Sales Final

Which of the following statements about complaints is true?

A fair settlement made in the customer's favor helps to resell the company and its products.

Sheena, a salesperson for Myra Designer Wear, works closely with a client who retails her products in many major malls and stores. During the expansion phase of the partnering process with this retailer, she should try to maximize her selling opportunities by:

A. generating more reorders.

A salesperson receives $200 commission per sale and has set a goal of earning $3,000 per month. With a conversion rate of 1 out of 8 prospects, he will need to make sales presentations to _____ prospects to achieve his performance goal.

A. 120

Which of the following statements about time management is true?

A. Prime selling time depends on the buyer's industry.

As Azi traveled across the state of Tennessee, he stopped and bought gas, a bottle of soda, and a bag of corn chips at a small store that he will probably never visit again. What type of transaction did Azi engage in when he made these purchases?

A. Solo exchange

_____ are the long term business relationships in which the partners make significant investments to improve the profitability of both parties in the relationship.

A. Strategic partnerships

Performance and conversion goals are the basis for _____ goals.

A. activity

The sales call allocation grid is used a great deal for analyzing

A. current customers.

On the third Wednesday of every month, LuEllen's Barbecue Shack orders four pick up truckloads of hickory for slow cooking meat. LuEllen always orders the hickory from Samson Wood Products Company because they deliver on time and she likes the quality of the wood. Moreover, she has a high level of trust in them. The buyer seller relationship between LuEllen and Elaine is an example of a:

A. functional relationship.

To use the sales call allocation grid, Spence must classify each of his accounts in terms of their need and ability to pay for his product and

A. his company's competitive position with that customer.

To salespeople the benefit of zoning is

A. minimizing travel time between customers.

Management uses a combination plan typically when it wants to

A. motivate and control the activities of salespeople.

A goal to increase the amount of commission earned by 15 percent is an example of a(n) _____ goal.

A. performance

Goals relating to outcomes are _____ goals.

A. performance

The first stage of the self-management process is

A. setting goals.

Eva classifies her customers into three groups to aid her in allocating her time and other resources appropriately. Group 1 constitutes her best accounts, Group 2 consists of accounts of moderate value, and Group 3 is comprised of noncustomers and very low value accounts. Eva is using

ABC analysis.

_____ are more important in situations where the sales cycle is long and sales are few because what a salesperson does can be observed more frequently than sales.

Activity quotas

Which of the following is NOT one of the tips for management to encourage effective cross-selling?

Avoid setting cross-selling goals

Which of the following statements is true about account classification and resource allocation?

B. As a rule, 80 percent of the sales in a territory come from only 20 percent of the customers.

Andy, a salesperson for Fashion Seal Uniforms, is telling the owner of a retirement home about the importance of caregivers having clean and attractive uniforms that will withstand countless hot water washes. Andy has brought several styles of uniforms that have been washed hundreds of times to show how well his company's uniforms are made. The owner of the retirement home tells Andy that she is planning to open one new center every six months for the next three years and will need a lot of uniforms. Then the owner agrees to buy six but with no commitment to extend the relationship. Which of the following stages of the relationship development process does this exemplify?

B. Exploration

Larry is a new sales rep. He has designed his sales strategy and allocated resources. Which of the following is the next immediate step that Larry will need to complete?

B. Implement a time and territory strategy

ABC analysis would be of LEAST value to a salesperson selling

B. MRI equipment to hospitals.

Which of the following is the best example of a solo market exchange?

B. Mariah purchases a box of cookies from a store while on vacation.

Which of the following statements about strategic partnerships is true?

B. Members of strategic partnerships have a high level of dependence on and trust in each other.

Which of the following statements about the relationships between buyers and sellers is true?

B. Members of strategic partnerships make significant investments for the sake of the relationship.

For many years, thousands of loyal fans followed the metal band, Grateful Dead, around the country, rarely missing a concert. These fans, known as "Dead Heads", were _____ loyal toward the band.

