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Indicate whether the statement is true or false.
1. Business firms that market highly technical and complex products will have a specialized sales force for each
major category of the firm’s products.
a. True
b. False
2. Sales quotas are specified sales or profit targets that salespeople are expected to achieve.
a. True
b. False
3. The concept of span of control refers to the number of sales representatives who report to first-level sales
managers.
a. True
b. False
4. If a product or service being sold requires relatively little special handling, marketers typically emphasize
personal selling in their promotional mix.
a. True
b. False
5. Effective sales persons must be able to focus on their customer’s needs and create solutions to meet those
needs.
a. True
b. False
6. Personal selling is more costly and time consuming compared to other types of promotion.
a. True
b. False
7. A Frito-Lay driver who covers a geographic route of grocery stores taking orders, restocking shelves, and
removing products past the expiration date is classified as a field salesperson.
a. True
b. False
8. The follow-up step in the sales process often determines whether an individual who has made a recent
purchase will become a repeat customer.
a. True
b. False
9. A sweepstakes chooses winners from a group of people who have purchased the product.
a. True
b. False
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10. A salesperson should be judged on the basis of potential ability rather than the actual sales performance.
a. True
b. False
11. Sales promotions often lead to sales and profit growth in the long run.
a. True
b. False
12. A straight salary plan could reduce the incentive to find new markets and land new accounts.
a. True
b. False
13. Inside sales reps support field representatives in building strong customer relationships.
a. True
b. False
14. Precall planning involves making unsolicited sales calls on randomly selected prospects.
a. True
b. False
15. The steps in a sales process follow the AIDA (attention, interest, desire, action) concept.
a. True
b. False
16. A salary is a payment tied directly to the sales or profits that a salesperson generates.
a. True
b. False
17. Closing, in which the salesperson asks the customer for a buying commitment, is the last step in the sales
process.
a. True
b. False
18. When making a presentation, sales professionals typically connect a buyer’s needs to the benefits of the
product.
a. True
b. False
19. Over-the-counter personal selling efforts are frequently supplemented with other promotions such as special
sales events, new product introductions, and direct-mail appeals.
a. True
b. False
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20. Field selling is more expensive than other selling options and often requires considerable technical expertise.
a. True
b. False
21. Firms spend more on consumer-oriented sales promotions than on trade promotions.
a. True
b. False
22. A sales quota is often tied to the compensation system.
a. True
b. False
23. Taking steps to determine that a potential customer has the need, financial capability, and authority to make
a purchase is called canvassing.
a. True
b. False
24. Kelly is a dentist who knows that her patients are more likely to take home pens inscribed with her name and
phone number instead of an ordinary business card. The inscribed pens distributed by Kelly for her practice
represent specialty advertising.
a. True
b. False
25. Personal selling and advertising are part of the marketing activities involved in a sales promotion.
a. True
b. False
26. The follow-up step in the sales process allows the salesperson to psychologically reinforce the customer’s
original decision to buy.
a. True
b. False
27. Sales promotions encourage immediate action as they impose limited time frames.
a. True
b. False
28. Firms engage in precall planning to understand the needs and preferences of the customer before making a
presentation.
a. True
b. False
29. Over-the-counter selling usually requires the customer to take the initiative and travel to the seller’s place of
business.
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a. True
b. False
30. Personal selling is an important component of the promotional mix for a firm that markets to relatively few
potential customers.
a. True
b. False
31. A straight salary plan for sales representatives gives management more control over how sales personnel
allocate their efforts.
a. True
b. False
32. Due to intense competition in the market, present-day sales promotion techniques mainly focus on providing
short-term incentives to customers in order to obtain a purchase.
a. True
b. False
33. Existing customers of a firm whose business problems require complex solutions are likely to be best served
by telemarketers in the firm.
a. True
b. False
34. A salesperson assigned to answer the telephone and take orders or answer customers’ questions is involved
in outbound telemarketing.
a. True
b. False
35. Candy is a first-line sales manager with direct responsibility over six sales representatives for Mattress
Direct. She typically spends time with each sales representative to provide supervision, training and support. It’s
important for Candy to have strong sales skills in her position as a manager.
a. True
b. False
36. An approach is a salesperson’s initial contact with the customer.
a. True
b. False
37. To be identified as a qualified prospect, a customer must meet certain criteria including having the resources
and the authority to make purchase decisions.
