inexpensive, and permit a realistic portrayal of a product and its benefits. ⊚ true ⊚ false

79) When using video as a presentation tool, a salesperson should make sure the video is long and provides detailed product information. ⊚ true ⊚ false

80) One of the most effective methods of appealing to a buyer's senses is through product demonstrations or performance tests.

⊚ ⊚

true false

81) During a product demonstration, a salesperson should always relate product features to a buyer's unique needs. ⊚ true ⊚ false

82) In the context of product demonstrations, salespeople should avoid probing during and after the presentation. ⊚ true ⊚ false

83) If buyers present at your demonstration have used your product before, then they should be discouraged from participating. ⊚ true ⊚ false

84) While giving handouts to foreign buyers, salespeople should include a glossary containing definitions. ⊚ true ⊚ false

85) When creating a presentation, salespeople should use tables to display trends and relationships and use graphics when displaying raw numbers is important. ⊚ true ⊚ false

86) If a presentation is at the customer's awareness stage, sharing white papers is likely to be inappropriate. ⊚ true ⊚ false

87)

An RFP typically does not communicate details about a budget. ⊚ true ⊚ false

88)

Quantifying a solution is unnecessary when a prospect is in a high-risk situation. ⊚ true ⊚ false

89) Customer value proposition should exclude the tangible and intangible benefits of a product. ⊚ true ⊚ false

90) In a simple cost–benefit analysis, the costs to a buyer and the savings the buyer can expect from an investment are listed. ⊚ true ⊚ false

91)

Buyers show a strong preference for investments with a longer payback period. ⊚ true ⊚ false

92) Net present value analysis allows a buyer to compare the net value of future cash inflows to the initial investment. ⊚ true ⊚ false

93) year.

Inventory turnover is measured by dividing the investment by the profits or savings per ⊚ ⊚

true false

94) A low inventory turnover rate for stores that carry a large inventory typically indicates that a product is selling really fast. ⊚ true ⊚ false

95)

Profit margin is usually calculated by dividing the markup on the cost price of the good. ⊚ true ⊚ false

96) ECR, AR, QR, and JIT are acronyms referring to systems designed to maximize inventory holdings. ⊚ true ⊚ false

97) Electronic data interchange (EDI) is a computer-to-computer transmission of data from resellers to vendors and back. ⊚ true ⊚ false

98) Sales per square foot or sales per shelf foot is a measure of the investment resellers make in the purchase of their stock. ⊚ true ⊚ false

99) A sales asset management system is a computer-to-computer transmission of data from a reseller to a vendor and back. ⊚ true ⊚ false

100) A measure that retailers use to assess the return on their space investment is sales per square foot or sales per shelf foot. ⊚ true ⊚ false

Answer Key Test name: chapter 9 11) A 12) C 13) D 14) E 15) D 16) C 17) B 18) E 19) E 20) A 21) C 22) C 23) C 24) B 25) E 26) E 27) C 28) B 29) A 30) B 31) E 32) D 33) C 34) B 35) A 36) A

37) D 38) A 39) C 40) A 41) D 42) E 43) A 44) B 45) B 46) D 47) C 48) E 49) A 50) A 51) C 52) C 53) D 54) C 55) C 56) C 57) D 58) C 59) A 60) E 71) TRUE 72) TRUE 73) TRUE 74) FALSE 75) FALSE 76) TRUE

77) FALSE 78) TRUE 79) FALSE 80) TRUE 81) TRUE 82) FALSE 83) FALSE 84) TRUE 85) FALSE 86) FALSE 87) FALSE 88) FALSE 89) FALSE 90) TRUE 91) FALSE 92) TRUE 93) FALSE 94) FALSE 95) FALSE 96) FALSE 97) TRUE 98) FALSE 99) FALSE 100) TRUE Student name:__________ 1) Michael has just been hired as the sales manager for Blackbeard, a new software company selling customized accounting systems to nonprofit organizations. He is trying to anticipate objections customers will have about his company's products. Explain the five major types of objections he should anticipate.

2)

Discuss the importance of forestalling as a strategy.

3) Responding to objections in a helpful manner requires careful thought and preparation.

What are some of the traits and behaviors salespeople can commit to when preparing their responses to objections from prospects?

4)

How can a salesperson separate excuses from objections?

5) Under what conditions should a salesperson make use of the direct denial method for handling objections? When should the method not be used?

6) What is the indirect denial method of responding to objections? Why should salespeople use this method?

7)

Briefly discuss the benefits of the compensation method of responding to objections.

8) One common method for dealing with a prospect's objections is the acknowledge method.

What are the conditions for using this method?

9) What is the postponement method of responding to objections? What are its disadvantages?

10) Responding to objections when selling to groups requires special attention. What strategies should be used to address objections in a group sales presentation?

11)

A(n) __________ is a concern or a question raised by a buyer.

A) forestall B) blitz C) collusion D) conspiracy E) objection

12)

Which of the following statements about objections is false?

A) Objections present sales opportunities.

B) A prospect's objection indicates that he or she is showing some interest in the seller's presentation.

C) Salespeople should encourage buyers to voice their concerns or questions.

D) Salespeople should take every buyer's objections personally.

E) Real objections are logical to the prospect, no matter how they seem to the sales rep.

13) Joe sells ergonomically designed office furniture. Joe would find it easier to sell to a customer who A) asks Joe if there are any financial benefits to buying the furniture.

B) sits quietly through the entire presentation.

C) spends time during the presentation looking at the fabric samples Joe brought and does not ask questions.

D) stares out the window during the entire presentation.

E) keeps answering calls on his phone during the presentation.

14) Which of the following is very important when a salesperson attempts to obtain commitment during a sales call?

A) answering before evaluating objections B) skill in manipulating buyer's objections with half-truths C) skill in uncovering and responding to objections D) disparaging competitor's services during the presentation E) trying to sell products by making competitive products sound inferior

15) Kerry encounters far more objections in sales calls when she actually attempts to gain buyer commitment than at any other time. This pattern suggests that she A) should focus on providing better after-sale services.

B) may be omitting significant selling points in her presentation.

C) is asking too many questions during her presentation.

D) is doing a good job, as this is a normal pattern.

E) is creating an excessive level of interest in new prospects.

16)

Selling a new and different good, service, or idea is called

A) ambush marketing.

B) pioneer selling.

C) advocacy marketing.

D) original selling.

E) guerrilla marketing.

17) When Anton tries to convince supermarket owners to stock his company's new teaflavored popsicles, he receives many objections because most of the owners are of the opinion that the flavor will not sell. In this scenario, Anton is engaged in A) ambush marketing.

B) pioneer selling.

C) advocacy marketing.

D) original selling.

E) guerrilla marketing.

18) Which of the following would be best classified as an objection to the features of a good or service a salesperson is selling?

A) "Isn't your company new in this field?"

B) "I'm not sure I can trust what you're saying."

C) "We can't make a reasonable profit if we have to pay that much for merchandise."

D) "Sorry, we're all stocked up."

E) "I was looking for a darker shade of green."

19)

Which of the following is an objection related to a product?

A) "I have never done it that way before."

B) "I do not understand how your company's system can remove water vapor from our gas pipelines."

C) "I recently heard that your company has declared bankruptcy."

D) "I do not believe the money we would earn from using your company's subsea oil production system would offset its costs."

E) "I need time to think about it."

20)

Which of the following would be classified as an objection related to a source?

A) "Isn't your company new in this field? I'm not sure if I can take this risk."

B) "How do I know you'll meet that delivery schedule?"

C) "We can't make a reasonable profit if we have to pay that much for merchandise."

D) "Sorry, we're all stocked up."

E) "I was looking for a lighter shade of red."

21)

Which of the following is an example of an objection related to price?

A) "You are not an engineer; you cannot understand the difficulty of drilling for oil in subsea conditions at a pressure of 15,000 pound per square inch."

B) "I do not like the service features of the oil drilling machines that you have delivered in the past."

C) "I need to take some time as I am not interested in the drilling machines manufactured by your company."

D) "I have always considered Nitrile Machines to be of superior quality and have never considered buying another brand."

E) "I do not believe the money we would earn from using your company's subsea oil drilling machine would offset its costs."

22) April, a sales rep for Beta-Z Equipment, has recently been assigned to work with Leapheart construction. Typically, Leapheart purchases about $15,000 worth of materials per quarter from Beta-Z, but since April took over as the sales rep to work with Leapheart, the volume has dropped drastically. Sam, the inventory manager at Leapheart, often ends April's sales calls saying something like, "Look, little lady, I don't need someone like you in here telling me how to build houses. Why don't you just run along and bake some cookies or something."

April has been professional in every way, but now her manager believes that the client should be assigned to Wayne. This change is called a A) pressure transfer.

B) conversion.

C) turnover.

D) clean sweep.

E) territory waiver.

23) Ever since Alain was chosen as the sales rep to deal with Premier Meat Packers, he has had trouble with its purchasing agent, who seemed to dislike Alain because Alain was born in France and spoke with a French accent. Alain lost a sale once because the purchasing agent complained that he couldn't understand Alain's accent. Alain had promised delivery in two weeks, but the agent said that he had needed the order to be filled in two days. Because of problems like this and other condescending remarks made by the agent, a __________ would be the best option for Alain's company.

A) pressure transfer B) conversion C) turnover D) clean sweep E) territory waiver

24)

Which of the following is an example of an objection related to time?

A) "I do not understand why you think I need to replace our reel and divider; no one has been injured because of the ones we currently have."

B) "I cannot buy the harvesting machine of your company because your company is too new to have any kind of reputation at all."

C) "I would like to talk it over with my partner before I purchase your company's harvesting machine."

D) "The quality of the harvest machines produced by your company is too low for such a high price."

E) "I do not think we need a harvesting machine; we have always just let some of the neighborhood boys harvest crops manually."

25)

When dealing with an objection, successful salespeople A) anticipate the objection and prepare a helpful response.

B) make sure the objection is not just an excuse.

C) relax and listen and never interrupt the buyer.

D) forestall known concerns before they arise.

E) All of the answers are correct.

26) The proactive method of anticipating objections and answering them before the customer has a chance to raise them is known as A) pulling.

B) predicting.

C) forestalling.

D) heading-off.

E) postponing.

27) "You'll notice the trimming machine requires workers to pull two levers at the same time.

Although this may appear inconvenient, it ensures that the workers' hands will not be caught in the blades." In this example, the salesperson is __________ an objection regarding the extra effort required to use the trimming machine.

A) revisiting B) denying C) predicting D) forestalling E) passing-up

28)

Identify a true statement about the method of forestalling objections by a salesperson.

A) It is a method to obtain commitment in which the salesperson uses logical reasons to coerce the buyer.

B) Salespeople use this method to deal with aspects of their product offering that are not vulnerable to competition.

C) It is a method to resolve objections before buyers have a chance to raise them.

D) It is an objection response technique in which the salesperson requests permission to respond to an objection at a later time.

E) In this method, a salesperson turns an objection into a reason for buying a product or a service.

29)

When responding to a buyer's objection, a salesperson should

A) listen as though he or she has never heard that objection before.

B) hand the buyer a testimonial or other visual aid refuting that point as soon as he or she recognizes the objection.

C) interrupt the buyer's objection with an answer as soon as the objection is apparent.

D) raise his or her hand and stop the buyer's objection as soon as it is recognized.

E) None of the answers is correct.

30) Rhonda is suspicious about Adam's statement that his company cannot afford her product. Her latest research on the firm suggests that not only do they need the new piece of equipment but also that financing can be obtained from a local bank. In fact, something about the tone of his voice makes her believe that this was just a(n) __________ to hide his real objection to buying.

A) explanation B) excuse C) motive D) thought E) logic

31) Professor Donoho at Northern Arizona University teaches a method called the __________ that is used to encourage buyers to elaborate or explain more fully what their concerns are.

A) best alternative to a negotiated agreement (BATNA) B) benefit summary method C) center-of-influence method D) friendly silent questioning stare (FSQS) E) good guy-bad guy routine

32) Karla has just learned about the friendly silent questioning stare (FSQS) method of responding to objections. She uses it in a meeting with a prospect the next day. In this context, Karla is using a(n) __________ method of probing.

A) psychological manipulation B) nonverbal C) direct denial D) revisit E) acknowledge

33) Which of the following methods of handling a prospect's objection is only appropriate when the prospect's statement is blatantly untrue?

A) direct denial B) compensation C) revisit D) acknowledge E) postpone

34) Alex, an employee of a radio station in San Francisco, sells advertising time to interested clients. While talking to a local retailer, Alex is told, "Your station's advertising time costs three times as much as the other radio stations." Alex responds, "If you look carefully at our rate card, you will see that the costs you are referring to are only for prime-time advertising. The rest of our rates are just as reasonable as the other stations, and we have twice as many listeners." Alex is using the __________ method to respond to a buyer's objections.

A) direct denial B) compensation C) revisit D) acknowledge E) postpone

35)

Which of the following is true of the direct denial method of responding to an objection?

A) It should never be used if the prospect is merely stating an opinion.

B) It should be used if the prospect has raised a valid point.

C) It should be used for all personality types.

D) It should never be used if the credibility and knowledge of the salesperson is unknown.

E) It should never be used if the objection is false.

36) As Thomas described his firm's landscape maintenance program to a buyer from Allentown Medical Center, the buyer interrupted, "Your program sounds like a winner, but I'm not interested in doing business because start-up landscaping firms go in and out of business in just a few months." Thomas responded with, "I'm sorry, but that simply is not true of our firm.

We have been in the business for over 15 years." Thomas's response illustrates the __________ method of responding to objections.

A) compensation B) boomerang C) direct denial D) referral E) postpone

37) In the __________ method of handling an objection, the salesperson tells the prospect the objection presented is not true but does so in a manner that softens the response.

A) acknowledge B) referral C) postpone D) indirect denial E) turndown

38) A buyer expresses concern to Elle, a salesperson, that the cost of the kitchen appliances she is trying to sell is too high. Elle responds by saying, "The fact that the appliances we offer are more expensive than some others available in the market is exactly why you should consider buying from us. The high cost of our products is justified by the quality assurance we provide, which will help you save considerably on maintenance costs." In this scenario, Elle is most likely using the __________ of responding to objections.

A) acknowledge method B) indirect denial method C) revisit method D) postpone method E) compensation method

39) Your buyer has just said, "Your machines break down more often than most of your major competitors' machines." You decide to reply using the indirect denial method to handle this objection. Which of the following statements is the best example of this method?

A) "That's true. However, they are 30 percent less expensive. So they're still a better deal for you."

B) "That simply is not true. Studies show that our machines break down no more than our major competitors'."

C) "That may have been true at one time. In fact, before we introduced our new quality control management system, that statement would have been right on target. However, things have changed."

D) "I can see why you feel that way, but on the other hand, we do have very good service centers where you could get your machine fixed."

E) "You know, I think everyone should be as concerned about quality as you are."

40) Which of the following is an important feature of the indirect denial method of responding to objections?

A) Salespeople recognize the position of the customer who makes an objection and then continue by introducing substantial evidence.

B) In this method, the buyer's objection is used as a means of getting rid of the salesperson.

C) This method stimulates salespeople to base their sales presentations on an analysis of the customer.

D) Salespeople admit that every objection made by the buyer is valid and then proceed to show any compensating advantages of a product or a service.

E) Successful salespeople discuss only those objections that specifically address the needs of the prospect.

41) A salesperson using the __________ method of responding to objections acknowledges that an objection is valid and proceeds to offer some offsetting advantages of the good or service being sold.

A) consultative B) compensation C) revisit D) acknowledge E) indirect denial

42) The compensation method of responding to objections is often referred to as the superior benefit method because A) the advantage of one attribute overcomes a concern about a less important attribute.

B) selling firms determine which strategy to use for each customer based on such factors as the estimated value of the customer.

C) the salesperson knows where the buyers stand and if they are paying attention.

D) the information provided by the salesperson is usually perceived as more credible than information from paid communication sources.

E) the advantage of getting an immediate feedback from the buyer increases rapidly.

43) Gary objected to the high cost of the copier that Lynette was suggesting his company purchase. Lynette stated, "The initial price is one of the highest on the market, but this copier offers the fastest output rates available on the market and has one of the best maintenance records in the industry. This will assist you in meeting those critical production deadlines you told me about." Lynette is using the __________ method to respond to Gary.

A) direct acceptance B) pass-up C) referral D) revisit E) compensation

44) "I realize that our barcode label printer is more expensive than others that you may be looking at, but the Zelton barcode label printer is designed for Microsyne operating systems.

Your employees will be able to learn how to operate our machine much faster than the other brands because of their familiarity with Microsyne. You won't experience any loss in productivity as this printer is synced with your system. It takes up to two weeks for employees to become comfortable using some of the other barcode label printers on the market." Which method of dealing with objections is the Zelton Systems salesperson using in this example?

A) direct acceptance B) pass-up C) referral D) revisit E) compensation

45) Identify the correct sequence that illustrates the referral method of responding to objections that is used by salespeople.

A) "I can see how you feel … others felt the same way … yet they found …"

B) "That is an interesting point … Before discussing it fully, I would like to cover just two things that I think will help you …"

C) "I can see how you feel … I felt that way in the past … yet I found …"

D) "I can see how you feel … others felt the same way … and I have found …"

E) "I certainly understand your concern … If you do not mind, I would prefer to answer that question in a few minutes …"

46) The use of a third-party testimonial letter strengthens the __________ method of responding to a prospect's objections.

A) compensation B) indirect denial C) boomerang D) referral E) acknowledge

47) As Shirley responded to a personnel director's concerns about changing to the health-care plan her firm offered, she said, "I can see why you feel that way. We do have a lot of forms to fill out. Others felt the same way, but they found that it is not nearly as cumbersome as they expected. Here's a letter from …" Which method is Shirley using to respond to this objection?

A) compensation B) revisit C) indirect denial D) direct denial E) referral

48) When a golfing club manager says, "I am concerned that our club members will find that the low center of gravity in the Taylor clubs mess up their golf swings," the Taylor salesperson responds, "I understand how you feel about the clubs. Another buyer felt the same way as you do until he tried the clubs for a month. He found them easy to use and that they actually improved his average score." Which method of dealing with objections is the Taylor salesperson using?

A) compensation B) indirect denial C) submissive D) referral E) direct denial

49) With the __________ method of responding to objections, the salesperson turns the objection into a reason for buying the product or service.

A) submissive B) bounce-back C) revisit D) postpone E) backfire

50) "I agree, sir, that the valve buttons on this brand of aerosol paint are very difficult to remove, and you will be glad they are. They are made that way to prevent children, who might sneak into your garage to play, from painting everywhere, accidentally harming themselves, and so on." Which of the following methods for responding to objections has been used in this scenario to convince the customer?

A) referral method B) acknowledge method C) compensation method D) indirect denial method E) revisit method

51) Karen said to the sales executive of a holiday resort, "Your resort is miles away from the city!" To this, the sales executive replied, "Yes, it is quite far from the city." After a pause, the executive moved on to taking Karen through some other details. Which of the following methods of responding to objections is the sales executive most likely using in this scenario?

A) the revisit method B) the boomerang method C) the compensation method D) the postpone method E) the pass-up method

52) At times, a buyer voices opinions or concerns more to vent frustration than anything else.

When this occurs, the best strategy to use would be to use the __________ method.

A) direct denial B) acknowledge C) postpone D) referral E) compensation

53) While a salesperson was trying to sell a new textbook, a professor began to complain about the rising cost of textbooks. The salesperson responded, "Yeah, it's not cheap to get quality education these days." Then, after a pause, the salesperson continued, "Did I tell you who wrote the test bank that comes with this book?" Which method did the salesperson use to deal with the objection?

A) direct denial B) acknowledge C) postpone D) referral E) compensation

54) Which of the following statements is true of the pass-up method of responding to a buyer's objections?

A) It involves responding to the objection at a later time during the presentation.

B) It should be used sparingly, based on the salesperson's judgment and experience.

C) It should be used only if the objection raised is factually false.

D) It should be avoided when the buyer is trying to vent frustration.

E) It involves making use of the objection by turning it into a reason for buying.

55) When a buyer asked the price of a particular model of meat slicer, the company's salesperson said, "If you don't mind, we can discuss that later, after I show you how this slicer can handle everything from steaks to onions." In this scenario, the salesperson is using the __________ method to respond to the buyer's objection.

A) revisit B) compensation C) acknowledge D) boomerang E) postpone

56) When a prospect asked how quickly the replacement part for a wood laminating machine could be delivered in the event of a part failure, the salesperson said, "Before we discuss replacement parts, let me explain to you how my company's machine reduces waste to a minimum and still produces beautiful laminations." What method for handling an objection was used in this example?

A) the revisit method B) the compensation method C) the acknowledge method D) the boomerang method E) the postpone method

57) Which of the following is a danger posed by the postpone method of responding to objections?

A) It generally leads the salesperson to giving into the demands of the customer and lowering the price of the product.

B) The salesperson is not responsible for helping the buyer critically evaluate the solution offered.

C) Customers develop a dislike for the salesperson, and they feel that they cannot trust the salesperson.

D) The buyer is unable to focus on what a salesperson is saying until his or her concern is addressed.

E) It interrupts presentation because a price objection occurs early in the presentation.

58) If a salesperson uses the postpone method of responding to an objection and the prospect obstinately insists on an answer right at the time, the salesperson should

A) answer the objection.

B) repeat the request for permission to postpone the objection.

C) directly refuse and continue with the original presentation plan.

D) attempt to change the subject.

E) ask to reschedule the appointment to a better time.

59) Which of the following statements is true of the compensation method of responding to a buyer's objections?

A) It involves using persuasion to turn an objection into a reason to buy.

B) It violates the principles of the multiattribute model.

C) It is also referred to as the revisit method.

D) It appears to work best for analyticals.

E) It should only be used if the objection is blatantly inaccurate.

60) Constance sells a multilingual information service. She has just encountered a price objection from a prospective client. For applying the two-step approach to this objection, Constance should try to look at the objection from the customer's viewpoint, asking questions to clarify the customer's perspective. Which of the following should her next step be?

A) to sell value and quality rather than price B) to ensure that she has up-to-date information about the products being offered C) to endorse the price of the products D) to let the buyer control and adjust the presentation E) to try to lower the price by eliminating certain services the prospect can perform inhouse

61)

Which is the worst type of objection that salespeople face?

62)

Discuss briefly the LAARC method.

63)

What are some situations in which a firm may need to institute a turnover?

64) The Interface carpet salesperson knew his prospect would be skeptical about whether a carpet made from corn could be as soft and pliable as a carpet made from nylon, so he brought both types of carpet to the sale and let the buyer examine them closely. What was the carpet salesperson doing when he invited the buyer to look at the carpet before actually beginning his sales presentation?

65)

How do successful salespeople respond to objections?

66) Howard plans to take a notebook computer with him on an archeological dig in the Yucatan Peninsula. He says to the seller, "I just can't believe there is a notebook that can withstand the weather extremes that I'm likely to find at the dig." The salesperson immediately hands him a letter from a customer who had taken with her on a trip to the Brazilian rainforest a notebook bought from the company. The letter was extremely complimentary of how the notebook operated in extreme weather conditions, even when held in awkward positions. What method of handling objections did the salesperson use?

67) A prospect said, "No shoe company can provide shoes for every member of my crew.

One of my crew members wears a size 5 and another, who is 6'4", has extremely huge feet.

Hearing this, the salesperson responded, "I know different individuals can have varying shoe sizes and that's exactly why you need to buy Red Wing shoes. We have several styles of work boots in every size imaginable." What method for handling objections did the salesperson use?

68) What strategy for dealing with objections is appropriate when a buyer is venting frustration?

