Personal Selling Chapter 13

In negotiations, the walk-away point that represents the lowest offer a party would be willing to accept is known as the ________.

reservation value

The sales director could most likely help the sales representatives to understand the firm's financial objectives by clarifying:

reservation values

One of the most common buyer concerns in the field of selling is:

resistance to price

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?

"sell low now, make profits later" tactic

If you believe in your product and understand its unique features, then preparing for price resistance is unnecessary.

False

Negotiation is defined as "working to reach an agreement that is satisfactory to either the buyer or the seller."

False

Research shows that a neutral third party's testimony tends to provide a weak argument when answering a customer's concern.

False

The direct-denial method of negotiating objections is a very common approach used in the field of selling.

False

Traditional selling principles stressed that the "we versus they" and the "win-win" were similar concepts for negotiating sales resistance.

False

Balance of power is most likely the issue a salesperson must consider when responding to a(n) ________ tactic.

"if...then"

What is the most likely benefit of using indirect denial to handle a prospect's concerns?

showing respect for the prospect's opinion

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:

source

A(n) ________ is a benefit that will, in most cases, outweigh the customer's specific concern.

superior benefit

Which of the following is an acceptable method of negotiating the price objection?

Clarify the link between price and quality.

The ________ (BATNA) is defined as "what alternative(s) will be acceptable to you if your negotiation does not succeed."

Best Alternative to Negotiated Agreement

Which of the following is true with respect to negotiations in foreign cultures?

Different cultural expectations can cause difficulty communicating.

According to the text, you usually get what you deserve, no matter how you negotiate.

False

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?

Emphasize the firm's commitment to customer service after a sale.

A salesperson can often overcome objections to the set price of a product by apologizing for the price to the customer.

False

A stall tends to mean that the customer appreciates the benefits of a product but is unwilling to engage in negotiations.

False

Kelly Addison is a designer clothing buyer for a chain of department stores. She has gone through several negotiation certification programs and is considered an expert negotiator by her peers. Using a price-cost comparison on Kelly is unlikely to be effective because:

Kelly is buying products to resell immediately, not to get long-term value from

Kelly Addison is a designer clothing buyer for a chain of department stores. She has gone through several negotiation certification programs and is considered an expert negotiator by her peers. 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?

Offer to reduce the price through unbundling.

Kelly Addison is a designer clothing buyer for a chain of department stores. She has gone through several negotiation certification programs and is considered an expert negotiator by her peers. 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?

The buyer and seller will walk away from the negotiation without closing a sale.

Karyn Fleishman is the lead sales representative on a team selling super-powered microscopes to research laboratories and other research institutions. She and her team just made a presentation to the buying team of a large lab, and they are about to enter the negotiation process to work toward closing a deal. 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?

The sales team offers discounted training from the firm's implementation team.

Karyn Fleishman is the lead sales representative on a team selling super-powered microscopes to research laboratories and other research institutions. She and her team just made a presentation to the buying team of a large lab, and they are about to enter the negotiation process to work toward closing a deal. Which of the following would be an example of logrolling in this negotiation?

The sales team offers the buyer an advantageous payment schedule.

Karyn Fleishman is the lead sales representative on a team selling super-powered microscopes to research laboratories and other research institutions. She and her team just made a presentation to the buying team of a large lab, and they are about to enter the negotiation process to work toward closing a deal. 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?

The team should continue to gather as much information on the lab and the lab's buying team as possible before the negotiation.

A growing number of professional buyers have completed training in negotiation.

True

Customers who perceive added value are less likely to choose a competing product simply on the basis of price.

True

Direct denial may be appropriate when a customer's objection is based on misinformation.

True

Relying on a low price to sell a product reduces the product to a commodity.

True

Sales resistance is a natural response that tends to provide the salesperson with valuable information about the consumer.

True

The "budget limitation tactic" is often used by buyers who have been trained in negotiation.

True

The foundation for win-win negotiations is a relationship with the customer built on trust and rapport.