B. attitudinally

The management at Splash, a major beverage company, knows that approximately 40 percent of its consumers always buy Splash products without considering alternative drinks or the prices of their products. For Splash, such consumers can be characterized as _____ loyal.

B. behaviorally

Using customer relationship management (CRM) software, salespeople can perform _____, which is a process for identifying and managing sales opportunities.

B. pipeline analysis

Taylor deals in roller coasters, carousels, bumper cars, and other similar rides to amusement parks. His manager has told him that he must find buyers for at least 6 water flume rides, 3 carousels, 2 coaster rides, and 10 kiddy rides this fiscal year. Taylor's manager has given him his

B. sales quotas.

In the context of routing, variable call patterns occur when

B. the salesperson must call on accounts in an irregular order.

To improve the likelihood of reorders, a salesperson can:

Be present at the time of the purchase. Make sure the customer has access to his or her company's catalogs.. Provide the customer with various specialty advertising items which contain the selling firm's name, logo, and Web site. Provide the customer with periodic maintenance and repair on his or her purchase. E. all of the above.

Which of the following is an example of an inside salesperson?

C. A retail clerk at a local hardware store

Ed works as a salesperson in a garment manufacturing company. Which of the following departments in Ed's company is most directly responsible for seeing that the orders he gets from customers are properly entered into the company's computer, and that he gets his commission for the orders?

C. Administration

Which of the factors used to develop mutual trust between a buyer and a seller is the LEAST important?

C. Likability

Which of the following statements about functional relationships is true?

C. The relationship between a buyer and a salesperson in a functional relationship is described as cooperative.

Which of the following is the best example of a performance goal?

C. To increase the amount of sales revenue by 10 percent

Troy is a telemarketer who works directly with Nadine, a sales rep who works on site. Together they develop strategies for handling accounts and address customer concerns. Troy is an example of

C. a field support representative.

A goal to increase the number of sales calls made in one day from eight to nine is an example of a(n) _____ goal.

C. activity

Behavioral objectives such as increasing the number of demonstrations performed are also called _____ goals.

C. activity

Tracy's company expects her to give no less than three demonstrations per work day. This is an example of a(n) _____ goal.

C. activity

Marissa is trying to improve her self-management techniques. She has no trouble setting goals, but the next immediate step in the self-management process, that is, _____, seems to always cause her problems.

C. allocating resources to meet her goals

The stage of dissolution in the relationship development process:

C. causes most damage when it occurs in the latter stages of the relationship.

In the _____ stage of the relationship development process, the owner of several retirement centers has agreed that Fashion Seal Uniforms will be the only uniforms worn by her employees. Andy, the salesperson for Fashion Seal, has agreed to make some modifications in the uniforms to suit the needs of the retirement center personnel. Both parties view this as a long term relationship built on mutual trust.

C. commitment

As Amy plans her day, the first thing for her to do is make a list of activities that should be performed. The next, immediate step for her is to

C. determine the priority for each activity.

Ed works for Lanier Business Products as a sales representative. He receives a straight commission. In weeks when his earned commission is less than $600, the company loans him enough money against future commissions to allow him to receive $600. In future weeks, when Ed earns more than $600, the extra is used for repaying the previous loan. For Ed the guaranteed $600 is his

C. draw.

A sales call allocation grid classifies accounts according to account opportunity and strength of position. The account opportunity dimension indicates

C. how much a customer needs the product and whether he/she is able to pay for the product.

The first step in the activities planning process is to

C. list the activities that need to be performed.

Harriet, a salesperson, has been given four additional counties in her territory as a result of a corporate restructuring, and she needs to rework her travel plans to include these new accounts while holding travel time to a minimum. The activity Harriet is engaged in is called

C. routing.

The process of scheduling sales calls to minimize travel time is called

C. routing.

Career and sales goals should be challenging so that the

C. salesperson setting the goals will be motivated.

The two types of market exchanges are:

C. solo exchanges and functional relationships.

A salesperson for the glass bottle manufacturers for H.J. Ketchup Company suggested that the company needed to redesign its ketchup bottle. This would improve yields on the bottle filling line and make the bottle lighter. H.J. Ketchup Company readily implemented the salesperson's suggestions and the company enjoyed increased savings. Such a major change in the business happened because the two companies were engaged in a _____.

