Selling Today: Partnering to Create Value, 14e (Manning/Ahearne/Reece)
Chapter 13 Negotiating Buyer Concerns
1) When a prospect has voiced an objection, it is most likely best for the salesperson to:
A) suggest postponing the negotiations
B) divert attention to a product feature
C) illustrate the product’s high quality
D) deny the accuracy of the objection
E) clarify the true nature of the problem
2) Working to reach an agreement that is mutually satisfactory to both buyer and seller is also
called:
A) negotiation
B) agreement
C) practice theory
D) tactics
E) strategy
3) In negotiations, the walk-away point that represents the lowest offer a party would be willing
to accept is known as the ________.
A) reservation value
B) best alternative
C) peak price point
D) price objection
E) zone of possible agreement
4) Which of the following best describes a misunderstanding?
A) a failure to ask enough probing questions to identify a problem
B) a failure to agree even when both sides understand each other
C) a failure to accurately understand the other person’s point
D) an inability to reach a win–win agreement
E) an inability to negotiate across cultures
5) Logrolling refers to:
A) selling customers new products
B) expanding sales territories and shifting customers
C) asking customers to pay full price in the short term
D) offering an alternate solution to a negotiation problem
E) increasing customer service to reach a win–win solution
6) Determining your BATNA and ZOPA will help you in negotiations because:
A) the process will be delayed and you may be able to wear the buyer down
B) you will have a leg up on buyers, who are restricted from performing these assessments
C) you will only make the sale if your BATNA determination matches your buyer’s exactly
D) they determine the best fair price for a product based on economies of scale in production
E) they tell you what you will be willing to accept before you walk away from the negotiation
7) What area of the sales process are the sales representatives weak in, according to the results of
the sales director’s analysis?
A) price calculations
B) negotiation skills
C) presentation skills
D) rapport building
E) showmanship
8) A salesperson who goes into a negotiation process without any preparation is likely either to
lose the sale or to:
A) make concessions to the buyer too quickly
B) create a win-win solution for both parties
C) sell a product that lacks superior benefits
D) give the prospect too much information
E) promote the competition’s product
9) The sales director could most likely help the sales representatives to understand the firm’s
financial objectives by clarifying:
A) cold calling methods
B) trial close techniques
C) reservation values
D) logrolling rules
E) unbundling tools
10) Because Kelly is a tough negotiator, salespeople must be aware of how much flexibility they
have in terms of price, specifications, and delivery schedules. Which of the following best helps
a salesperson with determining the walk–away point when dealing with Kelly?
A) SWOT
B) ZOPA
C) ROI
D) PLC
E) CRM
11) Negotiation is defined as “working to reach an agreement that is satisfactory to either the
buyer or the seller.”
12) The foundation for win-win negotiations is a relationship with the customer built on trust and
rapport.
13) Traditional selling principles stressed that the “we versus they” and the “win–win” were
similar concepts for negotiating sales resistance.
14) The ________ (BATNA) is defined as “what alternative(s) will be acceptable to you if your
negotiation does not succeed.”
15) A buyer’s resistance to a salesperson‘s product is usually caused by:
A) the salesperson failing to negotiate well
B) another product satisfying the buyer’s needs
C) friends and acquaintances recommending the product
D) the product’s advanced stage in the product life cycle
E) the product’s price being equal to the buyer’s current product
16) The best way to overcome a sincere need objection by a business prospect is to:
A) explain how the prospect should engage in comparison shopping
B) make the price the major selling point of the sales presentation
C) prove that the product will improve the prospect’s profits
D) compare the product to others on the market
E) reiterate all the features of the product
17) One of the most common buyer concerns in the field of selling is:
A) lack of need recognition for the product
B) personality conflict with the salesperson
C) loyalty to another firm
D) resistance to price
E) customer service
18) Which of the following is an acceptable way to cope with the loyalty objection?
A) Work on recruiting internal champions to build more support for your message.
B) Point out, in specific terms, the weak points of the competing product.
C) Point out how dependence on just one supplier can be risky.
D) Encourage the prospect to quit the present supplier.
E) Undermine confidence in the current supplier by intimating that the company is having
financial troubles.