a. True
b. False
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38. Point-of-purchase advertising is a form of consumer-oriented sales promotion.
a. True
b. False
39. Recruiting and selecting successful salespeople are among the greatest challenges faced by a sales manager.
a. True
b. False
40. A customer shopping at Sports Authority for new running gear is assisted by a salesperson in the shoe
department. This is an example of inside selling.
a. True
b. False
41. A national grocery store runs an advertisement offering a coupon to “buy one get one free” on packages of
Thomas’ English muffins to consumers. This is an example of a trade-oriented promotion.
a. True
b. False
42. A hotel provides a toll-free number to its customers, which they can use to obtain information and make
reservations. This is an example of inbound telemarketing.
a. True
b. False
43. The effectiveness of a salesperson is measured entirely on the basis of the sales volume and profitability.
a. True
b. False
44. An important advantage of personal selling is that it gives the customer the opportunity to try a product
before making a purchase.
a. True
b. False
45. Trade shows provide an effective opportunity to showcase products and services, meet with customers, and
generate sales leads.
a. True
b. False
46. Companies should create and enforce corporate cultures that reduce the opportunity for sales representatives
to engage in unethical behavior.
a. True
b. False
Indicate the answer choice that best completes the statement or answers the question.
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47. Blake is a sales representative for Canon Business Solutions and had just completed his sales call with
Carter Law Offices. As he was walking towards the elevator, he noticed a new business, Advanced Personnel
Services and stopped in to introduce himself to the receptionist. Which stage of the sales process does Blake’s
activity with Advanced Personnel Services represent?
a. Prospecting and qualifying
b. Approach
c. Demonstration
d. Follow-up
48. Which of the following is a sales promotion technique that places the manufacturer’s name, logo, and/or
marketing message on useful articles that are then distributed to target customers?
a. Sampling
b. Point-of-purchase advertising
c. Trade shows
d. Specialty advertising
49. Sales professionals who utilize inbound telemarketing and their extensive knowledge to assist customers via
phone and also support a field sales force are known as:
a. customer sampling sales reps.
b. inside selling professionals.
c. relationship marketing sales reps.
d. over-the-counter selling professionals.
50. Brandi is an account executive with Wirtz Beverage, a wine and spirits distributor with an extensive catalog
of brands. She typically meets with restaurants, bars, and hotels to market her products and assists customers in
developing their beverage menu to generate sales revenue and meet customer’s needs. Recently, she had the
opportunity to offer customers a great deal – if they ordered 5 cases of wine (assorted brands), they could
receive the 6th case at 50% off retail. Wirtz Beverage offered this promotion in order to reduce warehouse
inventory and shift inventory from their warehouses to the customer’s business location. This is an example of
a(n):
a. trade allowance.
b. specialty advertising.
c. sweepstake.
d. coupon.
51. Bailee recently joined a direct sales company as an independent contractor and earns 20% on product sales.
She’s excited about the opportunity to earn additional income by using social media to market her products to
friends. Recently, she was a top 10 producer and sold $1000 in product which translates to an extra $200 in
income for Bailee. The type of compensation Bailee receives from the company is called:
a. commission.
b. salary.
c. quota.
d. incentive.
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52. One important advantage of personal selling over most advertising is:
a. the cost factor; personal selling is much cheaper.
b. the ability to actually demonstrate the good or service.
c. the minimal dependence on technology.
d. the low requirement for skilled salespeople.
53. Jill enjoys shopping at Costco especially close to lunch or dinner because she can often try a variety of
different products such as dips, cheese, beverages, and crackers. Costco is using _______ as a type of
consumer-oriented sales promotion.
a. sampling
b. refunds
c. coupons
d. advertising
54. You are the head of sales training for a major financial services firm in New York City. You are conducting
a sales training class for a group of new trainees. You are a strong believer in using a structured approach to
personal selling.
