Selling

Which of the following customer statements is a product objection: Select one: a. "The last time I bought something here, I had a hard time returning it." b. "It's just what I want, but this stereo system is too expensive." c. "Maybe I'll wait until your July sale to buy a bathing suit." d. "I'd rather have a raincoat in a darker color and with a detachable hood."

"I'd rather have a raincoat in a darker color and with a detachable hood." The customer is objecting to features of the product itself--color and style. When a customer says that s/he had a difficult time returning merchandise, s/he is expressing a company objection, resulting from a negative experience with the company in the past. The statement about the July sale is an example of a time objection. A price objection is given in the statement about the stereo.

Which of the following is an example of a clear closing question: Select one: a. "What type of telephone system do you need for your business?" b. "How are you today, Mr. Thompson?" c. "May I ring up your purchase?" d. "Can I answer any questions for you?"

"May I ring up your purchase?"

Which of the following utilizes the toss-it-back technique in response to this objection: The product is nice, but it costs so much!

"The high cost is because of the high quality." The toss-it-back, or boomerang, method is changing an objection into a reason for purchasing an item; therefore, an objection to the price of a high priced item can be turned into a reason for buying by stressing the quality of the item. Saying that the product is not all that expensive is the denial method which seeks to correct wrong information or the customer's misunderstanding. Asking whether the customer would be happy with a cheaper model is the inquiry method which helps customers answer their own objections. Telling the customer yes, the product is expensive, but you asked for it is the yes, but... method which acknowledges the objection without directly contradicting the customer.

Which of the following might be considered a negative close: Select one: a. "I'm sure you will like this." b. "You're getting a very good buy." c. "This is a purchase you will not regret." d. "This may not appeal to you, but..."

"This may not appeal to you, but..."

Which of the following is an audio-visual selling aid that can be used in a demonstration of large or immobile products: Select one: a. Product warranty b. Sample c. Graph d. DVD

A DVD can show products in use and describe their features when actual demonstrations are not practical because the product is too large or too immobile for an actual demonstration. A graph is a visual aid that can be used to present statistical data. Warranty information can be used to reassure customers about the quality of products. A sample is a small portion of a product given to customers to encourage them to buy, e.g., food samples.

In which of the following situations would service policies be most important: a. A customer's request for credit is denied. b. A manufacturer offers quantity discounts on large orders of its paper products. c. Management establishes the level of markup on products. d. A customer insists on having a store repair a small appliance that had been purchased at the store several years ago.

A customer insists on having a store repair a small appliance that had been purchased at the store several years ago.

Before a salesperson can sell a product, s/he must Select one: a. acquire knowledge about it. b. learn about the competition. c. purchase it for their own use. d. find potential customers.

Acquire knowledge about it. Before a salesperson can sell a product, s/he must acquire knowledge about it. Salespeople must become very knowledgeable about their products before they can recommend them to customers. It's not necessary, however, for the salesperson to own the product personally or to learn about the competition, though it may be helpful. Salespeople should acquire product knowledge before finding potential customers.

Salespeople benefit from closing sales because they

Acquire self-confidence.

Customer complaints and concerns should be

Addressed as quickly as possible. Customer complaints and concerns should be addressed as quickly as possible. No salesperson can ensure that nothing will go wrong during the post-sale time period. But extraordinary salespeople can set themselves apart by treating questions and complaints as high priorities and responding quickly. Often, customers are less angry about what's wrong with their order than they are about running into delays while trying to get it straightened out. Customer complaints should not take second place behind closing sales if the salesperson wants to generate repeat business. All customer complaints should be taken seriously, on big and small orders alike. Some complaints may need to be taken to a manager, but this should not be an immediate action.

Sizing up a customer's personality helps a salesperson to Select one: a. adjust the customer's attitude. b. adjust the approach to fit the customer. c. influence the customer's needs. d. bypass part of the selling process.

Adjust the approach to fit the customer.The salesperson needs to assess the customer's personality to fit the approach to the customer. The customer's needs and attitude should be noted by the salesperson, but it is not his/her responsibility to change them. Parts of the selling process may be adjusted to fit the selling situation, but they would not be bypassed.

Which of the following is a guideline to follow in closing sales: Select one: a. Try to oversell. b. Use negative closes. c. Leave the customer undecided. d. Always be closing.

Always be closing

A customer who wants to buy tickets for a white-water rafting trip to experience the adventure of the rapids has __________ buying motives.

An emotional buying motive involves an appeal to the customer's emotions or feelings. A common emotional buying motive is the desire for adventure. Patronage motives explain why customers choose one business over another. Patronage motives can be rational or emotional. Rational buying motives are being used when customers buy on the basis of logic, judgment, or reason. Traditional is not a category of buying motives.

What is the best action for a salesperson to take when a customer raises an objection to buying?

Answer the objection immediately. An objection is a customer's reason for not buying. By answering objections when they are raised, you show customers that you are concerned with their wants and needs. By postponing or ignoring the objection, you will probably lose the customer's confidence and the sale. Once you have acknowledged the objections, you should not repeat them.

If a customer wants to be fashionable, the salesperson should emphasize features and benefits related to the product's Select one: a. durability. b. construction. c. appearance. d. uses.

Appearance. The salesperson should emphasize features and benefits related to the product's appearance. Customers consider style in everything they buy, and a smart salesperson will point out the aesthetic features of the product. The salesperson should emphasize product uses when the customer wants to know what a product will do and how it can be used. Durability should be stressed when the customer wants to know how long a good or service will last and give dependable service. Construction details can be emphasized to show the quality of a product.

When a customer loudly complained about the price and selection of goods, the salesperson dealt with the situation correctly by staying calm and avoiding

Arguing. Salespeople must not get into arguments with customers regardless of what the customer's objection might be. Arguing tends to make people more determined and less able to keep an open mind. When customers raise objections, salespeople should listen carefully, talk about the objections, and try to answer the objections honestly without making customers angry or argumentative.

Which closing technique is being used in the following situation: "Since our shop will be closed tomorrow, you'll want to take the dress with you today, won't you?"

Assumption Close

Sizing up customer needs/wants helps to reduce selling time and customer dissatisfaction, as well as enabling salespeople to

Call on/serve more customers. When customer needs/wants are properly assessed, not as much time is required to sell to them, and they are better satisfied with their purchases, which means fewer returns. This allows the salesperson to call on or serve more customers, rather than concentrating on a few, and to earn higher commissions. Salespeople cannot prevent at least some problems from arising occasionally.

Which closing technique is being used in the following situation: Customer: "This bike feels too light for long-distance riding." Salesperson: "That's exactly what you need—your speed will be much faster, and you won't be as tired."

Closing on Objection

When answering customer objections, getting the details out in the open and clearing up the misunderstanding as quickly as possible are the best ways for salespeople to deal with

Company objections.

Because product quality and price can easily be matched, customer service becomes a key component in business

Competition. Because product quality and price can easily be matched, customer service becomes a key component in business competition. In selling, customer service is where the real competition among businesses begins. As a salesperson, you need to show your prospects that your company meets (and hopefully exceeds) customer-service expectations. Customer service is not a key component in business careers, business communication, or business forecasts.

Which of the following is an external factor that can affect a business's selling policies: Select one: a. Production capacity b. Business goals and objectives c. Competitors' actions d. Human and financial resources

Competitors' actions CorrectCompetitors' actions. External factors are those forces operating in the business environment over which the business has little or no control. Other external factors include customer wants and needs, availability of raw materials, and social concerns. Human and financial resources, production capacity, and business goals and objectives are examples of internal factors that affect selling policies.

The reason that the sales presentation is a crucial part of selling is that it is used to

Develop desire for the product. The sales presentation is the part of the selling process in which the salesperson describes the unusual or outstanding features of the product and shows the customer the benefits of the product's features. It is used to develop customer interest and desire for a product. The business's after-sale services may not be relevant to the sales presentation, or they may be explained after the buying decision has been made. Showing enthusiasm for the product and learning more about the customer are part of the sales presentation.

Salespeople use feature-benefit charts to help them Select one: a. understand the selling process. b. handle difficult customers. c. determine types of customer personalities. d. develop meaningful selling techniques.

Develop meaningful selling techniques. Salespeople use feature-benefit charts to help them develop meaningful selling techniques. A feature-benefit chart is a listing of the features and associated benefits of a product. Identifying these factors helps the salesperson to remember the features and benefits and to present them to customers. Feature-benefit charts do not assist in understanding the selling process, handling difficult customers, or determining customer personalities.

