BUAD470 Exam 1

The practice of searching computerized databases for useful information about prospects is known as A. Data mining B. Prospect trolling C. A breach of privacy D. None of the above E. Illegal surveillance

A. Data mining

A question that encourages your prospects to think, see, and consider your interpretation of the situation is called a(n) A. Internal summary question. B. Double-check question. C. Agreement question. D. SPIN question. E. Amplification question.

A. Internal summary question.

A good salesperson does the following: A. Avoids overbearing prospects. B. Closes the sale during the first sales call. C. All of the above. D. Makes a quick judgment of the prospect. E. Makes others feel important.

E. Makes others feel important.

Which of the following is an example of the curiosity approach? A. Don't you feel an important idea about shopping for the charity ball is finding an outfit that will not be worn by someone else? B. Will you look at this wonderful new dress? C. With your permission, we would like to run a color analysis to recommend the best outfits for you. D. We've just surveyed all the retailers and found this to be the hottest new design. E. Your good friend, Mrs. Vanderbilt, was just in and bought her dress for the same charity ball.

A. Don't you feel an important idea about shopping for the charity ball is finding an outfit that will not be worn by someone else?

What is the SPIN technique designed to do during the need discovery phase? A. Guide the sales call through the steps of need development until explicit needs have been agreed upon. B. Create concern in the prospect's mind. C. Determining the general needs or dominant concerns of prospects. D. Inquire into the prospect's overall business outlook. E. Alleviate concerns the prospect might be having.

A. Guide the sales call through the steps of need development until explicit needs have been agreed upon.

You are researching a new company and attempting to identify the key person to call on. After a thorough review, you can't identify exactly who to approach using your usual criteria. What should you do in this case? A. If possible, approach the CEO of the company and follow his guidance as to whom he recommends that you contact. B. Research professional purchasing directories to see if they can offer advice on who is responsible for purchasing at the company. C. Abandon the effort and begin researching a new company with a more clearly defined organization. D. Approach administrative staff with your needs and see if they can assist. E. Use Internet research techniques, including such sites as Dun and Bradstreet, to see if you can identify the qualified prospect.

A. If possible, approach the CEO of the company and follow his guidance as to whom he recommends that you contact.

Which of the following is not a prospecting technique discussed in the text? A. Recruiting team members to work as your agents to generate sales B. Employing email and direct mail campaigns C. Participating in civic or community organizations D. Using social media to reach and engage prospects E. Checking with current customers to reassess their needs

A. Recruiting team members to work as your agents to generate sales

Richard Simmons, a sales rep for a firm that makes a line of pumps for keeping construction sites dry, has just been contacted by the production foreman for Camp Construction Company. Two of Camp's drainage pumps appear to be malfunctioning. However, before Simmons calls on the company, the production foreman cautions him to first visit their purchasing agent. Who would be Simmons best source of pre-approach information before he schedules a visit with the purchasing agent? A. The production foreman who contacted Simmons. B. The purchasing agent for the company. C. The purchasing agent's secretary. D. Another salesperson who has called on this company in the past. E. The vice president of production.

A. The production foreman who contacted Simmons.

To become effective in handling objections, one should A. Write out possible objections to your offering in advance and formulate your responses to them. B. Focus on recovering from rejection. C. Always offer to research a client's concerns and get back to the client in the near future. D. Do none of the above. E. Not try to anticipate objections, thereby retaining maximum flexibility and customization in your responses.

A. Write out possible objections to your offering in advance and formulate your responses to them.

Your company, AquaFilter, provides sophisticated water filtration systems to large aquariums. At the conclusion of your presentation to Mystic Aquarium's CEO, he remarks that diseases among aquatic animals are increasingly resistant to antibiotics. You remain silent because A. You perceive his remark as an excuse, not an objection having anything to do with your discussion. B. You can't think of anything to say. C. Your company is under investigation for poor quality control, and the CEO knows it. D. The CEO is objecting to price. E. Your company has a poor record in fighting disease.

