Archives: Quiz

The product was developed by gathering focus groups of mothers and asking them what they need and what they wish normal planners offered them. This method of product development most likely: A) is costly and inefficient B) is performed by […]

The promotion element of a marketing program can be subdivided into the areas of: A) sales, promotion, and advertising B) market research, personnel, and product publicity C) product research, product design, product production, and product publicity D) public relations, place, […]

Which of the following is recommended when using suggestion selling? A) Don’t waste time suggesting low-profit items. B) Don’t hesitate to make suggestions before closing the sale. C) Don’t make suggestions until you have first satisfied the customer’s primary need. […]

Web-based demonstrations can be an effective way to present when it is: A) imperative that a customer see a full product demonstration B) important to meet face-to-face C) important to impress the buyer with technology D) necessary to provide factual […]

Emmanuelle Djubo is a sales representative for a firm that makes textiles using a traditional dyeing process. The firm exports its products to companies in the fashion and home decorating industries internationally. Emmanuelle is at a trade show and runs […]

Teresa Fallon sends a written proposal to a customer. In the proposal, she compares the specifications of her product and a competing product. If the information about the competing product is not true, she is using a form of defamation […]

Managers using rewards to motivate employees should most likely bear in mind that: A) short-term motivation contests should be used frequently due to their success B) motivational goals should be impractical to ensure that employees work hard C) rewards should […]

The step in the Presentation Plan involving anticipating buyer concerns and using the win-win method is the: A) approach B) needs identification C) presentation D) negotiation E) close A customer who combines low dominance and high sociability displays which of […]

Which of the following is LEAST likely a characteristic of a person with a high level of emotional intelligence? A) self-confidence B) professionalism C) adaptability D) optimism E) empathy Edward, a pharmaceutical sales representative, tends to focus primarily on highlighting […]

Braeden Innovations is a company that sells database systems and software integration packages to schools and universities. Jameson Kilpatrick is a field sales representative with Braeden Innovations. As a field sales representative, he makes sales presentations in person and contacts […]

Which of the following statements regarding product benefits is most likely true? A) People do not buy benefits, they buy features. B) A benefit provides the customer with a personal advantage. C) Prospects usually display equal interest in features and […]

Developing a long-term relationship that focuses on solving the customer’s buying problems is referred to as: A) executing B) consulting C) selling D) transitioning E) partnering Creating a value proposition is a way of: A) choosing prices for products B) […]

Which term refers to the decisions and activities that are intended to create and maintain a certain product concept in the customer’s mind? A) feature dumping B) product positioning C) product configuration D) value clustering E) strategic marketing Kelly Addison […]

An emotional response that can take various forms such as feelings of regret, fear, or anxiety is: A) Saturday-morning syndrome B) buyer’s high C) buyer’s remorse D) closing reluctance E) closing reserve Which of the following should Angie most likely […]

Which of the following is most likely a strategy for self-improvement? A) comparing your performance to others B) setting specific goals for yourself C) focusing on your obstacles D) clarifying your mistakes E) demanding help from others AdVance Corporation is […]

Transactional buyers are well aware of their needs and usually know a great deal about the products or services they intend to purchase. Salespeople need to know what their goals are to be able to manage their time effectively. Answer: […]

Most nonverbal closing clues are easy to detect and interpret. Research indicates that about half of lost customers leave due to price considerations. Answer: FALSE The first step in territory management is to classify all customers according to potential sales […]

The generic product is the basic, substantive product you are selling. A salesperson’s performance evaluation is typically based entirely on qualitative items of measurement because quantitative criteria are viewed as unfair and subjective. Answer: FALSE In many cases, intrinsic motivators […]

The presentation strategy includes a reminder that outstanding service should be the overriding theme of every sales presentation. Surveys show that poor service and lack of follow-up after the sale, both potentially value-adding activities, are the primary reasons customers stop […]

The CARE model helps salespeople add value to their relationships with customers. The steps of self-improvement include setting goal, engaging in visualization, using positive self-talk, and rewarding your progress. Answer: TRUE In most situations, the involvement of technical experts on […]

The sales manager should not change the compensation plan, even if conditions in the marketplace warrant a change. Before teaming up with another company, the strategic alliance buyer should learn about the firm the salesperson represents. Answer: TRUE A sales […]

The telephone has proven to be a good method of making appointments, keeping customers informed, and expressing appreciation, but it is an ineffective tool for building customer goodwill. CRM software cannot be used to track the likelihood that a sale […]

Individuals with high levels of emotional intelligence rarely display the qualities needed to be successful in sales because they appear untrustworthy. Examples of industries in the service channel include convention centers, banking, and advertising. Answer: TRUE In the Six-Step Presentation […]

The functions performed by sales managers include planning, recruiting, training, budgeting, developing compensation plans, and assessing sales force productivity. A majority of the states have passed legislation establishing a cooling-off period during which the consumer may void a contract to […]