Jack is a salesperson who always describes the outstanding features of the products he sells and talks enthusiastically about them. This is an example of a sales

Dialogue

The closing technique considered the simplest and most natural of closes is the

Direct Close

Which of the following has the greatest influence on a customer's buying decision: Select one: a. Dominant buying motive b. Rational buying motive c. Emotional buying motive d. Patronage buying motive

Dominant buying motive. As the most prominent reason for making a purchase, the dominant buying motive has the greatest influence on a customer's buying decision. The dominant buying motive can be an emotional, rational, or patronage buying motive.

When a customer asks how long a product will last, s/he is interested in its Select one: a. features. b. durability. c. origin. d. uses.

Durability. When a customer asks how long a product will last, s/he is interested in its durability. How long a product will last and give dependable service is essential information which you should be prepared to give customers or clients. Product uses relate to what the product will do and how it can be used. Features are a product's specific characteristics. Origin refers to where or by whom the product is produced.

Feature-benefit selling should always occur

During the sales presentation. Although feature-benefit selling can occur at any time during the selling process, it should always occur during the sales presentation as part of the sales dialogue and product demonstration. It should not occur before the sales dialogue, after the product demonstration, or before the sales presentation.

A salesperson points out that a delivery van has a driver's side air bag. The salesperson has identified a product

Feature. The salesperson has identified a product feature. Features are physical characteristics or qualities of a product. A benefit is the personal satisfaction or advantage that a customer wants from a good or service. An objection is a customer's reason for not buying. An option is a feature that can be added to a product if the customer chooses.

Which of the following types of customers frequently raise an objection: Select one: a. Uninterested b. Decided c. Embarrassed d. Interested

Interested. Objections frequently signal customer interest. The very fact that an objection is raised indicates that the customer is interested in the merchandise. Therefore, the salesperson must know how to handle such objections effectively in order to make the sale. Embarrassed and uninterested customers rarely raise objections. Decided customers have already made a decision to buy.

Salespeople should avoid overselling because it tends to

Interfere with buying decisions.

Why is showing the product in use an effective way of demonstrating products?

It helps to convince customers of product benefits. When you show the product in use, customers can see for themselves that any product claims that you have made are true. This may help to clarify any technical terms, but it does not necessarily explain them. Showing the product in use focuses on what the product does rather than on its individual features. Interruptions can occur in all kinds of product demonstrations.

A new sports car has bright red paint. The bright paint is a feature rather than a benefit of the car because

It is a physical characteristic of the car. The bright paint is a feature rather than a benefit of the car because it is a physical characteristic of the car. A feature is something that can be used to describe a good or service. Features can become benefits only if they provide customers with an advantage. Being able to paint cars any color is a benefit to the business, not a product benefit.

How might selling an expensive item make the selling process different from selling an inexpensive item? Select one: a. It will be harder to discover customer needs. b. It will be easier to find potential customers. c. It may be more difficult to close the sale. d. Preparation for selling will be shorter.

It may be more difficult to close the sale

When a salesperson tells a story about people who have solved a problem by purchasing the good or service, the salesperson is using a

Narrative close

Before customers make any other buying decisions, they must make the __________ decision.

Need

What should salespeople try to establish if customers object to buying items they want?

Need

Which of the following factors affects the customer's time decision: Select one: a. Warranty terms b. Availability of customer service c. Need for additional information d. Loyalty to the business

Need for additional information

When a customer asks, "Why should I buy?" s/he is making the __________ decision.

Need. When a customer asks, "Why should I buy?" s/he is making the need decision. The need decision is the point at which the customer decides that s/he needs to purchase a good or service. This is usually the first buying decision a customer makes, and it is often made before the customer talks with the salesperson. The place decision involves deciding to buy from a certain business. The product decision is the decision a customer makes on the brand, type, model, etc., to buy. The price decision concerns the price the customer is willing to pay for a good or service.

Is the following situation legal? Why? Mississippi Mud Make-up produces popular skin-care products. Sales reps push their slowselling lotions by requiring businesses to purchase a carton of the lotions before orders will be filled for the popular cleansers.

No. The Clayton Act prohibits making purchases depend on other purchases.

Closing the sale usually includes handling customers' concerns about the product, which are known as customer Select one: a. excuses. b. reactions. c. resistance. d. objections.

Objections

When people make purchases on the basis of reason or logic, they are using __________ buying motives.

Rational buying motives cause people to buy because of the advantages or benefits of the item that appeal to the sense of reason or judgment. In other words, they weigh the pros and cons of the purchase in an appropriate manner and then decide what to buy. When people use emotional buying motives, their decisions to buy are based on feelings and impulses. Patronage motives can be rational or emotional and cause a customer to choose one business over another.

The concern for a product's durability can best be described as a(n) __________ buying motive.

Rational. When customers make purchases on the basis of judgment, logic, or reason, they are using rational buying motives. If a customer is concerned with how long a product will last, the customer has a rational motive for buying. Patronage motives are emotional or rational buying motives which cause customers to choose one business over another. Emotional motives are involved when customers base their buying decisions on feelings or impulses. "Traditional" is not a category of buying motives.

Which of the following is a true statement about closing sales: a. A salesperson may use only one closing technique in a single selling situation. b. The sale is lost if the customer says "no." c. Salespeople must allow customers time to respond. d. The salesperson's job is over after the customer pays.

Salespeople must allow customers time to respond

When a customer asks for a specific product, the salesperson should show

The requested product immediately. Customers may be offended by salespeople who do not respect their choices. If the requested product does not meet the customer's expectations, the salesperson might offer a selection of similar products in the same price range. These can be compared to the requested product to help the customer's buying decision.

How do customers benefit from the effective use of buying motives in selling:

Their needs and wants are satisfied. When salespeople determine and use customer buying motives in selling, customers' needs and wants are satisfied. Telling others about the business and becoming repeat customers are benefits to the business. Increased merchandise returns are not a benefit to customers or the business.

Individuals who are planning a career in selling should understand that Select one: a. the selling process never varies. b. the selling process is quite simple. c. there is no single, correct selling process. d. there is one correct selling process.

There is no single, correct selling process.The selling process is complex, and it varies across industries, products, and customers. Each salesperson must adapt the basic steps of the selling process to his/her selling situation.

The best way to convert price objections into selling points is to sell the product's

Value. Objections to cost (price) are generally the result of a customer's/client's concern with receiving fair value in exchange for the purchase price. Although style, brand, and delivery are all factors in judging the value of a product, the overriding consideration is the need to justify the price in terms of value to the customer.

Susana knows she'll be protected if her new cell phone breaks, but she just can't understand what's covered and what's not. Her salesperson helps her go through the information to make sure she doesn't have any questions. What aspect of customer service does this situation illustrate?

Warranty issues. Susana's situation is an example of the warranty issues aspect of customer service. Warranties can be very confusing for customers. A successful salesperson takes responsibility to make sure his/her customers understand exactly what their warranties cover, instead of leaving them to figure it out on their own if something goes wrong with the product. This is not an example of shipping and delivery (product is not being shipped or delivered), installation (product does not need to be installed), or order processing (product has already been purchased).

In conducting a product demonstration, when should the salesperson use unusual or dramatic actions?

When the actions back up the sales claims. The use of dramatic actions is the key to a lively demonstration that will sell the product. However, many customers are offended or embarrassed by unusually dramatic product demonstrations, so these actions should be used only when they support the claims made during presentations.

When is a salesperson's job done?

When the customer is satisfied. A salesperson's job isn't done until the customer is completely satisfied. Servicing the sale is one of a salesperson's most important tasks. Making the presentation and closing the sale are just the beginning of the long journey of generating and keeping loyal customers. Just because an item can no longer be returned does not mean that quality customer service should end.

Which of the following must a salesperson know to translate features into benefits for customers: Select one: a. When to ask questions about intended use b. How to prepare a sales check c. How to arrange special delivery d. Where to get necessary information

Where to get necessary information. Salespeople must be thoroughly familiar with the features of goods and services and be prepared to translate features into benefits for individual customers. To do this, they must know where to get the information they need. They might obtain information about features from the good or service itself, from customers, from manufacturer's literature, from other sales personnel, or from advertising materials. Knowing how to prepare sales checks, ask questions, and arrange delivery will not help to translate features into benefits for customers.

By observing customers' facial expressions, you can learn Select one: a. their socioeconomic status. b. which selling points appeal to them. c. their mannerisms. d. to be empathetic with customers.

Which selling points appeal to them. By observing customers' facial expressions, you can learn which selling points appeal to them. Expressions of satisfaction, interest, doubt, or disapproval will guide you toward the appropriate sales presentation. You can see from customers' mannerisms whether they are relaxed or uneasy—how they feel in general. Empathizing is one way to demonstrate interest in the customer. Socioeconomic status is an economic and sociological measure of a person's income, education, and occupation. You cannot learn a person's socioeconomic status by observing his/her facial expressions.