69) Carmen is making a PowerPoint presentation when a prospect interrupts her with an objection that Carmen has already anticipated and will address in a subsequent slide. What strategy can Carmen use to address the objection?

70) Cory is making a presentation to a group of buyers from an agricultural co-op. One of the buyers offers an objection to Cory's products. What is the first thing Cory should do?

71) Salespeople should do everything they can to encourage buyers to voice concerns or questions. ⊚ true ⊚ false

72) The worst type of objection is the one in which a buyer raises objections to points made in the sales presentation. ⊚ true ⊚ false

73)

The greatest evidence of sincerity comes from a salesperson's words. ⊚ true ⊚ false

74) Prospects never object to setting the appointment times or dates that salespeople request to introduce products, especially when the products are unfamiliar. ⊚ true ⊚ false

75)

Objections during a presentation show the prospect is paying attention.

⊚ ⊚

true false

76) It is better to have a prospect say, "No thanks," rather than voice his or her concerns during a presentation as this allows the salesperson to move on to other potential customers. ⊚ true ⊚ false

77) A buyer saying, "You promised two-week delivery, but our last order took a month to arrive," is objecting to your product features. ⊚ true ⊚ false

78) Buyers who object to get more information are usually least interested, and the possibility of obtaining commitment from them is not good. ⊚ true ⊚ false

79) If a prospect legitimately offers the "no money" objection, the salesperson should give up trying to sell to him or her. ⊚ true ⊚ false

80) A turnover occasionally occurs because a salesperson is failing to practice adaptive selling behaviors. ⊚ true ⊚ false

81) In pioneer selling, the salesperson has no difficulty establishing a need in the buyer's mind. ⊚ true ⊚ false

82) In dealing with prospects and clients, salespeople should indulge in occasional white lies and half-truths when they answer objections. ⊚ true ⊚ false

83)

Successful salespeople avoid forestalling known concerns. ⊚ true ⊚ false

84)

Salespeople should avoid probing as a response to buyers' objections. ⊚ true ⊚ false

85) Direct denial should be used by salespeople when a prospect's objections are based on inaccurate information about the seller's firm. ⊚ true ⊚ false

86) The referral method of handling objections is most appropriate for analyticals and drivers and least appropriate for amiables and expressives. ⊚ true ⊚ false

87) The acknowledge method of responding to objections should not be used if a salesperson, through probing, can understand the buyer's thinking on the topic. ⊚ true ⊚ false

88) When using the revisit method of responding to objections, a salesperson responds to a buyer's objection at a later time during the presentation. ⊚ true ⊚ false

89) Salespeople should use the postponement method when a prospect is blowing off steam and does not have a valid objection. ⊚ true ⊚ false

90) The boomerang method of responding to objections should not be used in postsale situations. ⊚ true ⊚ false

91) A salesperson responds to a buyer's objection by saying, "I understand your concern. You know, one of the things I always look for is how a product's quality stacks up against its cost.

[Pause] Now, we were talking about …" In this scenario, the salesperson is employing the compensation method. ⊚ true ⊚ false

92) When selling to a group of buyers, if one of the buyers offers an objection, the seller should try to get a sense of whether the other buyers share the concern.

⊚ ⊚

true false

93) The price objection is very rarely raised by buyers when a salesperson tries to obtain commitment. ⊚ true ⊚ false

94) Successful salespeople make sure they have the most current pricing information available to them. ⊚ true ⊚ false

95) A product's value must be established after the salesperson has spent time discussing its price. ⊚ true ⊚ false

96) If Augusta does not build the value of her product in her prospect's mind to the point where it is greater than the price asked, there will be no sale. ⊚ true ⊚ false

97)

Price objections are best handled by lowering the price until the prospect is happy. ⊚ true ⊚ false

98) After learning about the customer's perspective regarding a price objection, the next step is to sell value and quality rather than price. ⊚ true ⊚ false

99) Customers value sales representatives who go out of their way to help with problems and promotions. ⊚ true ⊚ false

100) Sellers need to maintain a positive attitude, even with rude, hard-to-get-along-with prospects. ⊚ true ⊚ false

Answer Key Test name: chapter 10 11) E 12) D 13) A 14) C 15) B 16) B 17) B 18) E 19) B 20) A 21) E 22) C 23) C 24) C 25) E 26) C 27) D 28) C 29) A 30) B 31) D 32) B 33) A 34) A 35) A 36) C

37) D 38) C 39) C 40) A 41) B 42) A 43) E 44) E 45) A 46) D 47) E 48) D 49) C 50) E 51) E 52) B 53) B 54) B 55) E 56) E 57) D 58) A 59) D 60) A 71) TRUE 72) FALSE 73) FALSE 74) FALSE 75) TRUE 76) FALSE

77) FALSE 78) FALSE 79) TRUE 80) TRUE 81) FALSE 82) FALSE 83) FALSE 84) FALSE 85) TRUE 86) FALSE 87) TRUE 88) FALSE 89) FALSE 90) FALSE 91) FALSE 92) TRUE 93) FALSE 94) TRUE 95) FALSE 96) TRUE 97) FALSE 98) TRUE 99) TRUE 100) TRUE Student name:__________ 1) Give any three reasons why salespeople need to become proficient in obtaining commitment.

2) What does FOB mean? Differentiate between FOB origin, FOB destination, and FOB installed.

3)

Describe submissive salespeople.

4)

Describe assertive salespeople.

5) Is there a right time to obtain commitment? How do customers let salespeople know they are ready to buy?

6)

How can a salesperson obtain commitment without being manipulative?

7) Describe two situations in which the benefit summary method of obtaining commitment is most effective.

8) A customer has agreed to buy a multimillion-dollar oil well drilling platform from Tara's company. As a salesperson, what are the three important points that Tara needs to remember as she gets her buyer to sign on the form and formalize his commitment to buy?

9)

Discuss an advantage of the benefit summary method over the direct request method.

10)

How should salespeople bring a sales call to a close?

11)

Which of the following statements is true of obtaining commitment from a buyer?

A) Even without a buyer's commitment, a sale can take place.

B) Obtaining commitment deals only with securing an order.

C) The process of obtaining commitment occurs only toward the end of any sales call.

D) If obtaining commitment fails for any reason, the salesperson should argue or show his disappointment to the prospect.

E) Salespeople gain commitment repeatedly, for instance, when checking to see whether a customer's entire needs have been identified.

12)

Identify a true statement about closing techniques used in a major sale.

A) Salespeople are advised to concentrate on closing orders rather than on developing relationships with customers.

B) Reliance on closing techniques instead of engaging in identifying needs and providing solutions reduces the chances of making a sale.

C) A high-pressure close is necessary when the salesperson has done a good job throughout the process of obtaining commitment.

D) An emphasis on getting the sale no matter what raises the possibility of getting a commitment.

E) Closing receives very little emphasis in sales training.

13)

Why does a salesperson need to become proficient in obtaining commitment?

A) to manipulate a buyer into making a purchase B) to sell a product to a buyer who does not need it C) to ensure future success for his or her company D) to convince a buyer to do a favor by buying a product E) to ensure postpurchase dissonance

14) David has done his job well in presenting the product, showing how it meets the needs of his customer, and handling all questions and objections. What should David do in this situation?

A) decrease the price if the buyer seems to be uninterested B) avoid follow-ups as it might push the buyer to buy C) not pressurize the customer into making a commitment D) ask the buyer to do him a favor and buy his product E) do or expect all of these

15) If Perkston's Aquatic Store, a retailer of aquarium fish and supplies, buys one 200-gallon fish tank from Merida's Aquarium Products, it will be billed $329. If it buys more than six in the upcoming year, it will get a 20 percent discount on each aquarium. Identify the type of savings described here.

A) cumulative discount B) promotional allowance C) trade discount D) functional discount E) single-order discount

16) The owner of Sherwyn's Hardware will receive a discount of 15 percent if she orders 12 or more Mandarin bird feeders from Darren’s Products. If she orders fewer than 12 bird feeders, she will not receive the __________ discount.

A) functional B) trade C) quantity D) promotional E) managerial

17) The owner of Molly's Gift Shop ordered a brass sculpture from The Brass Baron, a distributor of gardening equipment. The invoice she received on March 19 from The Brass Baron read, "2/15, n/30." What will most likely happen if she pays the invoice on April 10?

A) She will get a 2 percent discount.

B) The price will be increased by 2 percent.

C) She will get no discount.

D) She will get a 15 percent discount.

E) The price will be doubled.

18) Kendall is the new owner of a catering company. She receives the invoice for a new walk-in refrigerator, which mentions "2/10, n/30." Which of the following statements accurately explains this?

A) She can get a 10 percent discount if she pays within two days of receiving the bill; otherwise, it is due at the end of the month.

B) She can get a 20 percent discount if she pays within ten days of receiving the bill; otherwise, it is due at the end of the month.

C) She can get a 2 percent discount if she pays within ten days of the invoice date; otherwise, the full amount is due in 30 days.

D) She can get a 30 percent discount if she pays within two days of receiving the bill, or she can get a 10 percent discount if she pays by the end of the month.

E) She can get a 10 percent discount if she pays within two days of receiving the bill; she will have to pay a 10 percent penalty if it is not paid within 30 days.

19) The owner of a pet store ordered $200 worth of bird feed from Cadmia Avicultural Research Incorporated The invoice dated October 18 that was sent to the store owner mentioned "3/10, EOM." If the store owner pays the bill on November 2, which of the following will apply?

A) The price will increase by 3 percent.

B) He will get a 3 percent discount.

C) He will get a 10 percent discount.

D) The price will be tripled.

E) He will get no discount.

20)

Which of the following statements is true of shipping costs?

A) "FOB installed" indicates that the title and responsibility are transferred before an equipment is installed and used for operation.

B) FOB installed excludes costs related to operator training before title transfers.

C) The terms and conditions of a sale exclude shipping costs involved in transporting the goods.

D) Shipping costs and responsibility for the goods are always on the seller.

E) FOB destination is when the buyer takes responsibility for the goods once they reach the buyer's location and the seller pays the freight.

21) Joe's Safety Supply Incorporated quotes an FOB destination price to a factory buying five hazardous waste disposal units. What does this indicate?

A) Joe's Safety Supply will pay all freight charges.

B) The factory will pay all freight charges.

C) The factory will assume complete responsibility for the units once they leave Joe's Safety Supply loading dock.

D) Joe's Safety Supply and the factory will split all shipping charges.

E) The factory will pay for any damage caused to the units while shipping.

22) Berylia Nursery Company quotes an FOB origin price to a plant nursery. What does this indicate?

A) The plant nursery will be reimbursed for all plants that die in transit.

B) Berylia will pay all shipping costs.

C) The plant nursery will pay all shipping costs.

D) Berylia and the plant nursery will split the shipping costs.

E) Berylia will take complete responsibility for the product until it reaches the plant nursery.

23) Betty agreed to purchase a new CT scanner for her hospital under the terms of free on board (FOB) installed. Identify the terms and conditions of this sale.

A) The title and the responsibility of the scanner will not transfer until the equipment is fixed and operating properly.

B) The responsibility of the scanner will be with Betty once it is shipped.

C) The scanner will be shipped for free, but its installation will be charged to Betty.

D) Betty will have to assume responsibility for both the scanner and its shipping costs.

E) Betty will have to pay half of the shipping and installation charges.

24) Connor, the owner of a start-up, has studied his competitor's offerings, the value delivered by his company's products, and the cost of providing the product to customers. Based on his research, he has set the prices for his products. Which of the following should be expected from Connor in this scenario?

A) He should never apologize for the price he quotes.

B) He should focus solely on the price of his products throughout his presentation.

C) He should remember that price is the only concern for customers.

D) He should aggressively discount list prices to ensure customer satisfaction.

E) He should not hesitate in overcharging his customers.

25) Jeremy, a manager at Delsy Fashions Incorporated, was interested in the fabrics presented

by Derick, a sales executive at Fabon Company Jeremy had a natural smile and a relaxed forehead during Derick's presentation. Identify these nonverbal indications by Jeremy.

A) mirroring B) closing cues C) activity quotas D) nibbling E) style flexing

26) A prospective buyer says, "This is a great product you're selling. I don't know why someone didn't come up with this product years ago." In this scenario, what would the salesperson most likely perceive these comments as?

A) closing flags B) buying signals C) closing links D) spiffs E) purchase influencers

27)

Identify a true statement about the financial terms and conditions of a sale.

A) Promo codes encourage large purchases by passing along savings resulting from reduced processing costs.

B) Free on board (FOB) installed indicates that the title and responsibility of the equipment are transferred before it is installed and operating properly.

C) The terms and conditions of a sale do not include shipping costs.

D) Factors that affect price are the use of quantity and other discounts, as well as credit and shipping terms.

E) Figuring out the final actual price is easy, especially in situations with many options and packages rather than standardized products.

28) Which of the following best exemplifies a prospect offering his or her own benefit statement?

A) "Our computer specialist must confirm that this new inventory system will work with our accounts receivable program."

B) "Oh good, that cherry color matches the decor in our waiting room."

C) "Studies show that machines manufactured by your company break down no more than your major competitors'."

D) "We cannot order from your company unless you guarantee that we will receive a cash discount for orders larger than 20 units."

E) "The quality of the dump trucks produced by your company is too low for such a high price."

29)

Which of the following best exemplifies a buyer presenting his or her requirements?

A) "We cannot order from your company unless you guarantee that we will receive a cash discount for orders larger than 100 units."

B) "Oh good, that cherry color matches the decor in our waiting room."

C) "I like the way your company responds to service requests."

D) "This software is much better than the one we are currently using. It will make processing customer data much easier."

E) "Oh, I like the way the equipment manufactured by your company is serviced."

30) A buyer's comments are often the best indication that he or she is considering commitment. When the buyer says, "This is a great product you're selling. I don't know why someone didn't come up with this idea years ago," the salesperson should categorize this statement as a __________ statement.

A) closing B) buffer C) benefit D) direct-request E) synergistic

31) Which of the following statements is the best example of a trial close used by a salesperson selling refrigerator units to supermarkets?

A) "How does a savings of $30 per month on your refrigeration electricity bill sound?"

B) "Are you interested in how the oversized coil works to keep food cold and eliminate frost?"

C) "How does the ease of mobility of this unit compare with that of other refrigeration units you have seen?"

D) "Do you think you'd be interested in buying the optional illumination signage that comes with our units?"

E) All of these are examples of trial closes that could be used by a salesperson selling refrigerator units to obtain buyer commitment.

32) Peter is the marketing manager of Alcafossil Watches Company The company has introduced a new line of smartwatches into the market, and Peter is responsible for securing commitment from clients. Throughout the sales presentation, he asks questions like, "How does this sound to you so far?" In this scenario, Peter is using __________ to assess the pulse of the situation.

A) trial closes B) trial order C) closing cues D) benefit statements E) requirements

33) Jessica has been answering a buyer's questions throughout her sales presentation and receiving positive signals from the buyer. When she gets to the final close, what should she ideally do?

A) She should push harder to get a commitment.

B) She should expect the final close to be a natural part of the ongoing dialogue.

C) She should be aggressive and assertive in her final sales interactions.

D) She should anticipate objections and answer them in advance.

E) She should immediately try selling another product to the buyer.

34) Which of the following nonverbal signals indicates that a buyer is ready to make a commitment?

A) arms folded tightly across chest B) a forced smile C) eyes open and relaxed D) face and mouth covered by hands E) All of the answers are correct.

35) Karl, a salesperson for a digital appliances company, uses an assertive selling style during presentations with buyers. Which of the following is he most likely to do during his presentations?

A) He will most likely minimize participation by the customer.

B) He will most likely encourage two-way communication and customer participation.

C) He will most likely permit the customer to control the presentation.

D) He will most likely enforce his views on the customer.

36) Which type of salespeople control a sales interaction but often do not gain commitment because they prejudge the customer's needs and fail to probe for information?

A) aggressive salespeople B) submissive salespeople C) empathetic salespeople D) confident salespeople E) motivated salespeople

37) "I don't understand why you're afraid to commit to this new ad program," said Barry, a sales representative of a popular radio station, to the marketing manager of a large retail store.

"Our radio station is offering you a chance to be heard around the clock and all over town. If you sign today, we can have your ad on air starting the day after tomorrow. No other radio station offers such an extensive advertising service. So, would you prefer your ad being broadcast every 60 minutes or every 30 minutes?" In this scenario, Barry would be classified as a(n) __________ salesperson.

A) aggressive B) empathetic C) unassertive D) passive E) submissive

38) Candace enjoys meeting potential buyers. They always have a nice time discussing the products she represents. She assumes that since a prospect will buy when he or she is ready, there is no need for her to be pushy. She never tries to obtain commitment from a buyer because she fears rejection. What type of salesperson is Candace?

A) hostile B) submissive C) assertive D) ignorant E) aggressive

39) __________ salespeople are self-confident and positive, and they maintain the proper perspective by being responsive to customer needs.

A) Impersonal B) Apathetic C) Submissive D) Assertive E) Aggressive

40)

Which of the following statements is true of submissive salespeople?

A) They probe to uncover any latent needs or opportunities for sales.

B) They create new "needs" in customers through persuasion.

C) They prejudge the customer's needs and fail to probe for information.

D) They establish rapport quite effectively.

E) They are self-confident and positive.

41)

Identify a true statement about trial orders.

A) Salespeople who get trial orders have an actual commitment from their buyers.

B) Trial orders are automated orders for ordering parts and raw materials with specific delivery dates.

C) Trial orders are used to gain agreement on minor points of a sales procedure.

D) A trial order is no commitment, and all too often a buyer will agree to a trial just to get rid of the salesperson.

E) A buyer is committed to investing all the time needed to get the full benefit of the product or service purchased as a trial order.

42) A salesperson asks, "Would you like me to place an order for your distribution center today?" In this scenario, he is using the __________ closing method.

A) benefit summary B) direct request C) balance sheet D) assumptive E) alternative choice

43) A telemarketer who was trying to get Chloe to change her Internet usage plan asked her, "Are you ready to switch now?" This scenario indicates that he was using the __________ closing method.

A) benefit summary B) direct request C) balance sheet D) assumptive E) alternative choice

44) As Rick attempted to obtain commitment from his prospect, he said, "You stated in your previous visit that you were looking for a product with a low cost as well as a long life. As I've mentioned in our previous presentations, our product has the lowest price in its class. And, according to industry reports, our product lasts 20 percent longer than our major competitors."

This is an example of the A) balance sheet method.

B) direct request method.

C) assumptive close method.

D) benefit summary method.

E) alternative choice method.

45) In which of the following situations is the benefit summary method for obtaining commitment best used?

A) getting a reorder on latex gloves B) the purchase of a corporate jet that requires several meetings to hammer out all the details C) a customer placing an order for a particular dish at a restaurant D) the purchase of lobster to be served at a wedding feast E) None of the answers is correct.

46) As Rhonda discussed Sean's upcoming vacation plans with him, she said, "I know it is a big decision for you, and you want to be sure that the Great America Adventure Tour that you have opted for is the right decision for you. Why don't we list the pros and cons? On the positive side, the tour will show you a unique side of the country. Now, what do you see on the negative side?" This is a partial example of the __________ method of obtaining commitment.

A) balance sheet B) probing C) assumptive D) emotional close E) benefit-in-reserve

47) The __________ method of closing a sale attempts to bring to the table all issues of concern to the prospect but does not claim to be able to resolve the issues.

A) alternative choice B) benefit summary C) direct request D) minor point E) probing

48) Harold asks his prospects several questions to understand the reasons for their hesitation in buying his product. He tries to identify all the issues and tries to solve them immediately.

From this scenario, it is evident that he uses the __________ method of obtaining commitment.

A) alternative choice B) benefit summary C) direct request D) minor point E) probing

49)

Which of the following scenarios illustrates the use of a traditional closing method?

A) A seller explains how his product can meet his buyer's needs throughout the presentation.

B) A seller lists the pros and cons of buying the product along with the buyer if the buyer cannot make a decision immediately.

C) A seller appeals to a buyer's emotions by saying that he really needs to secure an order as his commission for that month depended on him making a sale on that day.

D) A seller asks a set of probing questions to understand why the buyer is hesitant to buy the product.

50)

Which of the following applies to the probing method of obtaining commitment?

A) The salesperson should never begin by asking directly for a commitment.

B) The salesperson should ask a series of questions designed to discover the reason for hesitation.

C) This method is especially effective with Japanese and Arab business prospects.

D) The salesperson should avoid attempts to resolve issues concerning the prospect.

E) After successfully dealing with the prospect's concerns, the salesperson should avoid a follow-up and let the prospect think over what has just been said.

51) Haley, a sales manager at Aesthetic Krafts Company, manages the sales of office furniture for corporate companies. Recently, she presented two varieties of glass and mahogany desks to Jackson Realty Company's office managers. She did not want to overwhelm her customers with a wide range of varieties and designs. Identify the method of obtaining commitment used by Haley in this scenario.

A) the alternative choice method B) the benefit-in-reserve method C) the direct request method D) the benefit summary method E) the balance sheet method

52) After important decisions, buyers may feel a little insecure about whether the choice was a wise one. This insecurity is called A) postpurchase dissonance.

B) regret at leisure.

C) prisoner's dilemma.

D) buyer's apology.

E) conspicuous consumption.

53) After two weeks of looking and comparing alternatives for a laptop, Julie finally bought a Macbook. For days following the purchase, she kept pondering if she should have purchased a different brand. What is Julie experiencing in this scenario?

A) decoy effect B) diderot effect C) buyer's remorse D) commitment insecurity E) conspicuous consumption

54) As Warren concluded his meeting with Christina, he said, "Congratulations, I know you're going to be glad you decided to use our service. There is no finer service available in New York City. Now let us make sure we get off to a great start! I will be here next Thursday to begin work." What was the main purpose of this dialogue?

A) to have Christina agree to a larger order before he leaves B) to get the names of other prospects from Christina C) to reduce postpurchase dissonance D) to avoid an awkward silence while he gathered his things before leaving E) to enhance his ability to manipulate Christina in the future

55) Kristy visited a car showroom as she wanted to buy a new car. While she was looking at a new range of compact luxury sport sedans on display, Edward, the salesperson, asked Kristy, "Which one do you like, the red one or the black?" "Black," she replied. "Great, I will write it up!" responded Edward. Kristy was upset as she felt that she was being tricked into making a commitment. Which of the following traditional closing methods was used by Edward in this scenario?

A) the assumptive close B) the minor-point close C) the benefit-in-reserve close D) the emotional close E) the standing-room-only close

56) Identify the traditional closing method based on self-perception theory in which the buyer begins to perceive himself or herself as being agreeable.

A) the standing-room-only close method B) the minor-point close method C) the emotional close method D) the continuous yes close method E) the benefit-in-reserve close method

57) John, a salesperson of a pharmaceutical company, begins to fill out the order form as Mathew, a medical practitioner at St. Gregory's Medical Center, answers questions about the stock of medicines in the hospital. Which of the following traditional closing methods is being used by John in this scenario?

A) the emotional close B) the minor-point close C) the benefit-in-reserve close D) the standing-room-only close E) the assumptive close

58) A real estate agent told a prospective home buyer, "You seem to really like that last house we looked at, which is why I am informing you that one of the other agents in our office is scheduled to bring another couple out to take a second look at it this afternoon. I think you better go ahead and make an offer on it before it's too late." Which of the following traditional closing methods does the real estate agent appear to be using?

A) the emotional close method B) the minor-point close method C) the direct action close method D) the standing-room-only close method E) the assumptive close method

59)

Which of the following is a reason why salespeople fail to obtain commitment?

A) fear of asking B) displaying unwarranted excitement C) poor presentation D) speaking more than listening E) All of the answers are correct.