A. You perceive his remark as an excuse, not an objection having anything to do with your discussion.

Prospect classification suggests organizing prospects according to how much you know about them. Class B prospects are those prospects A. Who have the money to buy and make a decision. B. About whom you possess inadequate information to make a presentation. C. Who have been referred by another party. D. About whom you have little or no information other than names and addresses. E. Whose name was given to you by a center of influence.

B. About whom you possess inadequate information to make a presentation.

When a salesperson asks "Could you tell me more about that?" which type of probing technique is being used? A. Getting agreement on the problem. B. Amplification. C. Clarification. D. Internal-summary. E. Assumptive.

B. Amplification.

Which of the following is the best definition of "units of conviction"? A. The process of systematically persuading the prospect throughout the sales cycle. B. Carefully constructed mini-presentations that can be used as building blocks in the sales presentation. C. Traditional selling. D. It is an alternate term for a product sales plan. E. Pieces of information about the prospect's company and product offerings that can be used within a sales presentation.

B. Carefully constructed mini-presentations that can be used as building blocks in the sales presentation.

In the SPIN technique, problem-type questions have the overall goal of A. Creating concern in the prospect's mind. B. Determining the explicit needs or dominant concerns of the prospect. C. Inquiring into the prospect's general business situation. D. Alleviating concerns the prospect might be having. E. Encouraging the prospect to determine the benefits they need.

B. Determining the explicit needs or dominant concerns of the prospect.

An immediate and honest answer to an objection can accomplish all of the following except A. Highlight the salesperson's listening skills. B. Guarantee no other objections will be raised. C. Demonstrate the salesperson's respect. D. Convey the salesperson's professionalism. E. Remove a barrier to closing.

B. Guarantee no other objections will be raised.

Craig has been a ceramic tile salesperson for an industrial firm for the past four years. Craig discovered that he has a higher percentage of closes when he lets the customer hold, touch, and feel the ceramic tile during his presentation. Which of the following types of evidence is Craig using in his presentation? A. All of the above. B. Illustrating with samples of the product. C. Utilizing case history information. D. Making use of the feature-benefit technique. E. Providing testimonial evidence.

B. Illustrating with samples of the product.

The social media site that is largely considered to be the most beneficial for networking salespeople and other business professionals is A. Twitter. B. LinkedIn. C. Pinterest. D. None of the above. E. Facebook.

B. LinkedIn

When it comes to dealing with price objections, all of the following are effective ways to answer the price question in the minds of prospects except A. Identify unique and desirable product features and benefits. B. Offer to undercut competitors. C. Focus on the prospect's needs. D. Highlight after-sales services. E. Justify the price with facts.

B. Offer to undercut competitors.

The typical salesperson presents six to eight benefits, and 24 hours later, the prospect remembers A. Two. B. One. C. Three. D. Four. E. None.

B. One.

A lawnmower salesperson asks, "What are you seeking in a new lawnmower?" This is what type of question? A. Amplification question. B. Open-ended question C. Summary-of-benefits question. D. Closed-ended question. E. Gaining-agreement-on-the-problem question.

B. Open-ended question

When calling on your regular customers, it is important to vary your presentation. Which of the following would not be a good idea? A. Helping the customer with marketing plans. B. Sharing a piece of confidential news about a competitor. C. Sharing a piece of industry news of interest to the customer. D. Offer a new fact about your product. E. Giving the customer a new advertising idea.

B. Sharing a piece of confidential news about a competitor.

Most experienced public speakers choose which of the following presentation styles? A. All of the above. B. The outline presentation. C. The extemporaneous presentation. D. The impromptu presentation. E. The memorized presentation.

B. The outline presentation.

"Considering these facts, you agree with me that this is a safe tire, don't you?" is an example of which element in a unit of conviction? A. Transitional phrase. B. The tie-down. C. Testimonial. D. Facts and statistics. E. Case history.

B. The tie-down.

Which of the following activities correctly belongs in the pre-approach phase? A. Gaining agreement on potential problems before making the presentation. B. Understanding the prospect's current needs, current use of brands and feelings about available brands. C. Ensuring that the proper greeting is used when approaching the prospect. D. Establishing the purchase criteria to make the sale. E. Agreeing on a time frame for completion of negotiations.