An effective product demonstration can create desire for the product by showing the customer

Why the product will be of use to the customer. One of the purposes of a product demonstration is to create the desire to buy. Salespeople can use the product demonstration to show customers that the product will satisfy their own individual needs and why it will be of use to them. Customers buy benefits to themselves, not what the salesperson thinks they should buy. Not all products have elements of construction that can be demonstrated. Product demonstrations should show why the salesperson's product is good, not why other products are unsatisfactory.

In determining selling policies, a business would have little or no control over

customer wants and needs. CorrectCustomer wants and needs. There are many forces operating in the business environment over which the business has little or no control. These external factors include customer wants and needs, actions of competitors, availability of raw materials, and social concerns. The other alternatives are internal factors.

Which of the following is an internal factor that can affect a business's selling policies: a. Research and development efforts b. Social concerns c. Availability of raw materials d. Customer wants and needs

customer wants and needs. CorrectCustomer wants and needs. There are many forces operating in the business environment over which the business has little or no control. These external factors include customer wants and needs, actions of competitors, availability of raw materials, and social concerns. The other alternatives are internal factors.

Which of the following are common types of selling policies: a. Advertising policies b. Distribution policies c. Purchasing policies d. Selling-activity policies

d. Selling-activity policies CorrectSelling-activity policies. Selling-activity policies, along with terms-of-sale policies and service policies, are common types of selling policies. Distribution policies, advertising policies, and purchasing policies are not types of selling policies

If the customer requests a product but does not state a price preference, the salesperson should begin by showing Select one: a. a variety of price ranges. b. the least expensive item available. c. the most expensive item available. d. a moderately priced item.

A moderately priced item. Showing the customer a moderately priced item allows the salesperson to move up or down the price range depending upon the customer's reaction. Showing the most expensive item available may discourage the customer from buying. Showing the least expensive item may mean a loss of profit for the business since the customer might have bought a higher priced item if it had been offered. Showing a variety of price ranges may be confusing and waste time.

Customers' service expectations are

Based on past experiences. Customers' service expectations can often be based on past experiences. If a customer has received customer service from you before, they will expect the same quality of service from you now. Customers can also compare your service to past service they've received from competitors. Customers' service expectations are not dependent on the needs of others—instead, they are dependent on individual needs. Customer-service expectations are not one size fits all. They are affected by advertising.

Retail and industrial salespeople use the steps of the selling process in Select one: a. very different ways. b. basically the same way. c. reverse order. d. ways to suit themselves.

Basically the same way

Salespeople who conduct effective product demonstrations should expect to

Be interrupted during their demonstrations

Which of the following is the best way for salespeople to answer product objections: Select one: a. Act quickly. b. Be knowledgeable. c. Explain policies. d. Ignore the problem.

Be knowledgeable. Customers often raise objections to the product itself. The best way to answer product objections is to be knowledgeable about the product. A salesperson should know what the product is made of, how to use it, how to care for it, how long it should last, what it costs, how it's made, and how it compares to other brands of similar products. Product information can overcome many misconceptions or misunderstandings customers may have about products. Ignoring the problem will probably lose a sale. Explaining policies and acting quickly are not ways of handling product objections.

Becoming familiar with a variety of closing techniques helps a salesperson to complete which of the following steps for closing sales:

Be prepared

When customers make purchases, they are actually buying the __________ that products offer. Select one: a. prestige b. benefits c. features d. services

Benefits are the advantages obtained from a good or service. People buy benefits, not features. Features are facts or characteristics of a product. Not all products provide prestige or have accompanying services.

What closing technique is being used in the following situation: "To show our appreciation during this sale, you may have your choice of a smoke detector or a fire extinguisher as a free gift."

Bonus close

Which of the following factors affects the customer's price decision: Select one: a. Brand preference b. Trade character c. Product screening d. Product demonstration

Brand preference

Which of the following affects the place decision: Select one: a. Warranty b. Business loyalty c. Need for additional information d. Product features and benefits

Business loyalty

Which of the following factors affects the customer's place decision: Select one: a. Product warranty b. Product features c. Business's employees d. Time of year

Business's employees. A business's employees can affect a customer's place decision. When all other circumstances are fairly equal, many customers make the place decision based on the attitude and helpfulness of the business's employees. The product's features and warranty affect the product decision. The time of year might affect the need decision.

The reasons that cause people to purchase products are called

Buying motives are the reasons that cause people to purchase products. A need is something essential that is lacking. A want is something that's desired but may not be essential. A feature is a physical characteristic of a good or service.

Small or "mini" decisions customers make that lead to the final purchase decision are called __________ decisions.

Buying. Small or "mini" decisions customers make that lead to the final purchase decision are called buying decisions. There are five types of these "mini" decisions—need, product, place, price, and time.

Which of the following is part of closing a sale: Select one: a. Writing a follow-up letter b. Discovering the customer's needs/wants c. Completing the necessary paperwork d. Establishing a buyer-seller relationship

Completing the necessary paperwork. The sale is not completed until all the appropriate forms have been filled out accurately. Salespeople should establish a relationship with the customer at the beginning of a sale. Customer needs/wants should be discovered before the sales talk and demonstration begin. After a sale has been closed, a salesperson could write a follow-up letter to the customer in order to reaffirm the buyer-seller relationship.

Using a step-by-step selling process helps salespeople to remain organized, gaining customer Select one: a. referrals. b. praise. c. admiration. d. confidence.

Confidence. Using a step-by-step selling process helps salespeople to remain organized, gaining customer confidence. Customer confidence can in turn lead to closed sales. A salesperson's organization may or may not earn customer praise, referrals, or admiration.

To explain a product's quality to customers, a salesperson should stress the product's Select one: a. warranty. b. style. c. construction. d. uses.

Construction. To explain a product's quality to customers, a salesperson should stress the product's construction. Knowing the details of a product's construction and materials helps salespeople show a product's quality. Stressing a product's style relates to its appearance. Explaining a product's uses enables salespeople to relate what a product will do and how it can be used. By explaining a product's warranty, salespeople can stress the nature of the service that the business will provide.

When a sale depends upon the salesperson's proving a point to the customer, a(n) __________ close is being used.

Contingent

Situation: A salesperson draws a line down the center of a piece of paper. S/he lists the strengths of a product on one side of the line and the weaknesses on the other. What closing technique is being used?

Contrasting advantages and disadvantages

An important purpose of the sales talk as a step in the selling process is to Select one: a. demonstrate the salesperson's selling skills. b. provide a minimum amount of product information. c. close the sale as quickly as possible. d. convince the customer of the product's benefits.

Convince the customer of the product's benefits.

The point during the sales presentation that a sales close occurs is when

Correct answer is: the customer makes a decision to buy

Since some customers have difficulty making a decision without assistance, asking customers to buy is considered a

Courtesy

Some salespeople include a product demonstration in the selling process to Select one: a. give the customer a chance to ask questions. b. create interest and involve the customer. c. save time and effort learning about products. d. identify the customer's buying motives.

Create interest and involve the customer. A good product demonstration should allow the customer to interact with the salesperson and become involved in the selling process. It might include charts, pictures, videotapes, or computer demonstrations to help customers understand product benefits. These techniques could help to identify the customer's buying motives, or reasons for purchasing, but that is not their purpose. Pausing from time to time during the sales talk or the product demonstration provides time for customers to ask questions. Salespeople would not be able to demonstrate a product adequately without taking the time and effort to learn all they can about the products they sell.

Jenna's customer doesn't have the money to pay upfront for his purchase, so he'd like to pay in installments. Jenna says she will arrange it for him. What aspect of customer service does this situation illustrate?

Credit/Financing. Arranging a payment plan for a customer is an example of credit/financing. It is not an example of shipping and delivery, warranty issues, or maintenance and repair.

A salesperson who tells a customer that a particular product will be easy to keep clean has presented a

Customer benefit. A salesperson who tells a customer that a particular product will be easy to keep clean has presented a customer benefit. A benefit is the personal satisfaction or advantage that the product can provide for the customer. Pointing out the benefits of a product's features is part of feature-benefit selling, not demonstrating how the product is used. A service guarantee is a promise by a business to maintain a particular product. A customer characteristic would be a personal trait or attitude.

Roy is taking a class on how to use the new software he just purchased for his business. The class is offered by the store where he purchased the software. What aspect of customer service does this situation illustrate?