C. strategic partnership

Pyro Electronics is the only supplier of Torin auto headlamps and both companies wanted to do more business together. Pyro Electronics worked on its total quality management system and acquired more business, while Torin developed a just in time inventory management system to deliver goods timely to Pyro Electronics. Pyro Electronics and Torin have developed a _____.

C. strategic partnership

Zeller's, a Canadian discount store, has developed cross functional teams with experts from its retailing division and its vendors. These teams work together to develop information systems to improve relationships between the vendors and Zeller's employees. Zeller and its vendors have developed a _____.

C. strategic partnerships

Bobbi is creating a _____ system to identify opportunities for cost reduction, greater efficiency, and other mutual benefits with her vendors.

C. supplier relationship management

Hurricane Mitch was the most devastating storm to ever hit Central America. Roger Conrado, a salesperson for Dempko Chemical in that area, knew that a major client in the hurricane-affected area would suffer huge losses unless it restarted its operations soon. To keep the customer supplied with the chemicals it needed, Conrado proactively arranged transportation facilities to deliver the chemicals to the manufacturer's factory. Which of the following stages of partnership development does this example describe?

Commitment

When the buyer-seller relationship has reached the _____ stage of partnership development, there is a stated or implied pledge to continue the relationship.

Commitment

Which of the following is the area with the most employee concerns?

Compensation

Gail is the Westinghouse salesperson on the Deep South Electric account (a major public utility company). Westinghouse and Deep South have developed a partnering relationship in which Deep South buys all of its pole mounted transformers from Westinghouse. Gail worked hard for several years to establish this partnership, and now she is much more relaxed. Her only client is Deep South and she knows the two firms are committed to the relationship. Her success has allowed her to take two or three afternoons off from work in order to work on her garden or play golf with some old college pals. Gail's attitude toward her clients and sales targets is now characterized by _____.

Complacency

To avoid _____, salespeople should regularly audit their own customer service.

Complacency

Which of the following statements about complaints is true?

Complaints cannot be eliminated; they can only be reduced in frequency.

Which of the following statements about upgrading is true?

D. During the needs identification phase of upselling, it is a good idea to emphasize that the initial decision was a good one.

Which of the following statements about the commitment stage of partnership development is FALSE?

D. Salespeople must discourage direct communication among similar functional areas of the two firms.

Which of the following is an example of a field salesperson?

D. A pharmaceutical sales representative who visits doctors' offices to sell drugs

Which of the following is NOT a phase of relationship development for a seller and a buyer?

D. Attraction

Which of the following serves as a foundation for a successful strategic partnership?

D. Common goals

Which of the following stages of the relationship development process may NOT occur in a strategic partnership?

D. Dissolution

Franco breeds a wide variety of fish. For the last nine years he has been going to Fins to You, a local pet store that specializes in tropical fish and aquarium supplies, for all of his needs. He buys everything from fish food to aquarium heaters to replacement fish from this store. Which of the following terms best describes the relationship Franco has with Fins to You?

D. Functional relationship

_____ are long term market exchanges in which buyers purchase out of habit or routine.

D. Functional relationships

Which of the following statements about functional relationships is true?

D. Functional relationships continue as long as the customer is satisfied.

Which of the following statements is true about goals?

D. Goals should be specific and measurable.

Which of the following is the best example of a conversion goal?

D. Improving the average sales generated relative to the number of calls made

There are three types of goals that a salesperson should set to achieve the highest possible levels of success. Which of the following types of goal should be set first?

D. Performance

_____ are created for the purpose of uncovering and exploiting joint opportunities.

D. Strategic partnerships

Which of the following best describes customer service reps?