60) Stella was upset when she failed to obtain commitment from her buyer. What would be the most appropriate reaction in this scenario?

A) She should thank her buyer for taking the time to listen to her presentation.

B) She should blacklist the buyer from the customer database.

C) She should show her disappointment toward the buyer and make the buyer feel guilty for wasting her time.

D) She should immediately try to sell another product to the same buyer, but more aggressively.

61) What are the negative consequences of the traditional emphasis on getting the sale no matter what?

62)

What are the two types of quantity discounts offered by businesses?

63)

What is typically the last element of any deal to be presented and discussed?

64)

What is meant by the credit term "2/10, n/30"?

65)

Why is free on board (FOB) installed an important term for sellers as well as buyers?

66) Just as the salesperson was ready to ask for a commitment from a purchasing agent, the agent said, "I will need a 10 percent discount for an order this large." What is the term used for this sort of a condition?

67) Identify one of the main reasons for salespeople's improper attitudes toward obtaining commitment.

68) What method of commitment is a salesperson using when he asks the prospect, "How does my company's system for monitoring refrigeration leaks sound to you?"

69) Donna is attempting to close a sale. She takes out a piece of paper and outlines the benefits of adopting her product versus the benefits of staying with the product the prospect is currently using. What approach is Donna using?

70) After Sebastian purchased the HEPA vacuum cleaner for $819, he became worried that he could have gotten a vacuum cleaner just as good for less money if he had continued searching.

Identify the term that best describes Sebastian's feeling of anxiousness.

71)

Even without a buyer's commitment, a sale can take place. ⊚ true ⊚ false

72)

The process of obtaining commitment always occurs at the end of a sales call. ⊚ true ⊚ false

73) Obtaining commitment is important in moving a sales account through the relationship process. ⊚ true ⊚ false

74) Typically, high-pressure closing is necessary when the salesperson has done a good job throughout the entire process of a sales call. ⊚ true ⊚ false

75)

The most common type of discount is the quantity discount. ⊚ true ⊚ false

76) In the context of credit terms, 2/10, n/30 indicates a discount of two-tenths from a bill if it is paid within 30 days. ⊚ true ⊚ false

77) "Free on board (FOB) installed" means that title and responsibility are transferred before an equipment is installed and operating properly. ⊚ true ⊚ false

78) If Mary's Nursery Company in Philadelphia quotes an FOB origin price to a buyer in Delaware, it means the buyer will pay the shipping costs. ⊚ true ⊚ false

79)

Salespeople should never apologize for the price they present. ⊚ true ⊚ false

80) The right time to attempt to gain commitment is when a buyer appears ready, as evidenced by buying signals. ⊚ true ⊚ false

81) In every sales presentation, there occurs one psychological moment during which a commitment can be obtained. If this opportunity is lost, the sales presentation is considered a failure. ⊚ true ⊚ false

82) Because most salespeople ask closing questions, the final close is a natural part of the ongoing dialogue. ⊚ true ⊚ false

83) Aggressive salespeople control the sales interaction and often gain commitment because they prejudge the customer's needs and probe for information. ⊚ true ⊚ false

84) The chances to obtain commitment increase rapidly when a salesperson tries to sell too many or too few units. ⊚ true ⊚ false

85)

Assertive salespeople attempt to create new needs in customers through persuasion.

⊚ ⊚

true false

86)

Salespeople should rely solely on trial orders. ⊚ true ⊚ false

87)

A trial order should not be considered as a commitment from the buyer. ⊚ true ⊚ false

88) The most straightforward, effective method of obtaining commitment is the benefit summary method. ⊚ true ⊚ false

89)

Partnering methods of obtaining commitment are designed to reduce or eliminate choice. ⊚ true ⊚ false

90) The Ben Franklin method of closing a sale is used to list only the advantages of the product or service, not the disadvantages. ⊚ true ⊚ false

91) The balance sheet method of obtaining commitment will never insult a buyer's intelligence.

⊚ ⊚

true false

92) A probing method of obtaining commitment utilizes a series of questions to discover the reason behind a buyer's hesitation. ⊚ true ⊚ false

93) After a salesperson obtains commitment, his or her job is over and other departments in the company take care of the rest of the sale. ⊚ true ⊚ false

94)

When closing a sale, there should be no surprises for the buyer. ⊚ true ⊚ false

95)

The decision to buy or not to buy should not focus on a signature. ⊚ true ⊚ false

96) After making a sale, the salesperson should avoid a follow-up, as the customer might get annoyed. ⊚ true ⊚ false

97) If Louis, a salesperson, appears overly excited when he senses his prospects are about to commit, they may interpret his reactions as nonverbal cues indicating he is dishonest.

⊚ ⊚

true false

98) The real reasons for not obtaining commitment must be covered. Only then can salespeople proceed intelligently to eliminate the barriers that obstruct sales. ⊚ true ⊚ false

99) Part of being honest as a salesperson is showing the disappointment you feel if your prospect does not commit to do business with you. ⊚ true ⊚ false

100)

Goodwill is never built by wasting the buyer's time after the business is concluded. ⊚ true ⊚ false

Answer Key Test name: chapter 11 11) E 12) B 13) C 14) C 15) A 16) C 17) C 18) C 19) B 20) E 21) A 22) C 23) A 24) A 25) B 26) B 27) D 28) B 29) A 30) C 31) E 32) A 33) B 34) C 35) B 36) A

37) A 38) B 39) D 40) D 41) D 42) B 43) B 44) D 45) B 46) A 47) E 48) E 49) C 50) B 51) A 52) A 53) C 54) C 55) B 56) D 57) E 58) D 59) E 60) A 71) FALSE 72) FALSE 73) TRUE 74) FALSE 75) TRUE 76) FALSE

77) FALSE 78) TRUE 79) TRUE 80) TRUE 81) FALSE 82) TRUE 83) FALSE 84) FALSE 85) FALSE 86) FALSE 87) TRUE 88) FALSE 89) FALSE 90) FALSE 91) FALSE 92) TRUE 93) FALSE 94) TRUE 95) TRUE 96) FALSE 97) TRUE 98) FALSE 99) FALSE 100) TRUE Student name:__________ 1)

Discuss briefly the two radically different philosophies that guide negotiations.

2) Richard is the negotiator in a business deal between Sumitama Industries and Motocop Industries. What are the traits that Richard must have to successfully negotiate this deal?

3) Based on the dimensions of assertiveness and cooperativeness, researchers have identified five negotiation modes. List them.

4)

Describe how a salesperson will use the competing mode of negotiation.

5)

Explain lowballing.

6) Discuss the importance of setting several objectives, or positions, in a negotiation meeting.

7) Newbook publishing has just negotiated a contract with an important author. At the end of the negotiations, the author, Pat Conray, makes a "nibbling" request. Create a nibbling request that Pat is most likely to have used.

8) What is the best way to respond to a negotiator who has just thrown his pen across the room and screamed, "We can't pay anymore for what you are willing to offer! You are being inconsiderate"?

9)

Create a plausible scenario of browbeating followed by negotiation jujitsu.

10)

Describe three guidelines for making concessions.

11) Which of the following refers to the bargaining process through which buyers and sellers resolve areas of conflict and arrive at agreements?

A) commercialization B) attribution C) crowdsourcing D) brainstorming E) negotiation

12)

How do negotiations differ from regular sales calls?

A) They generally involve less number of people from the selling firm than regular sales calls.

B) They generally involve more intensive planning than regular sales calls.

C) They require less intensive planning than regular sales call to obtain a sale, if a sale occurs at all.

D) They tarnish goodwill more than regular sales calls by wasting the buyer's time after a business is closed.

E) They create a true dialogue more often than regular sales call in which the ultimate close is a natural conclusion.

13) Sazaki Motors Company and its dealer Best Automobiles wanted to conduct a two-day workshop for dealers at their own premises. After negotiations, it was decided that the first day of the workshop would be arranged in the company's auditorium, while the second day of the workshop would be arranged at the dealer's premises. Identify the negotiation accepted in this scenario.

A) win-win negotiating B) win-lose negotiating C) win-win not yet negotiating D) ambush negotiating E) negotiation jujitsu

14) Sarah is the lead negotiator for her company, which wants to sell its products to Cible Department Store. Sarah explains to the managers at Cible how both her company and Cible can improve their profits. Which of the following philosophies of negotiation is Sarah exemplifying?

A) win-win B) zero-sum C) distributive D) positional E) hard-bargaining

15)

Which of the following statements is true about negotiations?

A) Negotiations are also known as sales presentations.

B) Negotiations exclude people who are not part of a selling firm's sales department.

C) Formal negotiations can take place with anyone who is classified as a buyer or user.

D) Negotiating is an inexpensive endeavor as it hardly requires people to spend time.

E) If a customer is large or important enough, almost anything can be negotiated.

16) A manufacturer of lawn furniture wants to sell its furniture to a large chain of resorts. The buyer and seller prepare for the negotiations. Which of the following items are likely to be covered during the negotiations?

A) credit terms and delivery terms and conditions B) how complaints will be resolved C) delivery schedules D) how the furniture will be designed E) All of the answers are correct.

17) While holding formal negotiations with Cible Department Store, what can CroustillesLay representatives negotiate?

A) the location of point-of-purchase displays of Croustilles-Lay products B) delivery schedules C) how frequently the snacks would be restocked on store shelves D) what would be done with the products that cross their expiry date E) All of the answers are correct.

18) A manufacturer of cast iron frying pans wants to place its frying pans for sale in a major retail store. Which of the following would be a negotiable item?

A) prices and pricing allowances for volume purchases B) inventory levels the retail store should maintain C) retail pricing points D) location of shelf positioning E) All of the answers are correct.

19)

Which of the following is a desirable trait for a negotiator?

A) a fear of conflict B) belligerence C) a willingness to take risks D) constant resistance to change E) introversion

20) Why is it necessary for a good negotiator to have a willingness to take risks and an ability to tolerate ambiguity in a business negotiation?

A) to supply information to customers so that they can pick features that they do not need B) to both accept and offer concessions during a meeting without complete information C) to try to get every concession possible out of the buyer D) to indulge in browbeating, which will help both parties achieve their organizational goals E) to aggressively create new "needs" in customers through persuasion

21)

Which of the following statements is true about planning for a negotiation session?

A) The negotiation sessions should typically be planned for weekends and after-hours to ensure a positive outcome.

B) The negotiation sessions should always be conducted at the buyer's office.

C) The seller’s team should plan the negotiation meeting such that it does not extend beyond 15 minutes.

D) The negotiators should prepare themselves emotionally for the stress that will occur within a negotiation session.

E) The negotiators should avoid meeting the buyer before the actual negotiation session.

22)

Typically, the best place to hold a negotiation is at A) the buyer's office.

B) a neutral site.

C) both the buyer's office and the seller's office, alternatively.

D) the seller's office.

E) the seller's factory.

23) Which of the following is the best time preferred by an experienced negotiator to begin negotiations?

A) after-hours in a workweek B) during a lunch break on a Monday or a Tuesday C) Friday evenings D) mornings in the middle of a workweek E) during the weekends

24) The selling team from A. C. Doyle Food Service is planning a negotiation session with New Bedford College. The team is hoping to acquire the contract to supply food for the college in the next academic year for $1.4 million. At the beginning of the session, Doyle's chief negotiator plans to quote $1.65 million, but later decides that they would accept the contract at any amount above $1.3 million. Considering the chief negotiator's decision, $1.4 million is Doyle's A) minimum position.

B) target position.

C) opening position.

D) maximum position.

E) average position.

25) Jack is the house manager for Beta Theta Pi, a social fraternity. He is negotiating with Jackson Hauling for trash pickup services at the fraternity house. He prefers a three-days-perweek trash pickup schedule, but he is also willing to accept a two-days-per-week arrangement.

While negotiating with the company, he asks for daily trash pickup service. The three-day trash pickup schedule is Jack's A) minimum position.

B) target position.

C) opening position.

D) maximum position.

E) average position.

26) Mac is the house manager for Sigma Chi, a social fraternity. He is negotiating with Hemphill Hauling for trash pickup services at the fraternity house. He prefers a three-days-perweek trash pickup schedule, but he is also willing to accept a two-days-per-week arrangement.

While negotiating with the company, he asks for daily trash pickup service. The two-day trash pickup schedule is Mac's

A) minimum position.

B) target position.

C) opening position.

D) maximum position.

E) average position.

27) Annette is representing Jackson Hauling, a new commercial trash collection service, in a negotiation with the house manager of one of the local university's social fraternities. Annette first plans to suggest that her company can place a larger dumpster behind the fraternity house than the current dumpster the other collection service company provides. She then plans to propose that the group's trash be picked up twice a month. She hopes the frat will accept a oncea-week pickup given the larger size dumpster provided, and she knows that because Jackson is a "small-time" startup company with only a limited number of trucks, the most she can offer is twice weekly pickup. Twice monthly pickup is Annette's __________ position.

A) minimum B) target C) opening D) maximum E) average

28) The selling team from A. C. Doyle Food Service is planning a negotiation session with New Bedford College. The team is hoping to acquire the contract to supply food to the college for the next academic year for $1.4 million. At the beginning of the session, Doyle's chief negotiator plans to quote $1.65 million, but later decides that they would accept the contract for any amount above $1.3 million. Considering the chief negotiator's decision, $1.65 million is Doyle's A) minimum position.

B) target position.

C) opening position.

D) fixed position.

E) average position.

29) What should be the expectations expressed in the seller team's opening position to allow for concessions in a negotiation?

A) It should be equal to its target position.

B) It should be higher than its target position.

C) It should be equal to the buyer's minimum position.

D) It should be lower than its target position.

E) It should be lower than its minimum position.

30) Ernie wanted Harry's pickup truck for a weekend as he was planning a solo trip to California. He offered to pay Harry $50 for two days for renting his truck. He also considered different strategy revisions if Harry disagreed with the original plan. These strategy revisions included an offer to clean Harry's garage for 2 weeks and an offer to assist Harry in his garage for a week. Identify the method used by Ernie in this scenario.

A) ambush negotiating B) red herring C) negotiation jujitsu D) value proposition E) adaptive planning

31) Jane, the owner of Best Bakes, has introduced chili-flavored cookies into the market. As an introductory offer, she is willing to give 5 percent price discount for retailers who sell her products. If this does not work, she is willing to give them a credit term of 7/10, n/45. If this offer fails to make any impact on the retailers, she is ready to bear end-to-end transportation costs. Identify the prenegotiation method used by Jane in this scenario.

A) adaptive planning B) negotiation jujitsu C) ambush negotiating D) trial balloon E) value proposition

32)

Which of the following statements is true about negotiation teams?

A) The selling team should be typically larger than the buying team.

B) Because of the interaction among team members, individual creativity is stifled.

C) It is always easier to reach a decision when there are more team members.

D) It always takes less time to reach a decision when there are more people involved on each side.

E) Each team member should have a defined role in a session.

33)

Which of the following statements is false about negotiation teams?

A) The higher the number of team members, the longer it takes to reach an agreement.

B) Because of the team members' different backgrounds, a team as a whole tends to be more creative than one individual can be.

C) When team members voice different opinions, it can make the team look unprepared or disorganized.

D) In general, the seller's team should be larger than the buyer's team.

E) Salespeople rather than executives are often selected to serve as team leaders since they possess intimate knowledge of the buyers and their needs.

34)

Which of the following is a conflict-handling behavior mode?

A) competing B) browbeating C) lowballing D) nibbling E) sidestepping

35) Roy is power oriented. He cannot tolerate people on his negotiating team who do not go along with his ideas. Roy resolves conflict in the __________ mode.

A) competing B) accommodating C) avoiding D) collaborating E) compromising

36)

Highly cooperative and unassertive people resolve conflict in the __________ mode.

A) competing B) accommodating C) avoiding D) collaborating E) compromising

37) Karl resolves conflicts in the accommodating mode. Based on this information, which of the following characteristics would most likely apply to him?

A) He is very assertive.

B) He is power oriented.

C) He is excessively generous.

D) He is uncooperative.

E) He is disobedient to someone else’s order.

38) Vince, a part-time caterer, negotiates a catering contract with Kevin for an annual corporate Memorial Day picnic. Vince does not want to concede to Kevin's demands for unlimited seconds on fried chicken without any increase in prices that were agreed earlier.

However, he accepts the contract without any counterbalancing concession from Kevin. Vince resolves this conflict in the __________ mode.

A) competing B) collaborating C) contending D) accommodating E) compromising

39) People who resolve conflicts in negotiations in the __________ mode are often both uncooperative and unassertive.

A) competing B) accommodating C) avoiding D) collaborating E) compromising

40) Jane doesn't like conflict. In a negotiation, she rarely objects to what the other side proposes, and she seldom agrees to anything. She acts like she does not want to be involved in the negotiation at all. Jane is most likely to resolve conflicts in negotiation in the __________ mode.

A) competing B) accommodating C) avoiding D) collaborating E) compromising

41) The representative of a packaged food service informed Carla, the cafeteria manager of a university, that the company would be making bulk deliveries every two weeks instead of its current weekly service. Carla complied even though this delivery schedule would require her to make extra arrangements to store the food. In this scenario, Carla's approach to conflict resolution reflects the __________ mode.

A) competing B) opposing C) accommodating D) collaborating E) compromising

42) Which of the following is true of people who use the compromising mode to resolve conflicts?

A) They typically aim to arrive at win-lose agreements.

B) They refuse to address conflicts.

C) They pursue their own goals and objectives completely at the expense of the other party.

D) They look for quick, mutually acceptable solutions that will partially satisfy both parties.

E) They are generally very cooperative and very unassertive.

43)

Which of the following is true of the differences between compromisers and competitors?

A) Compromisers refuse to address the conflict, whereas competitors go out of their way to satisfy the concerns of the other party.

B) Compromisers are very assertive and uncooperative, whereas competitors are unassertive and highly cooperative.

C) Compromisers are extremely power oriented, whereas competitors are extremely generous.

D) Compromisers aim to arrive at win-win agreements, whereas competitors aim to arrive at win-lose agreements.

E) Compromisers fail to fulfill their own needs or the needs of others, whereas competitors try to be assertive and cooperative.

44) A negotiator says, "Can't we all just get along and split the extra costs down the middle?"

From this statement, it can be said that the negotiator is using the __________ mode of conflict resolution.

A) competing B) accommodating C) avoiding D) collaborating E) compromising

45) Megan is cooperative and assertive during negotiations and when she is resolving conflicts. In most situations, she manages to reach a win-win solution. Which of the following is most likely to be Megan’s conflict-handling mode?

A) accommodating B) avoiding C) competing D) collaborating E) compromising

46) Emily opens a negotiation session by saying, "I think we're all here today looking for a win-win deal. Unless we all leave this table feeling satisfied that our objectives have been met as much as possible under the given circumstances, I'm going to consider this negotiation a failure."

Emily most likely resolves conflict in the __________ mode.

A) competing B) accommodating C) avoiding D) collaborating E) compromising

47) In negotiations, individuals who neither address conflicts nor aim to reach any sort of agreement are known to follow the __________ of conflict handling.

A) avoiding mode B) competing mode C) collaborating mode D) accommodating mode E) compromising mode

48) In the context of a negotiation meeting, which of the following statements is true of a sneak attack?

A) It involves bringing up a minor point to distract the buyer from the main issue.

B) It begins with the buyer using abusive or stern words directed at the seller.

C) It is a variation of nibbling.

D) It is also known as ambush negotiating.

E) It is usually used by a buyer after a negotiation meeting.

49) John is the owner of a chain of restaurants in Texas. When tilers from Johnson Tiles were laying tiles in one of the restaurants' newly refurbished restrooms, John calmly tells the salesperson of Johnson Tiles, "We need to renegotiate the price of these tiles. I have learned that you charge a 50 percent markup, and as a small-business owner, I find that unacceptable." Which of the following win-lose strategies is most likely being used by John in this scenario?

A) browbeating B) ambush negotiating C) lowballing D) limited authority E) red herring

50) Maggie, a human resource executive of a software company, booked a weekend executive retreat for a few employees at a holiday resort in Alaska. The arrangements were made, and she paid an advance. Later, the resort owner called her and said, "If your group does not check out by 8:00 a.m. on Sunday, I will have to charge them for the entire day." Identify the win-lose strategy used by the resort owner.

A) trial balloon B) ambush negotiating C) limited authority D) red herring E) browbeating

51)

Which of the following statements is false about negotiation preliminaries?

A) Every effort should be made to ensure a comfortable environment for all parties in a negotiation.

B) Seating should be arranged such that the members of the two sides can interact.

C) Engaging in small talk before getting down to business should be avoided.

D) If the buying team arranges a physical arrangement that places the selling team at a disadvantage, the selling side should stop the meeting until better arrangements are made.

E) As much as possible, the selling team should try to establish a win-win environment.

52)

Which of the following statements is true about negotiation preliminaries?

A) Negotiation preliminaries are more important in U.S. business meetings than in international ones.

B) The room temperature should be set colder than normal to speed up the actual negotiation process.

C) Time just prior to the negotiation should be spent on developing negotiation skills, not on engaging in friendly conversations.

D) An agenda that states what will be discussed and in what sequence should be created.

E) Key issues should always be placed first in the agenda so that it will be advantageous.

53)

Which of the following statements about the agenda for a negotiation is mandatory?

A) The selling team should always give the buying team responsibility for setting the agenda.

B) So as not to waste time, the key issues should be listed first on the agenda.

C) The buying team should never bring the agenda to the negotiation table.

D) The agenda should never be negotiated by the buyer's team.

E) None of the answers is correct.

54) Why is it usually advantageous to not place key issues of a negotiation at the very beginning of the agenda?

A) It provides an opportunity to learn the other side's bargaining style and concession routines.

B) It saves time as it becomes obvious that if an agreement can't be reached on the smaller issues then there is no point in discussing the key issues.

C) By conceding most of the smaller issues in the beginning, the selling team creates a moral "debt," which the buying team is likely to have to repay by conceding on the key issues.

D) It allows the team setting the agenda to wear down the other side, which will likely result in them agreeing to all the key issues proposed.

E) It provides the sellers an advantage as the buyers lose interest toward the end of the session when the key issues are discussed.

55)

Which of the following is an appropriate guideline for effective negotiations?

A) Listening carefully is extremely important.

B) The ability to ask probing questions is important to keep the negotiations on track.

C) Periodic status reports on what has been decided and what needs to be decided is an effective way of keeping negotiations on track.

D) One should keep in mind that during negotiations, people have a desire to retain their positive identities.

E) All of the answers are correct.

56) In the context of win–lose strategies, which of the following best describes the red herring tactic?

A) It involves floating an idea without really offering it as a concession or agreement.

B) It is a technique used by the buyer’s team for altering the selling team’s enthusiasm and self-respect by browbeating them with abusive or stern words.

C) It is a win-lose strategy in which one team brings up a minor point first to distract the other team from considering the main issue.

D) It is a variation of lowballing where the buyer requests for an add-on after the deal has been closed.

E) It involves buyers attempting to engage in a win–lose tactic of negotiation when the other party does not expect it.

57) Purge Purifying Systems, which manufactures filtration systems for industries, has entered into a U. S. $50 million deal with Fabon Fabrics Incorporated During a negotiating session, Alex, a member of the sales team reacted, "Who are you trying to kid? You need our company's filtration systems to maintain your product quality. You have to pay an extra $20 per system and just cut costs somewhere else." Monroe, the team leader of the sales team interrupted him and said, "Now wait a minute. These are our friends you are talking to. How about we only charge $10 extra per system and split the shipping charges equally? Does that not sound fair?"

Identify the win-lose strategy adopted by the sales team of Purge Purifying Systems.

