Chap 18 Practice Questions

A temporary price reduction to resellers for purchasing specified quantities of a product is

a buying allowance

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 merchandise allowance

Sales promotion is defined as a(n)

activity used as a direct inducement to resellers, salespeople, or consumers. advertising campaign.

Effective motivation of a sales force is best achieved through

an organized set of activities performed continuously.

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

buy-back allowance

The _____ stage of the personal selling process is when the salesperson asks the prospect to buy the product.

closing

Salespeople receive a set salary plus a commission based on sales with a

combination combination plan

An arrangement in which a manufacturer pays a certain amount of a retailer's media costs for advertising that manufacturer's products is

cooperative advertising

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.

coupons

Order-getting activities are divided into two categories:

current-customer sales and new-business sales.

A television advertisement for Miracle-Gro lawn fertilizer indicates that the product is available at Kmart and Wal-Mart. This form of sales promotion is called a(n)

dealer listing

A __________ is a gift to a retailer who purchases a specified quantity of merchandise.

dealer loader

The final step in the selling process is

follow up

The purpose of the ___________ stage in personal selling is to determine customers' problems and questions about using the product.

follow up

A major disadvantage of personal selling is that it

is very expensive per contact

Assisting the producer's customers in selling to those customers is the major purpose of which type of salesperson?

missionary salesperson

A person who primarily seeks repeat sales is called a(n)

order taker

Paid personal communication that attempts to inform and persuade customers to purchase products in an exchange situation is called

personal selling

The first step in the selling process is

prospecting

Additional compensation to salespeople offered by the manufacturer as an incentive to push a line of goods

push money

Which of the following involves building mutually beneficial long-term associations with a customer usually a business customer through regular communications over prolonged periods of time.

relationship selling

When a manufacturer rewards retailers based on the number of pieces moved through their scanners, this sales promotion method is known as a

scan-back allowance

Jose Suarez has been hired as sales manager at a new firm and is trying to come up with a sales force compensation method. He would like to have selling expenses relate directly to sales resources, an aggressive sales force, and minimization of nonselling tasks. What compensation method(s) would best fulfill his requirements?

straight commission

Which of the sales force compensation methods is easy to administer, yields more predictable selling expenses, and provides sales managers with a large degree of control over salespeople?

straight salary

Which of the following types of salespeople facilitate the selling function but are not involved solely with making sales?

support sales people

In which of the following does the salesperson join with people from the firm's financial, engineering, and other functional areas to engage in the personal selling process?

team selling

A support salesperson who usually advises customers on product characteristics and application, system design, and installation procedures is a(n)

technical salesperson

Any marketing tactic used to stimulate wholesalers and retailers to carry a producer's products and market those products more aggressively is a

trade sales promotion method

When a salesperson asks the customer to buy the product several times throughout the sales presentation in an effort to uncover hidden objections, it is called

trial closing