D. They are inbound salespeople who handle customer concerns.

A sales call allocation grid classifies accounts according to account opportunity and strength of position. The strength of position dimension indicates

D. how strong the salesperson and company are in selling the account.

Corina almost always shops at Gas N Go. She finds the store easily accessible from the highway, likes the service, and receives special discounts as a frequent customer. Corina is less likely to shop around for her next purchase because Gas N Go satisfies Corina thereby:

D. reinforcing a functional relationship.

When a company uses a group of salespeople to support a single account, it is employing the _____ approach.

D. team selling

Zero Zone, Inc. manufactures and sells display refrigeration and freezer units to supermarkets. The manufacturer is successful because it is able to keep the promises it makes. All customers know that Zero Zone's salespeople and its products live up to all the promises made. This is an illustration of which factor necessary for mutual trust to develop?

Dependability

Which of the following statements about complaints is FALSE?

E. A salesperson who is convinced that a claim is dishonest should take action by filing a case against the customer.

Which of the following occurs in the expansion stage of developing partnerships?

E. Generating reorders from the customer

Which of the following corporate areas is important to salespeople?

E. All of the above. Marketing, Manufacturing, Administration, Shipping

Which of the following serves as a foundation for a successful, long term relationship?

E. All of the above: Mutual trust, Organizational support, Common goals, Open communication.

(p. 426) Which of the following is a primary role of salespeople in an organization?

E. Carrying the customer's voice across the organization

_____ goals are important because they reflect how efficiently a salesperson uses resources, such as time, to accomplish performance goals.

E. Conversion

Which of the following statements is true of customer lifetime value?

E. Customer lifetime value is expressed in terms of the combined total of all future sales discounted back into current dollars.

_____ refers to the average percentage of business received from a company's accounts in a particular category.

E. Customer share

(p. 398) Which of the following is the final stage of self-management process? -

E. Evaluating performance.

Which of the following reasons best explains why "To reduce my dependency on a memorized sales presentation within the next six months" is not an effective personal development goal?

E. It is not measurable.

_____ is an extension of team selling in which members at various levels of the sales organization call on their counterparts in the buying organization.

E. Multilevel selling

_____ is the amount of money paid to a salesperson at regular intervals regardless of his or her performance.

E. Salary

_____ is dividing a territory into specific areas, based on ease of travel and concentration of customers, in order to minimize travel time.

E. Zoning

Chris receives $520 per week gross pay in his sales job at the Lark dealership. This amount remains fixed and does not vary with the number of sales. As long as Chris works his 40 hours, he gets paid $520. Chris is paid

E. a straight salary.

Baxter Healthcare is a leading supplier of hospital products. It has entered into a strategic partnership with many of the hospitals it serves. Baxter supplies them with one day delivery service of quality products and inventory management assistance. In return, the hospitals give Baxter all of their business. The foundation of their relationships is trust, which is based on:

E. all of the above.: Baxter's perceived dependability., Baxter's ability to supply quality products on a one-day notice., the concern of both parties for each other's needs., Baxter's inventory management expertise.

Straight salary plans are typically used when

E. any of the above situations arises. ;advertising is more important to the sale than the efforts of the salesperson, a team of salespeople is involved in the sale, the sale requires a long period of negotiation, individual results of sales team members cannot be measured.

A commission plan is likely to be used when

E. any of the above situations arises.; the sales force includes many part-timers, the earnings of part-time salespeople are required to be tied to their performance, a company does not emphasize on service to customers, a company does not anticipate long-term customer relationships.

Zero Zone, Inc. manufactures and sells display refrigeration and freezer units to supermarkets. Its salespeople use federal government research information and trade data to explain to customers why 3 inch thick CFC free urethane insulation is important for keeping products fresh. Such interactions illustrate the salespeople's _____.

E. competence

Mariah is a stock broker. She knows that to increase her number of clients she must do a lot of prospecting since only about 1 out 30 prospects she works with will become profitable clients. She believes by doing a better job qualifying her prospects she will be able to persuade 1 out of 25 next month. This goal is an example of a(n) _____ goal.