A) lowballing B) budget bogey C) good guy-bad guy routine D) browbeating E) limited authority

58) Clare, a florist, opened a new store and wanted to purchase a new refrigeration display cabinet for fresh-flower arrangements. She entered into a deal with Alpha Refrigeration Systems for two refrigeration units at $600 each. But, after delivering the units, the salesperson demanded another $100 as delivery charges, which was not mentioned in the deal. Identify the win-lose strategy used by the salesperson.

A) good guy-bad guy routine B) browbeating C) red herring D) trial balloon E) lowballing

59) Fred, the owner of Blue Blooms, was interested in the poinsettia tree racks manufactured

by Creative Furniture Company. In a negotiation session, he said, "I would love to buy three of the poinsettia tree racks manufactured by your company. It would provide me with much more space to display my plants. But my budget allows only $900 total, including all delivery costs.

You have to reduce the price from $1200 to $900, or else I cannot afford it." Identify the winlose strategy used by Fred.

A) budget bogey B) lowballing C) red herring D) browbeating E) trial balloon

60) Brenett, a celebrity, wants to enter into a contract with Valley World, a landscaping company. During a negotiation session, Brenett says, "I would like to do business with your landscaping firm, but companies in your industry do not tend to last more than a couple of years.

I also heard a rumor that your partner is thinking of disinvestment. You must be difficult to work with. Maybe I should wait." Identify the win-lose strategy used by Brenett in this scenario.

A) budget bogey B) trial balloon C) good guy-bad guy routine D) browbeating E) emotional outburst

61) A sales team from Goodway Incorporated enters negotiations with a large poultry processing company. Its objective is to sell the company 40 pressure washers with a 5 percent quantity discount and a share of all shipping costs. But, it will walk away from the negotiation table satisfied if it can convince the company to buy 20 washers with a 2 percent discount. What other type of objective does it need to develop?

62) Which type of meeting allows people to creatively explore various methods of achieving goals?

63) A hospital's goal is to buy new X-ray equipment for its oncology unit. If the negotiation team cannot get the X-ray equipment salesperson to agree to free on board (FOB) destination, it will try to get a 5 percent reduction in price, failing which the negotiation team will want a 3/10, n/30 arrangement. What kind of planning has the hospital negotiation team done prior to the beginning of the negotiation?

64) In the context of conflict-handling behavior modes, what are the characteristics of people in the accommodating mode?

65)

Describe the characteristics of people who handle conflicts in the compromising mode.

66) Which negotiation mode do salespeople who are both assertive and cooperative and who attempt to seek the satisfaction of both parties use?

67)

Discuss the philosophy of win-win not yet negotiating in a negotiation session.

68) When Betty asked a sales representative to provide free shipping and a 40 percent reduction in price, the sales representative was stunned. Betty's partner then informed the representative that free shipping and a 10 percent reduction in price would be more reasonable.

What negotiating strategy were Betty and her partner using?

69) After completing negotiation for a new computer, Jane, the salesperson, added, "Oh, there is also a $500 installation and instruction charge." Which win-lose negotiation tactic did Jane use?

70) Aaron averted the browbeating from a buying team member and refocused their conversations to the issue being discussed. Which negotiation strategy did Aaron use?

71) In win-lose negotiating, the negotiator attempts to secure an agreement that satisfies both parties. ⊚ true ⊚ false

72) The two radically different negotiation philosophies are win-lose and lose-win negotiating. ⊚ true ⊚ false

73) Negotiations differ from regular sales calls in that they involve less intensive planning and a smaller number of people from the selling firm. ⊚ true ⊚ false

74) Formal negotiations generally take place only for very large or important prospective buyers. ⊚ true ⊚ false

75)

Successful salespeople always make great negotiators. ⊚ true ⊚ false

76) Experienced negotiators find that weekends are the most appropriate time for negotiations. ⊚ true ⊚ false

77) In negotiations, those who are the first to offer a concession often find the other party giving a similar one in return, regardless of the power in the relationship. ⊚ true ⊚ false

78)

Negotiations should be limited to a 15-minute time frame to ensure success. ⊚ true ⊚ false

79) When developing objectives, negotiators need to sort out all issues that could arise in the meeting, prioritizing them by importance to the selling firm. ⊚ true ⊚ false

80) To allow for concessions, the target position should reflect higher expectations than the opening position. ⊚ true ⊚ false

81) The less information collected about what a buyer hopes to accomplish, the better negotiators will be able to arrive at a win-win decision.

⊚ ⊚

true false

82) A company's sales representative who develops three alternative strategies to secure a premium shelf position engages in adaptive planning. ⊚ true ⊚ false

83) The lesser the participants, the more the time required to reach an agreement in a negotiation. ⊚ true ⊚ false

84) In general, in a negotiation meeting, the size of the seller's team should be larger than the size of the buyer's team. ⊚ true ⊚ false

85) In a negotiation, individuals in the accommodating mode are the exact opposite of competing people. ⊚ true ⊚ false

86) While negotiating, a compromiser gives up less than a competing person but more than an accommodating person. ⊚ true ⊚ false

87) Ambush negotiation occurs when either party begins to negotiate with a win-lose strategy when the other party does not expect it. ⊚ true ⊚ false

88)

Putting the key issues at the beginning in an agenda is advantageous. ⊚ true ⊚ false

89)

An agenda sets boundaries and keeps parties in the negotiation on track. ⊚ true ⊚ false

90) The technique of lowballing subdues the importance of getting signatures on contracts and agreements as soon as possible. ⊚ true ⊚ false

91) An effective defense against the good guy-bad guy routine is for the selling team to know its position clearly and to not let the buyer's negotiating tactic weaken it. ⊚ true ⊚ false

92) A seller who adds additional costs after the price has been agreed upon by the buyer engages in lowballing. ⊚ true ⊚ false

93) The selling team should always refuse nibbling requests from the buyer after a contract has been signed. ⊚ true ⊚ false

94) The best defense against budget limitations is to do your homework before going into a negotiation session. ⊚ true ⊚ false

95) After being accused of overcharging, Brian steps back and redirects the negotiation back to the issues that were initially being discussed. Brian is engaging in negotiation jujitsu. ⊚ true ⊚ false

96) Red herring is a win-win tactic that involves bringing up a major point first to distract the other side from considering minor issues. ⊚ true ⊚ false

97) All concessions in a negotiation are tentative until the final agreement is reached and signed. ⊚ true ⊚ false

98) To develop long-term partnerships, sellers should try to get every concession possible out of their buyers. ⊚ true ⊚ false

99) In win-win not yet negotiating, the buying team achieves its goals while the selling team doesn't. ⊚ true ⊚ false

100)

Generally, the goal of negotiation is to develop a short-term partnership with a buyer. ⊚ true ⊚ false

Answer Key Test name: chapter 12 11) E 12) B 13) A 14) A 15) E 16) E 17) E 18) E 19) C 20) B 21) D 22) B 23) D 24) B 25) B 26) A 27) C 28) C 29) B 30) E 31) A 32) E 33) D 34) A 35) A 36) B

37) C 38) D 39) C 40) C 41) C 42) D 43) D 44) E 45) D 46) D 47) A 48) D 49) B 50) B 51) C 52) D 53) E 54) A 55) E 56) C 57) C 58) E 59) A 60) D 71) FALSE 72) FALSE 73) FALSE 74) TRUE 75) FALSE 76) FALSE

77) FALSE 78) FALSE 79) TRUE 80) FALSE 81) FALSE 82) TRUE 83) FALSE 84) FALSE 85) TRUE 86) FALSE 87) TRUE 88) FALSE 89) TRUE 90) FALSE 91) TRUE 92) TRUE 93) FALSE 94) TRUE 95) TRUE 96) FALSE 97) TRUE 98) FALSE 99) TRUE 100) FALSE Student name:__________ 1) Name one type of sales approach that has been shown to improve both customer retention and firm profitability.

2)

What are the two types of customer loyalty?

3)

What are the different types of relationships that can exist between buyers and sellers?

4)

What are the characteristics of relational partnerships?

5)

What is supplier relationship management?

6)

What occurs in the expansion stage of relationship development?

7) Discuss the difference in communication between a relational partnership and a strategic partnership.

8)

What is customer orientation, and how does it affect business relationships?

9)

List the five foundational elements of strategic partnerships.

10)

Who are boundary-spanning employees?

11)

What is relationship marketing?

12)

What is the difference between behavioral and attitudinal loyalty?

13)

Discuss the differences between solo exchanges and functional relationships.

14)

What are the advantages and disadvantages of market exchanges?

15)

Why are companies using technology to manage relationships?

16) Define strategic partnership. What are the important characteristics of strategic partnerships?

17)

Describe the different phases of strategic partnerships.

18)

How are organizational structure and culture important to selling?

19) How can training boundary-spanning employees help in fostering good relationships between buyers and sellers?

20) In the context of organization support, how do reward systems help in fostering good relationships?

21)

Which of the following statements is true of customer lifetime value?

A) Salespeople lay more emphasis on a single sale rather than the combined value of future sales.

B) Customer lifetime value is only measured for transactions involving a solo exchange.

C) There is no way to estimate the sum of future sales.

D) Customer lifetime value is a statement explaining how a salesperson's products will effectively solve the buyer's business issue.

E) Customer lifetime value is expressed in terms of the combined total of all future sales discounted back into current dollars.

22) Which of the following is the most likely result of using a consultative customer-oriented sales approach?

A) It helps improve a firm’s profitability only with commodity products.

B) It improves customer retention.

C) It fails to improve relationship marketing efforts in business.

D) It leads to low behavioral loyalty.

E) It lowers the overall quality of the customer-seller relationships.

23) Bubbly Splash is a major beverage outlet in Seattle. The management takes special care in resolving customers' grievances as it knows that approximately 40 percent of its consumers have been buying its beverages without considering alternative drinks for the last ten years.

Identify the loyalty shown by its customers.

A) vendor loyalty B) behavioral loyalty C) partial loyalty D) attitudinal loyalty E) inertia loyalty

24) For many years, thousands of loyal fans followed the metal band “Grateful Dead” around the country, rarely missing a concert. These fans, known as "Dead Heads," were _____ loyal toward the band.

A) partially B) attitudinally C) behaviorally D) selectively E) strategically

25) In which of the following scenarios is a transaction occurring without the buyer and the seller having a relationship?

A) Beverly purchases a pair of sandals from a retail sales clerk.

B) Leon buys a vacuum cleaner from a door-to-door salesperson.

C) Arthur acquires a new Volvo from a car dealership.

D) Ursula hires a weekly diaper service.

E) None of the answers is correct.

26) As Azi traveled across the state of Tennessee, he stopped and bought gas, a bottle of soda, and a bag of corn chips at a small store that he will probably never visit again. What type of transaction did Azi engage in when he made these purchases?

A) a solo exchange B) a functional relationship C) a straight rebuy exchange D) a partnering relationship E) a modified rebuy exchange

27)

Which of the following are the two types of market exchanges?

A) functional and strategic relationships B) tactical and behavioral exchanges C) solo exchanges and functional relationships D) tactical exchanges and profit relationships E) one-sided relationships and bipartisan exchanges

28)

Which of the following is the best example of a solo market exchange?

A) Jimmy buys a new suit from a tailor who visits his office every quarter.

B) Mariah purchases a box of cookies from a store while on vacation.

C) Tommy buys the same brand of toothpaste because he likes the way it tastes.

D) Sunil signs a service contract with a cleaning company.

E) Fred purchases an apartment from his friend who owns a construction company.

29)

Why do both the buyer and the seller in a solo exchange pursue their own self-interests?

A) because the parties in the transaction do not plan on doing business together again B) because both believe the other party would not take advantage of them if given the opportunity C) because less hassle means more value to the buyer D) because both the buyer and the seller have a high level of dependence on each other E) because the buyer is confident that, over the long run, he or she will get a fair share of the profit

30)

Identify the relationship type in which the time horizon factor involved is short term.

A) solo market transaction B) functional relationship C) relational partnership D) strategic partnership E) modified rebuy exchange

31) Identify the nature of relationship between the buyer and the seller in a strategic partnership.

A) competition B) conflict C) accommodation D) bargaining E) coordination

32)

Identify a true statement about functional relationships.

A) Members of functional relationships make significant investments for the sake of the relationships.

B) Buyers and sellers are locked into a continuing relationship, and buyers cannot switch from one supplier to another.

C) The nature of the relationship between a buyer and a seller is described as cooperative.

D) The typical time horizon is short term because previous purchases do not exert a significant impact on the next purchase.

E) They are created for the purpose of uncovering and exploiting joint opportunities.

33) _____ are long-term market exchanges characterized by behavioral loyalty; the buyer purchases the same product out of habit or routine over time.

A) Strategic partnerships B) Solo market transactions C) Relational partnerships D) Functional relationships E) Internal partnerships

34) Which of the following most likely occurs when the buyer’s needs are fulfilled and expectations are met?

A) buyer’s remorse B) insight selling C) emotional labeling D) customer satisfaction E) win–lose situation

35) Corina almost always shops at Gas-N-Go. She finds the store easily accessible from the highway, likes the service, and receives special discounts as a frequent customer. Corina is less likely to shop around for her next purchase because Gas-N-Go satisfies Corina by: A) reducing its profit margin.

B) maximizing Corina's solo exchange profit.

C) reducing Corina's attitudinal loyalty.

D) reinforcing a functional relationship.

E) producing a partnering relationship.

36) Franco breeds a wide variety of fish. For the last nine years, he has been going to Fins-toYou, a local pet store that specializes in tropical fish and aquarium supplies, for all of his needs.

He buys everything from fish food to aquarium heaters to replacement fish from this store.

Which of the following terms best describes the relationship Franco has with Fins-to-You? A) a strategic partnership B) a tactical relationship C) a relational partnership D) a functional relationship E) a solo market exchange

37)

Which of the following statements about functional relationships is true?

A) Buyers and sellers are both primarily concerned about the welfare of the other party.

B) Price is of little concern for both buyers and sellers in functional relationships.

C) Functional relationships are examples of win-win partnerships.

D) Functional relationships continue as long as customers are satisfied.

E) In functional relationships, both buyers and sellers have a high degree of concern for the other party.

38) For which of the following transactions would a functional relationship between the buyer and the seller be least appropriate?

A) an apartment complex owner's procurement of 80 gallons of paint for the annual repainting of all buildings in the complex B) a dentist's purchase of dentures, plates, and other apparatus from a dental lab where they are made C) a commuter's purchase of a daily newspaper to read on his way to work D) a foreman's purchase of lubricating oil for an assembly line E) an interior decorator's purchase of a cell phone

39) On the third Wednesday of every month, LuEllen's Barbecue Shack orders four pickup truckloads of hickory for slow-cooking meat. LuEllen has been placing orders for hickory from Samson Wood Products Company for several years now because they deliver on time and she likes the quality. The buyer-seller relationship between LuEllen and Samson Wood Products Company is an example of a A) functional relationship.

B) relational partnership.

C) utilitarian relationship.

D) strategic relationship.

E) solo exchange.

40) Which of the following statements is true about the risks in a relationship between buyers and sellers?

A) The risks in a relationship between buyers and sellers is low in a relational partnership.

B) The risks in a relationship between buyers and sellers is high in a solo market transaction.

C) The risks in a relationship between buyers and sellers is high in a strategic partnership.

D) There is no risk in a relationship between buyers and sellers in a functional relationship.

E) There is no risk in a relationship between buyers and sellers in a strategic relationship.

41) A _____ partnership occurs when the buyer and the seller have a close personal relationship that allows them to communicate effectively with each other.

A) hierarchical B) functional C) solo exchange D) transactional E) relational

42) Caitlin is a highly motivated sales executive in a company that sells textbooks on business studies. She works hard to maintain friendly relations with the professors at colleges and universities. When a committee was in the process of selecting a new book on marketing, the book Caitlin was promoting was selected. Her amiable relationship with the committee chairman paved the way for this selection. The committee chairman trusted Caitlin and believed that she would meet his expectations as before. Identify the type of relationship between Caitlin and the committee chairman in this scenario.

A) relational partnership B) adversarial relationship C) general partnership D) solo market transaction E) limited partnership

43) _____ are the long-term business relationships in which the partners make significant investments to improve the profitability of both parties.

A) Strategic partnerships B) Win-lose partnerships C) Functional relationships D) Personal selling partnerships E) Solo exchange alliances

44) Henry is a salesperson for Verre House Incorporated, a manufacturer of glass bottles.

Based on a market survey, he suggested that his customer H. J. Ketchup Company redesign its ketchup bottle. According to him, this change would make the bottle lighter and would take up lesser space in shelves. H. J. Ketchup Company readily implemented Henry's suggestion, and this decision ultimately increased their profits. This change also helped Verre House Incorporated minimize their material wastage. Identify the relationship between Henry and H. J. Ketchup Company.

A) an internal partnership B) a solo market transaction C) a strategic partnership D) a functional partnership E) a relational partnership

45)

_____ are created for the purpose of uncovering and exploiting joint opportunities.

A) Tactical relationships B) Functional relationships C) Solo market transactions D) Strategic partnerships E) Relational partnerships

46)

Which of the following is a true statement about strategic partnerships?

A) Both the buyers and the sellers in strategic partnerships are primarily interested in pursuing their own self-interests.

B) Members of strategic partnerships make significant investments for the sake of the relationships.

C) Strategic partnerships offer buyers and sellers a lot of flexibility.

D) Increased short-term profits are a benefit of strategic partnerships.

E) Members of strategic partnerships have a low level of dependence on each other.

47) Pyro Electronics was the only supplier for Torin Auto, and both companies wanted to do more business together. Pyro Electronics worked on its total quality management system and acquired more business, while Torin developed a just-in-time inventory management system to deliver goods timely to Pyro Electronics. Pyro Electronics and Torin have developed a A) relational partnership.

B) market exchange alliance.

C) strategic partnership.

D) functional relationship.

E) hierarchical relationship.

48) Zeller Hub, a Canadian discount store, has developed a supplier portal software from the inputs given by the experts in its retailing division and its supplier Welknit Knitting Company.

This information system will share inventory and stock lists of both the companies on a daily basis. It will, thus, aid the continuing relationship between the companies and increase the profitability of both the parties by controlling excess stock and inventories. Identify the relationship between Zeller Hub and Welknit Knitting Company.

A) a relational partnership B) an internal partnership C) a strategic partnership D) a solo market transaction E) a functional relationship

49) Corning's Ceramics is a company that produces ceramic parts. Since the company reached an agreement with a cardboard box manufacturer, it has saved about $10 million in packaging costs. Additionally, the box manufacturer has also enjoyed a threefold rise in sales.

Which of the following types of relationship do these two firms have?

A) a strategic partnership B) a functional relationship C) a solo market transaction D) a relational partnership E) a competitive relationship

50)

Identify a true statement about strategic partnerships.

A) Both the buyers and the sellers in strategic partnerships pursue their own selfinterests.

B) Members of strategic partnerships have a high level of dependence on and trust in each other.

C) Strategic partnerships typically have a shorter time horizon than functional relationships.

D) Strategic partnerships have lower levels of risks than functional relationships.

E) In this partnership, buyers and sellers are not locked into a continuing relationship; thus, buyers can switch from one supplier to another to make the best possible deal.

51) Caesar salad dressing contains raw eggs, but fear of salmonella poisoning has forced many restaurants to use a substitute salad dressing which does not taste the same. Davidson from Food Tech, a company that develops preservatives and food additives, has developed a process for pasteurizing eggs on a large-scale basis. The pasteurization of eggs is a complicated process that took years to perfect. Food Tech will be called a(n) _____ as it resolved this issue ahead of the rest of the competitors in the market.

A) end user B) champion C) lead user D) gatekeeper E) driver

52) Which of the following most likely occurs during the commitment phase of relationship development?

A) Salespeople identify and qualify prospects, while buyers look for various sources of supply.

B) The buyer may make a purchase, but it will mostly be a market exchange because the parties have not committed to the relationship.

C) The buyer and the seller put in efforts to determine the advantages of a long-term relationship.

D) The buyer and the seller pledge to extend the relationship for a period of time.

E) The buyer and the seller involve in the process of terminating their relationship.

53) Andy, a salesperson for Fashion Seal Uniforms, tells the owner of a retirement home about the importance of caregivers having clean and attractive uniforms that will withstand countless hot water washes. Andy displays several styles of uniforms that have been washed hundreds of times to show how well his company's uniforms are made. The owner of the retirement home tells Andy that she is planning to open one new center every six months for the next three years and will need a lot of uniforms. Then the owner agrees to buy 20 uniforms but with no commitment to extend the relationship. Which of the following stages of the relationship development process does this scenario exemplify?

A) negotiation B) exploration C) commitment D) attraction E) expansion

54) Betty, the operations manager at Unilinks Products Company, is facing several issues in coordinating the manufacturing operations in the company due to inventory shortage. She wants to use statistics and technology to help her identify various vendors from whom she can get the required materials. In the context of the phases of relationship development, which of the following is Betty most likely following?

A) lifetime customer value B) straight-line routing C) supplier relationship management D) supplier asset management system E) brainstorming

55) In the _____ stage of the relationship development process, the owner of several retirement centers has agreed that Fashion Seal Uniforms will be the only supplier of uniforms for her employees. Andy, the salesperson for Fashion Seal, has agreed to make some modifications to the uniforms to suit the needs of the retirement center personnel. Both parties view this as a long-term relationship built on mutual trust.

A) awareness B) exploration C) commitment D) attraction E) expansion

56) Noah wants to purchase his first car from a car dealership. As this will be his first car purchase, the salesperson at the dealership patiently explains the car’s features, the payment terms, and the insurance details. He gives Noah some tips regarding the maintenance of the car and explains certain parts of the car that would need attention after a couple of months. In the context of the phases of relationship development, which of the following terms best describes this scenario?

A) lowballing B) nibbling C) introduction opening D) customer onboarding E) customer phishing

57) Which of the following statements is true about the dissolution stage of the relationship development process?

A) It occurs in all strategic partnerships.

B) It occurs only during the middle phase of a relationship.

C) It causes most damage when it occurs in the latter stages of a relationship.

D) It results in greater exploration and commitment by both parties.

E) It results only in the case of market exchanges.

58)

Which of the following serves as a foundation for a successful, long-term relationship?

A) mutual trust B) organizational support C) common goals D) open communication E) All of the answers are correct.

59) Which of the following gives both members of a relationship a strong incentive to pool their strengths and abilities?

A) autocratic leadership B) profit orientation C) competence D) shared goals E) open communication

60) Baxter Healthcare is a leading supplier of hospital products. It has entered into a strategic partnership with many of the hospitals it serves. Baxter supplies them with one-day delivery service of quality products and inventory management assistance. In return, the hospitals give Baxter all their business. The foundation of their relationships is trust. What is this based on?

A) Baxter's perceived dependability B) Baxter's ability to supply quality products within a day C) the concern of both parties for each other's needs D) Baxter's inventory management expertise E) All of the answers are correct.

61)

Which of the following applies when salespeople and buyers trust each other?

A) They share ideas more willingly.

B) They communicate more efficiently.

C) They assume that each party will be honest with the other one.

D) They assume there is no need to constantly monitor the activities of each other.

E) All of the answers are correct.

62)

Which of the following is not one of the factors that constitute trust?

A) dependability B) honesty C) likability D) spontaneity E) competence

63) Zero Zone Incorporated manufactures and sells display refrigeration and freezer units to supermarkets. The manufacturer is successful because it is able to keep the promises it makes.

All customers know that Zero Zone's salespeople and its products live up to all the promises made. Which factor necessary for mutual trust to develop does this illustrate?

