94. Jake is a sales representative for General Mills. Each week he uploads his plans for visiting clients out
in the field to a routing and scheduling decisions system. Eric knows that one of the primary goals of
routing and scheduling decisions in personal selling is to
a.
determine the sequence in which customers will be called on.
b.
use existing transportation facilities.
c.
minimize nonselling time.
d.
determine duration of sales calls.
e.
provide salespeople with an opportunity to plan their own routes and schedules.
95. Jake, a sales representative is returning from a week on the road. One of his activities this week is to
develop ____, which are designed to identify the customers called on and to present detailed
information about interaction with those clients.
a.
Sales Invoices
b.
Feedback notices
c.
Expense reports
d.
Call reports
e.
Recall files
96. The most common sales force evaluation practices are for sales managers to compare a salesperson’s
performance with other salespeople operating under similar selling conditions, or to compare
a.
the size of sales territories.
b.
selling expenses by various members of the sales force.
c.
the amount of new business generated.
d.
current performance with past performance.
e.
the ratio of costs to profits.
97. Nate is preparing to evaluate one of his sales representatives, Julie Hill. His evaluation of her
performance for the prior year led to his conclusion that she often lacked key product information at
sales presentations. At their upcoming session, he will most likely do which of the following?
a.
Decrease the size of her territory.
b.
Increase her sales quotas.
c.
Terminate her.
d.
Recommend that she attend a training program.
e.
Ignore this problem given that her sales results were good.
98. Sydney won a hot-air balloon ride and dinner for two for being the top revenue-producing mortgage
loan officer at her company for the month of October. This contest exemplifies a company’s efforts at
a.
motivating salespeople.
b.
compensating salespeople.
c.
providing training for the sales force.
d.
increasing sales territories.
e.
promoting salespeople.
99. In establishing sales promotion objectives, a marketer should always
a.
concentrate on activities that will increase consumer demand.
b.
focus on consumers.
c.
focus on resellers.
d.
be defensive in the methods used.
e.
align objectives with the organization’s overall objectives.
100. When deciding on sales promotion methods to employ, marketers take several factors into
consideration. Which factor below is unlikely to affect decisions regarding sales promotion methods?
a.
Type of package
b.
Product characteristics
c.
Target market characteristics
d.
Types of resellers
e.
Competitive forces in the environment
101. In recent years the proportion of promotional dollars spent on sales promotion has
a.
increased relative to advertising.
b.
remained constant.
c.
declined slightly, and the proportion spent on advertising has increased.
d.
declined slightly, and the proportion spent on advertising has declined as well.
e.
increased, and the proportion spent on advertising has risen as well.
102. Which of the following is not a reason why the proportion of promotional dollars spent on sales
promotion has increased in recent years?
a.
Retailers have become more powerful relative to manufacturers and are demanding more
trade sales promotion efforts.
b.
Because of an increased focus on value, consumers are more responsive to promotional
offers.
c.
The greater emphasis on improving long-term performance has resulted in an increased
use of sales promotion methods.
d.
Sales promotions aimed at convincing customers to change brands are more effective
because of declines in brand loyalty in general.
e.
All of these are reasons for the increasing proportion of promotional dollars being spent on
sales promotion efforts.
103. Heinz uses various techniques such as coupons, free samples, and consumer contests to encourage
consumers to try its products. All of these marketing activities are considered
a.
trade sales promotion methods.
b.
consumer incentives.
c.
consumer sweepstakes.
d.
buying allowances.
e.
consumer sales promotion methods.
104. As Quaker Oats tries to decide how to introduce its new line of breakfast bars, it considers all the
advantages and disadvantages of the various consumer sales promotion methods. After careful
consideration, Quaker Oats decides to use ____, which are the most widely used form of consumer
sales promotion.
a.
free samples
b.
rebates
c.
point-of-purchase displays
d.
coupons
e.
cents-off offers
105. Fraudulent usage, inability to attract potentially brand-loyal customers, and use by current customers
but not new customers are believed to be disadvantages of which of the following?
a.
Sweepstakes
b.
Money refunds
c.
Frequent-user incentives
d.
Coupons
e.