E. conversion

Zoning works best

E. for compact territories.

When salespeople and buyers trust each other, they:

E. perform all of the above functions. share ideas more willingly. communicate more efficiently., assume that each party will be honest with the other one., assume there is no need to constantly monitor the activities of the other.

A salesperson who receives a fixed amount of money for working a specified time period is being compensated using the _____ method.

E. straight salary

37.(p. 368) Al, the owner of Mac's Tire Mart has received its first shipment of tires from the NevaFlat Tire Company. Al is now testing how well the tires sell, how well NevaFlat responds when he has a question or problem, and how durable the tires really are. Al and NevaFlat Tire Company are in which of the following stages of partnership development?

Exploration

After building awareness, the next stage in the development of a partnership is:

Exploration

During the _____ stage of developing a partnership, a small percentage of the buyer's business is given to minimize the risk in case the vendor cannot perform.

Exploration

During the _____ stage of developing a partnership, the buyer tests the seller's product, how the seller responds to requests, and other similar actions after the initial sale is made.

Exploration

In the _____ stage of developing a partnership, the relationship is defined through the development of expectations for each party.

Exploration

In which stage of building a long-term partnership is electronic data interchange (EDI) technology most likely to be used first for strengthening the relationship between buyer and seller?

Exploration

A sales quota is the minimum sales revenue necessary for acceptable performance.

FALSE

ABC analysis is used most successfully by the salespeople of capital products than consumer packaged goods.

FALSE

Activities such as upgrading, full-line selling, cross-selling, and handling complaints cease during the commitment stage of the relationship development process.

FALSE

Activity goals are important because they reflect how efficiently the salesperson uses resources, such as time, to accomplish performance goals.

FALSE

After a sale, a follow-up should be made by telephone.

FALSE

Customer contacts should always be in the form of in-person sales calls.

FALSE

During the commitment stage of the development of partnerships, it is still unlikely that a customer will designate a supplier as a preferred supplier or partner.

FALSE

Easy goals are more motivating than challenging goals because of the satisfaction that comes from always succeeding. -

FALSE

For field sales managers, the easiest method of evaluating performance is to determine the salesperson's product knowledge.

FALSE

For salespeople, paperwork time is more productive than time spent selling to customers.

FALSE

Getting customers to use a higher quality or newer version of a product is called full-line selling.

FALSE

Goals relating to outcomes are activity goals.

FALSE

House accounts are handled by field sales managers in addition to their regular duties.

FALSE

In a strategic partnership, most communication between the buyer and the selling organization goes through the salesperson.

FALSE

Kelly receives a draw each week. This best exemplifies a straight salary.

FALSE

Most customers who file complaints are aware that their claims are unfair.

FALSE

Once a customer has committed to a partnership, less work is needed to maintain the relationship.

FALSE

Routing is a method of identifying accounts which should receive the highest level of resource allocation.

FALSE

Salespeople typically report directly to the sales executive.

FALSE

Straight commission is the preferred method of compensation when sales require long periods of negotiation involving several sales reps from the selling company.

FALSE

Straight commission plans offer the greatest flexibility for motivating and controlling the activities of salespeople.

FALSE

The absence of complaints means that customers are happy.

FALSE

The field sales manager is the manager at the top of the sales force hierarchy.

FALSE

The field sales manager typically determines the types of salespeople needed in a sales force.

FALSE

The first step in the self management process is to allocate resources and determine strategies to achieve goals.

FALSE

The only way to resolve a customer complaint is by sending an unsatisfactory product to the factory for a decision.

FALSE

When handling customer complaints, it is always better to tell a customer what the solution is rather than offering him/her several solutions to choose from.

FALSE

Goals without deadlines create a sense of urgency in the salesperson and provide guidance to achieve those goals.

FALSE Performance goals are behavioral objectives. :FALSE

A strategic partnership can lead to a win-win situation but requires a high degree of commitment and results in lower flexibility for both parties.