Based on this information, which of the following personal selling process steps are you going to tell the
trainees to perform first?
a. Develop a database of potential customers
b. Develop an engaging sales presentation
c. Practice closing the sale
d. Develop a prospect follow-up checklist
e. Analyze information about potential customers’ needs
55. Lincoln is a sales representative with Simantel, a marketing communications firm and enjoys helping
companies design their websites and promotional campaigns. He especially appreciates his role since every day
brings new challenges and he’s always learning since each client has different needs and situations. Which of
the following factors affecting the importance of personal selling relates best to Lincoln’s position of designing
websites and promotional campaigns?
a. Websites and promotional campaigns are custom designed rather than standardized.
b. The pricing for promotional campaigns and websites are relatively low.
c. Lincoln’s customers are geographically dispersed.
d. Lincoln has a large number of customers that could be served with website development and/or
promotional campaigns.
56. The process of qualifying a sales prospect includes:
a. gathering information about the prospect to make initial contact go more smoothly.
b. determining a potential customer’s needs, financial resources eligibility to purchase, and purchase
authority.
c. defining the company’s product in terms of what it can do for the customer.
d. making the initial contact with the prospect.
57. The number of sales representatives who report to first-level sales managers is known as
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a. span of control.
b. authority principle.
c. separation of tasks.
d. management sightline.
58. Brittany is a sales representative with CDW, an information technology reseller. She is a specialist for the
education market and contacts her customers who are typically information technology directors for K-12
schools and higher education. Her territory includes the entire United States and she is able to have flexible
hours since some days she may arrive early to contact customers on the East Coast or stay late if she’s
contacting customers in the Mountain or Pacific time zones. Her company has a proprietary phone technology
system which provides names and contact information of leads and current customers so Brittany can make the
most of her sales calls and be more productive. She typically makes 20 to 25 dials an hour and on average is
able to speak with 2–3 individuals each hour. She was initially surprised at her ability to connect with
customers and create relationships through her phone conversations and has created trust-based relationships
over time. Her customers value her advice and opinions because she understands their needs, has expertise in
the products and services she represents, and always seeks to meet their needs. Brittany’s position is best
categorized as a(n) ________ channel position.
a. inside
b. field
c. over-the-counter
d. telemarketing
59. Which of the following statements is accurate about sales promotion?
a. Sales promotion can increase sales by providing extra purchasing incentives.
b. Sales promotion encompasses personal selling.
c. Sales promotion has increased dramatically, primarily at the expense of personal selling.
d. Product characteristics are not relevant when deciding on sales promotions.
e. Sales promotion encompasses public relations.
60. Jeff is the owner of Bayou Adventure in southeast Louisiana and sells a variety of fishing equipment for salt
and fresh water fishing. Recently, Mike met with Jeff to discuss a new lightweight rod and reel that his
company had developed. Jeff and Mike took a kayak and went out on the Lacomb Bayou to test the rod and
reel. Jeff was very complimentary about the rod and reel and mentioned how he liked the action and lightweight
feel of the product. Mike agreed and said that most customers really enjoy fishing with the rod and reel because
it’s so lightweight. He then said, “Jeff, I think an initial order of 35 rods and reels would be perfect for your
business. I can get these delivered to you within 2 days and we’re offering free shipping. How does that sound
to you?” What stage of the sales process has Mike transitioned to with his last comment and question?
a. Closing
b. Presentation
c. Approach
d. Demonstration
61. Drew is a sales manager with Fastenal – an industrial distributor of supplies for manufacturing, facility
managers, and other industrial customers. He currently supervises 7 people and is wondering the typical or
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optimal number of first-line sales representatives that he should supervise. Based on the text, what do you
recommend as the optimal number for him to supervise?
a. 6
b. 5
c. 8
d. 10
62. Carlos is the VP Sales for a consumer electronics company and has recently been reviewing the performance
feedback and employee satisfaction reviews. He noted that several sales representatives mentioned that they
dissatisfied with the amount of commission they receive. Carlos wants to retain the best sales representatives
rather than risk losing them to a competitor so he’s trying to determine whether or not he should raise the
percentage of commission representatives might receive on their sales. What management function best
describes Carlos’ activity?
a. Compensation
b. Motivation
c. Supervision
d. Organization
63. Marriott Vacation Club operates time share vacation properties across the world and employs sales
representatives to contact potential buyers to offer a complimentary two or three day stay at one of their
locations. Initial contact is made by telephone and Marriott targets high income families with kids or empty
nesters who enjoy traveling. Once a consumer visits the Marriott Vacation property, they attend a property tour
and meeting with a vacation consultant who presents the opportunity of purchasing a time share as well as the
benefits of owning a Marriott time share. What type of sales channel is Marriott Vacation Club utilizing once
customers visit the property and experience a personal presentation?
a. Field selling
b. Telemarketing
c. Inside selling
d. Over-the-counter selling
64. Which of the following is true of personal selling?
a. It is less time-consuming compared to other types of promotions.
b. It is an ineffective promotional strategy for firms that market to relatively few potential customers.
c. It accounts for a small share of the marketing budget in a firm.
d. It is interpersonal and basic to any enterprise.