Premiums
106. As a promotional strategy, using coupons strives to achieve all of the following except
a.
show how a product is used.
b.
increase sales volume quickly.
c.
introduce new package sizes.
d.
prompt trial usage of a new product.
e.
attract repeat users.
107. ____ are offers of cash to customers who purchase a specific product, and ____ are offers of cash to
customers who purchase a specific quantity of a specific product.
a.
Rebates; reimbursements
b.
Cents-off; refunds
c.
Rebates; premiums
d.
Buy-back allowances; money refunds
e.
Rebates; money refunds
108. Which of the following is most likely to stimulate customer loyalty?
a.
Coupons
b.
Sweepstakes
c.
Frequent-user incentives
d.
Samples
e.
Premiums
109. Jamba Juice offers its customers a stamp card that allows them to receive a free smoothie after they
have filled an entire card. This is an example of a
a.
free sample.
b.
rebate.
c.
frequent-user incentive.
d.
premium.
e.
consumer contest.
110. Signs, counter pieces, racks, and self-service cartons are all forms of
a.
in-store attention grabbers.
b.
demonstrations.
c.
retail media.
d.
premiums.
e.
point-of-purchase displays.
111. Although Maybelline would like to use ____ as a consumer sales promotion method, this method has
extremely high labor costs that are more affordable for higher-end make-up companies such as
Clinique and Estée Lauder.
a.
frequent-user incentives
b.
demonstrations
c.
coupons
d.
rebates
e.
consumer contests
112. Realizing that her firm’s sales promotion budget was small and cut by 30 percent for the coming year,
Stacey Baronas rules out ____ as playing a role in her sales promotion plan.
a.
samples
b.
coupons
c.
point-of-purchase materials
d.
money refunds
e.
premiums
113. To increase sales of Chex cereals, Ralston Purina offered a free pound of bananas to customers who
bought the large-size box. This form of sales promotion is called a
a.
premium.
b.
coupon.
c.
cents-off offer.
d.
free sample.
e.
money refund.
114. ____ are items offered free or at minimal cost as a bonus for purchasing a product.
a.
Rebates
b.
Premiums
c.
Samples
d.
Merchandise allowances
e.
Coupons
115. At one time, Wheaties offered two free golf balls with the purchase of a twin pack of Wheaties cereal
featuring Tiger Woods. This is an example of a
a.
consumer prize.
b.
rebate.
c.
premium.
d.
free sample.
e.
free merchandise.
116. On a break between classes, Kelley checks her smartphone and enters her contact information on the
Publishers Clearing House site. She doubts that she will win $10 million, but she never passes up a
chance to participate in a
a.
lottery.
b.
consumer contest.
c.
game of chance.
d.
sales contest.
e.
sweepstakes.
117. The difference between consumer sales promotion methods and trade sales promotion methods is
a.
with consumer sales promotion, marketers try to persuade retailers to carry their products.
b.
with trade sales promotion, marketers focus on trading with consumers.
c.
consumer and trade sales promotions aim at retailers, but only trade sales promotions aim
at wholesalers.
d.
consumer sales promotions focus on getting consumers to buy their products, whereas
trade sales promotions focus on getting wholesalers and retailers to buy.
e.
trade sales promotions attempt to persuade people to buy at particular stores, whereas
consumer sales promotions focus on persuading people to buy particular products.
118. Any marketing tactic used to stimulate wholesalers and retailers to carry a producer’s products and
market those products more aggressively is a
a.
trade sales promotion method.
b.
point-of-purchase material.
c.
consumer sales promotion method.
d.
merchandise allowance.
e.
dealer loader.
119. 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
120. Tyler is a purchasing agent for Kellogg’s. He is currently negotiating with his suppliers to receive a
_______, which is a temporary price reduction to resellers for purchasing specified quantities of a
product.
a.
push money allowance.
b.
a merchandise allowance.
c.
a buying allowance.
d.
a buy-back allowance.
e.
a discount.
121. Sometimes retailers are offered temporary price reductions for purchasing specified quantities of a
product. These offers are used to provide an incentive to handle a new product, to achieve a temporary
price reduction, or to stimulate the purchase of an item in large quantities. What is this sales
promotion?
a.
