Archives: Quiz

A sales executive makes decisions based upon what her boss says is right; this person is at the principled level of moral development. The use of a multiple-close sequence increases the probability of losing a sale. Answer: False Explanation: The […]

In a participating leadership style, the sales manager makes all decisions for the salesperson. “Will you need one box of nails or two to go with those roofing shingles?” is an example of an alternative-choice close. Answer: True Explanation: The […]

A guideline provided in the text states that a good sales process involves 40 percent follow-up, 20 percent preparation, and 40 percent presentation. Purpose is a list of plans, goals, or objectives that differ from one sales call to another. […]

The memorized sales presentation is effective when the product is technical. Developing and using sales territories allows management to match salespeople to customer’s needs in a better way. Answer: True Explanation: Salespeople are hired and trained to meet the requirements […]

The “KISS” philosophy reminds a salesperson to keep the sales presentation simple. It is important for the salesperson using familiar terminology and buzzwords to speak in a formal tone to convey its importance. Answer: False Explanation: A salesperson should remember […]

Mutual goals of customers and sales organizations include increasing sales and profits. The presentation phase of the referral cycle begins when you sit down with your prospects for a sales presentation. Answer: True Explanation: The presentation phase of the referral […]

A primary obstacle faced by a salesperson who is trying to get shelf space for a new product is limited retail store space. It is easier to sell to a stranger than to an existing customer, because former customers are […]

A salesperson should attempt a close only once. To do otherwise makes the prospect think the salesperson is pushy. A “product” is a bundle of tangible attributes, while intangible attributes are called a ‘service.” Answer: False Explanation: A service is […]

In a parallel referral sale, salespeople must sell the product as well as the after-sales service. The easiest type of person to sell a product to is a buyer who is at the unconscious need level. Answer: False Explanation: Buyers […]

The consumer buying decision process begins with buyers recognizing a need and ends with buyers collecting product information. Sales force staffing is the process of matching the right people to the right jobs and placing them in the right sales […]

Integrity and trust form the attributes that distinguish the organization and salesperson, often referred to as character. Partnering refers to working continually to improve the customer’s operations, sales, and profits. Answer: True Explanation: Partnering occurs when the seller works continually […]

Satisfying the service needs of accounts by telephone is not recommended for salespeople despite in cost reductions. Order-getters ask what the customers want or wait for customers to place an order. Answer: False Explanation: Order-takers may ask what the customer […]

According to the SELL sequence, the first thing you should do in your sales presentation is to explain the advantages of your product. Under the straight salary compensation plan, salary is distributed in proportion to the sales made. Answer: False […]

A straight salary compensation plan tends to increase work norms within the sales group. A plan is a method of achieving an end. Answer: True Explanation: A plan is a method of achieving an end. A plan involves what you […]

A company should choose a senior salesperson as a trainer on the basis of sales ability and effective teaching skills. The shock approach uses a surprising demonstration. Answer: False Explanation: The shock approach uses a question designed to make the […]

The last step in planning your sales call is to develop a marketing plan for the prospect. In order to make the sale, it is not recommended that prospects participate in the sales presentation. Answer: False Explanation: A major part […]

A major weakness of decentralized training is that the costs associated with it are extremely high. The last part of most sales calls is ‘small talk” which aids in building rapport between the salesperson and the prospect. Answer: False Explanation: […]

A technique called creative imagery allows salespeople to better cope with stress. According to the text, more firms use incentive travel programs than merchandise awards to motivate salespeople. Answer: False Explanation: Industry typically spends 78 percent on merchandise awards and […]

“This refrigerator will preserve foods in the warmest weather.” This statement by a home appliance salesperson is legally actionable. The summary of benefits close is extremely useful if it targets a specific prospect’s personality. Answer: False Explanation: The compliment close […]

Although they are useful with final consumers, testimonials from satisfied customers mean little to professional buyers, who think such “proof” is usually faked. The majority of sales force resources should be invested in key accounts. Answer: True Explanation: The bulk […]

The sales call objective should be directly beneficial to the customer. A salesperson told a prospect, “I agree. Our price is a little higher, but so is our quality. Are you interested in saving $1,200 a year on maintenance?” This […]

A firm’s marketing mix consists of product, price, place, and performance. When leaving a voice message, avoid stating your name or phone number more than once to save storage space on the user’s voice mail system. Answer: False Explanation: It […]

The customer profile of a firm should tell a salesperson which competitors successfully do business with the firm. The FAB formula helps a salesperson increase a prospect’s desire for a product. Answer: True Explanation: Using the FAB formula, strive to […]

The right to be free of sexual harassment is a part of the 1980 EEOC guidelines. Do not deny objections even if they are based on incorrect information. Answer: False Explanation: At times, the prospect may raise objections based on […]

The main evaluator of a salesperson should be the salesperson’s immediate supervisor. A bonus is a financial reward given in addition to what is usually earned over an extended period of time. Answer: True Explanation: A bonus is something given […]