False

Expansion immediately follows the awareness stage of building partnerships.

False

In the context of professional selling, relationship marketing refers to creating the type of relationship that best suits the needs of the selling firm.

False

It is advisable to build strategic partnerships with large accounts exclusively because of the operation of economies of scale.

False

Relational partnerships are created explicitly for the purpose of uncovering and exploiting joint opportunities.

False

Salespeople must try to develop a strategic partnership with every new account they work with.

False

The buyer and the seller in a functional relationship typically pursue their own self-interests because chances of them doing business together are low.

False

The sole determinant of customer lifetime value is a customer's purchases.

False

The use of supplier management systems to discover current suppliers with whom partnership may be possible occurs in the commitment stage of the relationship development process.

False

When a buyer-seller relationship has reached the exploration stage, there is a stated or implied pledge to continue the relationship

False

When someone purchases the same product out of habit, that pattern is known as attitudinal loyalty

False

_____ selling is defined as selling the entire line of associated products.

Full-line

Dawn sells building materials to contractors. She sells lumber to almost all of her accounts but does not get many orders for nails, roofing, or other building materials. Dawn decides to push stock of these additional construction materials to all her existing customers. Dawn is planning to use the _____ strategy

Full-line selling

Which of the following is the first step toward reducing the probability of a trust-destroying conflict?

Give a clear product description

Which of the following actions is still necessary after the partnering process reaches the expansion stage?

Identifying additional needs. Monitoring order processing. Ensuring proper use of the product. Handling complaints. E. All of the above

Which of the following is a major disadvantage associated with a combination compensation plan?

Its complexity

Which of the following is most likely to occur in the commitment stage of developing partnerships?

Managing Change

What are the advantages and disadvantages of market exchanges?

Market exchanges offer buyers and sellers a lot of flexibility. Buyers and sellers are not locked into a continuing relationship, and thus buyers can switch from one supplier to another to make the best possible deal. However, these minimal relationships do not work well when buyers and sellers have an opportunity to increase the size of the pie by developing products and services tailored to their needs. These more complex transactions cannot be conducted solely on the basis of price. High levels of trust and commitment are needed to manage these types of relationships because buyers and sellers need to share sensitive information.

How does a house account differ from other types of accounts?

No commission is paid on sales to the house account.

Which of the following statements is NOT a guideline to use when determining the facts about a customer complaint

Starting an inquiry into the nature of a complaint is an effective way to postpone action to resolve a complaint.

A critical element in fostering good relationships is giving boundary spanning employees the necessary support.

TRUE

A professional salesperson not only looks for specific areas to improve but also evaluates the success of the overall sales call.

TRUE

A salesperson owns the responsibility to secure commitment from his or her own company.

TRUE

Although likability is not as important as other dimensions, salespeople should still attempt to find a common ground or interest with all buyers

TRUE

An inside salesperson who is an account manager has the same responsibilities and duties as a field salesperson, except that all business is conducted over the phone.

TRUE

Commitment requires that all employees be empowered to handle the needs of a customer.

TRUE

Complaints in later stages of a strategic partnership are likely to lead to full-blown conflict if trust is not carefully salvaged.

TRUE

Customer management includes allocating all the resources at the salesperson's disposal in the most productive manner.

TRUE

Ethical behavior not only applies to how salespeople treat customers, but it also applies to how employers treat salespeople.

TRUE

Evaluating performance is the component of self-management that provides direction for how hard the salesperson should be working as well as an opportunity to determine which strategies work best.

TRUE

Few jobs require the boundary spanning coordination and management skill needed to effectively perform a sales job.

TRUE

Full-line selling is selling an entire line of associated products.

TRUE

Good salespeople show they are happy a grievance has been brought to their attention.

TRUE

In an extension of team selling, multilevel selling, members at various levels of the sales organization call on their counterparts in the buying organization.

TRUE

In sales terms, complacency is assuming that the business is yours and will always be yours.