B. Understanding the prospect's current needs, current use of brands and feelings about available brands.

According to research, ________ percent of our credibility comes from how we look. A. 20 B. 90 C. 60 D. 40 E. 75

C. 60

Which of the following individuals represents the best-qualified prospect for a $500,000 life insurance policy? A. A mother on welfare with three small children B. A student who recently graduated from college C. A young executive with a nonworking wide, one child and a brand new home D. An executive, 50 years of age, recently divorced and living in a two bedroom condo E. A college professor, 46 years old with a wife and no other family members

C. A young executive with a nonworking wife, one child and a brand new home

The M in the MADDEN Test for qualifying prospects stands for "money." What do the A, E and N stand for? A. Approachable, Elite, and Nurture B. Assertiveness, Eligible and Need C. Approachable, Eligible and Nurture D. Attention, Eligible and Nurture E. Attention, Elite and Nurture

C. Approachable, Eligible, and Need

Which of the following methods of handling objections is used most frequently to separate excuses from real objections? A. The use of the boomerang technique. B. Deny the objection. C. Ask "Why?" or a specific question. D. The feel, felt, found technique. E. Turn objections into sales points.

C. Ask "Why?" or a specific question.

If a prospect's objection does not seem to make logical sense to the salesperson, it may be what is called a(n) A. Illogical objection. B. Frenetic objection. C. Hidden objection. D. Closed-ended objection. E. Emotionally-driven objection.

C. Hidden objection.

Questions that are permissible for small talk upon meeting a prospect for the first time include A. Are you married? B. None of the above. C. How long have you been in this business, and how did you get into it? D. What do you think about the Presidential election results? E. Are your children as attractive as you are?

C. How long have you been in this business, and how did you get into it?

Listening is one of the most neglected skills in education and in a lot of sales training programs. Effective listening is an interactive process that requires all but which one of the following steps? A. Being patient and slowing down the rate at which you talk. B. Reinforcing what the prospect has said. C. Making a prejudgment about where the speaker is going. D. All of the above make sense. E. Taking notes while the prospect is talking.

C. Making a prejudgment about where the speaker is going.

The number one mistake many salespeople make over the phone (and in person) is A. Not pronouncing the prospect's name correctly. B. Not using the prospect's name often enough. C. Making the conversation all about them (as opposed to their prospect). D. Asking too many questions. E. Not finding out whether they are speaking to the decision maker.

C. Making the conversation all about them (as opposed to their prospect).

Which of the following is not a factor in making an initial, favorable impression on a new prospect? A. The salesperson's greeting. B. The time the salesperson arrives for a meeting. C. Personal jewelry worn by the salesperson. D. The marketing and product information brought by the salesperson. E. The salesperson's handshake.

C. Personal jewelry worn by the salesperson.

A salesperson for a national soft drink company is studying the purchases of current customers before he decides to whom he should introduce his company's new diet drink. Which stage of the sales cycle is he in? A. Approach. B. Presentation. C. Pre-approach. D. Problem or need discovery. E. Handling objections.

C. Pre-approach

Roger calls the owner of a small business with the following information: "Ms. Harris, my company has designed a program especially for small business owners such as yourself." This is an example of which step in the six-step telephone track? A. Introduction. B. Requesting an appointment. C. Provide a tangible benefit. D. Overcoming resistance. E. Taking the curse off the call

C. Provide a tangible benefit

A person who has the authority to make a buying decision, the ability to pay for your product or service, and the need for your product or service is known as a(n) A. Sales lead B. Center of influence C. Qualified prospect D. Eager beaver E. Referred prospect

C. Qualified prospect

Which of the following is not an example of solid, tangible evidence to support claims? A. Showing energy ratings of heating and air conditioning units. B. Showing a swatch of material from which a garment is made. C. Relating a funny situation that happened to one of your clients. D. Test driving a car. E. A taste of cheese at the supermarket.

