Selling Today: Partnering to Create Value, 14e (Manning/Ahearne/Reece)
Chapter 7 Product–Selling Strategies That Add Value
1) 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
2) Product positioning is largely a function of:
A) product expertise
B) pricing strategies
C) industry standards
D) market segmentation
E) product differentiation
3) The positioning process:
A) must be continually modified to match customer wants and needs
B) is a fixed value–added process conducted by the salesperson
C) involves isolation from the competition
D) is performed by the customer in the buying cycle
E) should be performed every five years
4) Your ability to separate yourself and your product from that of your competitors is referred to
as:
A) positioning
B) differentiation
C) value processing
D) product placement
E) marketing alliance
5) Creating a value proposition is a way of:
A) choosing prices for products
B) scaling prices to different markets
C) positioning your product in the marketplace
D) keeping your product on the same level as others in the market
E) choosing sales objectives that align with the firm’s long–term goals
6) Which of the following is NOT a service-quality dimension?
A) responsiveness
B) assurance
C) durability
D) reliability
E) empathy
7) Which service-quality dimension refers to the knowledge and courtesy of employees?
A) responsiveness
B) empathy
C) reliability
D) tangibles
E) assurance
8) The process of differentiation does which of the following?
A) creates barriers that make it difficult for a competitor to get customers to switch based on
price alone
B) lists the benefits and features that you offer to the customer in a concise statement
C) tells customers how you relate to the rest of the market and what is unique about you
D) designs a strategy for understanding the product and knowing which product or configuration
to sell to each customer
E) asks customers to commit to your product within the first few minutes of the sales
presentation
9) Which of the following would most likely enable Just Candles to recapture their previous
customers and gain new customers?
A) Just Candles could lower their prices on less popular candles to create “loss leaders” that
would induce new customers to purchase regularly-priced candles from them.
B) Just Candles could shut down their retail location to cut overhead and move their business to
the Internet, where they could charge lower prices and compete with other online candle
retailers.
C) Just Candles could send out a mailing to all their customers reminding them that they carry a
full line of candles.
D) Just Candles could move their store to a more visible and expensive location in the mall.
E) Just Candles could announce a “candle of the month” program to discount candles that
traditionally haven’t sold as well as their other candles.
10) Which of the following would most likely be a value-added strategy that could boost sales
for Just Candles?
A) eliminating most candle sizes to focus on only tapers
B) visiting commercial customers to give them product brochures
C) offering classes for new customers on decorating with candles
D) lowering prices on all taper candles to compete with e-retailers
E) selling to customers in the local area using a mass marketing campaign
11) Abco Realty owns several rental apartment buildings in a working class but safe
neighborhood that has recently become popular with young professionals because of its
proximity to an express commuter train line. Abco has recently invested in the infrastructure of
the buildings, adding laundry rooms, safety features to the lobbies, and new insulated windows
to all the units. Because of this, Abco cannot afford to match the unit rental prices of other
buildings that have not made improvements. How should the sales manager of Abco Realty most
likely differentiate Abco’s units from units offered in other buildings?
A) The sales manager can convince management to cut expenses on basic maintenance so the
apartments can be rented at prices matching other buildings in the area.
B) The sales manager can promote the neighborhood as a safe place to live with a rich history.
C) The sales manager can convince the owners of the other buildings in the area to bring their
rental prices up to the prices Abco charges.
D) The sales manager can promote Abco apartments as being worth more money because they
are safer and have more services.
E) The sales manager can promote Abco apartments as being worth more money because the
company has helped raise home values in the area.
12) What would be the best way to position Green Grain relative to traditional grain?
A) as a higher-priced product that would allow farmers to make greater profits
B) as a higher–priced product that is more socially responsible than traditional grain
C) as an experimental product with which farmers could be the first on the market
D) as a product that exceeds federal standards for cattle feed
E) as a product that stores well throughout the winter
13) Salespeople at the dealer level can play an important role in positioning an automobile for
competitive advantage.
14) Positioning is the set of benefits and values the company promises to deliver to customers to
satisfy their needs.
15) The act of creating a product concept in the customer’s mind is called positioning.
16) ________ refers to the act of developing a concept of the product in the customer’s mind.
17) List and describe the three parts of the Product Solutions Selling Model.