65. Jeff is the owner of Bayou Adventure in southeast Louisiana and sells a variety of fishing equipment for salt
and fresh water fishing. Recently, Mike sold Jeff an initial order of 35 rods and reels that his company had
developed. Two weeks after the rods and reels had been delivered, Mike contacted Jeff by phone to see how the
rods and reels were doing and if Jeff had any questions or concerns. What stage of the sales process is Mike in
now?
a. follow-up
b. presentation
c. approach
d. demonstration
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66. As head of sales for your firm, one of your key supervision-related responsibilities is determining an optimal span of
control. You consider all of the following factors except:
a. The complexity of your sales team’s work activities
b. The interdependence of individual salespeople
c. The extent of each salesperson’s training
d. How much each salesperson is paid
e. The ability of individual sales managers
67. Brandi recently began a new position as VP Sales for Otis Elevators, a large firm selling new equipment
elevators for new construction, replacement elevators for existing buildings, and service contracts to maintain
elevators. Otis Elevators sales representatives typically work closely with construction engineers and electrical
contractors on new construction projects to determine the best placement and type of elevator to install to
ensure efficient and safe operation. Which factor favoring the use of personal selling relates to this activity?
a. Technically complex
b. Long marketing channel
c. Relatively high price
d. Few customers
68. Crystal often watches HGTV and enjoys several shows including Fixer Upper, Property Brothers, and
Design on a Dime. Recently, while watching one of her favorite shows, she saw an advertisement for the HGTV
show house and visited the HGTV website to register for a chance to win the brand new home which included
all furniture and appliances. HGTV is using _______ as a sales promotion tool.
a. contests and sweepstakes
b. coupons
c. rebate
d. specialty advertising
69. Alpha Trendz, a clothing and apparel manufacturer, carefully studies information available on the Internet. It
also checks computerized databases and trade show exhibits before launching its latest line of designer clothes.
The company is in the _____ stage of the sales process.
a. order processing
b. missionary selling
c. planning
d. prospecting
70. Prior to making the approach to a potential customer, the salesperson should:
a. outline objections and effective responses.
b. break down product features and benefits by category.
c. understand the way in which the industry operates.
d. collect and analyze information about the potential customer.
71. Which of the following is a customer-oriented sales promotion technique?
a. Point-of-purchase advertising
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b. Dealer incentives
c. Trade shows
d. Specialty advertising
72. A manufacturer wants to increase purchase rates of its product and reward those consumers who make
multiple purchases. It decides to use a consumer-oriented sales promotion that has an expiration date and
requires the purchaser to submit a proof of purchase. Which sales promotion will the manufacturer use?
a. Bonus pack
b. Trade allowance
c. Coupon
d. Rebate
e. Sweepstakes
73. _____ is a personal selling function that involves identifying potential customers.
a. Screening
b. Prospecting
c. Approaching
d. Processing
74. Which of the following is the most important reason for manufacturers to use sales promotion?
a. To appeal to marketing intermediaries than final consumers
b. To offer extra incentives to customers to buy products
c. To overcome poor brand images and product deficiencies
d. To create awareness of their products among consumers
75. As a new employee in the sales promotion department of a hotel chain, you proudly tell a coworker about all the ways
you can help the chain grow. Later, you’re embarrassed when you realize you misspoke. You mistakenly claimed that
sales promotion is especially well suited for:
a. Speeding up the sales of hotel rooms
b. Increasing numbers of hotel bookings
c. Encouraging tourists to try the hotel
d. Building awareness of the hotel brand
e. Fostering repeat bookings
76. Marriott Vacation Club operates time share vacation properties across the world and employs sales
representatives to contact potential buyers to offer a complimentary two or three day stay at one of their
locations. Initial contact is made by telephone and Marriott targets high income families with kids or empty
nesters who enjoy traveling. What type of sales channel is Marriott Vacation Club utilizing as part of this
prospecting activity?