Customer training. Roy's class is an example of customer training. The business he bought the software from is offering a class to teach customers how to use its product. This is not an example of credit/financing (it does not deal with payment), order processing (he has already received the product), or installation (nothing is being installed).

Which of the following is a true statement: Select one: a. Salespeople must correct customer buying motives. b. Customers' needs are impossible to fulfill. c. Salespeople should drive buying decisions. d. Customers can be driven by multiple buying motives.

Customers can be driven by multiple buying motives. Sometimes, customers are driven by several buying motives—a list of reasons why they make a particular purchase. Customers' needs can be filled by the benefits, or advantages, products offer them. It is not necessary, or helpful, for salespeople to try to correct customers' buying motives. Buying motives are personal to individual customers. Buying motives, not salespeople, drive buying decisions.

When customers buy on the basis of their feelings or impulses, they are using __________ buying motives.

Emotional. These motives are often influenced by advertising and current styles. They cannot be described as detached because they involve feelings. When people make purchases on the basis of reason, they are using rational buying motives. Patronage motives cause people to choose one business over another, and they can be either emotional or rational.

Which of the following would indicate to customers that the salesperson wants to listen: Select one: a. Interrupting customers' questions b. Empathizing with customers c. Assisting another customer d. Insisting on your own point of view

Empathizing with customers. By empathizing with your customers, you show that you can identify with their point of view, not just your own. This helps to put customers at ease so that they feel free to talk. If you interrupt customers' questions, they will feel that you aren't listening. Customers are interested in their points of view; therefore, you should let them express their views regardless of your possible disagreement. One way to show customers that you really want to listen is by removing all distractions; therefore, you can acknowledge other customers' presence, but you should not leave the current customer to assist them.

Salespeople should answer customer objections honestly to

Establish credibility. There may be situations in which a misleading statement could complete the sale of a given good or service. However, over time, such dishonesty will damage the salesperson's credibility, and customers will have no confidence in what s/he says. Product knowledge should be used in handling objections, but the intent should not be to display that knowledge. Answering objections honestly will not necessarily prevent further objections. A salesperson must be willing to sacrifice the short-term gain of an immediate sale in return for the long-term loyalty of customers.

The statement, "I'm just looking," is a common __________ used by customers.

Excuse. An excuse is an insincere and invalid statement used to "cover up" a real reason for not buying. One of the most common excuses customers use when they don't want to listen to sales presentations is, "I'm just looking." Inquiry is a method of handling objections in which the salesperson asks questions of customers to enable customers to answer their own objections. Objection is a point of difference between a customer and a salesperson that may prevent a sale. Question is an interrogative sentence asking for something.

A salesperson might help a customer make the decision to buy now by

Explaining the advantages of purchasing now

To prepare a feature-benefit chart, a salesperson must know Select one: a. facts about the product. b. facts about customers. c. the name of the product's distributor. d. the number of products in stock.

Facts about the product. A feature-benefit chart lists product features and their corresponding benefits. The number of products in stock has no relation to a feature-benefit chart. Facts about customers and the name of the product's distributor are not used in a feature-benefit chart.

Customers may be discouraged from making buying decisions if salespeople

Fail to answer their questions. Customers may be discouraged from making buying decisions if salespeople fail to answer their questions. Salespeople should be well informed about the goods and services they sell so that they can answer customers' questions. Hesitation or inability to answer customers' questions may prevent customers from making buying decisions. Showing interest in customers, gaining their trust, and describing features in specific terms are all actions that would encourage customers to make buying decisions.

One of the purposes of establishing a relationship with a customer in the beginning of the selling process is to Select one: a. make a single sale. b. gain the customer's confidence. c. prevent customer objections. d. put the customer on guard.

Gain the customer's confidence. The completion of the sale may be determined by the first few minutes that a salesperson spends with the customer. The salesperson's goals should include gaining a repeat customer, not simply closing one sale. To do that, the salesperson should attempt to help the customer feel comfortable, not on guard. Salespeople should welcome customer objections because they indicate the customer's interest in the product.

Adam is a financial manager, and he's looking for potential customers who might be interested in investing in a certain hedge fund. He is in the process of Select one: a. identifying features and benefits. b. qualifying sales leads. c. generating sales leads. d. prescribing solutions to customer needs.

Generating sales leads. By looking for potential customers to invest in the hedge fund, Adam is generating sales leads. Qualifying sales leads means ensuring that potential customers have the interest, ability, and authority to purchase. Identifying features and benefits means learning to explain to customers the advantages the product will bring them. Prescribing solutions to customer needs is a later step in the selling process that involves giving a sales presentation.

The salesperson should continue to question the customer during the product demonstration to

Get feedback about the customer's needs. Questioning the customer keeps the product demonstration on track because it provides feedback that helps you determine if you are demonstrating those product features that interest the customer. A well-planned product demonstration should hold the customer's attention so that s/he doesn't walk away. It is not usually necessary or even desirable to make sure all product features are understood.

The best way for a salesperson to find out a customer's real objection to buying a product is to

Get the customer talking. The best way to find the real objection is to get the customer talking. By asking questions pertaining to the product and then by carefully listening to the customer, the real objection may surface. Once salespeople have uncovered the real objections, they can provide the answers that might encourage customers to buy. Salespeople should never ask customers personal questions. Waiting for customers to explain may not uncover their real objections. Salespeople should not suggest that customers are not being truthful.

It is a good idea to try to involve the customer in the product demonstration because this a. gives the customer a sense of ownership. b. demonstrates the salesperson's courtesy. c. emphasizes the product's specific features. d. makes the demonstration last longer.

Gives the customer a sense of ownership. When it is practical and possible to do so, the salesperson should try to get the product into the customer's hands, or let the customer try the product. Holding or handling the product develops a sense of ownership that may be followed by a purchase. Involving the customer is not an example of courtesy but of good sales technique. The product's features should only be emphasized in relation to their benefits to the customer. Making a demonstration last longer is not the goal of good product demonstration.

Which of the following would be the most effective way to involve customers in a product demonstration of a bread-making machine: Select one: a. Giving away samples of freshly baked bread b. Giving away recipes for baking bread c. Asking whether customers like home-baked bread d. Pointing out how good the bread smells

Giving away samples of freshly baked bread. Involve as many of your customer's senses as possible in product demonstrations. Tasting a small piece of freshly baked bread would be a very persuasive selling factor. Pointing out how good the bread smells, asking customers whether they like home-baked bread, and giving away recipes for baking bread would not be as effective.

Which of the following buying motives could best be described as emotional: Select one: a. Quality of materials b. Accuracy c. Group approval d. Increased production

Group approval. Purchases made to gain the approval of others are driven by emotional buying motives—because the reasons to buy are based on feelings. Accuracy, increased production, and quality of materials are considered rational buying motives.

Which of the following is a key to customer service: a. Visiting customers personally b. Offering free training classes c. Offering interest-free loans d. Having a good attitude

Having a good attitude. Having a good attitude is a key to customer service. You can do everything a customer asks and provide quality service, but if you do it with a bad attitude, you will still have an unhappy, alienated customer. Successful salespeople help their customers willingly, as if there's nothing in the world they would rather do—even when that's not really the case. Salespeople do not necessarily need to visit customers personally, offer free training classes, or offer interest-free loans to provide good customer service.

While explaining the price difference between two garden hoses, a salesperson said, "Although they look alike, this one is more durable. It is made of higher quality material which is guaranteed for 20 years." The salesperson has identified a(n) __________ benefit.

Hidden. The salesperson has identified a hidden benefit. Hidden benefits are advantages of goods or services that are not recognizable unless pointed out by the salesperson. The customer is not able to justify the price difference by looking at the two hoses. The salesperson explained the hidden benefit of the more expensive hose. Obvious or apparent benefits require little explanation by the salesperson. Unique or exclusive benefits are available only from the salesperson's good or service.

One guideline for creatively displaying a product during a product demonstration is to

Hold or position the product so the customer can focus on it.

Which of the following is a way that the effective use of buying motives benefits the business:

Income is increased. In selling, effective use of buying motives benefits the business as well as the customer. The business benefits because income is increased when sales are made. Satisfied customers tend to become repeat customers, return fewer products, and also tell others about the business, which leads to additional sales and increased income. Customers benefit because their needs and wants are satisfied.

Which of the following should a salesperson exhibit when helping customers with buying decisions: Select one: a. Interest in closing the sale b. Trust c. Interest in the customer d. Hesitation

Interest in the customer. To help customers reach buying decisions, salespeople must gain customer confidence. One way of gaining customer confidence is to exhibit interest in the customer and in satisfying his/her needs. Exhibiting interest in closing the sale could give the customer the impression that his/her needs are secondary to yours. The salesperson should gain the customer's trust rather than exhibiting trust. Hesitation in responding to the customer is likely to delay a buying decision.