18) A value proposition is best defined as a:
A) set of benefits a firm promises to deliver to satisfy customer needs
B) demand–based model for structuring the marketing mix
C) strategy for aligning features and prices
D) firm’s international positioning strategy
E) function of long-term production costs
19) Customer satisfaction most likely arises from:
A) product price
B) the product itself
C) the company that makes or distributes the product
D) the salesperson who sells and services the product
E) a combination of the product, company, and salesperson
20) Satisfactions can come from:
A) research studies done on the product
B) the board of directors of the company
C) any company that makes a competing product
D) the customer who buys the product
E) the salesperson who sells the product
21) Becoming familiar with a customer’s satisfactions is necessary for a salesperson to move
from:
A) transactional selling to product selling
B) solution selling to value-added selling
C) new buy selling to constructive selling
D) product selling to complimentary selling
E) product selling to solution selling
22) A good way to determine a customer’s satisfactions is to:
A) ask the customer questions about their needs
B) find out what competitors are doing
C) utilize a research database
D) run statistical modeling
E) conduct training sessions
23) What is the most likely drawback of using too many technical terms during a sales
presentation?
A) a salesperson making a misstatement
B) the customer being too intimidated to purchase
C) the customer knowing more about the product than the salesperson
D) the customer wanting a product with fewer capabilities and benefits
E) the customer asking the salesperson difficult questions that cannot be answered
24) Which of the following would most likely help a salesperson to position and differentiate a
product as better than other products in the market?
A) a cost–benefit analysis worksheet
B) an ROI calculator
C) a competitive analysis worksheet
D) an analysis regression
E) a statistical model
25) What could the desk clerk do to maintain the guest’s cluster of satisfactions?
A) The desk clerk cannot do anything, as the desk clerk does not have the technical skills to fix
the wireless connection.
B) The desk clerk should not do anything, as the desk clerk is not a salesperson and therefore
does not have responsibility for creating the cluster of satisfactions.
C) The desk clerk should offer to put the guest in an empty room as close to the original room as
possible, to avoid inconveniencing the guest further.
D) The desk clerk should offer the guest the use of the lobby wireless, which the clerk knows to
be problem-free, along with a discount off the charge for the room.
E) The desk clerk should refund the guest’s full payment for the hotel room and find the guest a
room at another hotel that can guarantee that its wireless service is problem–free.
26) Why is it most likely important to maintain this guest’s satisfaction with the hotel and the
front desk clerk?
A) The guest is visiting the ReView Hotel during the off season and is paying a below average
rate for the room.
B) The guest is already satisfied with the wireless service, so her cluster of satisfactions will be
maintained if she is also satisfied with the hotel and the front desk clerk.
C) The guest’s membership in the hotel’s rewards club indicates a previous level of satisfaction
that should be maintained by the front desk clerk to ensure customer loyalty.
D) The hotel maintains exclusivity through various pricing levels and room features.
E) The clerk is the only employee of the hotel with whom the guest will have contact.
27) The handbag is finally available to customers on the waitlist. Tanya, who has been on the list
for three weeks, picks up the handbag at the designer’s store. When she opens the handbag, she
finds that a wallet and a belt are included with the handbag, which both surprises and delights
Tanya. The designer most likely maximized Tanya’s satisfaction by:
A) using a value-pricing strategy
B) meeting customer requirements
C) selling a value–added product
D) creating a potential product
E) providing the expected product
28) People buy products if the products fulfill a problem-solving need.
29) If the salesperson does not create a good buying experience for the customer, it could affect
the customer’s satisfaction with the product.
30) Today’s better educated and more demanding customers are seeking a(n) ________ of
satisfactions.
31) The stages a product goes through from the time it is first introduced to the market until it is
discontinued is called the:
A) natural evolution
B) amortization
C) position
D) product life cycle
E) specific feature
32) Which of the following is a factor that determines a product’s life cycle stage?
A) the length of time the product sits in the warehouse before shipping
B) the product’s benefits and the importance of the needs it fulfills
C) the competitors’ compensation structure for salespeople
D) changes in the product’s production method
E) the length of time a product has been around
33) The goal of selling strategies for new and emerging products is to:
A) encourage current customers to rebuy
B) build desire for the product
C) create customer relationships
D) sell more units at a lower price
E) maintain consumer buying habits
34) The goal of selling strategies for mature and well-established products is to:
A) change buying habits
B) build desire for the product
C) maintain customer relationships
D) sell more units at a lower price
E) keep sales on an even level
35) When setting professional fees, which of the following should LEAST likely be considered?