A) dependability B) sales orientation C) likability D) spontaneity E) profitability

64) Zero Zone Incorporated manufactures and sells display refrigeration and freezer units to supermarkets. Its salespeople use federal government research information and trade data to explain to customers why 3-inch-thick CFC-free urethane insulation is important for keeping products fresh. Such interactions illustrate the salespeople's A) discipline.

B) resilience.

C) likeability.

D) flexibility.

E) competence.

65) Zero Zone Incorporated manufactures refrigerators and freezer units and sells them to supermarkets. The manager at a supermarket calls Nathan, a salesperson at Zero Zone, to inform him that a Zero Zone refrigerator unit in the supermarket had a few issues and that it needed to be defrosted about three times every day. Nathan responds immediately. He cancels his other appointments and drives to the supermarket. He works for two hours and fixes the problem.

Which of the following factors needed for the development of mutual trust is most likely illustrated in this scenario?

A) emotional labeling B) honesty C) marketability D) customer orientation E) behavioral loyalty

66) Which of the factors used to develop mutual trust between a buyer and a seller is the least important?

A) dependability B) honesty C) likability D) customer orientation E) competence

67)

Which of the following statements is true of common goals?

A) They are important for the establishment of a strategic partnership.

B) They help sustain a strategic partnership when the expected benefits are not realized.

C) They give both members of a strategic partnership a strong incentive to pool their resources.

D) They allow partners in a strategic relationship to focus on opportunities rather than arguing about how profits are divided between them.

E) All of the answers are correct.

68) Which of the following statements about the effects of a successful buyer-seller relationship on organizational structure and culture is true?

A) Only the organizational structure of the seller needs to change for a successful partnering relationship to be implemented.

B) The organizational structure and management provide the necessary support for the salespeople and buyers in a partnering relationship.

C) Local offices are not affected by partnerships created at headquarters.

D) It is only the sales force of a firm that is required to have an orientation to building partnerships.

E) Boundary-spanning employees are employees who limit their operations to their duties within the organization, rather than working with clients and vendors.

69) Aber Technologies makes investments toward the development and improvement of sophisticated computer systems and software programs that it sells to another company called Chromic Business Solutions Incorporated to create a successful relationship. These programs and systems are specific to the relationship with Chromic Business Solutions Incorporated. Which of the following types of assets is most likely illustrated in this scenario?

A) in-kind investments B) customer portals C) customer shares D) mutual investments E) win-win trusts

70) Martha, an experienced employee at a leading home appliances company, goes out of her way to interact with her customers. She takes extra care in understanding her customers’ requirements and resolving their issues. She discusses in detail the appliances and their features with each customer and also helps them plan their finances. She keeps in touch with her existing customers and also frequently contacts her potential customers to maintain relations with them.

Which of the following types of employees is Martha most likely to be?

A) boundary-spanning employee B) lead user C) champion D) change agent E) expendable employee

71)

Customers are the primary revenue source for companies. ⊚ true ⊚ false

72)

Customer lifetime value is the combined total of all future sales. ⊚ true ⊚ false

73) Using a consultative customer-oriented sales approach leads to lower firm profitability and loss of customer base. ⊚ true ⊚ false

74) In the context of professional selling, relationship marketing refers to creating the type of relationship that best suits the needs of the selling firm. ⊚ true ⊚ false

75) When someone purchases the same product out of habit over time, that pattern is known as attitudinal loyalty. ⊚ true ⊚ false

76) Functional relationships are long-term market exchanges characterized by behavioral loyalty. ⊚ true ⊚ false

77) Rajesh always purchases cell phones manufactured by Telekom Incorporated Thus, for Telekom, Rajesh has a very low customer lifetime value. ⊚ true ⊚ false

78)

Companies prefer buyers who are both attitudinally and behaviorally loyal.

⊚ ⊚

79)

true false

The sole determinant of customer lifetime value is a customer's purchases. ⊚ true ⊚ false

80) The buyer and the seller in a functional relationship typically pursue their own selfinterests because chances of them doing business together are low. ⊚ true ⊚ false

81)

Behavioral loyalty cannot develop without customer satisfaction. ⊚ true ⊚ false

82) Relational partnerships are created explicitly for the purpose of uncovering and exploiting joint opportunities. ⊚ true ⊚ false

83) Strategic partnerships between companies create a win-win situation, but the companies are committed to each other and flexibility can be reduced. ⊚ true ⊚ false

84) A salesperson must determine which relationship type is appropriate for optimizing a customer's lifetime value.

⊚ ⊚

true false

85) It is advisable to build strategic partnerships with large accounts exclusively because of greater economies of scale. ⊚ true ⊚ false

86) Relationships have to necessarily move from solo exchange to functional relationship to relational partnership to strategic partnership. ⊚ true ⊚ false

87) The use of supplier management systems to discover current suppliers with whom partnership may be possible occurs in the commitment stage of the relationship development process. ⊚ true ⊚ false

88) The expansion stage of the relationship development process involves efforts by both parties to investigate the benefits of a long-term relationship. ⊚ true ⊚ false

89) The expansion stage in a relationship involves promises by both buyer and seller to work together for a single transaction. ⊚ true ⊚ false

90) When dissolution occurs in the latter stages of a relationship between two firms, the loss of investments made in the relationship can be significant and have an impact throughout both organizations. ⊚ true ⊚ false

91)

Length of experience is a strong substitute for proving dependability with action. ⊚ true ⊚ false

92) Knowledge of the customer, the product, the industry, and the competition are all necessary to the success of a salesperson. ⊚ true ⊚ false

93) Although likability is not as important as other dimensions, salespeople should still attempt to find a common ground or interest with all buyers. ⊚ true ⊚ false

94) Buyers perceive salespeople as sales-oriented when sellers stress benefits and solutions to problems over features. ⊚ true ⊚ false

95) Open and honest communication is a key building block for developing successful relationships.

⊚ ⊚

true false

96) In a strategic partnership, compared with a relational partnership, less direct communication ties are present between the buying organization and the selling organization. ⊚ true ⊚ false

97) When goals are shared, the partners can focus on actively looking out for opportunities rather than arguing about who will benefit the most from the relationship. ⊚ true ⊚ false

98) Members of successful partnerships actively work to create win-lose relationships by making commitments to the relationship. ⊚ true ⊚ false

99) A critical element in fostering good relationships is giving boundary-spanning employees the necessary support. ⊚ true ⊚ false

100) Training helps salespeople identify customer needs and teaches them the various ways to work with customers to achieve better performance. ⊚ true ⊚ false

Answer Key Test name: chapter 13 21) E 22) B 23) B 24) B 25) E 26) A 27) C 28) B 29) A 30) A 31) E 32) C 33) D 34) D 35) D 36) D 37) D 38) E 39) A 40) C 41) E 42) A 43) A 44) C 45) D 46) B

47) C 48) C 49) A 50) B 51) C 52) D 53) B 54) C 55) C 56) D 57) C 58) E 59) D 60) E 61) E 62) D 63) A 64) E 65) D 66) C 67) E 68) B 69) D 70) A 71) TRUE 72) TRUE 73) FALSE 74) FALSE 75) FALSE 76) TRUE

77) FALSE 78) TRUE 79) FALSE 80) FALSE 81) TRUE 82) FALSE 83) TRUE 84) TRUE 85) FALSE 86) FALSE 87) FALSE 88) TRUE 89) FALSE 90) TRUE 91) FALSE 92) TRUE 93) TRUE 94) FALSE 95) TRUE 96) FALSE 97) TRUE 98) FALSE 99) TRUE 100) TRUE Student name:__________ 1)

How does a salesperson contribute to the beginning of a relationship?

2) The best way to begin a relationship is for each party to be aware of what the other expects. What do customers typically base their expectations on?

3) How can salespeople achieve customer satisfaction and reordering in the exploration phase of a relationship?

4)

How is the strategy of upgrading used by salespeople?

5) Bob is a 3MT Company salesperson who deals with companies that clean up hazardous waste. A fertilizer company purchased 10 cases of respirators from 3MT. Bob explained to the company's owner that the company would also benefit from the 3MT cleanup training package that includes one 15-minute video, 25 study guides, a 10-step spill response poster, 75 wallet cards, and 25 certificates of completion. What is Bob trying to do in this scenario?

6)

What is the meaning of the term "preferred supplier"?

7)

Briefly define corporate culture.

8)

Why are salespeople often called change agents?

9) A family-owned company sells collectible items through the mail. The company is preparing to outsource its distribution department within the next four weeks. This will mean letting go of or reassigning about one-third of its workforce. Also, the employees must learn how to use a new computerized system even though many of them have resisted other forms of computerization earlier. Identify the resistance to change that exists in this company in terms of the two critical elements to consider when making such a change.

10)

Describe the three-by-three strategy advocated by Darryl Lehnus.

11)

Describe the features of the exploration stage in buyer-seller partnerships.

12) Assuming proper expectations have been set, what are the three major sources of customer complaints?

13) Jack has just received a complaint from one of his long-time customers about a problem with the ignition system on some automatic tillers that were delivered last month. Should Jack assume the product is fine and the user is at fault?

14) Brenda calls one of her best customers and the first thing she hears is "Brenda, I have a complaint." How should Brenda respond to the complaint?

15) Stephan knows that repeat orders are usually easier to handle and more profitable. What can he do to generate repeat orders?

16)

What are the actions to be taken by a salesperson when a product is unsatisfactory?

17) A manufacturer of sporting goods is considering the purchase of a new computer system that will affect nearly every operation within the company. The company's marketing vice president is concerned about how the change will affect the short-term efficiency of the company's shipping department. Discuss how a champion can make the change go more smoothly.

18) Bulles Beverages Company at Las Vegas was a trusted partner of Marcheur Distilleries Limited in Texas. After seven years of working together, the management of Bulles Beverages Company became unsatisfied with Marcheur Distilleries as the latter's service seemed languid.

As a result, the contract was terminated, and they started to source their beverages from another distillery. Identify the reason behind the dissolution of this relationship, and what could have been done to prevent this?

19)

How can trust-destroying conflicts be avoided?

20)

What steps can a salesperson take to overcome conflict with a customer?

21)

After building awareness, the next stage in the development of a partnership is A) recognition.

B) expansion.

C) exploration.

D) commitment.

E) insight.

22) In the _____ stage of developing a partnership, the relationship is defined through the development of expectations for each party.

A) commitment B) exploration C) awareness D) expansion E) dissolution

23) During the _____ stage of developing a partnership, the buyer tests the seller's product, how the seller responds to requests, and other similar actions after the initial sale is made.

A) exploration B) commitment C) awareness D) expansion E) dissolution

24) In the exploration stage of a sales relationship, while responding to a complaint, after the customer tells his or her story and the facts are determined, what would be the next step for the salesperson?

A) generating repeat orders B) moving to the expansion stage C) treating the claim as illegitimate D) offering a solution E) delaying action or avoiding resolution

25) Which of the following is the most appropriate strategy in the expansion stage of a sales relationship?

A) to build a social engagement B) to determine the customer's level of satisfaction C) to delay action or avoid resolution D) to talk about points of agreement E) to generate repeat orders

26) Which of the following is most likely to occur in the commitment stage of developing partnerships?

A) evaluating after-sales services B) gathering pre-call information C) managing change D) cold-calling prospects E) getting an initial order

27) Alex, the owner of Mac's Tire Mart, has received his first shipment of tires from the NevaFlat Tire Company. Alex is now testing how well the tires sell, how well NevaFlat responds when he has a question or problem, and how durable the tires really are. Alex and NevaFlat Tire Company are in which of the following stages of partnership development?

A) recognition B) expansion C) exploration D) commitment E) awareness

28) John Britain Fabrics and BlueFabs are in the exploration stage of a sales relationship.

Margret, a sales executive for John Britain Fabrics, has been assigned to ensure reordering from BlueFabs. What should she do to ensure this?

A) She should give the impression of a fair adjustment of price.

B) She should set high expectations for the products bought by BlueFabs.

C) She should continuously monitor BlueFabs' levels of satisfaction.

D) She should make up responses to tough questions by BlueFabs.

E) She should compel BlueFabs to reorder by giving discounts.

29) Shein Ketchup Company has procured a filling machine for ketchup from Alpha Industries Limited What should Mark, a salesperson at Alpha Industries Limited, do to ensure a reorder by Shein Ketchup Company?

A) He should give the impression of a fair adjustment of price.

B) He should compel the customer to reorder by giving discounts.

C) He should continuously monitor the customer's perception of product performance.

D) He should browbeat the customer if it attempts to secure a satisfactory adjustment.

E) He should set high expectations for the products bought by the customer.

30)

Identify a true statement about the follow-up that salespeople should perform after a sale.

A) Salespeople should make a call to say thank you and to check to see that the product is working appropriately.

B) Personal follow-up visits should be avoided because they are expensive and tend to accomplish little.

C) Salespeople should follow up with only those members of the buying center who are directly involved in the use of the product.

D) Salespeople should ideally follow the three-by-three strategy to make all their follow-up calls.

E) Salespeople should avoid regular follow-up with their accounts to identify any changing needs as it will tarnish goodwill between the seller and the buyer.

31)

Which of the following is a likely reason for a customer complaint?

A) The salesperson set the buyer's expectations too high.

B) The terms of the sales contract were not met by the salesperson.

C) The product required extensive technical expertise to operate.

D) The product was used improperly by the customer.

E) All of the answers are correct.

32)

Which of the following statements about complaints is true?

A) Handling complaints properly is most important during the commitment stage of a partnership.

B) Complaints cannot be eliminated; they can only be reduced in frequency.

C) A complaint should be predominantly attributed to the customer's handling or misuse of the product.

D) Only when complaints are eliminated can a true partnership be formed.

E) All of the answers are correct.

33) What is the first thing a salesperson should do while dealing with a customer's complaint?

A) offer a satisfactory solution B) emphasize that another member of the selling firm is at fault C) determine whether the buying or the selling firm is at fault D) represent the customer's position to the selling firm's personnel E) encourage the customer to tell his or her whole story

34) Which of the following is a guideline that salespeople should follow when solving customers’ complaints?

A) They should justify and blame a third party for a complaint.

B) They should diverge from the complaint as much as possible.

C) They should handle a grievance in a friendly manner.

D) They should divert the customer’s attention with other products.

E) They should ask the customer to return in a few weeks.

35) Anton is a salesperson at GF Motors Company Ben, a customer, has an engine complaint with the car he purchased from GF Motors. Anton listened to his complaint and determined the facts in the complaint. Which of the following should Anton do to effectively respond to his customer in this scenario?

A) He should attempt to sell a different car to the customer.

B) He should interrupt the customer if the customer is describing imaginary grievances.

C) He should offer a solution and gain agreement that the proposed solution is acceptable.

D) He should discuss how another employee of the company is actually at fault.

E) He should determine whether his firm or the customer is responsible for the problem.

36) Susan, an experienced salesperson at a digital appliances company, has been asked to resolve one of her customer’s complaints. Her customer had purchased a washing machine and dryer recently. The customer seems to be dissatisfied with the appliances. Which of the following should Susan do while addressing her customer’s complaints?

A) She should determine the facts related to the complaint.

B) She should ignore the customer’s complaints as the product has never received any negative feedback till date.

C) She should accuse the customer of using the appliances incorrectly.

D) She should offer a complete refund without inquiring too much about the complaint.

E) She should diverge from the topic by talking about replacement products.

37)

Which of the following statements about complaints is false?

A) The customer must perceive the settlement of a complaint as being fair.

B) The settlement that will be provided must be clearly communicated.

C) A salesperson settling a claim should educate the customer to forestall future claims.

D) A fair settlement made in the customer's favor helps resell the company and its products.

E) A salesperson who is convinced that a claim is dishonest should take action by filing a case against the customer.

38)

Identify a true statement about customer complaints in the sales process.

A) All customers’ complaints are unjustified and exaggerated.

B) omplaints are completely eliminated through personal visits by sales representatives.

C) Delaying addressing customers’ complaints is the best way to resolve them.

D) A company and its products can be resold with the help of a fair settlement made in a customer's favor.

E) A customer who does not complain is a happy customer.

39) Which of the following actions is still necessary after the partnering process reaches the expansion stage?

A) identifying additional needs B) monitoring order processing C) ensuring proper use of the product D) handling complaints E) All of the answers are correct.

40) Sheena, a salesperson at Myra Designer Wear, works closely with Blossoms Hub, a retailer who sells Myra's products in many major malls and stores in a city. What should Sheena do to maximize her selling opportunities during the expansion phase of the partnering process with this retailer?

A) She should generate more reorders from the retailer.

B) She should be complacent.

C) She should encourage the retailer to have extremely high expectations of the products.

D) She should engage in full-price selling.

E) She should offer routine maintenance on all products for free.

41)

What should a salesperson do to improve the likelihood of reorders?

A) be present at the time of the purchase B) make sure the customer has access to the selling firm's catalogs C) provide the customer with various specialty advertising items that contain the selling firm's name, logo, and Web site D) provide the customer with periodic maintenance and repair on his or her purchase E) All of the answers are correct.

42) John is a sales representative for a pharmaceutical company, and he specializes in the sale of antibiotics to hospitals. What should John do to ensure that the pharmacists who place orders for medicines remember the brand of antibiotics he sells?

A) He should use data mining strategies.

B) He should give them useful items imprinted with his company's name.

C) He should force them to place orders of large volume with his company.

D) He should give them free vouchers and medical insurances.

E) He should offer bribes to the concerned pharmacists.

43) Keith Nixon, a salesperson for Paradise Water Gardens, often calls on Olin Wiley, the owner of Lexington Nurseries, for sales meetings. He often helps Wiley plan newspaper ads to take full advantage of the co-op advertising allowance that Lexington earns from Paradise. In this example, how is Nixon maximizing his sales opportunity with Lexington?

A) by ensuring good after-sales service B) by helping service products C) by providing expert guidance D) by following through with action E) by selling specialty advertising items

44)

_____ is convincing a customer to use a higher-quality product or a newer product.

A) Seeding B) Canvassing C) Positioning D) Upgrading E) Feature dumping

45) When Marion convinced a customer to replace his old Pondmaster 1000 aquarium filter with the new and improved Pondmaster 1500, she was engaging in

A) cross-selling.

B) upgrading.

C) repositioning.

D) full-line selling.

E) incremental selling.

46) Identify a true statement about upgrading during the expansion phase of a sales relationship.

A) During a modified rebuy, the salesperson should take advantage of the relationship with the customer to maximize sales.

B) The objective of upgrading is to expand the seller's business by selling to the customer in bulk quantities.

C) To upgrade a customer, the salesperson must show that the initial purchase was not exactly what the customer needed.

D) During a modified rebuy in the expansion phase, the salesperson should emphasize that the initial decision was a good one.

E) During the expansion phase of a relationship, salespeople dealing with less educated consumers should lend themselves to overselling.

47)

_____ is defined as selling an entire line of associated products.

A) Full-line selling B) Cross-selling C) Insight selling D) Rebate selling E) Full-price selling

48) With _____, the emphasis is on helping the buyer realize the synergy of carrying all associated products of the same brand or manufacturer.

A) solo exchange B) insight selling C) cross-selling D) upgrading E) full-line selling

49) Fuchsia Folk Stories sells exotic flowers, bouquets, vases, packing materials, and other items required for flower arrangements. It recently started selling its exotic flowers at supermarkets and cafes. It is now trying to convince these stores for it to also sell its vases, packing materials, bows, cards, and other items as it noticed that customers are also looking to purchase such items along with the flowers. It claims that its products are of better quality and are more affordable than those of other competing companies and discusses the benefits of selling these products. It informs the supermarkets and cafes that they can expect more customers to visit their stores and cafes and that it will increase their chances of sales. Which of the following types of selling is most likely illustrated in this scenario?

A) upgrading B) backdoor selling C) full-line selling D) solution selling E) phishing

50) Dawn, a sales executive at Wind Homes Limited, sells building materials to the construction contractors in New Jersey. She is able to achieve her annual sales target for wooden planks, but the sales of the other construction materials are far below the set target. Dawn explains to her existing customers the benefits of buying the other construction materials from her along with the wooden planks. Identify the strategy being used by Dawn in this scenario.

A) adaptive selling B) upgrading C) full-line selling D) backdoor selling E) insight selling

51)

Which of the following is a tip for salespeople for effective cross-selling?

A) Set extremely high expectations right from the beginning.

B) Avoid following up with a customer after a sale.

C) Be aware of all of a company's products.

D) Be complacent after a customer commits to a business.

E) Set tough goals and force a cross-sell.

52) When a buyer-seller relationship has reached the _____ stage of partnership development, there is a stated or implied pledge to continue the relationship.

A) culmination B) pinnacle C) commitment D) expansion E) covenant

53) Hurricane Mitch was the most devastating storm to ever hit Central America. Roger, a salesperson for Dempko Chemicals in Granada, proactively arranged transportation facilities to deliver chemicals to the factory of his major client, Quimico Factories. This prevented the stalling of factory operations during Hurricane Mitch. Identify the stage of relationship between Dempko Chemicals and Quimico Factories in this scenario.

A) expansion B) dissolution C) commitment D) awareness E) exploration

54) In general, _____ status means the vendor is assured of a large percentage of the buyer's business and will get the first opportunity to earn new business.

A) reseller B) retailer C) service provider D) preferred-supplier E) relationship manager

55) In the context of a buyer–seller relationship, which of the following is a criteria to become a preferred supplier?

A) being complacent after the success of a business deal B) delivering the products or services on time C) forcing repeat orders from customers D) assuming product failure is the user’s fault E) forcing a cross-sell

56)

Which of the following statements about the commitment stage of a relationship is false?

A) Commitment to the relationship must permeate both the buying and the selling organizations.

B) The seller must take a proactive communication stance.

C) The corporate cultures of the two organizations must be compatible.

D) Salespeople must discourage direct communication among similar functional areas of the two firms.

E) There is an implied or stated pledge to continue the relationship.

57)

Which of the following statements is true of corporate culture?

A) It shapes the attitudes of employees.

B) It reflects the values and beliefs held by senior management.

C) It influences the development of programs and policies.

D) It determines how employees act.

E) All of the answers are correct.

58) In El Salvador, a manufacturer of household insecticide told Dempko Chemical Company's salesperson Nelson Viquez that it wanted a substitute for the kerosene it always used in making aerosol household insecticide. Viquez worked extensively with the manufacturer to create a pilot plant and test its pesticides with the addition of Dempko Chemical's Demosol D—a substitute for kerosene. Dempko Chemical and the manufacturer spent a year and a half running laboratory and field tests on the new product, which was extremely successful in Central America. Viquez acted as a(n) A) change agent.

B) influential adversary.

C) spotter.

D) gatekeeper.

E) idea champion.

59) Martin was trying to sell pumps for circulating water in goldfish ponds when he realized that the reason he was not able to sell many pumps was because of the weight of the model he was trying to sell. He approached the firm with the idea to replace every possible metal part of the pump with a hard plastic substitute. After working on his feedback, the pumps became lighter in weight and were able to meet customers' requirements better. As the _____, Martin saw the project from its conception to the development of a lighter pump.

A) change agent B) gatekeeper C) driver D) spotter E) champion

60)

The term _____ refers to the degree to which a change affects an organization.

A) scope of change B) change ratio C) rate of change D) change quotient E) change agent

61) _____ work for a buying firm in the areas most affected by a proposed change and work with the salespeople to make the proposal successful.

A) Influential adversaries B) Gatekeepers C) Spotters D) Champions E) Initiators

62) Angela is a salesperson for KSU exercise equipment. She wants to sell deluxe exercise stations to Silver Workout Centers. Hans is the assistant regional director of Silver Workout Centers in the greater Chicago area and is acting as a champion for Angela's product. We should expect all of the following except A) Hans will prevent Angela from meeting the members of the buying center at the home office.