Push money
b.
Buy-back allowance
c.
Buying allowance
d.
Cents-off offer
e.
Money refund
122. If Green Giant wants to provide its resellers with a secondary incentive to stimulate repurchases after
an initial consumer coupon campaign for its latest product, it can offer resellers a sum of money for
each unit purchased. This type of sales promotion is a
a.
buying allowance.
b.
count-and-recount allowance.
c.
scan-back allowance.
d.
buy-back allowance.
e.
coupon follow-up campaign.
123. 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.
124. When Levi’s agrees to pay JC Penney’s money for providing television advertising and Sunday
newspaper sales fliers emphasizing Levi’s jeans, Levi’s is offering
a.
premium money.
b.
cooperative advertising.
c.
a dealer loader.
d.
a buying allowance.
e.
a merchandise allowance.
125. An arrangement in which a manufacturer pays a certain amount of a retailer’s media costs for
advertising that manufacturer’s products is
a.
a buy-back allowance.
b.
a merchandise allowance.
c.
premium money.
d.
push money.
e.
cooperative advertising.
126. A television advertisement for Miracle-Gro lawn fertilizer indicates that the product is available at
Kmart and Walmart. This form of sales promotion is called a(n)
a.
cooperative advertising.
b.
dealer listing.
c.
push money.
d.
dealer loader.
e.
advertising allowance.
127. Kayla is the owner of a group of women’s clothing stores located throughout the midwestern United
States. Recently, she made a large purchase from a leading clothing manufacturer, and was given
____, which is a gift to a retailer who purchases a specified quantity of merchandise.
a.
a dealer loader
b.
a premium
c.
push money
d.
a merchandise allowance
e.
a buy-back allowance
128. 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.
129. Aaron Epstein tells his fellow retail salesperson at Zales Jewelers that during the second quarter he is
going to sell all the Alance watches he can and use his extra earnings to go to Cancun. He exclaims,
“Can you believe the ____ program they have on for this quarter?”
a.
buying allowance
b.
merchandise allowance
c.
push money
d.
dealer loader
e.
sweepstakes
130. While sales contests can motivate employees at all levels to participate, a disadvantage of this method
of sales promotion is that
a.
they are often 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 often feel they are not being recognized enough.
Scenario 19.1
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.
131. Refer to Scenario 19.1. 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
132. Refer to Scenario 19.1. 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.
133. Refer to Scenario 19.1. Sean has narrowed his list and is preparing a packet 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.
134. Refer to Scenario 19.1. 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
Scenario 19.2
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’s, through its own salesforce. Kerry Wilson is one of Presto’s salespeople, and 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 salesforce 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.
135. Refer to Scenario 19.2. Kerry and the other salesforce members are best described as a ____ sales
force.
a.
technical
b.
missionary
c.
trade
d.
field
e.
pioneer
136. Refer to Scenario 19.2. Presto appears to be using ____ to educate its sales force.
a.
formal sales training
b.
on-the-job training
c.
negative motivation
d.
territorial meetings
e.
recruiting training
137. Refer to Scenario 19.2. Which of the following are consumer sales promotion methods that Presto is
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 and the in-store rebate
e.
the sales force contest and the customer contest
138. Refer to Scenario 19.2. Presto’s use of a 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
TRUE/FALSE
139. Personal selling is generally the most expensive element in the promotion mix.
140. The primary goals of personal selling are finding prospects, convincing prospects to buy, and keeping
customers satisfied.
141. Most marketers depend on one-sale customers for long-run survival.
142. Developing a list of potential customers is called prospecting.
143. The preapproach is the first step in the personal selling process.
144. Even though salespeople do not use the exact same sales methods, they do go through the same
general selling process.
145. In the cold canvass technique, the salesperson calls on potential customers without their prior consent.
146. Using referrals falls under the approach step in the personal selling process.
147. The approach step is an important step for gathering information about a buyer’s needs and objectives.
148. Listening on the part of a salesperson is a major component in making a presentation.
149. 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.
150. A salesperson should not attempt to close a transaction until he or she has finished the entire
presentation.