19) When a customer says, “I would rather not tie up my money in a large order,” the resistance
most likely falls into which category?
A) time
B) product
C) price
D) source
E) process
20) If a customer tells a sales representative from Johnson Supply, “I’ve always purchased my
supplies from the Ralston Company,” this person is most likely raising an objection to:
A) product
B) time
C) need
D) source
E) price
21) As part of negotiation skills training, the sales representatives learn about handling customer
objections. A common customer objection regards the quality of produce and meat. How should
a sales representative most likely address this objection?
A) Emphasize the firm’s commitment to customer service after a sale.
B) Offer a specific delivery time so restaurants know when to expect products.
C) Engage in transactional selling methods to develop a strategic relationship.
D) Offer a discount on the first years’ orders to gain the buyer’s trust.
E) Deny that a quality problem exists by showing certifications from local farmers.
22) The negotiation training stresses that sales representatives should avoid making price the
focal point of the presentation. This requires the sales representatives to refocus on:
A) positioning the product on quality instead of price
B) using the postponement method when asked about price
C) timing the presentation to mention price last instead of first
D) using the pricing sheet to create tiers of discounts
E) targeting sales to buyers with less money
23) According to the text, you usually get what you deserve, no matter how you negotiate.
24) Customers who perceive added value are less likely to choose a competing product simply
on the basis of price.
25) In some cases the statement, “I don’t need your product,” is a conditioned response.
26) A stall tends to mean that the customer appreciates the benefits of a product but is unwilling
to engage in negotiations.
27) When people say, “Your price is too high,” they probably mean, “You haven’t sold me yet.”
28) List five common types of buyer concerns.
29) The “feel-felt-found” method is used in conjunction with which of the following?
A) indirect denial
B) direct denial
C) trial offer
D) superior benefit
E) demonstration
30) When a customer raises a valid objection that cannot be answered with a denial, the
salesperson should most likely take which of the following actions?
A) discuss superior benefits
B) engage in back–pedaling
C) begin a pricing approach
D) re–start the presentation
E) criticize the competition
31) If you are familiar with your product as well as your competition’s product, which method of
negotiating buyer resistance is best for overcoming buyer skepticism?
A) defamation
B) feel–felt-found
C) third–party testimony
D) indirect denial
E) demonstration
32) Which of the following is true with respect to negotiations in foreign cultures?
A) Different cultural expectations can cause difficulty communicating.
B) It is sometimes advisable to become antagonistic during negotiations.
C) Business rituals are largely the same across cultures.
D) German buyers are unlikely to look you in the eye.
E) In China, negotiations are less straightforward than in Japan.
33) Which of the following is most likely a true statement about price?
A) Transactional buying at a low price involves a strategic relationship with the seller.
B) Features and benefits are not always related to the price of a product.
C) Lower prices are equivalent to lower costs and higher quality.
D) The highest quality can never be obtained at the lowest price.
E) Paying too much is typically worse than paying too little.
34) What is the most likely benefit of using indirect denial to handle a prospect’s concerns?
A) identifying the main concerns of the prospect
B) showing respect for the prospect’s opinion
C) countering inaccurate information
D) resolving the issue conclusively
E) preventing price resistance
35) A salesperson for a software company offers to let a customer do a “pilot” of the software in
two locations for three months at no cost. What is another name for a pilot?
A) direct denial
B) trial offer
C) demonstration
D) superior benefit
E) postpone method
36) During the negotiations, it became apparent that the buyer had not understood the delivery
schedule correctly. This most likely made the situation:
A) more difficult, as the sales team clearly cannot communicate details effectively
B) more difficult, as the sales team must start the whole negotiating process again
C) more difficult, as the buyer was not capable of agreeing to the complex terms
D) easier, as the buyer gave in to the seller with an apology for misunderstanding
E) easier, as the sales team needed to clarify details instead of renegotiate
37) Which of the following would be an example of logrolling in this negotiation?
A) The sales team gives the buyer a lower price than in the initial proposal.
B) The sales team creates a whole new proposal with different terms and pricing.
C) The sales team offers the buyer an advantageous payment schedule.