A salesman should demonstrate to customers only those product features that Select one: a. back up the sales dialogue. b. interest the customers. c. are easy to demonstrate. d. are already familiar.

Interest the customers. Customers are not interested in, nor can most of them absorb, information about every single feature of a product. The features that interest the customer, and the benefits of those features, will help to sell the item. The sales dialogue should describe any unusual or outstanding features of the product, but those features would not be demonstrated if they do not interest the customer. Choosing features that are easy to demonstrate is "taking the easy road" and may not make the sale.

To maintain relationships with clients, it's important for salespeople to

Keep in touch with them. To maintain relationships with clients, it's important for salespeople to keep in touch with them. In some cases, this just takes a simple follow-up phone call. A thank-you card in the mail can also go a long way to separate you from the competition. For major clients, you might even consider a personal visit. The important thing is to let your clients know they matter to you and that you appreciate their business. Salespeople do not necessarily have to offer free installation, personally perform repairs, or send online comment cards to maintain relationships with their clients.

The number of items the salesperson shows the customer at one time should be

Limited

The salesperson who is trying to determine customers' buying motives should

Listen to the customer. The salesperson who is trying to determine customers' buying motives should observe the customer, listen to the customer, show interest in the customer, and ask questions. Talking about product features and demonstrating the product are good selling techniques, but they are not recommended as ways to identify buying motives. Offering a number of choices is more likely to confuse customers than to help identify their buying motives.

What should a salesperson do first to answer a customer's objection?

Listen. The salesperson should listen carefully to the customer's objection to be absolutely certain that s/he understands the person's concern. This is particularly true when a salesperson is attempting to anticipate possible objections. Showing empathy, avoiding argument, and pausing before answering are all appropriate procedures in responding to an objection once it is understood.

Not helping customers reach the "mini" decisions during the selling process can result in

Lost sales. Not helping customers reach the "mini" decisions during the selling process can result in lost sales. Failure to assist customers in making minor decisions at any point during the sale can result not only in the loss of sales but perhaps in the loss of customers. The customers will be dissatisfied because their needs were not met. They will not become loyal clientele, and sales will decrease.

Aida recently purchased a car, and she is taking it back to the dealership for its first routine oil change, free of charge. What aspect of customer service does this situation illustrate?

Maintenance and repair. Aida's oil change is an example of the maintenance and repair aspect of customer service. This is not an example of shipping and delivery (she already has possession of the product), order processing (the purchase has already been completed), or installation (the product does not require installation).

The best source of specific information on a product's construction and materials is Select one: a. manufacturer's publications. b. personal use. c. customers. d. other salespeople.

Manufacturer's publications. The best source of specific information on a product's construction and materials is manufacturer's publications. Many manufacturers provide materials to help salespeople better understand the quality of a product's construction, materials, and workmanship. A salesperson can also check out the product's website or even write to the manufacturer to get more information. None of the other sources would be as well-informed as the product's manufacturer.

The purpose of listening closely to any comments the customer makes in response to a product demonstration is to

Match product features to customer need. Listening will help you to determine what features are most important to the customer. You can then focus your product demonstration on those features and their benefits. Letting the customer touch, handle, or operate the product involves the customer in the sale. Listening may be seen as friendly, but that is not its purpose in product demonstration. The salesperson should not try to prevent customer objections because a sincere objection indicates an interest in the product being shown.

A salesperson said, "As you can see, the larger capacity of these washing machines will enable you to wash more clothes at one time." The salesperson has identified what type of benefit for the product?

Obvious. The salesperson has identified an obvious benefit for the product. Obvious or apparent benefits need little explanation by the salesperson. Although the benefit is obvious, it should be used to prove the value of the product or service to the customer. Hidden benefits may not be seen or understood without the assistance of the salesperson. Unique or exclusive benefits are advantages available from only the salesperson's product or service.

One reason that the direct denial method of answering objections may be ineffective is because it often __________ customers.

Offends. Direct denial is perhaps the poorest way to answer objections because it is very hard to tell customers they are wrong without offending them. Salespeople must establish a good rapport with customers before using this method so as not to offend the customers when correcting their misunderstandings. This method can be used effectively if the salesperson is tactful and knows the product well. The direct denial method does not ignore, depress, or oversell customers.

After determining customers' needs/wants, salespeople should be ready to Select one: a. reach closure. b. question the customer. c. offer solutions. d. reassure the customer.

Offer solutions. The salesperson should be knowledgeable about the products s/he sells so that once the customers' needs/wants have been determined, s/he is ready to suggest products to fit those needs/wants. Questioning the customer is part of determining needs/wants. Reaching closure and reassuring the customer are later steps in the selling process.

The initial questions asked of a customer should be based on the common buying motives for the good or service because customers Select one: a. can respond with a simple "yes" or "no." b. need to answer personal questions as soon as possible. c. often buy goods or services for similar reasons. d. need to be able to answer your questions completely.

Often buy goods or services for similar reasons. Since customers often buy goods or services for similar reasons, you should base your initial questions on common buying motives. This will help you to judge the customer's reactions and to stress the selling points that appeal to the customer. Listen carefully to the customer's responses so that the customer can guide you to the motives of interest. Questions should be phrased so that they require more than a "yes" or "no" response. Customers do not need to answer your questions completely for their responses to be useful. Questions should be impersonal and easy to answer.

Customers purchase from one business rather than another because of __________ buying motives.

Patronage motives are emotional or rational buying motives which cause customers to choose one business over another. Emotional motives are buying motives which involve an appeal to the customer's emotions or feelings. An impulsive buying decision would be categorized as emotional. Rational buying motives are buying motives which cause people to buy because of the advantages or benefits of the item that appeal to the sense of reason or judgment.

Salespeople often gain firsthand knowledge about the features and benefits of the products they sell from

Personal experience. Salespeople often gain firsthand knowledge about the features and benefits of the products they sell from personal experience. Salespeople should study and, if possible, use the good or service they sell before attempting to sell it to others. Firsthand knowledge, gained by personal experience, tends to give a salesperson confidence. Trying the product themselves also gives salespeople valuable information about features and benefits that they can't get in any other way. School textbooks, competitors' advertising, and television commercials can provide salespeople only with secondhand knowledge.

When customers decide where to buy, they are making the __________ decision.

Place. When customers decide where to buy, they are making the place decision. Customers decide where they will make their purchase based on a number of factors. These factors include location, quality, promotion, brand preference, loyalty, employees, customer service, and recommendations. The price decision concerns the price the customer is willing to pay for a good or service. The need decision is the point at which the customer decides that s/he needs to purchase a good or service. The product decision is the decision a customer makes on the brand, type, model, etc., to buy.

In selling, an objection from the customer is considered a(n) Select one: a. point of difference. b. indicator of the salesperson's mistake. c. refusal to purchase. d. cause for argument.

Point of difference. When a potential customer/client raises an objection, s/he is expressing a question or concern over some aspect of the good or service. It can be viewed as a point of difference in that the customer does not agree with the point being made by the salesperson. An objection should never be allowed to degenerate into an argument, as both parties lose in an argumentative situation. An objection should not be viewed as a refusal to purchase, since objections frequently are indications of customer interest and need for additional selling effort. Objections are natural to the selling process and are not an indication of a salesperson's mistakes.

If a customer tells a salesperson that s/he can buy a similar product from another company for a much better price, that salesperson should respond by

Pointing out the benefits of his/her company's product. If a customer tells a salesperson that s/he can buy a similar product from another company for a much better price, that salesperson should respond by pointing out the benefits of his/her company's product. Customers buy benefits, not features. When a customer is choosing between two available products, the salesperson's best approach is to point out the benefits that his/her product will provide to the customer. The salesperson should not criticize competing products in an attempt to sell his/her own products. In some cases, comparing the benefits of competing products could be worthwhile, but comparing their features is not likely to make a sale. Assuming that his/her company can't compete with the other company will lose the sale.

The first step a salesperson must take in the selling process is to Select one: a. close. b. prepare. c. greet customers. d. recommend products.

Prepare. The first step a salesperson must take in the selling process is to prepare. Preparing to sell includes acquiring product knowledge, learning about features and benefits, generating and qualifying leads, and preparing sales presentations. Greeting customers, recommending products, and closing the sale are later steps in the selling process.

Which of the following buying decisions is most affected by the availability of customer service: a. Time b. Need c. Product d. Price

Price

When a customer asks, "How much will I pay?" s/he is making the __________ decision.