A) professional experience
B) exclusivity of skills
C) number of channels
D) value to clients
E) target market
36) Which product-selling strategy would most likely be LEAST effective for selling Green
Grain?
A) focusing on creating new markets
B) developing new expectation levels
C) establishing new standards
D) stressing brand superiority
E) changing habits
37) How is this handbag being positioned and differentiated from other handbags similar in
manufacturing and look?
A) The handbag is being positioned on price.
B) The handbag is being positioned on exclusivity.
C) The handbag is being positioned on convenience.
D) The handbag is being positioned on design.
E) The handbag is being positioned on versatility.
38) How could Phil BEST respond to a “fax attack” and differentiate McCall Automotive
positively from other dealerships?
A) Phil could respond to the fax with brief answers to all of the customer’s questions.
B) Phil could develop value-added solutions for the customer by building a relationship.
C) Phil could refer the customer to other dealerships that typically have lower car prices.
D) Phil could steer the customer to more expensive cars that have better safety records.
E) Phil could refuse to match the fax attack price because quality cars demand high prices.
39) McCall Automotive sells a large number of well-established minivans, such as the Dodge
Caravan and Honda Odyssey. Now, the dealership has a new type of vehicle that it must
position—a hybrid minivan. What will be the best strategy for positioning the new hybrid
minivan?
A) hiring a new sales team to sell the hybrid minivan
B) focusing on key features of the hybrid minivan
C) highlighting the service provided by the dealership
D) creating a need and desire for a hybrid minivan
E) sustaining the dealership’s current minivan market share
40) Phil has observed that today’s car buyers are more knowledgeable than car buyers in the past,
primarily due to the Internet. Such car buyers gather information on all aspects of a car, from the
manufacturing process to service contracts, and they respond best to a value-added selling
strategy. What advice should Phil most likely give to his sales team when they are faced with
such knowledgeable buyers?
A) Drop the price significantly under the list price.
B) Create rapport with the buyer to build instant customer loyalty.
C) Tailor the product to the buyer’s needs and provide superior service.
D) Augment the product by adding extra features for only a minimal fee.
E) Appeal to the buyer’s sense of style and luxury through differentiation.
41) Salespeople have assumed an important and expanding role in differentiating products.
42) Advertising directed toward a mass market is usually a good way to position a complex
product.
43) In most cases, the same sales strategy is used to sell a new and an emerging product as is
used to sell a mature, well-established product.
44) Mature and well–established products are usually characterized by intense competition as
new brands enter the market.
45) A potential consequence of using low-price tactics is lower profits.
46) Products are born, and then they grow up and become mature. In marketing, this process is
known as the ________.
47) Which of the following statements about pricing policies is most likely true?
A) Very few companies maintain a pricing strategy that focuses on meeting competition.
B) Pricing strategies often reflect the opinion of the research department on correct pricing.
C) The ability to offer the lowest price is the most critical factor in the sale of products.
D) Price discounting is a competitive tool available to large numbers of salespeople.
E) Transactional sales rely primarily on personality alignment between buyers and sellers.
48) Which type of price discount would most likely be offered by a ski lodge during the summer
months?
A) quality discount
B) seasonal discount
C) promotional allowance
D) associate allowance
E) functional discount
49) Which of the following most likely covers transportation costs incurred by channel
intermediaries?
A) seasonal discount
B) associate allowance
C) trade discount
D) promotional allowance
E) quantity discount
50) Low-involvement buyers care mostly about:
A) specifications
B) durability
C) loyalty
D) brand
E) price
51) Which of the following selling techniques is appropriate for products with low prices?
A) partnering
B) solution selling
C) transactional selling
D) persuasion
E) price strategy
52) Green Grain marketers have established a positioning plan that stresses low price.
Salespeople are expected to use transactional selling tactics and offer discounts and allowances
to farmers as needed. Which type of discount would most likely be given to a farmer who agrees
to put the Green Grain logo on the side of his barn and Green Grain signs along the road near his
farm?