B) Hans will sell Angela's proposal at the home office in her absence.

C) Angela will provide Hans with a lot of information about her proposal and equipment.

D) Hans will promote the exercise equipment to other members of the buying center.

E) Angela will motivate Hans by showing him how the equipment meets Silver's needs as well as his own.

63)

Which of the following statements about positioning a change is true?

A) Positioning a change seldom requires examining the needs and wants of the constituencies in an account.

B) Irrespective of who is positioning the change, success is always guaranteed.

C) Positioning a change is similar to positioning a product in mass marketing.

D) Positioning a change is a reactive way of dealing with an initial turndown by a buying firm.

E) Salespeople have a limited role in the process of positioning a proposed change.

64) Ralph realizes that most of the people he established a business partnership with are no longer in their organizations. He does not know what his customers are planning next or what his competitors are doing. Ralph is most likely in the _____ stage of business partnerships.

A) synergy B) dissolution C) exploration D) expansion E) commitment

65) Which of the following represents a way in which a salesperson can ensure a good number of personal contacts in a customer's firms?

A) by using an electronic data interchange system to control communication with the customer B) by using specialty advertising items to make the selling firm's presence felt in the customer's firm C) by cultivating three relationships each at three organizational levels of the customer's firm D) by minimizing the use of strategies like cross-selling, full-line selling, and upselling with the customer's firm E) by avoiding action on any trust-destroying conflict that the customer may have

66)

Identify a feature about the dissolution stage in a sales relationship.

A) keen awareness of the potential plans of the partnering firm B) failure of a proposal due to incorrect positioning of the proposed change in the relationship C) extensive network of personal and professional contacts in the partnering firm D) failure to monitor the industry in which either the salesperson or the customer operates E) high degree of competence even at the later stages of the partnering relationship

67) Which of the following statements is true about salespeople failing to monitor competitors’ actions?

A) When a selling firm is in an invulnerable position, there is no need to study competitor actions.

B) Studying competitor actions involves locating data that are not easily accessible to everyone.

C) The selling firm is especially vulnerable during a personnel, technological, and directional change.

D) Competitor's actions rarely help a company position its products and services better.

E) The three-by-three strategy is designed specifically to help salespeople understand a competitor's actions.

68) Gail is a salesperson at Westinghouse Incorporated and handles the account of a firm called Deep South Electric, which is a major public utility company. Westinghouse and Deep South have developed a partnering relationship in which Deep South buys all of its pole-mounted transformers from Westinghouse. The partnership is the result of Gail’s hard work for several years, and Deep South is her only client. She assumes that the two firms are committed to the relationship and takes a few days off from work in order to spend time with her friends. She slowly fails to continue to work hard as she did to get the client. In this scenario, which of the following best describes Gail's attitude toward her client and sales targets?

A) emotional labeling B) complacency C) acceptability D) attitudinal loyalty E) competence

69)

Which of the following should salespeople do to avoid complacency?

A) resist all forms of change B) audit their own customer service C) shift the focus from problem solving to assigning blame D) ignore customer complaints E) refrain from monitoring competitor action

70) Which of the following is the first step toward reducing the probability of a trustdestroying conflict in a relationship?

A) give a clear product description B) define who has the authority to do what within the selling and buying organizations C) document any changes made to the contract D) ignore complaints from the buying center E) dissolve the relationship

71)

Expansion immediately follows the awareness stage of building partnerships. ⊚ true ⊚ false

72)

Salespeople should make sure customers have high expectations of product performance.

⊚ ⊚

true false

73)

The best way to establish a sales relationship is to be aware of what the customer expects. ⊚ true ⊚ false

74)

To a large degree, customers base their initial expectations on sales presentations. ⊚ true ⊚ false

75)

To be most effective, a salesperson should wait until a user has trouble with the product. ⊚ true ⊚ false

76) The fewer the difficulties allowed to occur, the greater will be a customer's confidence in the salesperson and the product. ⊚ true ⊚ false

77) Assuming proper expectations were set, customers can be disappointed when a product performs poorly, is used improperly, or the terms of the contract are not met. ⊚ true ⊚ false

78) Good salespeople show they are happy when a grievance has been brought to their attention.

⊚ ⊚

true false

79) Experienced salespeople should assume product or service failure is always the user's fault. ⊚ true ⊚ false

80) If a customer does not like a proposed solution for his or her grievances, the salesperson trusted to make an adjustment or recommendation need not shoulder the responsibility. ⊚ true ⊚ false

81) When describing a settlement, the salesperson should carefully monitor all verbal and nonverbal cues to determine the customer's level of satisfaction. ⊚ true ⊚ false

82) In the expansion phase, the activities of the exploration stage, such as monitoring order processing, handling complaints, and so on, do not apply. ⊚ true ⊚ false

83) Upgrading, full-line selling, and cross-selling are sales strategies that work best with existing prospects. ⊚ true ⊚ false

84) Getting customers to use a higher-quality or newer version of a product is called full-line selling. ⊚ true ⊚ false

85) Cross-selling involves leveraging the relationship with a buyer to identify needs for additional products. ⊚ true ⊚ false

86) When a buyer-seller relationship has reached the commitment stage, there is a stated or implied pledge to continue the relationship. ⊚ true ⊚ false

87) During the commitment stage of the development of partnerships, it is still unlikely that a customer will designate a supplier as a preferred supplier or partner. ⊚ true ⊚ false

88) Activities such as upgrading, full-line selling, cross-selling, and handling complaints cease during the commitment stage of the relationship development process. ⊚ true ⊚ false

89) A salesperson owns the responsibility to secure commitment from his or her own company. ⊚ true ⊚ false

90) Commitment requires that all employees be empowered to handle the needs of a customer. ⊚ true ⊚ false

91)

Salespeople should encourage direct communication among similar functional areas. ⊚ true ⊚ false

92) When partnering with companies from other countries, country culture differences as well as corporate culture differences can cause difficulties. ⊚ true ⊚ false

93) It is up to a single salesperson to change his or her company's corporate culture to secure a partnership with an important client. ⊚ true ⊚ false

94) To achieve increasing revenue in an account over time, a salesperson should act as a change agent. ⊚ true ⊚ false

95)

In general, the faster and broader the change, the less likely it will meet with resistance. ⊚ true ⊚ false

96) Salespeople can motivate champions to participate fully in the decision process by showing how a decision meets their needs as well as the overall needs of the company. ⊚ true ⊚ false

97) Because salespeople are highly proactive in finding areas for improvement in their partners' organizations, positioning a change may determine who is involved in the decision. ⊚ true ⊚ false

98) Once a customer has committed to a partnership, less work is needed to maintain the relationship. ⊚ true ⊚ false

99) In sales terms, complacency is assuming that a business is yours and will always be yours. ⊚ true ⊚ false

100) Complaints in the later stages of a strategic partnership are likely to lead to full-blown conflict if trust is not carefully salvaged. ⊚ true ⊚ false

Answer Key Test name: chapter 14 21) C 22) B 23) A 24) D 25) E 26) C 27) C 28) C 29) C 30) A 31) E 32) B 33) E 34) C 35) C 36) A 37) E 38) D 39) E 40) A 41) E 42) B 43) C 44) D 45) B 46) D

47) A 48) E 49) C 50) C 51) C 52) C 53) C 54) D 55) B 56) D 57) E 58) A 59) A 60) A 61) D 62) A 63) C 64) B 65) C 66) D 67) C 68) B 69) B 70) A 71) FALSE 72) FALSE 73) TRUE 74) TRUE 75) FALSE 76) TRUE

77) TRUE 78) TRUE 79) FALSE 80) FALSE 81) TRUE 82) FALSE 83) TRUE 84) FALSE 85) TRUE 86) TRUE 87) FALSE 88) FALSE 89) TRUE 90) TRUE 91) TRUE 92) TRUE 93) FALSE 94) TRUE 95) FALSE 96) TRUE 97) TRUE 98) FALSE 99) TRUE 100) TRUE Student name:__________ 1) What does it mean when your sales manager tells you that all of your activity goals are intermediate goals?

2)

What do a salesperson's conversion goals measure?

3)

Differentiate between performance goals and conversion goals.

4)

How should salespeople classify customers in order to achieve sales goals?

5) Monica is creating a chart comparing the strength of her company's position versus the account opportunity for her customers. What is Monica creating?

6) Sonya has created a sales call allocation grid. Describe the attractiveness of the accounts that fall into the grid segment denoting weak strength of position but high opportunity. What sales strategies should she use for these accounts?

7) Sarah has created a sales call allocation grid. Describe the attractiveness of accounts that fall into the grid segment denoting strong strength of position but low opportunity. What sales strategies should she use for these accounts?

8)

What is meant by routing in sales?

9)

List the four types of routing plans used by salespeople.

10) Brett has just calculated his number of sales per call for the last month. What has he calculated?

11) Beverly has just attended a seminar on the self-management process for salespeople.

Briefly describe the four stages of the self-management process she learned about at the seminar.

12)

List and briefly describe the three types of sales call goals.

13)

How does an ABC analysis use the 80/20 rule?

14)

Identify and describe the two dimensions that define the sales call allocation grid.

15)

List the steps in the process of activities planning.

16)

Differentiate between the two types of sales call patterns.

17)

What is zoning, and how does it help salespeople achieve sales goals?

18) What can salespeople do to minimize the impact of paperwork on their prime selling time?

19)

Describe the various ways in which salespeople can perform activity analysis.

20) How does calculating the conversion rate help salespeople in performing productivity analyses?

21)

What is the first stage of the self-management process?

A) setting goals B) implementing a time management strategy C) allocating resources D) designing a time management strategy E) evaluating performance

22) Marissa, a sales manager with Care Health Systems, has set her targets and goals for the current financial year. Which of the following steps should Marissa take next according to the self-management process?

A) conduct a productivity analysis B) determine whether the goals will be reached and her strategies are effective C) allocate resources to meet her goals D) implement the time management strategies E) evaluate her own performance

23) Larry is a new sales executive with Dr. Eddy's Laboratories. According to the selfmanagement process, he has set his goals and has allocated resources to meet his goals. Identify the next step that he should take.

A) determine whether the goals can be reached and if the strategies need to be changed B) implement the time management strategies C) determine the goals to be accomplished before the next financial year D) complete his paperwork before beginning his sales strategy E) evaluate his performance to date

24)

Which of the following is the final stage of the self-management process?

A) setting sales goals B) implementing a time management strategy C) allocating resources D) designing sales strategies E) evaluating performance

25)

Which of the following is a reason why career and sales goals should be challenging?

A) to eliminate salespeople who put in the effort but don’t show positive results B) to measure the probability of achieving the goals C) to motivate the salesperson setting the goals D) to lengthen the time frame in which the goals are to be achieved E) to delay achieving the goals set by the salesperson for the foreseeable future

26)

Identify a true statement about setting goals in the self-management process.

A) Irrespective of how the goals are set, they seldom guide or direct a salesperson’s activities.

B) If goals are to be achieved, they should seldom be time-based.

C) To continuously motivate a person, goals set should be challenging and unreachable.

D) Goals should be measurable and specific.

E) Career goals and objectives should be distinct from personal ambitions.

27)

Goals relating to outcomes are _____ goals.

A) performance B) consequence C) activity D) transformation E) conversion

28) A salesperson should set his or her _____ first because attaining certain execution levels is of primary importance to both the organization and the salesperson.

A) performance goals B) activity quota C) activity goals D) gross margin quota E) conversion goals

29)

Which of the following is the best example of a performance goal?

A) to increase the number of cold calls from 10 per month to 12 per month B) to make more sales calls using the telephone C) to increase the amount of sales revenue by 10 percent D) to increase the number of sales made relative to the number of sales calls made E) to increase the number of customer accounts relative to the number of cold calls

made

30) Harrison is self-employed. He sells advertising specialty items like calendars, pens, etc., imprinted with the name and advertising message of local businesses who give the items to customers and prospects. He has set a goal for himself which is to earn $180,000 in sales for this year. Harrison's revenue goal is an example of a(n) _____ goal.

A) transformation B) consequence C) activity D) performance E) conversion

31) Personal development goals, such as improving presentation skills, are important to longterm professional growth and are a form of

A) focus goals.

B) short-term goals.

C) activity goals.

D) performance goals.

E) conversion goals.

32) Which of the following reasons best explains why "To reduce my dependency on a memorized sales presentation within the next six months" is not an effective personal development goal?

A) It is extremely specific.

B) It is not derived from previous goals.

C) It has no impact on career goals.

D) It is not challenging.

E) It is not measurable.

33) A salesperson receives $200 commission per sale and has set a goal of earning $3,000 per month. With a conversion rate of 1 out of 8 prospects, he will need to make sales presentations to _____ prospects to achieve his performance goal.

A) 120 B) 100 C) 200 D) 80 E) 250

34) Behavioral objectives such as increasing the number of demonstrations performed are also called _____ goals.

A) transformation B) conformance C) activity D) performance E) conversion

35) A goal to increase the number of sales calls made in one day from 8 a.m. to 9 a.m. is an example of a(n) _____ goal.

A) performance B) consequence C) activity D) transformation E) conversion

36) Dmitri believes he can increase his income by 10 percent if he makes two more sales calls per week. His goal to increase the number of calls he makes is an example of a(n) _____ goal.

A) transformation B) consequence C) activity D) performance E) conversion

37) Tracy's company expects her to give no less than three demonstrations per workday. This is an example of a(n) _____ goal.

A) transformation B) consequence C) activity D) performance E) conversion

38)

Which of the following is the best example of a conversion goal?

A) increasing the amount of commission checks by 15 percent B) increasing the number of telephone sales calls by 12 percent C) improving sales presentation skills D) improving the average sales generated relative to the number of calls made E) decreasing the number of customer complaints by 5 percent

39) _____ goals are important because they reflect how efficiently a salesperson uses resources, such as time, to accomplish performance goals.

A) Transformation B) Consequence C) Activity D) Performance E) Conversion

40)

Performance and conversion goals are the basis for _____ goals.

A) activity B) transformation C) consequence D) terminal E) collaborative

41) Mariah is a stockbroker. She knows that to increase her number of clients she must do a lot of prospecting since only about 1 out of 30 prospects she works with will become a profitable client. She believes by doing a better job qualifying her prospects she will be able to persuade 1 out of 25 next month. This goal is an example of a(n) _____ goal.

A) transformation B) consequence C) activity D) performance E) conversion

42)

In the context of sales goals, which of the following statements is true of benchmarking?

A) It can help one see where they are falling short in terms of performance.

B) It is a type of meeting where people are encouraged to explore different methods to achieve their goals.

C) It discourages all forms of comparisons of performances in an organization.

D) It is a form of conflict resolution method.

E) It is not useful in measuring a salesperson’s efficiency.

43) Karen works for Leather Planet Company. The top salesperson in her company has a sales conversion ratio of 80 percent, while hers is only 55 percent. Karen wants to achieve a conversion rate of 75 percent for the current quarter. Which of the following methods will help Karen see where she is falling short?

A) benchmarking her performance against the best in the company B) conducting life-cycle costing on all her products C) using integrated marketing communications for accounts with low potential for sales D) incorporating adaptive planning for conducting market survey E) adopting the benefit opening approach for managing her nonselling activities

44) According to the self-management process, which of the following statements is true about resource allocation?

A) As a rule, 10 percent of a salesperson's sales come from 90 percent of his or her customers.

B) Attending meetings and learning about new products are examples of a salesperson's nonselling investment of his or her time.

C) Since there are no limitations on time, a salesperson should spend all his or her work time making sales calls.

D) The physical resources managed by a salesperson represent a disinvestment for the company.

E) Resource allocation is the third stage of the self-management process.

45)

Identify a true statement about sales accounts classification and resource allocation.

A) The proportion of unprofitable accounts is minimal; therefore, all accounts should have equal allocation of resources.

B) As a rule, 80 percent of the sales in a territory come from only 20 percent of the customers.

C) Salespeople should avoid classifying customers on the basis of their sales potential.

D) All customers have the same buying potential, just as all sales activities produce the same results.

E) Salespeople should maximize effort spent with the customers who offer little opportunity for profitable sales.

46) Eva is the sales manager of Orange Candies Industries. To classify her sales accounts and allocate resources for them, Eva classifies her customers into three groups. Group 1 constitutes her best accounts that buy the most, Group 2 consists of accounts of moderate value, and Group 3 is comprised of noncustomers or accounts with low potential for sales. Identify the method used by Eva to classify her sales accounts.

A) analysis paralysis B) simple cost-benefit analysis C) comparative cost-benefit analysis D) ABC analysis E) pipeline analysis

47) In which of the following scenarios would ABC analysis be of least value to a salesperson?

A) sale of clothes to department stores B) sales of MRI equipment to hospitals C) sale of cereal to supermarkets and grocery stores D) sale of pharmaceuticals to pharmacies E) sale of cosmetics to retail outlets

48) _____ classifies accounts on the basis of a company's competitive position with an account along with the account's sales potential.

A) ABC analysis B) The product differentiation method C) Cloverleaf analysis D) The sales call allocation grid E) The market basket analysis

49) According to the sales call allocation grid (SCA grid), which of the following dimensions of an account are used for the classification of the accounts?

A) strength of position and account opportunity B) location of customers and demography of customers C) cost of product and inventory turnover D) opening position and target position E) account liability and profit

50) The sales call allocation grid classifies accounts according to account opportunity and strength of position. Which of the following dimensions is indicated by account opportunity?

A) the current share of the account’s purchases of the product or service B) how conveniently a sales executive is able to contact a customer and travel to the customer's location C) how much a customer wants a product and whether the customer is capable of buying the product D) the strength of the company's and salesperson's positions with a customer E) the perspective of the account toward the company and salesperson

51) The sales call allocation grid classifies accounts according to account opportunity and strength of position. What does the strength of position dimension indicate?

A) the value of resources a salesperson is able to focus on a customer B) how conveniently a sales rep is able to reach a customer's office C) how much a customer needs a product and whether he or she is able to pay for the product D) how strong the salesperson and company are in selling the account E) the distribution costs associated with serving a customer

52)

The sales call allocation grid is a great tool for analyzing

A) current customers.

B) time spent on paperwork.

C) time spent on traveling between accounts.

D) the use of the mail and the phone in account maintenance.

E) future prospects.

53) _____ refers to the average percentage of business received from a company's accounts in a particular category.

A) Market share B) Account attitude C) Routing patterns D) Account opportunity E) Customer share

54) Using a customer relationship management (CRM) software, salespeople can perform _____, which is a process for identifying and managing sales opportunities.

A) vendor analysis B) pipeline analysis C) benchmarking D) customer value analysis E) circular routing

55) Roderick sells restaurant supplies to eateries in western Kentucky. Because his clients do much of their own business at lunchtime, he discovers that they prefer to have him call between 9:00 and 11:00 a.m. and between 1:30 and 4:30 p.m. This time he devotes to making sales calls is referred to as the

A) sales evaluating time.

B) prime selling time.

C) downtime.

D) target market time.

E) niche time.

56)

Which of the following statements about time management is true?

A) Prime selling time depends on the buyer's industry.

B) Prime selling time is the time a salesperson devotes to performing nonselling activities.

C) The time of day when a buyer is most likely to be willing to see a salesperson is called the sales evaluating time.

D) Successful salespeople know that once their daily plan is set, they should not deviate from it.

E) Prime selling time is the same across most industries.

57)

What is the first step in the activities planning process?

A) determine the priority of each activity to be performed B) estimate time needed to complete each activity C) list the activities that need to be performed D) develop a time schedule for performing activities E) compare the estimated time with the actual time spent on the activity

58) As Amy plans her day, the first thing for her to do is to make a list of the activities that should be performed. What should be her next, immediate step?

A) consult her records regarding how long similar activities took when she did them previously B) develop a time schedule for doing those activities C) determine the priority for each activity D) estimate how long each activity will take E) develop long-term sales goals

59) Tyler maintains a calendar in which he notes various tasks he is required to perform in the future and when they are due. He also keeps information about repeat calls he is supposed to make. In addition, he has information about many of his customer's birthdays (so he can send a card). This calendar helps him prepare his to-do lists to get things done in a timely manner.

Which of the following terms best describes this calendar?

A) duty box B) engagement file C) activity index D) organizer box E) tickler file

60)

Which of the following statements about making sales calls is true?

A) All customers prefer emails over sales calls. Therefore, salespeople should avoid making sales calls as much as possible.

B) Salespeople should make multiple sales calls to the same customer on a single day until they get a positive response from that customer.

C) Bad weather increases competition and makes it difficult for salespeople to close deals.

D) Making daily plans for sales calls and developing efficient routes are important steps toward better usage of time.

E) The days after holidays are seen as good days to call on customers.

61) Which of the following best differentiates a routine call pattern from a variable call pattern?

A) In a routine call pattern, the salesperson assumes the customer will repeat the order without any discussions, whereas in a variable call pattern, the salesperson will need to discuss with the customer before placing a repeat order.

B) In a routine call pattern, one salesperson is assigned to one customer, whereas in a variable call pattern, several salespeople are assigned to one customer.

C) In a routine call pattern, the salesperson meets the same customers periodically, whereas in a variable call pattern, the salesperson will call customers in an irregular order.

D) In a routine call pattern, the salesperson avoids meeting the customers but rather sends emails, whereas in a variable call pattern, the salesperson will either call or email customers.

E) In a routine call pattern, the salesperson uses several routing techniques for calling customers, whereas in a variable call pattern, the salesperson calls on accounts in a regular order.

62) Harriet, a salesperson with GoodGrip Tires, has been given four additional counties in her territory after a corporate restructuring. To minimize her travel time, she needs to plan her sales calls to include these new accounts. Identify the method used by Harriet in this scenario.

A) mirroring B) opening C) routing D) seeding E) zoning

63)

Which of the following scenarios exemplifies a routine call pattern?

A) Rueben, a sales executive with Marley Food Products, makes sales calls to his top 5 supermarkets and grocery shops every 15 days to get their confirmation on orders.

B) Ben, a sales manager with Minda Heavy Equipment Company, makes sales calls to Race Motors Limited, to sell motor engines.

C) Cherry, a sales executive with Wood Planet Limited, makes sales calls to flower stores in New Jersey to sell poinsettia tree racks.

D) Mathew, a sales executive with Neige Refrigeration Systems, makes sales calls to supermarkets and hypermarkets to sell display refrigeration units.

E) Betty, a sales executive with Puissance Invertor Systems, makes sales calls to textiles mills to sell emergency power systems.

64)

In the context of routing, when do variable call patterns occur?

A) when paperwork regularly requires a full day to complete B) when a salesperson must call on accounts in an irregular order C) when computer assistance is unavailable D) when a particular customer wants to see a salesperson every Monday E) when telephone and direct mail are used for prospecting

65) Iris, a salesperson with Winter Fruits Limited, sells display refrigeration units to supermarkets and vegetable stores. The demand for her products is erratic, and she has to plan her sales calls accordingly. Identify the call pattern that will help Iris plan her sales call more effectively.

A) straight-line call pattern B) circular call pattern C) routine call pattern D) variable call pattern E) leapfrog call pattern

66)

What is the advantage of zoning for salespeople?

A) It minimizes travel time between customers.

B) It forms creative combinations within routing.

C) It avoids routine sales call patterns.

D) It divides accounts into groups according to their profitability.

E) It scatters sales across a wide geographic area.

67) Winston, a salesperson, is asked to travel to New York to meet with his customers. To reduce travel time that will take to meet with individual customers located all over New York, he divides the territory he needs to cover into two areas—near the airport and away from the airport.