Price. When a customer asks, "How much will I pay?" s/he is making the price decision. A price decision is made when the customer determines how much s/he will pay for a good or service. The product decision of which model to buy is closely related to the price decision. A place decision is made when customers determine where they want to make the purchase. The time decision determines when the customer will buy.

The price decision is closely related to the __________ decision.

Product

The emphasis put on each phase of the selling process varies according to Select one: a. geography and economy. b. product and customer. c. state and local laws. d. season and market conditions.

Product and customer. The different phases of the selling process can be made more or less important according to what kind of product is being sold and according to the customer to whom it is being sold. The part of the country in which the sale occurs; the economic situation, season, and market conditions at the time; and state/local laws would not necessarily affect the situation.

Which of the following is a patronage buying motive: Select one: a. Desire for variety b. Product assortment c. State of health d. The product's safety

Product assortment. Patronage motives are rational or emotional buying motives that cause people to choose one business over another. Buying from a business because of the assortment of goods it offers would be a patronage motive. Other patronage motives include product quality, customer services and policies, and a courteous sales force. The product's safety is a rational buying motive. Health can be an emotional or a rational buying motive. The desire for variety is an emotional motive.

Which part of the sales presentation often uses action to back up the salesperson's claims for the product?

Product demonstration. The product demonstration is the part of the sales presentation that follows the sales dialogue and shows the customer exactly how and why the product will be of benefit. It often includes physical activity of some sort to illustrate the facts about the product. The sales dialogue verbally describes the unusual or outstanding features of the product. Product analysis lists the features of a particular product that may be translated into customer benefits. Customer feedback occurs when customers respond to the salesperson's remarks and actions.

When customers decide which brand, type, or model to buy, they are making the __________ decision.

Product. When customers decide which brand, type, or model to buy, they are making the product decision. In making product decisions, customers decide which product, of all those on the market, best fits their needs. This decision is based on the product information customers obtain from a variety of sources. The price decision concerns the price the customer is willing to pay for a good or service. The place decision involves deciding to buy from a certain business. The need decision is the point at which the customer decides that s/he needs to purchase a good or service.

Using a step-by-step selling process is likely to increase company Select one: a. salaries. b. morale. c. profits. d. standards.

Profits. Using a step-by-step selling process is likely to increase company profits because it is more efficient and effective than attempting to make sales with no plan in mind. Using a step-by-step selling process may or may not increase company salaries, morale, and standards.

A product demonstration in a supermarket included samples of grapefruit juice and a scientific report indicating that eating grapefruit may help to prevent cancer and heart disease. This product demonstration is offering customers

Proof of the product's benefits. One of the purposes of product demonstration is to show the customer proof of the product's features and benefits. In this situation, the demonstration includes printed reports indicating that eating grapefruit may help to prevent certain diseases. This is not medical advice since no diagnosis is being made. The report has been prepared by researchers, not by a celebrity. No discount coupon was mentioned.

Which of the following areas is covered by selling-activity policies: a. Prospecting b. Installation c. Discounts d. Pricing

Prospecting

Which of the following is a pre-sale opportunity for salespeople to provide customer service:

Providing ample product information. Providing ample product information is a pre-sale opportunity for salespeople to provide customer service. Successful salespeople make sure that customers have all the information they need to make sound, well-informed decisions. This occurs during the sales presentation. Shipping and delivery, maintenance and repair, and technical assistance and support are all post-sale aspects of customer service.

Selma's customer is trying to decide between three different makes of automobiles. Selma gives her the owner's manual for each, so she can browse through them and learn more. This is an example of

Providing ample product information. Selma giving her customer the owner's manuals is an example of providing ample product information. Customers can use all the help they can get when it comes to making purchase decisions, especially for high-ticket items. Successful salespeople make sure that customers have all the information they need to make sound, well-informed decisions. This is not an example of overseeing installation (this product does not need to be installed), suggestion selling (Selma did not suggest any additional items), or making only promises that can be kept (nothing was promised).

Adam is determining if potential customers have the money and interest to invest in a certain hedge fund. He is in the process of a. identifying features and benefits. b. qualifying sales leads. c. prescribing solutions to customer needs. d. generating sales leads.

Qualifying sales leads. By determining if potential customers have the money and interest to invest in a certain hedge fund, Adam is qualifying sales leads. Generating sales leads means looking for potential customers. Identifying features and benefits means learning to explain to customers the advantages the product will bring them. Prescribing solutions to customer needs is a later step in the selling process that involves giving a sales presentation.

To determine if a customer needs help with buying decisions, the salesperson should

Question the customer. To determine if a customer needs help with buying decisions, the salesperson should question the customer. Customers are not all at the same place in their decision-making when they come in contact with a salesperson. You need to determine which, if any, buying decisions have already been made. To do this, you should question the customer and listen carefully to what s/he is saying. Demonstrating the product will inform the customer, but it will not help the salesperson assess the customer's buying decisions. High-pressure selling techniques are not appropriate. You should never ignore a customer.

To discover customer needs/wants, the salesperson should be skilled at

Questioning and listening. The salesperson must develop his/her skills in both these areas if s/he is to be successful. Watching and waiting would be a passive approach to the customer—not likely to result in a sale. While some talking on the part of the salesperson is necessary, coaxing, arguing, persuading, and manipulating should be avoided as forms of high-pressure sales tactics.

A fast, easy way for the salesperson to learn about the features of a product to describe them accurately to customers is to

Read the product literature. Reading the product literature is the fastest and easiest way to get accurate information about the specific features of a product. You can obtain additional product information from your supervisor, other employees, the producer, customers, and personal use of the product. Contacting the manufacturer and surveying previous customers would be time-consuming. Not all products lend themselves to being taken apart, and not all salespeople would be able to disassemble and reassemble products.

Follow‑up calls or letters are a part of the step in the selling process known as

Reaffirming the buyer‑seller relationship. Follow-up helps to reassure customers about their purchase decision and confirm the seller's interest in them. Establishing a positive tone is part of the initial step of establishing a relationship with the customer. Discovering the customer's needs is the next step in the selling process. Reaching closure is the step in which customers can be asked to buy the good or service.

Which of the following characteristics is appropriate for selling policies: Select one: a. Reasonably firm enforcement b. Applicability based on salesperson's position in company c. Inflexibility d. Loose interpretation

Reasonably firm enforcement

Salespeople should display self-confidence in closing sales to

Reassure customers about their buying decisions

The most important reason for salespeople to follow up a sale is to Select one: a. satisfy the sales manager. b. obtain more information. c. reassure the customer. d. gain extra commissions.

Reassure the customer. Customers need to be reassured that their purchase is a wise choice, and follow-up is often the best way to accomplish this. Effective follow-up reaffirms the buyer-seller relationship which often leads to repeat sales. Follow-up may satisfy the sales manager's expectations, provide more information about the customer, and gain extra commissions for the salesperson if subsequent sales are made, but reassuring the customer is the main purpose.

When a salesperson stresses the assortment of items that go with the initial purchase, the salesperson is using a

Related product close

One way to help customers with buying decisions is to explain what the product will do for them by Select one: a. using suggestion selling. b. questioning them. c. displaying self-confidence. d. relating product features to benefits.

Relating product features to benefits. One way to help customers with buying decisions is to explain what the product will do for them by relating product features to benefits. In talking with customers, you need to explain in specific terms how the features of a product will benefit them. You should reassure customers that the quality of the product is worth its price. Although questioning the customer and displaying self-confidence can be used to help customers reach buying decisions, they do not help customers understand a product's benefits. Suggestion selling is the attempt to increase the customer's purchase by suggesting additional products after the original decision to buy has been made.

Which of the following words best describes the role of customer service in selling: Select one: a. Presentation b. Department c. Relationship d. Function

Relationship. The word "relationship" best describes the role of customer service in selling. In selling, customer service is more of a relationship than a department, more of a process than a function. The kind of customer service you need to demonstrate as a salesperson goes far beyond the boundaries of a mere business function or sales presentation. It's an attitude, a set of skills, and a style of work that you should carry with you for your entire career.

Quality customer service builds profits through existing customers by generating

Repeat business. Quality customer service builds profits through existing customers by generating repeat business. Loyalty is the name of the game. Successful salespeople strive to provide high quality customer service, so they can build long-term partnerships with their customers. Maintaining a relationship with a current customer is less expensive and time-consuming than generating a new customer relationship. Compliments are nice, but they don't necessarily build profits. Discounts and product demonstrations are great things for salespeople to offer, but they don't build profits either.

