116. A dealer loader is:
a. additional compensation to salespeople from the manufacturer to promote a line of goods.
b. an agreement in which a producer offers free merchandise to a retailer.
c. an advertisement that promotes a product and identifies retailers who sell the product.
d. a gift to a retailer who purchases a specified quantity of merchandise.
e. a temporary price reduction to resellers for purchasing a certain quantity of merchandise.
117. While sales contests can motivate employees at all levels to participate, a disadvantage of this method of sales
promotion is that:
a. they are too complicated.
b. they are not taken seriously by the employees.
c. people often discontinue their positive behavior after the contest is over.
d. many point-of-purchase display materials are needed to implement a contest.
e. people feel they are not being recognized enough.
Chapter 17 – Personal Selling and Sales Promotion
Scenario 17.1
Use the following to answer the questions.
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.
118. Refer to Scenario 17.1. Sean is developing his list of potential new retail customers by accessing the yellow pages
online. Here he finds the contact information for every motorcycle store in the 48 contiguous states, and eliminates
those who currently are his customers. Sean is involved in which step of the personal selling process?
a. Prospecting and evaluating
b. Preapproach
c. Overcoming objections
d. Closing
e. Following up
Chapter 17 – Personal Selling and Sales Promotion
119. 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:
a. prospecting.
b. preapproach.
c. approaching the customer.
d. making the presentation.
e. overcoming objections.
120. Refer to Scenario 17.1. Sean has narrowed his list and is preparing a package of information about Jafrum and its
products to send to the prospects. He also includes a letter of introduction and says he will contact them within the
next two weeks to set up a sales visit. In this scenario, Sean is all of the following except:
a. a trade salesperson.
b. a field order taker.
c. a missionary salesperson.
d. an order getter.
e. a new business salesperson.
Chapter 17 – Personal Selling and Sales Promotion
121. Refer to Scenario 17.1. Currently, Sean’s compensation is based on the _____ plan, however he is considering
changing to the _____ plan.
a. straight salary; salary plus commission
b. straight commission; straight salary
c. salary plus commission; straight commission
d. salary plus bonus; straight bonus
e. straight bonus; straight commission
Chapter 17 – Personal Selling and Sales Promotion
Scenario 17.2
Use the following to answer the questions.
The Presto Company manufactures several types of household appliances, including blenders, waffle makers, and
home deep fryers. Presto sells its products to retail stores such as Kohl’s, Macy’s, and J.C. Penney through its own
sales force. Kerry Wilson is one of Presto’s salespeople, who is responsible for stores headquartered in Region 1 of
the U.S. Kerry, has just come from a monthly meeting where she has been informed about the new stovetop grill
that will be part of next season’s lineup. Presto’s marketing department has developed a promotional plan for the
new grill and outlined that plan for the sales staff in the meeting. The promotional plan for the next 60 days will
include television commercials which demonstrate the new grill, in-store rebates, and a customer contest for the
best grilled sandwich recipe. In addition, Kerry and other members of the sales force will be given a free grill for
their own home use so they can become more familiar with the product. Presto is also offering a free trip to New
York City for their staff salesperson who has the highest dollar in sales to his or her stores. To encourage the retail
stores to push this product, Presto will offer the retail store a $5 discount for each grill that the store purchases
after the 60-day promotion is over.
122. Refer to Scenario 17.2. Presto appears to be using _____ to educate its sales force.
a. formal training
b. on-the-job training
c. negative motivation
d. territorial meetings
e. recruiting training
Chapter 17 – Personal Selling and Sales Promotion
123. Refer to Scenario 17.2. Kerry and the other sales force members are best described as a _____ sales force.
a. technical
b. missionary
c. trade
d. field
e. pioneer
124. Refer to Scenario 17.2. Presto’s use of free trip to New York is an example of _____, while the $5 discount to its
retail stores is an example of _____.
a. a trade allowance; a buy-back allowance
b. a buying allowance; a dealer loader
c. a dealer loader; a buy-back allowance
d. a sales contest; a buy-back allowance
e. a sales contest; a buying allowance
Chapter 17 – Personal Selling and Sales Promotion
125. Refer to Scenario 17.2. Which of the following consumer sales promotion methods is Presto using for the new
stovetop grill?
a. Television commercials and the customer contest
b. Television commercials and the in-store rebate
c. The customer contest and the in-store rebate
d. The sales force contest the in-store rebate
e. The sales force contest and the customer contest
126. Personal selling is generally the most expensive element in the promotion mix.
a. True
b. False
127. The primary goals of personal selling are finding prospects, convincing prospects to buy, and keeping customers
satisfied.
a. True
b. False
Chapter 17 – Personal Selling and Sales Promotion
128. Most marketers depend on one-sale customers for long-run survival.
a. True
b. False
129. Developing a list of potential customers is called prospecting.
a. True
b. False
130. The preapproach is the first step in the personal selling process.
a. True
b. False
Chapter 17 – Personal Selling and Sales Promotion
131. Even though salespeople do not use the exact same sales methods, they do go through the same general selling
process.
a. True
b. False
132. In the cold canvass technique, the salesperson calls on potential customers without their prior consent.
a. True
b. False
133. Using referrals falls under the approach step in the personal selling process.
a. True
b. False
Chapter 17 – Personal Selling and Sales Promotion
134. The approach step is an important step for gathering information about a buyer’s needs and objectives.
a. True
b. False
135. Listening is an important skill for a salesperson while making a presentation.
a. True
b. False
136. One of the best ways to overcome a prospect’s objections is to anticipate them and to deal with them before the
prospect has an opportunity to mention them.
a. True
b. False
Chapter 17 – Personal Selling and Sales Promotion
137. A salesperson should not attempt to close a transaction until he or she has finished the entire presentation.
a. True
b. False
138. It is never good to ask customers questions while giving the sales presentation, as the customer may raise
objections that the salesperson cannot overcome.
a. True
b. False
139. If possible, the salesperson should handle objections only when they arise.
a. True
b. False
Chapter 17 – Personal Selling and Sales Promotion
140. Following up involves listening to a customer’s response after finishing the presentation and overcoming those
objections.
a. True
b. False
141. A single salesperson may perform the functions of order getting, order taking, and support.
a. True
b. False
142. Current customers are sources of leads for finding prospective customers.
a. True
b. False
Chapter 17 – Personal Selling and Sales Promotion