He decides to spend one complete day at each territory to meet with the customers located in that particular territory. Which of the following techniques is most likely illustrated in this scenario?

A) adaptive planning B) benchmarking C) brainstorming session D) zoning E) phishing

68)

For which of the following does zoning work best?

A) for organizations that seldom want to divide their territory B) in territories where customers expect regular sales calls C) when a salesperson is trying to maximize travel time between sales calls D) when a salesperson is looking for leads E) for compact territories

69) James, a salesperson at a digital appliances firm, struggles to keep up with his paperwork.

He seldom gets time to complete it, and it gets piled up for the weekends. As a result, James works on all days of the week. He approaches a senior salesperson for tips on how to handle his paperwork better. Which of the following tips would most likely be suggested by the senior salesperson?

A) Delegating all the paperwork to a subordinate B) Dedicating prime selling time to complete the paperwork C) Completing the paperwork when waiting for a customer D) Taking a couple of days off every month to complete the paperwork E) Avoiding setting aside a block of nonselling time for paperwork

70)

How do computers help international selling organizations operate smoothly?

A) by permitting salespeople to forego their usual sales reports B) by eliminating the need for videoconferencing C) by reducing communication barriers between the field and the home office D) by reducing the need for salespeople E) All of the answers are correct.

71) The first step in the self-management process is to allocate resources and determine strategies to achieve goals. ⊚ true ⊚ false

72)

A salesperson lacking goals will drift around their territory, wasting time and energy. ⊚ true ⊚ false

73) Easy goals are more motivating than challenging goals because of the satisfaction that comes from always succeeding. ⊚ true ⊚ false

74) Putting a deadline on a goal provides more guidance for a salesperson and creates a sense of urgency that can be motivating. ⊚ true ⊚ false

75)

Performance goals are behavioral objectives. ⊚ true ⊚ false

76)

Goals relating to outcomes are activity goals. ⊚ true ⊚ false

77) If a salesperson can decrease the conversion rate for a product, the overall costs for unsold products will be lower, hence increasing profits. ⊚ true ⊚ false

78) Comparing your performance with the best in your organization is a form of benchmarking. ⊚ true ⊚ false

79) Salespeople should consider physical resources they manage as investments because they must be managed wisely to produce the best possible return. ⊚ true ⊚ false

80) Salespeople should learn to allocate resources in ways that generate the greatest level of sales. ⊚ true ⊚ false

81) Customer management includes allocating all the resources, for managing customers, at a salesperson's disposal in the most productive manner. ⊚ true ⊚ false

82) ABC classification schemes work well only in industries that require occasional contact with the same accounts, such as medical equipment industries and capital products industries. ⊚ true ⊚ false

83) The purpose of classifying accounts through grid analysis is to determine which accounts should receive more resources. ⊚ true ⊚ false

84) Account share is the average percentage of business received from a company's accounts in a particular category. ⊚ true ⊚ false

85) To be effective time planners, salespeople must have a good understanding of their own work habits. ⊚ true ⊚ false

86) Prime selling time should be devoted to nonselling activities such as servicing accounts, doing paperwork, or getting information from the home office, with the rest of the day used to make sales calls. ⊚ true ⊚ false

87) The desire to drop everything else to handle a request is called the "tyranny of the urgent." ⊚ true ⊚ false

88) The daily plans of a salesperson should not be revised even if more time at one account will mean better sales results. ⊚ true ⊚ false

89) To plan for the unexpected, a salesperson's first visit of the day should be to a noncustomer with low potential. ⊚ true ⊚ false

90) Routing is a method of identifying accounts that should receive the highest level of resource allocation. ⊚ true ⊚ false

91)

Variable call patterns occur when a salesperson sees the same customers regularly.

⊚ ⊚

true false

92) Sales call routing plans vary depending on the demands of the customers and the salesperson's ability to schedule calls at convenient times. ⊚ true ⊚ false

93) In sales, zoning works best for large territories or for situations in which salespeople call regularly on the same accounts. ⊚ true ⊚ false

94)

Customer contacts should always be in the form of in-person sales calls. ⊚ true ⊚ false

95)

Salespeople should set aside a block of prime selling time for paperwork. ⊚ true ⊚ false

96) Salespeople should not only evaluate each sales call individually but also look at which activity leads to desired outcomes and at what rate. ⊚ true ⊚ false

97) The results of a postcall analysis should be recorded so that one can determine whether there are patterns that can suggest new strategies or reinforce current strategies

⊚ ⊚

true false

98)

Activity analysis helps a salesperson analyze how well each sales call went. ⊚ true ⊚ false

99)

Salespeople need to evaluate performance relative to performance goals set earlier. ⊚ true ⊚ false

100)

Conversion ratios should also be calculated by account type. ⊚ true ⊚ false

Answer Key Test name: chapter 15 21) A 22) C 23) B 24) E 25) C 26) D 27) A 28) A 29) C 30) D 31) D 32) E 33) A 34) C 35) C 36) C 37) C 38) D 39) E 40) A 41) E 42) A 43) A 44) B 45) B 46) D

47) B 48) D 49) A 50) C 51) D 52) A 53) E 54) B 55) B 56) A 57) C 58) C 59) E 60) D 61) C 62) C 63) A 64) B 65) D 66) A 67) D 68) E 69) C 70) C 71) FALSE 72) TRUE 73) FALSE 74) TRUE 75) FALSE 76) FALSE

77) FALSE 78) TRUE 79) TRUE 80) TRUE 81) TRUE 82) FALSE 83) TRUE 84) TRUE 85) TRUE 86) FALSE 87) TRUE 88) FALSE 89) FALSE 90) FALSE 91) FALSE 92) TRUE 93) FALSE 94) FALSE 95) FALSE 96) TRUE 97) TRUE 98) FALSE 99) TRUE 100) TRUE Student name:__________ 1) Lee, the sales rep for GE CT scanners, is required to call on four hospitals per month.

Which type of quota does Lee have?

2) Ryan, a salesperson, received an extra amount of money at the end of last quarter because he not only exceeded his sales quota, he also acquired a large account. Identify the type of incentive that Ryan has received.

3)

What are the two types of incentives for a salesperson?

4)

When are straight salary compensation plans appropriate?

5) As a new salesperson, Marc is working on commission. Even though he has yet to make his first sales call, he has already been paid $300. How would you categorize the $300 payment?

6) Marie has been hired to sell sound systems for arenas, stadiums, and other large venues.

During her orientation, she was told that if she ever felt that her manager was doing something unethical or something that made her uncomfortable, she could take her problem to the upper management. Which type of policy is Marie's new company using?

7)

Define a geographic salesperson.

8)

Who typically handles house accounts?

9) Differentiate between the terms "inbound" and "outbound" when referring to sales representatives.

10)

List three kinds of outbound sales representatives.

11)

Discuss the role of a salesperson in the sales force of a company.

12)

What are the seven principles of selling internally?

13) Adam is a new sales representative for Harris Pillow Company, a manufacturer of pillows. In addition to his sales responsibilities, what areas of the company are likely to be important to him and how?

14) The sales manager for Arunden Industries was told to cut costs. To do so, he decided to offer a bonus to salespeople who spend less than their expense account allocation. What are the possible disadvantages of using this tactic?

15) Discuss some of the measures that sales executives can take to promote ethical behavior among employees.

16) Discuss some of the strategies salespeople can use to handle unethical requests from superiors.

17) Willey is the national account manager of Perspicacia International Company. Discuss his role as a national account manager.

18)

Differentiate between a house account and a key account.

19)

Explain team and multilevel selling.

20)

How has technology facilitated the growth of sales teams?

21)

Identify one of the most important functions of a sales force.

A) drafting an expense budget B) determining the mission statement of the company C) separating the activities of the product management team and the operations team in the company D) increasing the skill sets of the customers associated with the company E) carrying the customers' voice across the organization

22)

Which of the following corporate areas is important to salespeople?

A) marketing B) manufacturing C) administration D) shipping E) All of the answers are correct.

23) Ed works as a salesperson in a garment manufacturing company. Which of the following departments in Ed's company is most directly responsible for seeing that the orders he gets from customers are properly entered into the company's computer and that he gets his commission for the orders?

A) marketing B) manufacturing C) administration D) shipping E) customer service

24) Katherine is developing a forecast for her company's next year's sales of an organic fertilizer to retail gardening nurseries. She is assembling the sales estimates for her company's product by adding together the territory estimates provided by her salespeople. She is engaging in _____ forecasting.

A) cumulative B) geographic C) gross margin quota D) profit quota E) bottom-up

25)

Which of the following statements about forecasting in global markets is true?

A) The same forecasting techniques that work in the United States work around the

world.

B) Salespeople are especially important to the forecasting process when an executive is attempting to forecast international sales.

C) For international marketing forecasts, the top executives rather than the salespeople can provide the most accurate numbers.

D) In the bottom-up forecasting method used in international sales, little input is taken from the salespeople.

E) Computer simulations produce the most reliable sales forecasts for selling in international markets.

26) Megan is a salesperson for a brand of cosmetics in a department store. She must sell enough products in a month to make a minimum profit of $5000 to achieve her quota. Which type of quota has Megan most likely been assigned by her company?

A) a volume-based quota B) an activity quota C) a revenue quota D) a sales quota E) a gross margin quota

27) Taylor sells roller coasters, carousels, bumper cars, and other similar rides to amusement parks. His manager has told him that he must find buyers for at least six water flume rides, three carousels, two coaster rides, and ten kiddie rides this fiscal year. Taylor's manager has given him his A) key account.

B) sales quota.

C) revenue quota.

D) sales commission rate.

E) commission base.

28) Mack is a salesperson with Cible Department Store. His manager has given him a target of selling $525,000 worth of merchandise in his territory in the current financial year. Identify the type of quota that Mack is expected to achieve.

A) sales quota B) revenue quota C) activity quota D) point quota E) gross margin quota

29) Lennie is a salesperson with Eddy's Laboratories. Lennie's sales manager expects him to make at least five sales calls per day and meet at least five customers per week. Identify the type of quota assigned to Lennie by his sales manager.

A) activity quota B) revenue quota C) profit quota D) point quota E) sales quota

30) _____ are important in situations where the sales cycle is long and sales are few because what a salesperson does can be observed more frequently than sales.

A) Activity quotas B) Revenue quotas C) Gross margin quotas D) Sales commission rates E) Sales quotas

31) _____ is the amount of money paid to a salesperson at regular intervals regardless of his or her performance.

A) Gratuity B) Bonus C) Incentive D) Commission E) Salary

32) Harry is a sales representative working for a pharmaceutical company. He achieves 130 percent of his annual sales target for the current financial year. He receives a payment from his company on the basis of the value of each sale he makes. Which of the following types of compensation is most likely exemplified in this scenario?

A) a salary B) a stipend C) a kickback D) a commission E) a bonus

33) Alkara receives $200 per week plus 10 percent of the value of all the sales she makes. In a particular week, she makes a sale of $750. The 10 percent of the total revenue of $750 best exemplifies

A) a benefit.

B) a wage.

C) an overtime pay.

D) an incentive pay.

E) a salary.

34) Jill is newly appointed as a salesperson with Fleurs Perfumes. For every case of fragrance that Jill sells, she earns $10. Identify this extra payment that Jill receives for every case of fragrance.

A) a commission B) a bonus C) a kickback D) a gratuity E) a spiff

35)

A(n) _____ is incentive pay for overall performance in one or more areas.

A) sales quota B) bonus C) salary D) gratuity E) activity quota

36) A salesperson who receives a fixed amount of money for working during a specified time is compensated using the _____ method.

A) salary plus bonus B) straight commission C) salary plus commission D) commission plus bonus E) straight salary

37) Chris receives $520 per week of gross pay in his sales job at Lark Dealership. This amount remains fixed and does not vary with the number of sales. As long as Chris works his 40 hours, he gets paid $520. Chris is paid A) a salary plus bonus.

B) a straight commission.

C) a salary plus commission.

D) a commission plus bonus.

E) a straight salary.

38)

A company is most likely to use a straight salary plan when

A) advertising does not contribute to the sales.

B) it does not anticipate long-term customer relationships.

C) a sale requires a very short period of negotiation.

D) the sales force includes many part-timers.

E) the individual contribution of salespeople cannot be measured.

39) A _____ plan typically pays a certain amount per sale, and the plan includes a base and a rate but does not include a salary.

A) fixed pay B) bonus C) straight commission D) straight salary E) quota

40) Marshall is compensated by his company under a straight commission plan. He receives 10 percent of the total sales revenue per week. In a particular week, his total sales revenue is $6,000. This amount is known as the A) straight salary base.

B) draw.

C) commission base.

D) commission rate.

E) bonus point.

41) Michael is a salesperson with Sigma Chi Industries. He receives $200 for every sale he makes. In the context of straight commission plan, the amount of $200 best exemplifies a

A) salary.

B) bonus.

C) benefit.

D) commission base.

E) commission rate.

42) Arnold is a salesperson. His company's compensation plan involves paying him 14 percent of the total sales he makes per month. This 14 percent is known as the

A) straight salary.

B) draw.

C) commission base.

D) commission rate.

E) bonus.

43) Money paid to a straight commission salesperson against future earnings, which guarantees a stable cash flow, is called a A) quota.

B) salary.

C) draw.

D) bonus.

E) commission base.

44) Ed works for Lanier Business Products as a sales representative. He receives a straight commission. In weeks when his earned commission is less than $600, the company loans him enough money against future commissions to allow him to receive $600. In weeks when Ed earns more than $600, the extra amount is used for repaying the previous loan. For Ed, the guaranteed $600 is his A) sales quota.

B) activity quota.

C) draw.

D) bonus.

E) straight salary.

45)

Which of the following is an advantage of a straight commission plan?

A) It provides more nonfinancial kickbacks for a salesperson to work hard.

B) It ties a salesperson's compensation directly to his or her performance.

C) It encourages employees to take up activities that do not directly lead to sales.

D) Salespeople on straight commission have immense loyalty toward their companies.

E) Salespeople on straight commission are highly willing to monitor customer service programs.

46) Companies that do not emphasize service to customers or do not anticipate long-term customer relationships typically use a _____ plan.

A) bonus B) point C) straight salary D) combination E) straight commission

47) Which of the following is a major disadvantage associated with a combination compensation plan?

A) its inability to be used as a motivation tool B) its complexity C) its inability to include a draw D) its lack of flexibility in the context of motivating salespeople E) its lack of flexibility in the context of controlling the activities of salespeople

48) Which of the following is an advantage for a company that uses combination plans to provide incentives to its salespeople?

A) The management is able to motivate and control the activities of its salespeople with greater flexibility than a commission plan.

B) The management is able to emphasize that its sales force needs to concentrate on getting new and commissionable sales.

C) The management is able to tie a salesperson's compensation directly to his or her performance.

D) The management and the salespeople are able to engage in transactional selling relationships.

E) The management is able to include many part-timers in the sales force.

49)

A company is most likely to use a commission plan for salespeople when the

A) sales force does not include any part-timers.

B) other aspects of the marketing mix play a pivotal role in the sale.

C) company emphasizes service to customers.

D) company does not anticipate long-term relationships with customers.

E) sale is facilitated by a team of salespeople rather than a single salesperson.

50)

What is the easiest method to evaluate the performance of salespeople?

A) measuring customer service levels B) measuring product knowledge C) measuring total sales D) determining how quickly management requests for information are answered E) measuring how aware each salesperson is about competition and business conditions

51) Drew believes his sales manager has instructed him to do something unethical and discusses his concerns with the manager. However, even after discussing the matter with the manager, he is asked to carry out the original instructions. Drew's company’ culture allows him to take his concerns straight to the upper management because it has a(n)

A) straight salary system.

B) bottom-up forecasting system.

C) antiwhistleblowing policy.

D) straight commission system.

E) open-door policy.

52)

An ethics review board

A) discourages subordinates from taking their ethical concerns to the upper management of a company.

B) typically has no effect on the ethics of an organization.

C) should not be expected to have any lasting effect on the behavioral norms within a company.

D) can investigate allegations of unethical behavior and serve as a sounding board for employees.

E) should be composed solely of outside experts who are in no way financially involved with an organization.

53)

Which of the following is the area with the most common employee concerns?

A) territory allocation B) promotion policies C) quota assignments D) compensation E) recruitment policies

54)

A limit placed on the commission that can be paid to a salesperson is called a(n)

A) draw.

B) adjustment.

C) base.

D) cap.

E) quota.

55) When Wallace achieved 250 percent of his quarterly sales target, he expected to receive $60,000 as his commission. He was upset when the administration told him that according to the company policy, salespeople cannot receive more than $50,000 in commissions in a quarter. In the given scenario, the company policy exemplifies a(n)

A) draw.

B) quota.

C) base.

D) cap.

E) adjustment.

56) Candace was distressed to discover her company had paid several bribes to get a major contract. When she voiced her concerns to the management, she was told to keep her mouth shut if she wanted to keep her job. After several other attempts to stop the unethical practices, Candace gathered evidence and reported the bribery to the Federal Trade Commission. This action of Candace is called A) data mining.

B) direct denial.

C) blowing the whistle.

D) cross-selling.

E) rejecting the open-door policy.

57)

Which of the following salespersons best exemplifies a geographic salesperson?

A) Charles, who develops all new sales accounts for his company's washing machines B) Edward, who sells frozen food products to Marley Food Company, a fast-food chain C) Clare, who sells beauty products to various stores of Femina Boutique all over the world D) Ben, who sells automotive products to all the garages and showrooms in one city E) Wilma, who sells emergency power systems to Fabon Textile branches in all the 50 states of the United States

58) Neal works for Integrated Computer Systems Distributors (ICSD) as a field salesperson.

In his territory, he only calls on attorneys' offices and physicians' offices. This specialization has allowed him to develop a high level of expertise at selecting just the right combination of hardware and software to meet the unique needs of these businesses. From this information, it can be concluded that Neal is part of a sales force that is organized according to A) account types.

B) sales volume.

C) geographic regions.

D) activity quota.

E) performance-based criteria.

59)

House accounts A) are invariably the same as key accounts.

B) have no "true" salesperson.

C) are not used by large retailers.

D) provide salespeople with a percentage-of-sales commission.

E) are typically handled by field salespeople.

60)

How does a house account differ from other types of accounts?

A) A house account is always unprofitable.

B) A house account is usually too small for a salesperson's attention.

C) No commission is paid on sales to a house account.

D) A house account is served by the firm's telemarketing center.

E) Commissions are split among all the salespeople who service a house account's various locations.

61) GEC Incorporated is the largest multinational company in New Mexico City. It caters to a wide range of consumers. It has a sales force that sells electric transformers to electric utility companies and another that sells electrical safety equipment to food and beverages companies.

Identify the type of salespeople working with the company.

A) product specialists B) telemarketing representatives C) field salespeople D) inside salespeople E) regional specialists

62) Alcium Aluminum has one sales force for handling tubing and extruded products and another for handling cans and rolled products. This best exemplifies a sales force that is organized based on A) activity quotas.

B) sales quotas.

C) customer types.

D) geographic location.

E) product specialization.

63)

Which of the following salespeople best exemplifies a field salesperson?

A) Ann, a retail clerk at a large department store B) Victor, a field support telemarketer who makes phone calls to customers C) George, who takes food orders at a drive-through window D) John, a pharmaceutical sales representative who visits doctors' offices to sell drugs E) Gregory, a customer service representative who responds to calls placed to his firm by customers

64)

Who among the following exemplifies an inside salesperson?

A) a salesperson who calls on farmers' cooperative groups B) a distributor who visits a customer's home to sell cosmetics C) a retail clerk at a local hardware store D) a pharmaceutical salesperson who regularly calls on physicians E) a salesperson who trains a customer's employees on how to use the new copier he just sold them

65) Troy is a telemarketer who works directly with Nadine, a sales rep who works on site.

Together they develop strategies for handling accounts and addressing customer concerns. Troy is A) a missionary salesperson.

B) a product specialist.

C) a field support representative.

D) an outside salesperson.

E) None of the answers is correct.

66)

Identify a true statement about customer service reps (CSRs).

A) They are salespeople who make phone calls to customers.

B) They are salespeople who specialize by types of products.

C) They are salespeople who have been delegated the responsibility of purchasing raw materials.

D) They are salespeople who handle customer concerns.

E) They are telemarketers who work with field salespeople to sell goods to customers.

67)

Which of the following is an example of an inbound salesperson?

A) Bettina, who makes cold calls for her field sales representative B) Marjorie, who is a telemarketer who sells aluminum siding to key accounts C) Al, who calls to see if the Yelverton family wants to renew its subscription to the Nashville Tennessean D) Burt, who receives a phone call from a customer in BellSouth who wants to check the availability of a particular watch E) Tracey, who handles a house account in addition to his regular duties

68)

Which of the following is an example of an outbound salesperson?

A) Laverne, who responds to a customer who called with a billing complaint B) Annette, who uses her telephone to solicit new business from a list of prospects C) Orlando, who calls a company's toll-free number to complain about his malfunctioning lawn mower D) Millie, who is the CEO of her company and handles two house accounts E) Morris, who takes a telephone order for a medium pizza

69)

Identify a true statement about team selling.

A) Salespeople should sell additional products that are not associated with the initial products.

B) A salesperson goes behind the back of a purchaser to directly contact other members of the buying center.

C) Salespeople evaluate prospects who do not necessarily have a clear understanding of what they need.

D) A group of salespeople supports a single account, and each team member brings a different area of expertise.

E) Members at various levels of a sales organization call on their counterparts in a buying organization.

70) _____ is an extension of team selling in which members at various levels of a sales organization call on their counterparts in a buying organization.