Research indicates that when two people communicate, verbal messages convey much more impact than nonverbal messages. A benefit is whatever provides the customer with personal advantage or gain. Answer: TRUE The sales manager who makes decisions promptly and firmly is […]

The need to belong is really just an urge, not a basic human social need. The use of friends and acquaintances is not an acceptable way to build a prospect base. Answer: FALSE In a selling situation, the reflective customer […]

After closing the sale, it would be proper to say, “Do you know anyone else who might be interested in this product?” The four major strategies that form the strategic/consultative selling model are independent of one another. Answer: FALSE Team […]

Networking is another word for prospecting. Positioning is the set of benefits and values the company promises to deliver to customers to satisfy their needs. Answer: FALSE The direct appeal close is avoided by most salespeople because it adds complexity […]

Systems selling appeals to buyers who prefer to purchase individual products from a variety of sellers. The primary goal of a detail salesperson is to develop goodwill and stimulate demand for products. Answer: TRUE Tone of voice can be a […]

The highest compensation for salespeople generally goes to those focusing on transactional sales. Knowledge workers need selling skills to communicate information to consumers. Answer: TRUE One of the least subtle buying signals displayed by the customer is the question. Answer: […]

In the communication-style model, people who fall into zone two display their unique behavior characteristics with less intensity than in zone one. The survey approach is generally a non-threatening way to open a sales call. Answer: TRUE Qualifying is the […]

There are several different types of presentations, and the salesperson should choose the one most likely to influence the prospect. The first stage in the typical buying process is evaluation of solutions. Answer: FALSE Salespeople have assumed an important and […]

Consultative-style selling practices have become popular because they can be easily mastered. Multi-call sales presentations are common in many areas, but not in the retail field. Answer: FALSE The premium approach involves giving the customer a free sample or an […]

The partnering concept, as an enhancement of personal selling, became very popular in the 1970s. Sight is considered the most powerful attention-attracting sense; therefore, it is the most important motivating force in every selling situation. Answer: FALSE The “budget limitation […]

In some cases the statement, “I don’t need your product,” is a conditioned response. The goal of strategic selling alliances is to achieve a marketplace advantage by teaming up with another company whose products fit well with your own. Answer: […]

Traditional industrial age sales-training programs encouraged salespeople to make positive first impressions with customers and then to push the product to make a quick sale. An example of a trial close is when the salesperson says, “Can I get your […]

A need-satisfaction question can help move the sale forward. Mature and well-established products are usually characterized by intense competition as new brands enter the market. Answer: TRUE Emotive customers are frank, demanding, serious, and opinionated. Answer: FALSE Nonverbal messages can […]

A habitual rebuy is characterized by perceived brand differences and high customer involvement. Note taking is necessary in every sales presentation because it demonstrates active listening. Answer: FALSE Need identification begins during the approach, if the salesperson uses a survey […]

Consultative-style selling, which emerged in the late 1960s and early 1970s, is an extension of the marketing concept. The role of a salesperson should move from supporting to selling. Answer: FALSE Potential products are more likely to be developed by […]

Quotation management software enables firms to prepare written proposals that comply with federal RFP guidelines. It is almost impossible for clients to understand some products without a well-planned presentation. Answer: TRUE Style flexing is the deliberate attempt to accommodate the […]

A stall tends to mean that the customer appreciates the benefits of a product but is unwilling to engage in negotiations. Another name for missionary salespeople is “detail salespeople.” Answer: TRUE People buy products if they fulfill a problem-solving need. […]

If you are not breaking the law, then you are acting in an ethical manner. A ‘strategy” can be best described as a collection of techniques, practices, or methods you use when you are face to face with a customer. […]

If the volatility implied from an at-the-money put stock option were used to price other put options on the stock, which of the following would be true? A. Out-of-the money and in-the-money prices would be too high B. Out-of-the money […]

The basis is defined as spot minus futures. A trader is hedging the sale of an asset with a short futures position. The basis increases unexpectedly. Which of the following is true? A. The hedger’s position improves. B. The hedger’s […]

The current price of a non-dividend paying stock is $30. Use a two-step tree to value a European put option on the stock with a strike price of $32 that expires in 6 months with u = 1.1 and d […]

Which of the following survived the crisis without declaring bankruptcy or being taken over by another financial institution? A. Bear Stearns B. Morgan Stanley C. Lehman Brothers D. Merrill Lynch When the stock price is 20 and the present value […]

Which of the following is the payoff from an average strike put option? A. The excess of the strike price over the average stock price, if positive B. The excess of the final stock price over the average stock price, […]

The current price of a non-dividend paying stock is $50. Use a two-step tree to value an American put option on the stock with a strike price of $48 that expires in 12 months. Each step is 6 months, the […]

The standard deviation of the values of an option calculated using 10,000 Monte Carlo trials is 4.5. The average of the values is 20. What is the standard error of this as an estimate of the option price? A. 4.5 […]

Which of the following best describes the term ‘spot price” A. The price for immediate delivery B. The price for delivery at a future time C. The price of an asset that has been damaged D. The price of renting […]