a. Telemarketing
b. Inside sales
c. Over-the-counter sales
d. Inside selling
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77. Al is a sales manager with Novartis Pharmaceuticals and is based in the Midwest. He typically participates
in job fairs at major college campuses to identify potential candidates for sales positions. What managerial
function best describes Al’s activities at job fairs?
a. Recruitment and selection
b. Organization
c. Training
d. Supervision
78. Which of the following is the most effective way for a sales manager to motivate salespeople to give their
best?
a. Setting annual goals for individuals instead of quarterly or monthly goals
b. Setting extremely high targets
c. Recognizing their efforts and offering simple incentives
d. Creating expensive incentive programs
79. Which of the following functions poses a great challenge to sales managers?
a. Training
b. Recruitment and selection
c. Supervision
d. Organization
80. Sales promotion techniques were originally intended:
a. to promote the company’s goodwill.
b. as short-term incentives aimed at producing immediate buying responses.
c. as international promotions designed to replace advertising.
d. to build long-lasting customer relationships.
81. Which of the following is the most effective method to promote products when the customers of a firm are
geographically concentrated?
a. Advertising
b. Publicity
c. Public relations
d. Personal selling
82. In the _____ stage of the sales process, the salesperson contacts the potential customer for the first time.
a. precall planning
b. prospecting
c. approach
d. qualifying
83. Which of the following statements is TRUE regarding sales promotion?
a. Retailers and manufacturers use sales promotions to encourage consumers to buy their product.
b. Only retail outlets utilize sales promotion activities to entice customers to purchase their product.
c. Today, sales promotions are only utilized to achieve short-term goals.
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d. Sales promotions can help a firm overcome a negative brand image.
84. The top marketing manager of your company has asked you to make recommendations about your sales
representatives who make up the sales force for your business-to-business auto parts customers. These
territories are geographically structured and the goal is to move away from territory-based sales to customer-
oriented sales; as a result, these sales reps may be reassigned.
Based on this project request, what element of the sales force management process will you focus on?
a. Establishing expectancy
b. Organizing the sales force
c. Recruiting and selecting salespeople
d. Evaluating and controlling personnel
e. Compensating salespeople
85. Jordan graduated in May with a degree in professional selling and accepted a position with Whirlpool as a
sales representative. Jordan will be living in Michigan near the corporate headquarters for the first three months
of employment with other recently hired sales representatives. The company will be providing a structured
classroom typesetting to share information about its products, services, and sales process. In addition, Jordan
and other sales representatives will be living in corporate housing that have a variety of appliance models
including competitors, GE and Samsung. What management function most closely describes Jordan’s first few
months with Whirlpool?
a. Training
b. Recruitment and selection
c. Organization
d. Motivation
86. Cleveland Solvents has field sales staff, a customer service department, and two individuals who manage the
“tech hotline.” These individuals not only answer technical questions from customers, they also identify
customer needs and recommend products that can fill those needs. They have the ability to initiate and close
sales on the spot. These individuals are essentially participating in:
a. market analysis.
b. inside selling.
c. network marketing.
d. outside sales.
87. Jeff is the owner of Bayou Adventure in southeast Louisiana and sells a variety of fishing equipment for salt
and fresh water fishing. Recently, Mike met with Jeff to discuss a new lightweight rod and reel that his
company had developed. Jeff and Mike took a kayak and went out on the Lacomb Bayou to test the rod and
reel. What stage of the sales process does this represent?
a. Demonstration
b. Presentation
c. Approach
d. Closing
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88. Which of the following is a principal method used in sales training?
a. In-house classes
b. Application screening
c. Aptitude tests
d. Assessment center
89. When personal selling efforts use telephone technology in a sales approach where the sales representative
initiates the calls, it is known as _____ telemarketing.
a. inbound
b. proactive
c. network
d. outbound
90. Which step of the personal selling process involves the initial contact with the prospective customer?
a. Approach
b. Prospecting and qualifying
c. Demonstration
d. Presentation
91. The overall direction and control of the personal selling effort is in the hands of a firm’s:
a. board of directors.
b. sales analysts.
c. existing customers.
d. sales managers.