True

Which of the following is an acceptable way to cope with the loyalty objection?

Work on recruiting internal champions to build more support for your message.

Kelly Addison is a designer clothing buyer for a chain of department stores. She has gone through several negotiation certification programs and is considered an expert negotiator by her peers. 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?

ZOPA

Kelly Addison is a designer clothing buyer for a chain of department stores. She has gone through several negotiation certification programs and is considered an expert negotiator by her peers. 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 delayed payment plan

Which of the following best describes a misunderstanding?

a failure to accurately understand the other person's point

Cost represents the:

amount the buyer pays for a product as it is used over a period of time

A buyer's resistance to a salesperson's product is usually caused by:

another product satisfying the buyer's needs

Which tactic would most likely be used by buyers trained in price negotiation?

budget limitation

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?

budget limitation tactic

When a prospect has voiced an objection, it is most likely best for the salesperson to:

clarify the true nature of the problem

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:

confidently review the superior benefits of your product and attempt another close

Karyn Fleishman is the lead sales representative on a team selling super-powered microscopes to research laboratories and other research institutions. She and her team just made a presentation to the buying team of a large lab, and they are about to enter the negotiation process to work toward closing a deal. The selling team should most likely be prepared to:

deal with buyers that have well-developed negotiation skills

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?

demonstration

The ________ method of negotiating buyer resistance is one of the most convincing ways to overcome buyer skepticism.

demonstration

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?

discuss superior benefits

Karyn Fleishman is the lead sales representative on a team selling super-powered microscopes to research laboratories and other research institutions. She and her team just made a presentation to the buying team of a large lab, and they are about to enter the negotiation process to work toward closing a deal. During the negotiations, it became apparent that the buyer had not understood the delivery schedule correctly. This most likely made the situation:

easier, as the sales team needed to clarify details instead of renegotiate

If a company uses a low-price strategy, the company should most likely consider which of the following when negotiating with transactional buyers?

eliminating features that contribute to a higher selling price

One way to empathize with the client's objection and turn objections into sales is to use the "feel-felt- ________" strategy.

found

The "feel-felt-found" method is used in conjunction with which of the following?

indirect denial

Which tactic most likely involves making a price concession to the buyer?

let-us-split-the-difference

Kelly Addison is a designer clothing buyer for a chain of department stores. She has gone through several negotiation certification programs and is considered an expert negotiator by her peers. 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:

make a pricing counteroffer

A salesperson who goes into a negotiation process without any preparation is likely either to lose the sale or to:

make concessions to the buyer too quickly

Working to reach an agreement that is mutually satisfactory to both buyer and seller is also called:

negotiation

What area of the sales process are the sales representatives weak in, according to the results of the sales director's analysis?

negotiation skills

Logrolling refers to:

offering an alternate solution to a negotiation problem

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:

positioning the product on quality instead of price

When a customer says, "I would rather not tie up my money in a large order," the resistance most likely falls into which category?

price

Adding value with a cluster of satisfactions would be an effective way to deal with:

price resistance

If a marketer's goal is to earn a small profit margin on a large sales volume, the marketer is likely to use a:

price strategy

The best way to overcome a sincere need objection by a business prospect is to:

prove that the product will improve the prospect's profits

A salesperson should most likely review the benefits of the product before making price concessions to a buyer who engages in ________ tactics.

take-it-or-leave-it

The iceberg metaphor shows that many customers try to negotiate on price because:

they do not realize that other factors, such as service and terms, can be more important to long-term satisfaction

Determining your BATNA and ZOPA will help you in negotiations because:

they tell you what you will be willing to accept before you walk away from the negotiation

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?

trial offer

The ________ method of negotiating an objection is popular with customers because they can get fully acquainted with the product without making a major commitment.

trial offer

In some cases the statement, "I don't need your product," is a conditioned response.

true

When people say, "Your price is too high," they probably mean, "You haven't sold me yet."

true

The price-cost comparison as a negotiating technique is more likely to be successful with buyers of products that:

will be used over a long period of time