C. Relating a funny situation that happened to one of your clients.

The purpose of an initial telephone call should be to A. Get a purchase commitment from a prospect. B. Schedule a series of meetings. C. Request an appointment. D. Promote your product or service. E. None of the above.

C. Request an appointment.

In determining when to answer an objection, there are four logical times that might be appropriate. Which of the following is not one of those times? A. When it is to your advantage, postpone the answer to an objection until later in the presentation. B. If you think it is an excuse rather than a valid objection, ignore it or try not to answer. C. Save all objections and answer them at the end of the presentation. D. Answer the objection immediately after it is raised. E. Anticipate objections and answer them before they arise.

C. Save all objections and answer them at the end of the presentation.

"Do you have out-of-town accounts?" and "Do you make the purchasing decision?" are examples of what type of questioning technique when using the SPIN selling model? A. Soluble questions. B. Need-payoff questions. C. Situation questions. D. Problem questions. E. Implication questions.

C. Situation questions.

After frequently hearing the same objection to your product, you decide to incorporate an answer to the objection directly into your sales presentation. This is known as A. Postponing an answer until later. B. Ignoring it. C. Compensating for a weakness in your product. D. Anticipating the objection and forestalling it. E. Implying the presumption of exclusivity.

D. Anticipating the objection and forestalling it.

You have the name of someone at Acme Corporation who believes in what you are selling and who is willing to give you names of qualified individuals. What word or phrase best describes this person? A. Networker B. Referral C. Company-initiated prospect D. Center of influence E. A class "A" qualified prospect

D. Center of Influence

You are in a meeting with a business professional to discuss a life insurance plan. You feel the meeting is going well until he says, "I can't believe you have not leveled with me! I could afford to buy the plan at these rates, but I hear you are being acquired by the Brady Company whose rates are even higher. Once you are acquired, I would have to pay those rates." You reply, "Fortunately for me, that is not the situation, or I would be out of a job. Brady is targeting another company, not ours. I will show you the press release we received." You handled the objection by A. Using the compensation technique. B. Employing the boomerang technique. C. The feel, felt, found technique. D. Directly removing a misconception. E. Indirectly removing a misconception.

D. Directly removing a misconception.

Prospects begin judging a salesperson the moment he or she A. Prospects typically reserve judgment until need discovery. B. Leaves the room. C. Hands over his or her business card. D. Enters the room. E. Asks to close the sale.

D. Enters the room.

Establishing rapport with the client is crucial to moving your sales relationship forward. What is the best way to do this? A. Ask about the prospect's family and church affiliations. B. Show them that you respect their time by beginning your presentation immediately. C. Take a few moments and ask the prospect some penetrating questions. D. Have a few questions you use as chit-chat and choose them appropriately for the situation. E. None of the above.

D. Have a few questions you use as chit-chat and choose them appropriately for the situation.

One of the biggest benefits of pre-approach planning for the individual is that A. It ensures a successful first meeting with the prospect. B. It always provides valuable information for the sales team. C. It ensures you are approaching the right contact within an organization. D. It builds a salesperson's self-confidence going into the meeting with the prospect. E. It shows you are a serious and dedicated salesperson.

D. It builds a salesperson's self-confidence going into the meeting with the prospect.

During a telephone discussion with a prospective client, you should A. Inform the prospect of your company's future product plans. B. Ask the prospect what topics should be covered in the sales appointment. C. Thank the prospect for taking the time to speak with you and invite him or her to a social gathering. D. Keep the telephone discussion focused solely on getting the appointment. E. Ask the prospect information about the company structure and future plans.

D. Keep the telephone discussion focused solely on getting the appointment.

When it comes to preparing for a presentation, A. Wait until the need discovery phase to find the benefits you will use to engage the prospect. B. Do not create a plan to achieve specific goals for the call until after the first meeting. C. It's best not to set too specific a purpose for the meeting in case you misunderstood a prospect's needs. D. Set goals for each contact with the prospect. E. All of the above.