D) The sales team holds firm on the original price.
E) The buyers pit two sellers against each other.
38) The negotiations are stalled until Karyn’s team discovers that the buyers are concerned about
the costs of training laboratory employees to use the new microscope. What response would
most likely move the negotiations forward?
A) The sales team offers to demonstrate the microscope to the lab supervisors.
B) The sales team provides testimonials on the efficacy of the microscope.
C) The sales team ignores the concern and offers expedited delivery instead.
D) The sales team offers discounted training from the firm’s implementation team.
E) The sales team assures the buyers that the microscope is easy to use.
39) Kelly often tells sellers that her budget will not allow her to pay the price they are asking.
What is the most effective way a seller could counter that claim?
A) Offer to reduce the price through unbundling.
B) Tell her to request a larger budget from her manager.
C) Offer her the product for what she says she can spend.
D) Ask to see proof of the limit of her budget.
E) Convince her of the benefits of the product.
40) Direct denial may be appropriate when a customer’s objection is based on misinformation.
41) The direct-denial method of negotiating objections is a very common approach used in the
field of selling.
42) Research shows that a neutral third party’s testimony tends to provide a weak argument when
answering a customer’s concern.
43) A(n) ________ is a benefit that will, in most cases, outweigh the customer’s specific concern.
44) The ________ method of negotiating buyer resistance is one of the most convincing ways to
overcome buyer skepticism.
45) The ________ method of negotiating an objection is popular with customers because they
can get fully acquainted with the product without making a major commitment.
46) One way to empathize with the client’s objection and turn objections into sales is to use the
“feel–felt– ________” strategy.
47) When a salesperson bends a little and acknowledges that the prospect is at least partially
correct, the salesperson is using the ________ method of negotiating an objection.
48) Explain the differences between the direct denial method and the indirect denial method.
49) Which of the following is an acceptable method of negotiating the price objection?
A) Make price the focal point of your presentation.
B) Clarify the link between price and quality.
C) Focus on an individual product feature.
D) Apologize for the product’s high prices.
E) Lower the price if the customer balks.
50) Adding value with a cluster of satisfactions would be an effective way to deal with:
A) time resistance
B) adaptive selling
C) price resistance
D) third–party testimonials
E) decision postponements
51) If a company uses a low-price strategy, the company should most likely consider which of
the following when negotiating with transactional buyers?
A) selling at the cost of manufacturing the product to improve economies of scale
B) eliminating features that contribute to a higher selling price
C) increasing the number of features of the product
D) matching competitors’ prices
E) changing branding
52) Cost represents the:
A) relationship between price and amortization
B) initial amount the buyer pays for the product
C) amount the buyer pays for a product as it is used over a period of time
D) true value of the product in non-financial terms
E) buyer’s contribution to the negotiations
53) The iceberg metaphor shows that many customers try to negotiate on price because:
A) price is often inflated to attempt to maximize profits for the company
B) price is the most easily quantifiable characteristic of any product
C) they were trained to negotiate on price and price alone
D) they feel that they are not fulfilling their duties as buyers if they do not attempt to get lower
prices
E) they do not realize that other factors, such as service and terms, can be more important to
long-term satisfaction
54) The price-cost comparison as a negotiating technique is more likely to be successful with
buyers of products that:
A) are priced at the top end of the market
B) are priced at the low end of the market
C) will become obsolete quickly
D) will be used over a long period of time
E) will be used by inexperienced users
55) If a marketer’s goal is to earn a small profit margin on a large sales volume, the marketer is
likely to use a:
A) customer strategy
B) price strategy
C) market strategy
D) value-added strategy
E) cost strategy
56) Karyn’s team has already uncovered the lab’s needs during the consultative questioning stage
of the presentation. Which of the following is most likely true?
A) The team should practice debating features and benefits before the negotiation.
B) The team should continue to gather as much information on the lab and the lab’s buying team
as possible before the negotiation.
C) The team has already missed their best window of opportunity for negotiations.
D) The team should be more aggressive about offering discounts to achieve a fast close.
E) The team is more prepared than they need to be for the negotiation process.