A) dealer allowance
B) trade discount
C) seasonal discount
D) promotional allowance
E) functional discount
53) Phil believes that the dealership should lower car prices to capture a higher share of the
market. Which statement best supports Phil’s argument?
A) Short–term profits will not be affected by lower prices if a firm is an e–retailer.
B) Competitors will lower prices to gain market share, and a price war will ensue.
C) Firms with large market shares are publicly owned but less strictly monitored.
D) A temporary reduction in profits could lead to long-term future profits because of greater
market share.
E) A company with the largest share of the market can cut costs and raise prices without the
public noticing or switching to competitors.
54) Phil believes that the dealership should lower car prices to capture a higher share of the
market. Competing on price will most likely work with which of the following car buyers?
A) a high-involvement buyer who values quality and durability
B) a high-involvement buyer who is willing to research features and performance extensively
C) a low-involvement buyer who ranks budget as a primary concern
D) a low-involvement buyer who is unwilling to purchase online
E) a low-involvement buyer who asks an employee to make the buying decision
55) What is a potential pitfall for Phil of competing on price instead of developing a partnering
relationship with car buyers?
A) A customer who buys only because the car is cheap will switch to another dealer with lower
prices for the next purchase.
B) A customer who wants a car that Phil doesn’t have in stock will wait for Phil to order it if the
price is correct.
C) Phil will have to spend less time selling to a customer who buys on price alone.
D) Phil may not be able to move older models if the prices on those cars have already been
discounted.
E) Phil will have to use a transactional sales technique to sell to customers based on low price.
56) Pricing decisions generally are made primarily during the introductory stage of the product
life cycle and rarely change.
57) For a growing number of customers, short-term savings that result from low prices are more
important than long-term value.
58) The first step in establishing a product price is to determine the firm’s ________ objectives.
59) The authors of The Discipline of Market Leaders encourage business firms to pick one of the
disciplines–best price, best product, or best ________ to distinguish their offering in the
marketplace.
60) Explain how pricing strategy can reflect the product’s place in the product life cycle.
61) In order to bring the Walker Hotel and Convention Center up to industry standards, each
guest room was redecorated with new wallpaper, drapes, carpeting, mattresses, and sofas.
Melanie Simms, sales manager for the Center, has recommended that guest rooms be upgraded
with the addition of wide desks, free wi-fi, and 24-hour room service. From the viewpoint of
most business travelers, these changes would result in the creation of a(n):
A) potential product
B) generic product
C) expected product
D) mature product
E) value-added product
62) A salesperson would most likely use a CRM system to:
A) categorize commission rates
B) qualify potential sales leads
C) file corporate bank records
D) monitor competitors’ customers
E) send product information to customers
63) Money that a bank has available for customer loans would be an example of a(n):
A) value-added product
B) expected product
C) generic product
D) potential product
E) customer product
64) Research reported in the Harvard Business Review indicates that it is very difficult to build
customer loyalty if a firm is selling only the ________ product.
A) generic
B) expected
C) potential
D) value-added
E) sales
65) Yellow Freight Systems must provide clean, well-maintained trucks and well-trained drivers.
This is most likely an example of a(n):
A) value-added product
B) generic product
C) potential product
D) expected product
E) customer product
66) As the level of competition increases, especially in the case of a mature product, salespeople
should most likely consider future possibilities, known as the ________ product.
A) expected
B) potential
C) generic
D) value-added
E) well–established
67) Value creation investments are the highest in:
A) strategic alliance sales
B) transactional sales
C) generic sales
D) consultative sales
E) collaborative sales
68) In what situation would a salesperson sell the potential product to a customer?
A) when the customer has not identified what they need from the product
B) when the salesperson is focusing on benefits, not features
C) when the salesperson needs to close more sales to hit a quota
D) when the sale will turn into a long-term partnership
E) when the sale is based primarily on the customer’s self–identified needs
69) Today, the primary goal of the value-added strategy is to add value by lowering the price of
the product.
70) Value creation during the transactional sale is considerable.
71) The generic product is the basic, substantive product you are selling.
72) The value-added product exists when salespeople meet the customer‘s expectation.
73) Potential products are more likely to be developed by salespeople who regularly interact with
customers.
74) The ________ product refers to what may remain to be done or what is possible.
75) Salespeople can benefit from viewing every product as being four-dimensional. List the four
“possible” products.