Management may avoid the negative effects of selling policies by ensuring that the policies do not

Restrict the salesperson's normal authority. Salespeople should be able to sell their products without being restricted by petty rules. Selling policies should provide a framework for salespeople to follow. They define the sales job for that particular business and ensure uniform action by salespeople. They need to have some flexibility and do not need to be in writing. They should address the internal and external factors that can affect them.

Which of the following is a true statement regarding selling to retail and industrial customers: Select one: a. It is easier for salespeople to prescribe solutions for industrial customers than for retail ones. b. Salespeople must realize that retail customers have different buying motives than industrial ones do. c. Selling to retail customers generally requires more preparation than selling to industrial ones. d. It is more important for salespeople to establish relationships with retail customers than with industrial ones.

Salespeople must realize that retail customers have different buying motives than industrial ones do

The way in which the salesperson handles a product during a sales presentation should show customers the

Salesperson's respect for the product. By handling products with respect, salespeople are showing customers how they feel about the products. They are indicating that the products are special. Customers should be shown normal usages and relevant features of the product. The salesperson should not show customers his/her desire to make a sale but focus on meeting customers' needs.

Before salespeople can conduct product demonstrations, they must first

Select the product to demonstrate. In some cases, customers will ask for a specific product, and the salesperson should show that product immediately. When that is not the case, the salesperson must ask questions to select the most appropriate product(s) to show the customer. The salesperson should show enthusiasm for the product throughout the demonstration rather than before it begins. It is not necessary to set aside a block of time since demonstrating products should be part of the normal selling routine. Evaluating the customer's buying power is not possible since the salesperson does not have access to this information.

What is a benefit to businesses of using selling policies?

Selling policies can be used to assess sales staff performance. CorrectSelling policies can be used to assess sales staff performance. Other benefits of using selling policies include preventing misunderstandings, reducing confusion for employees, keeping salespeople from having to make decisions on their own, making sure appropriate action is taken when necessary, assuring that customers receive fair and equal treatment, enhancing employee loyalty, increasing job satisfaction, and contributing to a more pleasant work experience. The requests for repairs may not be affected by selling policies.

Which of the following is a true statement: a. Businesses are required by the Sherman Act to put their selling policies in writing. b. Selling policies are most useful for handling situations that are not frequently encountered. c. Selling policies may be in writing or simply understood by employees. d. Most small companies rely on policy handbooks to explain in detail their selling policies.

Selling policies may be in writing or simply understood by employees.

Guidelines for selling activities that involve customer interaction are called __________ policies.

Selling-activity

A salesperson exceeds the limit on the amount of money that can be spent on a client's lunch. What category of selling policies was violated?

Selling-activity policies

Selling policies designed to govern the support a company provides customers after the sale are categorized as __________ policies.

Service

When a customer buying an appliance, piece of electronics, or vehicle asks questions about repairs, the salesperson should explain features and benefits relating to its

Service and warranty. When a customer buying an appliance, piece of electronics, or vehicle asks questions about repairs, the salesperson should explain features and benefits relating to its service and warranty. In some cases, whether or not a customer buys depends on the service your company offers and/or the warranty on the product. These factors may convince the customer to buy, and they are more important to a practical customer than a product's popularity, appearance, style, or history.

What act prohibits competing firms from conspiring to control their prices? Select one: a. Sherman Act b. Robinson-Patman Act c. Clayton Act d. Federal Trade Commission Act

Sherman Act. Because of the Sherman Act, selling policies need to clarify that prices are set by the company alone, not in conjunction with competitors. The Robinson-Patman Act makes it illegal to discriminate in the prices or services offered to competing customers. The Clayton Act keeps a company from making the purchase of one of its goods or services depend on purchases of others. The Federal Trade Commission Act declares competition illegal that is deemed unfair by the Commission.

Jameson ordered a new dishwasher, and it arrived damaged. He immediately called the salesperson who sold him the product and was reassured that a new dishwasher would be sent right away. What aspect of customer service does this situation illustrate?

Shipping and delivery. Jameson's situation is an example of the shipping and delivery aspect of customer service. His product arrived damaged, and the salesperson promptly addressed the problem. This is not an example of customer training (no training is necessary), technical assistance and support (product does not require technical support), or credit/financing (problem is not with payment).

A true statement about the steps of the selling process is that they Select one: a. can be rearranged in any way. b. should be performed consecutively. c. have specific time limits. d. do not follow a particular order.

Should be performed consecutively. The selling process consists of several phases which should be performed consecutively. While there are no specific time limits on each of the steps in the selling process, they do follow a particular order. They cannot be rearranged if the best results are to be achieved.

Which method would be most appropriate for converting the following objection into a selling point: Customer: "I know it's supposed to be unbreakable, but it certainly looks fragile." Select one: a. Yes, but . . . b. Deny it c. Try it d. Show 'em

Show 'em. In this particular example, the most effective way to answer the customer's objection is to show 'em, or demonstrate, the durability of the product. This may range from standing in the bottom of a dresser drawer to dropping a dish on the floor. A denial that the product is fragile would serve no useful purpose. Trying out a product before buying is often not possible. The yes, but . . . method implies that there is some degree of accuracy in the customer's concern that the product may be fragile. A simple, direct demonstration will resolve any concerns about the product's durability.

A statement such as "I understand why you feel that way" is a typical example of which of the following techniques: Select one: a. Showing interest in the customer b. Asking questions c. Listening to the customer d. Observing the customer

Showing interest in the customer. By putting yourself in the customer's place, you show interest in the customer through empathy. The salesperson is not only observing but responding, as well. Although listening comes first, the focus in this case is on the salesperson's response to the customer's concern. Asking a question is not the same as making a statement. Asking a question is for the purpose of receiving a response, but making a statement (in this case) is a response.

A customer interested in buying a stereo was told by the salesperson the stereo's size, weight, number of transistors, and amount of wiring, but the customer left without buying. What did the salesperson do wrong?

Sold product features instead of customer benefits. The salesperson made a mistake by selling product features instead of customer benefits. Customers buy benefits, not features. Describing how the stereo would sound, that it is powerful, and can be installed quickly would have been more meaningful to the customer and might have resulted in a sale. The salesperson may have provided too much information rather than too little. There is no indication that the information was inaccurate or that the salesperson spent too much time with the customer.

Businesses cannot know if customers are satisfied unless they

Solicit feedback. Businesses cannot know if customers are satisfied unless they solicit feedback. It's important to give customers convenient, user-friendly ways to provide feedback and to solicit the feedback on a regular basis. Lengthy surveys are not necessary. Providing customer training and responding to complaints promptly are great examples of customer service, but they will not necessarily let businesses know if customers are satisfied.

To help customers with buying decisions, salespeople should use __________ terms to describe a product.

Specific

What closing technique can be used effectively when a product is in very limited supply?

Standing-room-only

Which closing technique is being used in the following situation: "You'll enjoy using this portable heater this winter to heat your bathroom." Select one: a. Closing on objection b. Suggesting ownership c. Standing-room-only d. Narrative

Suggesting ownership

Reggie's customer is purchasing a new printer, so he mentions the need to pick up an ink cartridge at the same time. This is an example of

Suggestion selling. Reggie's mentioning the need for ink cartridges is an example of suggestion selling. Salespeople can add value to a customer's experience by suggesting additional products or services that will enhance his/her primary purchase. Appropriate, well-timed suggestion selling can go a long way toward building solid partnerships with customers. This is not an example of efficient shipping and delivery (nothing is being shipped or delivered), providing ample product information (no extra information is being provided), or making only promises that can be kept (nothing is being promised).

Rafael's Internet service isn't working, and it's the middle of the night. He knows he can call the toll-free help-line, though, because it's open 24 hours a day. What aspect of customer service does this situation illustrate?

Technical assistance and support. Rafael's ability to call the help-line is an example of technical assistance and support. It is not an example of shipping and delivery (he already has possession of the product), credit/financing (problem is not with payment), or customer training (he already knows how to use the product, but the product is not working properly).

Selling policies concerned with pricing, product availability, and discounts are categorized as __________ policies.

Terms-of-sale. Selling policies concerned with pricing, product availability, and discounts are categorized as terms-of-sale policies. These are the policies about which customers are usually the most concerned and are at the heart of a sale. Service policies are designed to govern the support a company provides to customers after the sale, while selling-activity policies focus on providing salespeople with guidelines for activities involving interaction with customers. Delivery policies are an example of service policies.