92. A _____ is a payment tied directly to the sales or profits a salesperson achieves.
a. fixed pay
b. commission
c. salary
d. periodic payment
93. A customer-focused firm wants its sales representatives to:
a. work on commission because it motivates them to engage in quick sales.
b. form long-lasting relationships with buyers by providing high levels of customer service.
c. focus on persuading customers to buy products rather than solving issues.
d. work as separate entities independent of the sales team.
94. Personal selling is likely to be the primary component of a firm’s promotional mix when:
a. the firm markets inexpensive products that require no special handling.
b. the transactions frequently involve trade-ins.
c. the price of the products is relatively low.
d. the firm markets to a large number of customers in various locations.
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95. After determining that a prospective customer is a good candidate to actually make a purchase, the
salesperson will want to gather as much information about the customer as possible. This step in the sales
process is known as:
a. presales research.
b. prospecting.
c. precall planning.
d. qualifying.
96. _____ refers to the postsale activities employed by salespeople that determine whether an individual who
made a recent purchase will become a repeat customer.
a. sales maintenance
b. post-closing
c. dissonance reduction
d. follow-up
97. Bits Inc., a manufacturer of server processors, sends out its trained salespeople to inform prospective and
existing customers about its latest range of processors and provide demonstrations. The promotional effort
adopted by this company is an example of:
a. push-cash selling.
b. field selling.
c. networking.
d. over-the-counter selling.
98. Ashton works as a field sales representative with Dow Chemical in their agriculture division. He primarily
works with large, family-owned farms in Iowa to assist farmers with their soil additive and pesticide needs.
Typically, Ashton will utilize public records from the USDA to research information about prospective
customers such as the number of acres in production and type of soil for each farmer. Ashton is involved in
a. precall planning.
b. prospect evaluation.
c. account intelligence.
d. approach research.
99. Parker went to the eye doctor and received a new prescription since there had been some change in his
vision since the previous year. Parker ordered a 6-month supply of contacts with his new prescription and
received an offer from Alcon, the manufacturer to receive up to $200 for purchasing the new contacts. Parker
simply needs to complete a form, attach a copy of the receipt, and proof of purchase from one of the contact
boxes. Alcon is using _______ as a sales promotion.
a. rebate
b. coupon
c. contest
d. specialty advertising
100. Carlos is the VP Sales for a consumer electronics company and has recently been reviewing the territory
assignments for sales representatives. There have been many shifts in the retail marketplace with several
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companies filing bankruptcy and closing stores. Carlos wants to ensure that they have sales representatives
placed appropriately given these changes in the market. What management function best describes Carlos’
activity?
a. Organization
b. Motivation
c. Evaluation and control
d. Supervision
101. Chelsey is an account executive with Enterprise Rent-A-Car and works with body shop and automotive
service providers as well as insurance agents. Chelsey knows that many automobile owners have car rental
riders as part of their automobile insurance and when their car is damaged from a storm or accident, they could
receive a rental car while their vehicle is being repaired. When Chelsey meets with her customers, she typically
promotes the features and benefits of Enterprise such as how Enterprise provides exceptional service and goes
above and beyond to pick-up customers at their preferred location and gives them their rental vehicle. In
addition, most of Enterprise’s fleet of vehicles are less than 2 years old and are well maintained to provide a
comfortable driving experience. Chelsey tells her agent and body shop owner clients that by using Enterprise’s
services, their customers will have higher levels of customer satisfaction with their repair experience and that
translates into loyalty for the insurance agent. During which step in the personal selling process will Chelsey
share this information?
a. Presentation
b. Demonstration
c. Prospecting
d. Closing
102. What are the typical first and last steps in the personal selling process?
a. Prospecting; closing the sale
b. Approach; closing the sale
c. Prospecting; follow-up
d. Approach; follow-up
e. Presentation; follow-up
103. Salespeople usually face difficulties in:
a. approaching potential buyers.
b. precall planning.
c. closing the sale.
d. following up after the sale.
104. When sales professionals utilize creative efforts to call on prospects or existing customers at their
businesses or homes, they are involved in:
a. telemarketing.
b. field selling.
c. over-the-counter selling.
d. inside selling.