D. Set goals for each contact with the prospect.

Charles has been a salesperson in the food business for the past ten years. One customer is a quaint little seafood restaurant that offers their customers fresh daily seafood. One day when he arrived to see if they needed anything, they were desperate for shrimp. Luckily, he had just received a large shipment from the east coast that morning. He assured them that he could have the shrimp there within the hour. Charles exhibited which type of selling? A. Beneficial selling. B. Spur of the moment selling. C. None of the above. D. Situational selling. E. Circumstantial selling.

D. Situational selling.

Salesperson Roy Matthews asks new customer Gabby Hayes this question: "I'm trying to build my business, and I would value your help. Who do you think I should talk to next about my product?" What is Roy doing? A. None of the above B. Developing good rapport C. Explaining his course of action D. Giving his sales pitch E. Attempting to gain a referral

E. Attempting to gain a referral

The salesperson's job during the approach is to do all of the following except A. Make the prospect feel comfortable. B. Instill confidence. C. Build rapport. D. Prepare to meet the needs of the prospect. E. Demonstrate many uses of the product.

E. Demonstrate many uses of the product.

The salesperson must retain control of the interview. What is the most effective way of doing this and still achieve your goals for the interview? A. Send a questionnaire to the prospect in advance of the interview, asking them to return it before your meeting. B. Write out an agenda and stick to it closely. C. Write out questions in advance and meet at a location away from the prospect's business site to minimize distractions. D. Elicit as much information as possible during your initial telephone interview to set up the appointment. E. Determine the information you need and structure your questions accordingly.

E. Determine the information you need and structure your questions accordingly.

You decide to use this opening statement to a prospective client based on your comprehension of his behavioral style: "If I could show you a way to increase your company's productivity by 30 percent within six months, would you be interested?" What behavioral style is your prospect? A. Expressive. B. Analytical. C. None of the above. D. Amiable. E. Driver.

E. Driver.

The approach phase of the sales cycle includes A. Identifying likely potential and future customers. B. Identifying prospects who are willing and able to pay and who are eligible to buy. C. Screening out leads who aren't qualified prospects. D. Persuasively selling the product's benefits. E. Making initial contact and developing interest in your proposition.

E. Making initial contact and developing interest in your proposition.

"Would you like us to send a thank you card to the debtor after the account has been paid?" and "If you could create the perfect agency, what would you want them to do for you?" are examples of what type of SPIN selling questioning? A. Implication questions. B. Situation questions. C. Problem questions. D. Soluble questions. E. Need-payoff questions.

E. Need-payoff questions.

Which of the following is incorrect regarding networking as a prospecting technique? A. Many networking groups are organized specifically for purpose of sharing business information B. Networking incorporates connecting, communicating and cooperating C. Networking is active cooperation between people in various businesses to share information about the business climate D. Networking is used by non-competing salespeople as a way to share information E. Networking may be done only on formal basis

E. Networking may be done only on a formal basis

The statement, "I have to think this over and talk to my partner about it," is an example of a A. Company objection. B. Service objection. C. None of the above are correct. D. Price objection. E. Stall or put-off objection.

E. Stall or put-off objection.

Of the following factors, which is the most important for success in delivering a persuasive presentation? A. The ease with which the salesperson uses technology in the presentation. B. None of the above. C. The technical features of the product or service. D. The ability of the customer to afford the product or service. E. The degree of passion, confidence, and enthusiasm the salesperson exhibits.

E. The degree of passion, confidence, and enthusiasm the salesperson exhibits.

Which of the following is not a purpose for asking questions during the first meeting with a potential prospect? A. To agree upon a time frame for completion of negotiation. B. To establish purchase criteria. C. To discover the prospect's "hot button" or buying motives. D. To gain agreement on the problem before beginning the actual sales presentation. E. To gain prospect commitment within the first two phases of the sales process.

E. To gain prospect commitment within the first two phases of the sales process.

The primary use of a memorized presentation should be as a A. None of the above. B. Way of mesmerizing the prospect with the company and its products. C. Way of shortening the sales cycle. D. Framework or guide to be used E. Way of building a salesperson's confidence and self-esteem.

E. Way of building a salesperson's confidence and self-esteem.