chapter 17
Copyright Cengage Learning. Powered by Cognero.
Jafrum, Inc. is a wholesale supplier of motorcycle accessories, clothing, and tools to various motorcycle retail stores
around the country. Jafrum does not manufacture these items, but sells them to other retailers and also sells its
merchandise through its website. Sean Thompson is one of the salespeople for Jafrum, and is responsible for obtaining
new customers, increasing sales to current customers, and visiting the retail stores throughout the country. Recently, he
has been given the sales objective from Jafrum’s management to increase sales dollars by 15% in the coming year by
adding new customers. Sean’s current compensation is based on a $1,000 per month draw, plus 5% of all sales over
$100,000. His salary last year totaled $42,000. Management has given Sean the choice of going to a compensation plan
where he will earn 15% of all sales, but no draw.
153. Refer to Scenario 17.1. Sean selects several motorcycle stores who are not currently his customers. He then obtains
and analyzes information about the current brands of motorcycle accessories they stock, their sales trends, and credit
history. Sean is engaged in which of the following?
a. prospecting.
b. the preapproach.
c. approaching the customer.
d. making the presentation.
e. overcoming objections.
154. When a manufacturer rewards retailers based on the number of pieces moved through their scanners, this sales
promotion method is known as a
a. merchandise allowance.
b. count-and-recount allowance.
c. buy-back allowance.
d. scan-back allowance.
e. scan-count allowance.
155. Jenny is making a sales presentation to a retailer that may be willing to carry her line of soaps. During the
presentation, she will handle any objections as they are made. This is because when she anticipated and countered
potential objections in prior presentations, she found that she
a. came across as being dishonest.
b. seemed to annoy the potential client.
c. forgot to highlight the soap’s benefits and features.
d. raised objections that the prospect would not have.
e. made the presentation too long.
156. Which of the following is an example of a trade sales promotion method?
a. Frequent-user incentives
b. Point-of-purchase displays
c. Retailer coupons
d. Free merchandise
e. Money refunds
157. If a manager tries to form territories with equal sales potential, the territories will usually be unequal in geographic
size; this will cause the salespeople with larger territories to
a. develop larger income potentials.
b. have to work longer and harder to generate a certain sales volume.
c. work about the same amount, since potential is the same.
d. have much larger sales than those salespeople with smaller territories.
e. be limited to a smaller income potential.