A) Network marketing B) Viral marketing C) Hierarchical selling D) Direct selling E) Multilevel selling

71)

Internal partnerships should be dedicated to satisfying customers' needs. ⊚ true ⊚ false

72) Salespeople must sell a company, its products, and its services to customers, but they need not sell their customers' needs to their companies. ⊚ true ⊚ false

73) When selling internally, salespeople should use arguments that adequately address the internal customer's needs. ⊚ true ⊚ false

74) SPIN and active listening techniques are used to find out and understand the personal and professional needs of an internal customer. ⊚ true ⊚ false

75) When a conflict arises between a salesperson and an internal employee, personalizing the conflict makes it easier to resolve. ⊚ true ⊚ false

76) Few jobs require the boundary-spanning coordination and management skill needed to effectively perform a sales job. ⊚ true ⊚ false

77) Salespeople should develop relationships with manufacturing so they can make accurate promises and guarantees to customers. ⊚ true ⊚ false

78) The functions of order entry, billing, credit, and employee compensation require each company to have a customer service department. ⊚ true ⊚ false

79) Understanding the needs of the credit department and assisting it in collecting payments can better position a salesperson to help customers receive credit later. ⊚ true ⊚ false

80) Close relationships and support of customer or technical service representatives with a salesperson mean not only better customer service but faster and more direct information flow to the salesperson. ⊚ true ⊚ false

81) Salespeople can help customer service by setting very high expectations for product performance with customers so that customer service representatives receive extended service calls. ⊚ true ⊚ false

82) Marketing and sales rarely need to coordinate because their functions are not related to each other. ⊚ true ⊚ false

83) Sales not only generates leads for salespeople but also supports marketing activities by sourcing products and preparing proposals. ⊚ true ⊚ false

84) Sales acts as the eyes and ears of marketing, while marketing develops the promotions and products that salespeople sell. ⊚ true ⊚ false

85)

Account-based marketing often gives rise to distrust between marketing and sales. ⊚ ⊚

86)

true false

The field sales manager is the leader at the top of the sales force hierarchy. ⊚ true ⊚ false

87) Sales executives determine the size and organization of the sales force, develop annual and long-range plans, and monitor and control sales efforts. ⊚ true ⊚ false

88)

A sales quota is the minimum sales revenue necessary for acceptable performance. ⊚ true ⊚ false

89) Kristen wants her sales force to concentrate its efforts on selling the most profitable products and on selling to most profitable accounts. To achieve this target, she can institute profit quotas. ⊚ true ⊚ false

90) Companies that emphasize service to customers or anticipate long-term customer relationships typically use commission plans. ⊚ true ⊚ false

91) Under a bonus plan, salespeople receive a lump-sum payment for a certain level of performance over a specified time. ⊚ true ⊚ false

92) Straight commission plans offer the greatest flexibility for motivating and controlling the activities of salespeople. ⊚ true ⊚ false

93)

Salespeople typically report directly to a sales executive. ⊚ true ⊚ false

94)

Field sales managers are responsible for evaluating the performance of their salespeople. ⊚ true ⊚ false

95) Ethical behavior not only applies to how salespeople treat customers but also applies to how employers treat salespeople. ⊚ true ⊚ false

96) If a salesperson is placed in a situation where he or she must act unethically or lose an account, the best way out would be to rationalize the unethical action by placing responsibility on the sales manager. ⊚ true ⊚ false

97)

Large customers are called key accounts. ⊚ true ⊚ false

98)

House accounts are handled by field sales managers in addition to their regular duties. ⊚ true ⊚ false

99) An inside salesperson who is an account manager has the same responsibilities and duties as a field salesperson except that all business is conducted over the phone. ⊚ true ⊚ false

100) In multilevel selling, members at various levels of a sales organization call on their counterparts in a buying organization. ⊚ true ⊚ false

Answer Key Test name: chapter 16 21) E 22) E 23) C 24) E 25) B 26) E 27) B 28) B 29) A 30) A 31) E 32) D 33) D 34) A 35) B 36) E 37) E 38) E 39) C 40) C 41) E 42) D 43) C 44) C 45) B 46) E

47) B 48) A 49) D 50) C 51) E 52) D 53) D 54) D 55) D 56) C 57) D 58) A 59) B 60) C 61) A 62) E 63) D 64) C 65) C 66) D 67) D 68) B 69) D 70) E 71) TRUE 72) FALSE 73) TRUE 74) TRUE 75) FALSE 76) TRUE

77) TRUE 78) FALSE 79) TRUE 80) TRUE 81) FALSE 82) FALSE 83) FALSE 84) TRUE 85) FALSE 86) FALSE 87) TRUE 88) FALSE 89) TRUE 90) FALSE 91) TRUE 92) FALSE 93) FALSE 94) TRUE 95) TRUE 96) FALSE 97) TRUE 98) FALSE 99) TRUE 100) TRUE Student name:__________ 1)

What are the three qualities that companies generally look for in salespeople?

2)

What five important sources of information do employers use to evaluate candidates?

3)

Why do companies simulate a job before candidates are recruited?

4)

How is a functional resume organized?

5)

What two things should you look for in a job posting?

6)

Why should a cover letter begin with an attention getter?

7) During a job interview, the interviewer tells Robin, "Imagine you are very close to closing a million-dollar deal. The buyer says that you can have full use of his company's beach house for a week if you arrange for your company to pay all the shipping costs for the deal being discussed. What will you do?" What type of an interview question does this interviewer appear to be using?

8)

What is the difference between a panel interview and a group interview?

9) When Paula went in for her job interview, she was given a plastic cup and asked to sell the cup to the interviewer, who acted like an unreasonable "customer." What kind of an interview did Paula experience?

10)

What are the two types of stress common to salespeople?

11)

List out any five traits of top salespeople.

12)

Discuss the differences between conventional resumes and functional resumes.

13)

What should your cover letter for a response to a job posting contain?

14) You have been invited to attend an interview for a sales position. What common questions should you prepare answers for?

15)

Provide examples of questions that are illegal to ask during a job interview.

16) Why is it important for a candidate being interviewed for a job to know if his or her interviewer is a sales manager or a personnel manager?

17) What are the four important aspects of a job interview? Outline how a job candidate should prepare for each.

18)

What are the different ways in which salespeople can learn about the job they desire?

19) What is a stress interview? Describe some of the tactics used when conducting such interviews.

20)

List some methods for coping with situational stress.

21) The first step in making a good match between what you have to offer and the position a company is offering is to determine

A) the pricing strategies used by the company.

B) what you need.

C) what the company has to offer you.

D) the needs of the company.

E) the competitor's strategies.

22) Karen is in search of a new job. She believes the first step in making a good match between what she has to offer and the position a company is offering is to determine what she needs. Therefore, she asks herself, "Can I work well when assignments are ambiguous, or do I need a lot of instruction?" Which of the following aspects of her job needs is Karen trying to determine?

A) structure B) time C) interest D) motivation E) stress and rejection

23) Jacob is a final year graduation student, and he is looking for a job. While trying to understand his own needs, Jacob asks himself, "Will financial incentives, personal recognition, or simply job satisfaction get me going?" Which of the following aspects of his job needs is Jacob trying to determine?

A) structure B) time C) interest D) motivation E) stress and rejection

24) As you seek a job in sales, it is important that you understand your own needs. Which of the following questions should you ask yourself to help determine your need for structure?

A) Do I prefer to set my own deadlines, or do I need deadlines set by others?

B) What propels me—financial incentives, personal recognition, or the satisfaction of just getting a task completed?

C) Am I a risk taker, or do I prefer more secure activities?

D) Do I prefer mechanical and technical topics, or am I more disposed to art, fashion, and merchandising?

E) What should I do when faced with rejection?

25) As you seek a job in sales, it is important that you understand your own needs. Which of the following questions should you ask yourself to help determine what motivates you?

A) Do I prefer to set my own deadlines, or do I need deadlines set by others?

B) Am I propelled more by financial incentives, personal recognition, or the satisfaction of just getting a task completed?

C) Am I a risk taker, or do I prefer more secure activities?

D) Do I prefer mechanical and technical topics, or am I more disposed to art, fashion, and merchandising?

E) What should I do when faced with rejection?

26) Sales can be a stressful occupation. Different sales jobs have different stress levels. As you seek a job in sales, which of the following questions should you ask yourself to help determine your acceptable level of stress?

A) Do I prefer to set my own deadlines, or do I need deadlines set by others?

B) Am I propelled more by financial incentives, personal recognition, or the satisfaction of just getting a task completed?

C) Am I a risk taker, or do I prefer more secure activities?

D) Do I prefer mechanical and technical topics, or am I more disposed to art, fashion, and merchandising?

E) Can I work well when assignments are ambiguous, or do I need a lot of instruction?

27) An individual cannot sell something that bores him or her. Which of the following questions should you ask yourself to help avoid a job selling something you'll find boring?

A) Do I prefer to set my own deadlines, or do I need deadlines set by others?

B) Am I propelled more by financial incentives, personal recognition, or the satisfaction of just getting a task completed?

C) Am I a risk taker, or do I prefer more secure activities?

D) Do I prefer mechanical and technical topics, or am I more disposed to art, fashion, and merchandising?

E) Can I work well when assignments are ambiguous, or do I need a lot of instruction?

28)

Identify a true statement about application forms in recruiting process.

A) Unlike resumes, application forms are often too individualized for easy comparison.

B) An application form should include factual questions concerning the job profile.

C) These are written documents provided to candidates before, during, or after an interview to help them remember what was said.

D) Responses on an application form are most useful for structuring intelligence tests.

E) Companies must supplement application forms with details of salary and commission packages.

29) Tony is hiring a new salesperson to work in the southwestern region for DowElanco, a retail chain. Which of the following is least likely to be an important source of information about a potential candidate?

A) application forms B) advisors in college placement centers C) references D) tests E) personal interviews

30) Richard, a job applicant, came across an employment posting for a salesperson with Acumen Industries. He filled out an online document that contained factual questions concerning the said profile. Identify this document used in the recruiting process.

A) an application form B) a resume C) an automatic replenishment form D) a testimonial E) a reference

31) In the context of the recruiting process, which of the following statements is true of an application form?

A) It provides an insight into a candidate that cannot be found elsewhere.

B) It predicts the success of a candidate to some extent.

C) It is used as the basis to structure an interview.

D) It is used to validate information provided by references.

E) It cannot be used to compare applicants for a job.

32)

The most frequently contacted references are A) church leaders.

B) relatives.

C) friends.

D) former employers.

E) coworkers.

33)

Identify a true statement about references in the recruiting process.

A) The most frequently contacted references are coworkers.

B) It is unethical to offer the names of leaders of social or religious organizations as references.

C) References that are provided should be similar in nature, such as three professors or three coworkers.

D) Contacting references is a good way to validate the information supplied on an application form.

E) A candidate should choose references that provide the same information.

34) In the context of applicant information sources, which of the following statements is true of tests?

A) They cannot be used to determine the psychological aptitude of candidates.

B) They validate the information provided by references.

C) They do not predict the success of candidates any better than their past work record.

D) They tend to corroborate erroneous "gut feelings" of interviewers.

E) They provide an insight into candidates that is not apparent from their resumes.

35)

Identify a true statement about tests conducted during the recruiting process.

A) Candidates should refuse to participate in tests because such tests are not valid.

B) If a candidate believes tests cannot predict his or her ability to succeed in a job, he or she should avoid taking such tests.

C) If a test is valid, a candidate should be happy with the outcome no matter what it is.

D) Tests are no longer conducted during the recruitment process because they have been proven to be unreliable.

E) The important point to remember about tests is to remain stressed during a test.

36)

_____ resumes are a form of life history, organized by type of experience.

A) Combination B) Strategic C) Conventional D) Targeted E) Functional

37) The three categories of experience most often used in a(n) _____ resume are education, work, and activities/hobbies.

A) strategic B) academic C) conventional D) targeted E) functional

38)

Which of the following topics is not a part of conventional business resume?

A) religious views B) education C) activities/hobbies D) work experience E) career objectives

39) Kirk's resume is organized around the things he can do and the things he has learned. He has developed a(n) _____ resume.

A) standard B) academic C) conventional D) placement E) functional

40) When preparing a(n) _____ resume, begin by listing the qualities you have that you think will help you get the job.

A) standard B) academic C) conventional D) placement E) functional

41)

Which of the following statements is true about employment ads?

A) An ad offering a "sales manager trainee" position is an opportunity to become a sales manager without selling experience.

B) An ad for an "independent contractor" means that the payment is based on straight commission without any employee benefits.

C) A company that advertises a job opportunity using a blind box number is too deceitful for an ethical person to consider working for.

D) An ad that mentions that payment is on the basis of "daily commissions" is most likely a low-stress job.

E) An urgent requirement for ten or more salespeople indicates that the company has a great reputation as an employer.

42) Which of the following is a legitimate reason for a company to use a blind posting or a blind box number?

A) The company is financially unstable.

B) The company has dealings that may be considered illegal.

C) The company wants to avoid receiving a large number of unqualified applicants.

D) The company wants to use its name to attract a large number of applicants.

E) The company has already found a candidate for the job.

43)

Identify a true statement about cover letters sent in response to a job posting.

A) Unlike sales letters, cover letters should focus on the company's financial stability.

B) The body of a letter should center on two or three expectations that one has from the

job.

C) A cover letter should be short and contain no more than two sentences.

D) The attention getter in a letter should be direct, focus on a probable need, and refer to the posting.

E) A cover letter should primarily focus on educational achievements.

44)

The cover letter for your resume sent in response to an employment ad should

A) focus on what you want the hiring company to do.

B) use boldface type to accent your experience and colorful phrases to attract readers' attention.

C) be no longer than one paragraph.

D) center on two or three reasons why the company should hire you.

E) None of the answers is correct.

45) As you compete for the job you want, knowledge about a potential employer is valuable.

Which of the following is a valid source of information about the firm?

A) business reference books B) its customers C) Its salespeople D) its sales managers E) All of the answers are correct.

46)

Which of the following is an illegal question to be asked in an interview?

A) What do you consider to be your greatest strengths and weaknesses?

B) Why should I hire you?

C) Are you married, and if so, what characteristics do you think drew your spouse to you?

D) Do you think your grades are an accurate indication of your academic achievement?

E) What do you know about this particular company's organizational culture?

47)

Which of the following should an interviewee avoid during an interview?

A) using an attention getter in the greeting B) taking written notes C) asking about salary if the interviewer is a personnel manager D) engaging in social amenities E) asking about job specifics if the interviewer is a sales manager

48)

Which of the following should an interviewee do during a job interview?

A) Treat the interview in the same way as one would treat a cold call.

B) Avoid taking notes so that he or she is not perceived to be excessively insecure.

C) Talk to fill periods of silence.

D) Avoid asking for a commitment from the interviewer.

E) Be sure to learn when he or she can expect to get a response from the company.

49) A(n) _____ is an organized collection of evidence of one's career. It can contain letters of reference, a resume, thank-you letters from customers, papers you have written, or even a strategic plan you developed for a class.

A) information packet B) portfolio C) personal scrapbook D) individualized activity book E) assessment support manual

50) Constance was a little early for her interview at the college placement center. Fortunately, the interviewer had brought along Matt, a recent graduate of the college who had been hired two years ago, and she was able to pass the time talking to him prior to the interview. Constance was unaware that Matt was also evaluating her. Which of the following types of interviews is being illustrated in this scenario?

A) a group interview B) a stress interview C) a panel interview D) a disguised interview E) a structured interview

51) Ferguson was a little early for his interview at the college placement center. Before the interview, Ferguson was met by Lilah, a former student of the college who was hired three years ago by the same company. Ferguson spent time talking to her prior to his interview. Identify the role of Lilah, who took a disguised interview of Ferguson.

A) spotter B) greeter C) initiator D) champion E) change agent

52) Melanie was about 10 minutes into her third interview with a sales manager when the manager asked her, "Tell me, how are planning to lose money for the company?" Melanie was in a(n) _____ interview.

A) action B) stress C) intelligence test D) measurement E) capability

53) During her second interview with Poly-Tex Incorporated, April was jointly interviewed by the sales manager, the personnel manager, and a sales rep for Poly-Tex. They each had several questions for April. This interview was a _____ interview.

A) group B) stress C) panel D) tension E) batch

54) After a full day of taking tests and attending interviews, Candace and two other job candidates from other universities were taken to a conference room by several executives of Poly-Tex Incorporated Candace and the other candidates were further evaluated there. This is an example of a _____ interview.

A) group B) stress C) panel D) gang E) batch

55) Bianca has just completed her degree in advertising and selling. She is interviewing for her first sales position. She has to convince the interviewer about her KSAs, which refer to her

A) kinetics, salesmanship, and authority.

B) kanban, strategy, and agility.

C) kaizen, sincerity, and accuracy.

D) knowledge, skills, and abilities.

E) None of the answers is correct.

56) The philosopher Eric Hoffer said, "In times of change, the learners inherit the earth, while the learned find themselves beautifully equipped to handle a world that no longer exists."

Identify the implication of this saying with respect to salespeople.

A) Salespeople should constantly improve their knowledge, skills, and abilities.

B) Salespeople should always scope out the competition first.

C) Salespeople should have a degree in selling as a prerequisite for any position.

D) Companies should not turn training into self-directed development programs.

E) Salespeople should not worry about developing skills once they have attained enough experience.

57) Alex and Rick are discussing Alex's last sales presentation as they walk to the car from the customer's office. Rick—Alex's sales manager—is giving Alex feedback on the strengths and weaknesses he noticed in Alex's presentation. This immediate feedback should help Alex improve his ability as a sales rep. This form of feedback is known as A) backdoor selling.

B) basic training.

C) a parking lot accolade.

D) a curbside conference.

E) a kickback.

58) Most companies continue to train their salespeople after basic sales training, but most training of experienced salespeople is related to

A) stress management.

B) people's skills.

C) firm's corporate culture.

D) sales skills.

E) product features.

59) Ben is a successful salesperson with Victor International Incorporated He sells capital goods to large industries. He is expected to give a presentation to a client for a $100 million deal.

While waiting in the lobby before the presentation, he may feel A) episodic acute stress.

B) role ambiguity.

C) felt stress.

D) chronic stress.

E) situational stress.

60) Maggie, a final year graduate student in Bridgton University, received job offers from two companies during campus placement. However, the offers were dependent on her final semester marks. Before the examination started, Maggie was extremely nervous. Which of the following best describes the stress felt by Maggie in this scenario?

A) role stress B) role overload C) felt stress D) assertiveness E) situational stress

61) _____ is psychological distress brought about by job demands or constraints encountered in the work environment.

A) Job oppression B) Subliminal terror C) Felt stress D) Contextual concern E) Situational stress

62)

Which of the following salesperson is most likely to experience felt stress?

A) Jamal, who is in the middle of a deal with a key account B) Shauna, who has an unplanned meeting with a client C) Ramona, who is gearing up for a big presentation to the management D) Steffi, who has to use coercive tactics to achieve her monthly target E) Ravi, who is competing with a colleague for a promotion

63) Molly works as a sales executive for a manufacturer of aquariums and other related equipment. Her manager asks her to assist a key customer with aquarium maintenance over the weekend. However, the company's HR manager asks her to be present for a meeting conducted by employees' grievance cell during the same weekend. Which of the following will most likely be experienced by Molly in this scenario?

A) role conflict B) situational stress C) role ambiguity D) role overload E) assertiveness

64)

_____ occurs when a salesperson is not sure what actions are required.

A) Ambiguous control B) Subliminal stress C) Directional incoherence D) Role ambiguity E) Indecisive implementation

65) Mandy works for a company that sells wholesale products to grocery stores. She is unsure whether she should spend her time convincing store owners to carry her company's products or promoting the products to support her company's pull strategy. Mandy is experiencing A) ambiguous control.

B) subliminal stress.

C) directional incoherence.

D) role ambiguity.

E) indecisive implementation.

66) Chandler is a new salesperson who is not sure what he should do. He is unsure about what is expected of him and how his work will be rewarded by his company. The term that best describes what Chandler is experiencing is A) ambiguous control.

B) subliminal stress.

C) directional incoherence.

D) role ambiguity.

E) indecisive implementation.

67)

Which of the following is true of role overload?

A) It occurs when two managers demand incompatible actions of a salesperson.

B) It occurs when a customer wants something that seems reasonable but the company would not allow it.

C) It occurs when a salesperson is not sure what actions are required.

D) It occurs when a salesperson reveals all sides of a situation to a customer.

E) It occurs when a job demands more than a person can perform.

68)

The best way to handle role stress is to A) increase role accuracy.

B) increase role ambiguity.

C) force an individual to multitask.

D) quit the job.

E) refuse to perform stress-creating tasks.

69) Damon is experiencing role ambiguity in his new sales job. Which of the following can he do to overcome this problem?

A) take on greater workload B) ask for higher commissions C) ask his superior for further instructions D) speak to an ethics officer E) request to be assigned to a different department

70) Robert sells a full range of woodworking equipment—from sawmills to machines that cut wood veneers. His sales manager wants him to spend his time selling. However, his customers expect him to spend a large part of his time showing them how to install, operate, and maintain their equipment. What should Robert do to handle his role stress?

A) ask his sales manager to explain exactly what his duties are B) quit his job and find one that is less stressful C) work overtime to satisfy both his customers and his sales manager D) accuse the sales manager of unfair treatment E) always put the needs of his customer ahead of the requirements set by his sales manager

71) The keys to being successful and happy lie in finding a good match between what you need and desire in a position and the positions companies offer. ⊚ true ⊚ false

72) The first step in making a good match between what you have to offer and a company's position is to determine what you need. ⊚ true ⊚ false

73) Many companies have a "promote from within" policy, which means that whenever possible they fill positions with people who already are employees. ⊚ true ⊚ false

74) All companies need salespeople with computer skills because computers are increasingly being used to track and manage accounts, communicate internally, and perform other important activities. ⊚ true ⊚ false

75) Most companies believe that there is one single "sales type" who will be successful selling anything to anybody. ⊚ true ⊚ false

76) Contacting references, or people who know the applicant, is a good way to guarantee a candidate's recruitment. ⊚ true ⊚ false

77)

The most frequently contacted references are former employers. ⊚ true ⊚ false

78) Resumes are the best source of information to compare general information about candidates. ⊚ ⊚

true false

79) The new assessment tests used by recruiting companies are inaccurate when they are specifically related to sales and the situations potential salespeople may encounter. ⊚ true ⊚ false

80)

Functional resumes reverse the content and titles of conventional resumes. ⊚ true ⊚ false

81) The two things to look for in an employment posting are what the company sells and when the job begins. ⊚ true ⊚ false

82)

Conventional resumes are organized by skills acquired rather than by type of experience. ⊚ ⊚

true false

83) Any company that advertises a job opportunity using a blind box number is too deceitful for an ethical person to consider working for. ⊚ true ⊚ false

84) When you write a cover letter to respond to a job advertisement, make sure that it is no more than one or two sentences long. ⊚ true ⊚ false

85) When Marcia writes a response to an employment advertisement, her cover letter should exclusively focus on her expectations from the company. ⊚ true ⊚ false

86)

A job interview is much like any other sales call.

⊚ ⊚

true false

87) One similarity between sales calls and job interviews is that both parties have needs they have individually defined before the meeting. ⊚ true ⊚ false

88) Most interviewers think candidates who take notes during a job interview are excessively insecure. ⊚ true ⊚ false

89) Interviewees should attempt to determine whether the interviewer is a sales manager or a personnel manager after the interview is over. ⊚ true ⊚ false

90)

Candidates who prefer security desire the potential rewards of straight commission. ⊚ true ⊚ false

91) A greeter at the office where your interview will be conducted may well be part of a disguised interview strategy. ⊚ true ⊚ false

92) A candidate should not send a thank-you note shortly after an interview if he or she has not performed well. ⊚ true ⊚ false

93) Even if you spend your entire career with one company, your job interviewing days are not over once you land that first job. ⊚ true ⊚ false

94) An important aspect of career management is to set life-based objectives and use them to determine your career objectives. ⊚ true ⊚ false

95)

KSA refers to the sales maxim "Keep it Simple, Always." ⊚ true ⊚ false

96) Research indicates that career development opportunities for salespeople do not vary among companies. ⊚ true ⊚ false

97) Most training given by firms to their experienced salespeople is sales skills related rather than product related. ⊚ true ⊚ false

98)

Role ambiguity occurs when two partners demand incompatible actions of a salesperson. ⊚ true ⊚ false

99)

Managing stress always means removing the cause of stress. ⊚ true ⊚ false

100) Mastery of the job will reduce feelings of stress because the salesperson is in control of the situation. ⊚ true ⊚ false

Answer Key Test name: chapter 17 21) B 22) A 23) D 24) A 25) B 26) C 27) D 28) B 29) B 30) A 31) C 32) D 33) D 34) E 35) C 36) C 37) C 38) A 39) E 40) E 41) B 42) C 43) D 44) D 45) E 46) C

47) C 48) E 49) B 50) D 51) B 52) B 53) C 54) A 55) D 56) A 57) D 58) E 59) E 60) E 61) C 62) D 63) A 64) D 65) D 66) D 67) E 68) A 69) C 70) A 71) TRUE 72) TRUE 73) TRUE 74) TRUE 75) FALSE 76) FALSE

77) TRUE 78) FALSE 79) FALSE 80) TRUE 81) FALSE 82) FALSE 83) FALSE 84) FALSE 85) FALSE 86) TRUE 87) TRUE 88) FALSE 89) FALSE 90) FALSE 91) TRUE 92) FALSE 93) TRUE 94) TRUE 95) FALSE 96) FALSE 97) FALSE 98) FALSE 99) FALSE 100) TRUE