Which method would be most appropriate for answering the following objection: Customer: "I'm not sure this heat pump will work well in our climate." Select one: a. Yes, but . . . b. Testimonial c. Try it d. Denial

Testimonial. If the heat pump is appropriate for the climate, a testimonial from another customer who has used one for a period of time would be the most appropriate and effective method of completing the sale. Since the heat pump must operate over a long period of time to prove itself, it's not realistic to suggest the customer try it out. Denial would be inappropriate since the customer has not made a direct claim but only expressed a concern. Yes, but . . . method would imply that there's some degree of accuracy in the customer's claim.

Which of the following could you get from customers that would be useful in selling: Select one: a. Manuals b. Catalogs c. Testimonials d. Promotional materials

Testimonials. Testimonials from customers are useful in selling. Satisfied customers are often a good source of information about products. Their comments, or testimonials, can be of value in making future sales. Catalogs, manuals, and other promotional materials are provided by the business or manufacturer.

When customers do not ask for a specific product by name, the salesperson should determine which product to show them by asking how

They intend to use the product. Determining how customers will use the product helps the salesperson to select the product that will best meet the customers' needs. For example, the kind of camera that would meet the needs of a professional photographer and the one that would meet the needs of an amateur would be very different. It is important to identify a price range, but it would be inappropriate to ask how much the customer is willing to spend. The salesperson cannot ask how the customer learned of a specific product when no product has been named. Asking how much time the customer has to spend would indicate that finding the right product and showing it to the customer would be a lengthy procedure, which might discourage the customer from buying.

A factor that the salesperson should keep in mind in demonstrating products is that customers often feel more comfortable with products that

They've seen advertised

What type of objection are customers using when they say they want to "shop around?"

Time. Time objections are often sincere because the customer may want to "shop around" more or may honestly need to discuss a buying decision with a spouse or an employer. If the timing is just not right for the customers, a salesperson probably will be unable to convince them to buy but should thank them and invite them to let her/him know when they are ready to make a purchase. A need is something required or essential which is lacking. A want is a desire for something that may or may not be required. Customers often voice objections when they have a conflict between what they want and what they need. A place objection involves an objection to the business or an employee.

When customers determine when to buy, they are making the __________ decision.

Time. When customers determine when to buy, they are making the time decision. Sales are often lost if the salesperson does not help customers make the time decision. To help customers, salespeople can explain the advantages of purchasing now, the disadvantages of waiting to purchase, and the advantages and availability of credit. The price decision concerns the price the customer is willing to pay for a good or service. The need decision is the point at which the customer decides that s/he needs to purchase a good or service. The product decision is the decision a customer makes on the brand, type, model, etc., to buy.

Why do salespeople attempt to determine customer buying motives? Select one: a. To encourage the customer to share personal information b. To gain confidence in their ability to sell c. To eliminate the customer's underlying needs and wants d. To complete successful sales transactions

To complete successful sales transactions. Salespeople want to determine customer buying motives so they can complete successful sales transactions. A successful transaction can boost the salesperson's confidence. Learning the customer's personal information is not the goal of selling, nor is it the reason for determining customer buying motives. By determining customer buying motives, the salesperson hopes to satisfy the customer's needs and wants—not to eliminate them.

In which of the following ways can you use your vocabulary as an effective aid in product demonstrations: Select one: a. To describe product features in industry terms b. To make generalized comments about the product c. To emphasize your technical know-how d. To describe each feature you demonstrate

To describe each feature you demonstrate. You should use accurate, sincere words to describe the product that is being demonstrated. Words that are too technical or industry-oriented should be avoided. Instead of trying to impress customers with your knowledge of such terms, you should use words that are meaningful to customers. You should avoid slang and make specific comments, not general.

Which of the following is a reason that selling policies are needed: a. To increase aggressive selling techniques b. To keep salespeople from establishing good relations with customers c. To enable a company to meet its goals d. To enable salespeople to make their own decisions

To enable a company to meet its goals CorrectTo enable a company to meet its goals. This should aid in increasing the company's profitability. Selling policies provide a framework in which salespeople can make proper decisions and establish good relations with customers. The use of selling policies keeps salespeople from having to make decisions on their own. By having selling policies, salespeople know when they should or should not use aggressive selling techniques

What is the purpose of restating a customer's objection?

To show the customer that you understand

Which of the following is an example of the type of customer service a salesperson should provide: Select one: a. Tracking order status b. Offering valet parking c. Providing store security d. Bookkeeping

Tracking order status. Tracking order status for a customer is the type of customer service a salesperson should provide. Providing store security, bookkeeping, and offering valet parking are not activities salespeople necessarily engage in.

Determine whether the following statement is true or false: Two customers may buy the same product to obtain different benefits. Select one: a. True, products offer different benefits to different customers. b. False, products offer the same benefits to all customers. c. True, all customers have the same product wants and needs. d. False, customers buy products based on the products' features.

True, products offer different benefits to different customers. Motivated to fulfill their needs and wants, customers buy benefits (the advantages gained), not features (the characteristics provided). Since customers have different needs and wants, the benefits they seek may vary. And, the benefits a particular product offers may be different for different customers.

Determine whether the following statement is true or false: Both retail and industrial salespeople must discover their customers' needs/wants. Select one: a. False, retail salespeople already know their customers' needs/wants. b. True, retail and industrial salespeople spend equal time discovering needs/wants. c. True, this is a step in the selling process that is common to both. d. False, industrial salespeople already know their customers' needs/wants.

True, this is a step in the selling process that is common to both

Determine whether the following statement is true or false: All salespeople should use the step of the selling process in which a relationship is established with the customer. Select one: a. False, retail salespeople do not need this step. b. True, this is an important step for all salespeople. c. True, all salespeople make every contact permanent. d. False, industrial salespeople do not need this step.

True, this is an important step for all salespeople

Which of the following is often the last step when answering an objection: Select one: a. Empathize with the customers b. Restate the objection c. Listen carefully d. Turn objection into selling point

Turn objection into selling point. All of these are appropriate procedures in handling objections. It is critical, however, that the salesperson first listen carefully, then restate and empathize in a manner that assures the customer that the objection is thoroughly understood. Only at this point can the objection be turned into a valid selling point.

Your company's product has an exclusive feature that is not offered by similar products on the market. For consumers, this product provides a(n)

Unique benefit. For consumers, this product provides a unique benefit. This is a benefit that a competitor's product does not possess. The product's value would be greater than that of the competitor's product, not comparable. Consumers will not consider the product an irresistible bargain unless it is something that they can use. This product does not provide an absolute advantage.

Your company, a dairy, delivers ice cream to its customers. Other dairies in the area do not offer this service. This is an example of a Select one: a. unique feature. b. product's use. c. business's style. d. product's durability.

Unique feature. This is an example of a unique or novel feature. The dairy offers a service not available from the competition. A product's use focuses on what the product can do and how it can be used, while a product's durability involves how long the product will last. Style considerations focus on appearance.

If a customer expects something because his/her friend received it, the customer's expectation is influenced by

Word-of-mouth information. If a customer expects something because his/her friend received it, the customer's expectation is influenced by word-of-mouth information. Perhaps the customer's friend said he received free shipping, so the customer expects the same deal. In this case, the customer's expectation is not influenced by past experience (service s/he has received before), advertising (customer service the business promises through the media), or individual needs (what the customer must gain from the purchasing experience).

Is the following situation legal? Why? Argo Mills, a flour producer, sells its flour to Pizza House, a national chain of 6,000 stores. By selling to Pizza House, Argo saves a great deal of money. Because of this, Argo offers Pizza House larger discounts than it offers its smaller customers.

Yes. Price discrimination is legal according to the Robinson-Patman Act since Argo Mills based its discounts on cost savings.

Selling policies attempt to guide __________ efforts.

a. personal-selling Personal-selling. Selling policies attempt to guide the one-on-one personal-selling efforts of individual salespeople. They do not necessarily apply to promotional, marketing, or public relations efforts.

The primary responsibility for implementing selling policies rests with

a. salespersons. Salespersons. Salespersons have the primary responsibility for implementing sales policies. Company management would have an overall responsibility to see that all department heads do their work. Buyers are involved in purchasing rather than sales.

Which of the following is a purpose of an effective product demonstration: Select one: a. To show your skills at product demonstration b. To get the customer actively interested in the product c. To create an atmosphere that the customer will enjoy d. To show the customer why the product was produced

o get the customer actively interested in the product. One of the main goals of product demonstration is to arouse the customer's interest in the product. Other purposes include creating desire to buy, showing the customer proof of the product's features/benefits, and involving the customer in the sales presentation. The salesperson may, during the product demonstration, show the customer why the product was produced, demonstrate his/her skills at product demonstration, and create an enjoyable atmosphere, but these are not purposes of product demonstration.