The statement, “I’ll place that order for six pallets of potting soil right now,” is an example of an unethical close. A T-account close is suitable if the buyer has a predetermined belief that the competitor’s product is needed. Answer: […]

Before developing a sales presentation, a salesperson should consider what psychological factors may influence the buyer’s decision. U.S. salespeople competing in foreign countries are required to comply with the laws of the foreign country rather than U.S. laws, which are […]

A salesperson asks a prospect, “Who will be the primary user for the camera?” The salesperson is using a direct question. According to the Golden Rule of Selling, salespeople should begin their sales presentation knowing the key customer benefits that […]

Some prospects view the continuous-yes close as an insult to their intelligence. Respect, trust, time, and friendship are key elements in any salesperson’s success. Answer: True Explanation: Respect, trust, and friendship are three key elements in any salesperson’s success. Exhibiting […]

The Robinson-Patman Act of 1936 prevents sellers from granting quantity discounts to larger buyers. Salespeople should avoid providing information to their companies or customers about competitors’ activities or market opportunities since such actions violate client confidence and are considered unethical. […]

Sales force automation addresses three broad areas of functionality: personal productivity, communications, and order processing and customer service. According to the text, closing the sale should be the hardest part of the presentation. Answer: False Explanation: Closing the sale is […]

Before making a close, a salesperson should put away all visual aids since they will distract the prospect. The ideal self is how people see themselves, and the looking-glass self refers to how people think others regard them. Answer: False […]

A salesperson leaves early from home and drives to the far end of her territory before making the first call. Then she works her way back so that she ends up near home at the end of the day. This […]

Audience, objective, structure, and visual aids are considerations in the sales presentation goal model. Relationship marketing involves using promotions and service to create customer loyalty. Answer: True Explanation: Relationship marketing is the creation of customer loyalty and retention. Organizations use […]

Relationship marketing is based on an idea that important customers need continuous attention. A prospect says, “I don’t like your color choices.” The salesperson responds, “Before you decide to buy, let me tell you about our credit plan.” This salesperson […]

The alternative-choice close allows prospects to choose between buying and not buying the product from the salesperson. The introductory approach involves distributing free samples and novelty items. Answer: False Explanation: A premium approach often involves distributing free samples and novelty […]

Technology diffusion curve is s-shaped because adoption is initially fast when a new technology is introduced to the market. A firm cannot collaborate with its competitor. Answer: False Heavyweight teams are suitable for platform projects. Answer: True Innovation often originates […]

Solo internal development is, on average, a relatively fast way of developing a technology. Knowledge that is explicit requires more frequent and close interaction to be meaningfully exchanged than knowledge that is tacit. Answer: False Late entrants typically bear the […]

Building the necessary capabilities and resources in-house reduces a firm’s asset commitment. Functional teams typically have a project manager or dedicated liaison personnel. Answer: False In the context of s-curves in technological improvement, as a technology begins to reach its […]

The criteria in the go/kill decision points are the questions or metrics used to make the decision regarding whether or not to kill the project or allow it to proceed. Many start-up firms demise because new innovations tend to be […]

Discovery of scientific principles that pertain to natural laws can be patented. In crafting an advertising message, firms must focus more on making the advertisements entertaining and memorable rather than on providing a significant quantity of informative content. Answer: False […]

A sequential process has an early warning system to indicate that planned features are not manufacturable. Titles and names can be copyrighted. Answer: False In the U.S., patents are valid for a period of 17 years. Answer: False Joint ventures […]

According to Anderson and Tushman, in the era of ferment, firms focus on efficiency and market penetration. Formulating a technological innovation strategy first requires an accurate appraisal of where the firm currently is. Answer: True A firm intending to refine […]

Managers choose a local-for-local approach to innovation when they have a strong desire to control the evolution of a technology. In Prahalad and Hamel’s model, it is possible for a firm to develop core competencies to a set of abilities […]

A joint venture between two companies often results in a new separate company. A firm’s strategic intent helps in the development of new businesses and markets. Answer: True Quasiformal structures foster interactions based on hierarchy rather than on interests. Answer: […]

The rights of copyright protection are established by legitimate use of the work. In general, the more firms competing that are of comparable size, the more competitive the industry will be. Answer: True Firms should always be racing to launch […]

In marketing a new product to the late majority and laggards, a company should emphasize the advanced technological features of the new product. If a firm wishes to avoid giving away its own installed base or complementary goods advantages to […]

Loose coupling helps organizations reap significant synergies by being tightly integrated. Qualitative methods of analyzing new projects usually entail converting projects into some estimate of future cash returns from a project. Answer: False Modular products become more valuable when customers […]

The discounted rate that makes the net present value of the investment maximize is called the internal rate of return. When manufacturers bypass wholesalers and retailers to sell directly to end users it is called backward compatibility. Answer: False With […]

For a firm to adopt a component innovation, it typically requires that the firm have architectural knowledge about the way components link and integrate to form a whole system. External development efforts typically lack the coordination of internal development. Answer: […]