57) Kelly‘s bottom line is price, but she has wiggle room if the seller can move on terms such as
tiered discounts for subsequent orders. Which of the following would most likely appeal to
Kelly?
A) personalized service agreement for the product
B) implementation of the product
C) free training on use of the product
D) a delayed payment plan
E) using a different manufacturer
58) Using a price-cost comparison on Kelly is unlikely to be effective because:
A) Kelly is buying products to resell immediately, not to get long–term value from
B) Kelly is attempting to increase the margin between price and cost
C) Kelly has no wiggle room on cost, only on price and pricing schedule
D) Kelly cannot negotiate cost as part of her job description
E) Kelly won’t know how much the difference between price and cost should be until after the
sale goes through
59) If you believe in your product and understand its unique features, then preparing for price
resistance is unnecessary.
60) A salesperson can often overcome objections to the set price of a product by apologizing for
the price to the customer.
61) Relying on a low price to sell a product reduces the product to a commodity.
62) Which tactic would most likely be used by buyers trained in price negotiation?
A) product compromise
B) sixty–forty
C) budget limitation
D) cards on the table
E) maybe…if
63) A professional buyer says, “My final offer is $9,500, take it or leave it.” The best way to
cope with this type of resistance is to:
A) lower your price, but make sure the sale still results in a profit for your company
B) confidently review the superior benefits of your product and attempt another close
C) make a counteroffer that is about 10 percent under your first price quote
D) review the unique features of the product or service
E) unbundle features of the product
64) A salesperson should most likely review the benefits of the product before making price
concessions to a buyer who engages in ________ tactics.
A) budget limitation
B) take–it-or-leave–it
C) let-us-split-the-difference
D) “if…then”
E) “sell low now, make profits later”
65) Which tactic most likely involves making a price concession to the buyer?
A) budget limitation
B) take–it-or-leave–it
C) let-us-split-the-difference
D) “if…then”
E) “sell low now, make profits later”
66) Balance of power is most likely the issue a salesperson must consider when responding to
a(n) ________ tactic.
A) budget limitation
B) feel–felt-found
C) let-us-split-the-difference
D) “if…then”
E) “sell low now, make profits later”
67) An agreement to keep the same price but reduce prices in the future is often a successful
response to which of the following tactics used by buyers?
A) budget limitation tactic
B) take–it-or-leave–it tactic
C) let-us-split-the-difference tactic
D) “if…then” tactic
E) “sell low now, make profits later” tactic
68) Reducing the price by unbundling some items is an effective technique a salesperson can use
with a buyer who uses which of the following tactics?
A) budget limitation tactic
B) take–it-or-leave–it tactic
C) let-us-split-the-difference tactic
D) “if…then” tactic
E) “sell low now, make profits later” tactic
69) The selling team should most likely be prepared to:
A) deal with buyers that have well-developed negotiation skills
B) give concessions quickly to show good will to the buyers
C) settle most of the points of contention right away
D) revalue the microscope to make the sale
E) stick to the most important consideration: price
70) When Kelly sees value in a product but does not want to pay the suggested price, she often
offers to split the price difference with the seller. If a salesperson finds Kelly’s offer
unacceptable, the salesperson should most likely:
A) agree to split the difference
B) make a pricing counteroffer
C) provide a trial demonstration
D) walk away from the negotiations
E) show sourcing documents as proof
71) If Kelly and the seller cannot come to terms on pricing or any other equivalent factors, which
of the following is the most likely outcome of the negotiation?
A) The seller will give in and accept the price the buyer wants to pay.
B) The buyer and seller will use a random method to decide whose terms to use.
C) The buyer and seller will walk away from the negotiation without closing a sale.
D) The buyer and seller will take the disagreement to an outside mediator.
E) The buyer will give in and pay the full price asked by the seller.
72) A growing number of professional buyers have completed training in negotiation.
73) The “budget limitation tactic” is often used by buyers who have been trained in negotiation.
74) Sales resistance is a natural response that tends to provide the salesperson with valuable
information about the consumer.
75) Professional buyers often learn to use specific tactics in dealing with salespeople. List three
tactics that were identified in Homer Smith’s book, Selling Through Negotiation.