151. Closing the sale is not a part of the sales presentation in which hidden objections are discovered.
152. It is never good to ask customers questions while giving the sales presentation, as the customer may
raise objections that the salesperson cannot overcome.
153. If possible, the salesperson should handle objections only when they arise.
154. Following up involves listening to a customer’s response after finishing the presentation and
overcoming those objections.
155. Order getters are sometimes called creative sellers.
156. A single salesperson may perform the functions of order getting, order taking, and support.
157. Current customers are sources of leads for finding prospective customers.
158. Locating prospects, educating customers, and building goodwill are functions performed by support
personnel.
159. The missionary salesperson’s primary purpose is to sell to the producer’s customers.
160. Some support personnel, such as trade salespeople, may perform order-taking functions in addition to
support functions.
161. The focus of personal selling is shifting from selling a specific product to building long-term
relationships with customers by finding solutions to their needs, problems, and challenges.
162. Team selling involves building mutually beneficial long-term associations with a customer through
regular communications over prolonged periods of time.
163. Relationship selling is used especially in consumer marketing.
164. Selection of the right type and proportion of salespeople is important because it is a one-time decision
that affects the company’s ability to generate sales and profits.
165. When determining the characteristics desirable in salespeople, the sales manager should analyze the
characteristics of the successful and ineffective sales personnel within the firm.
166. Among others, management recruits from within the firm or from recommendations of individuals by
current employees.
167. Because salespeople are an expense to the company, yet they are the ones who generate revenues for
the company, management must strive to achieve optimality in the size of its sales force.
168. Sporadic recruiting is more desirable than continuous recruiting because of the expense involved in the
process.
169. Regardless of one’s experience, firms always put new employees through a training program geared for
their specific firm.
170. Training programs designed for experienced company salespeople generally are oriented toward
product information.
171. A straight commission compensation program ensures that selling costs will be predictable.
172. Effective sales force motivation is achieved through a continual organized set of activities performed
by the company’s sales management.
173. The aim of a motivational program is to create a working environment in which sales personnel can
achieve their goals.
174. To equalize the workload, a sales manager divides a geographic market into sales territories of equal
size according to land area.
175. Maximization of selling time and minimization of nonselling time are the major goals of routing and
scheduling decisions.
176. A salesperson with a larger territory will have the advantage of being able to achieve more sales than
salespeople with smaller territories.
177. Salespeople should know the sales objectives of the firm in order to know what they are expected to
accomplish.
178. Generally, a salesperson’s performance is judged by comparing it with predetermined standards rather
than by comparing it with the performance of other salespeople.
179. The factors used to evaluate a salesperson’s performance are based on the sales objectives set by the
sales manager for that salesperson.
180. A salesperson’s performance is often compared with the performance of other salespeople operating
under similar conditions.
181. Sales promotion activities are always supplementary to personal selling and advertising.
182. Decisions regarding sales promotion do not affect advertising decisions.
183. Generally, sales promotion attempts to influence consumers to purchase products but is not normally
aimed at resellers.
184. Sales promotion may facilitate personal selling.
185. Sales promotion activities are generally used in conjunction with other promotional efforts.
186. Sales promotion objectives should be consistent with the organization’s overall objectives and its
marketing objectives.
187. A marketer’s selection of sales promotion techniques is influenced by the state of the competitive
environment.
188. Two major categories of sales promotion methods are consumer and trade.
189. One objective of consumer sales promotion techniques is to encourage patronage for a specific retail
store.
190. Many consumers redeem coupons only for products they normally buy.
191. Most people who purchase rebated products actually apply for the rebates.
192. Demonstrations in retail stores are not used widely because they are expensive.
193. The use of sampling is declining.
194. Consumer contests and sweepstakes are used to promote established products and tend to generate
similar levels of consumer response.
195. Generally, consumer sweepstakes are more popular than consumer contests.
196. Buying allowances are effective promotional techniques because they result in profits for resellers.
197. Merchandise allowances are generally used in conjunction with high-volume, low-profit items.
198. Cooperative advertising refers to advertisements promoting a product and identifying participating
retailers that sell the product.