TRUE

In sales, zoning means dividing a territory into zones, based on ease of travel and concentration of customers.

TRUE

Internal partnerships should be dedicated to satisfying customers' needs.

TRUE

Kristen wants her sales force to concentrate its efforts on selling the most profitable products and on selling to most profitable accounts. To achieve this target, she can institute profit quotas.

TRUE

Not only does prime selling time vary from one industry to another, it may also vary within the same industry as you move from one nation to another.

TRUE

One of the things that makes cross-selling easier than getting an initial sale is that trust already exists between the two parties.

TRUE

Open and honest communication is a key building block for developing successful relationships.

TRUE

SPIN and active listening are just as important to understanding the needs of colleagues as they are to satisfying customer needs.

TRUE

Sales call routing plans vary depending on the demands of the customers and the salesperson's ability to schedule calls at convenient times.

TRUE

Salespeople need to evaluate performance relative to performance goals set earlier.

TRUE

Salespeople should consider physical resources they manage as investments because they must be managed wisely to produce the best possible return.

TRUE

Salespeople should develop relationships with manufacturing so they can make accurate promises and guarantees to customers.

TRUE

Shared goals help sustain the partnership when the expected benefit flows are not realized.

TRUE

The purpose of classifying accounts through grid analysis is to determine which accounts should receive more resources.

TRUE

Upgrading, full-line selling, and cross-selling are sales strategies that work best with existing prospects.

TRUE

Which of the following statements about the follow-up a salesperson performs after a sale is true?

The nature of the follow-up should reflect the needs of the buying center member being contacted.

_____ classifies accounts on the basis of the company's competitive position with an account along with the account's sales potential.

The sales call allocation grid

Which of the following is a likely reason for a customer complaint?

The salesperson set the buyer's expectations too high. The terms of the sales contract were not met by the salesperson. The product required extensive technical expertise to operate. The product was used improperly by the customer. E. All of the above.

Assuming proper expectations were set, customers can be disappointed when the product performs poorly, is used improperly, or the terms of the contract are not met.

True

Companies prefer buyers who are both attitudinally and behaviorally loyal.

True

Customer lifetime value is the combined total of all future sales.

True

In the commitment phase of relationship development, investments are made, especially in the form of sharing proprietary information, plans, goals, and the like.

True

The expansion stage of the relationship development process involves efforts by both parties to investigate the benefits of a long-term relationship.

True

When dissolution occurs in the latter stages of a relationship between two firms, the loss of investments made in the relationship can be significant and have an impact throughout both organizations.

True

_____ is convincing the customer to use a higher-quality product or a newer product.

Upgrading

Lennie's sales manager expects him to make at least 5 calls per day and give at least 15 full presentations per week. These expectations best exemplify

activity quotas.

A(n) _____ is incentive pay for overall performance in one or more areas.

bonus

Another name for a salary-plus-commission plan is

combination plan.

For every case of fragrance that Jill sells, she earns $10. This amount is her _____.

commission

Marshall is compensated by his company under a straight commission plan. He receives 10 percent of the total sales revenue per week. In a particular week, the total sales revenue is $6,000. This amount is known as the

commission base.

The _____, which determines the amount a salesperson is paid, is expressed as a percentage of the commission base.

commission rate

Arnold is a salesperson. His company's compensation plan involves paying him 14 percent of the total sales he makes per month. This 14 percent is known as the

commission rate.

Which of the following is a feature of the relationship between a salesperson and a customer in a strategic partnership?

coordination

In which of the following types of salesperson

customer relationships will the time horizon be the shortest? - A. Solo market transaction

Full-line selling is the sale of those goods and services which are:

designed as a line of associated products

Money paid to a straight commission salesperson against future earnings, which guarantees a stable cash flow is called a

draw.

The first thing a salesperson should do in dealing with a customer's complaint is:

encourage the customer to tell his or her whole story.

With _____, the emphasis is on helping the buyer realize the synergy of carrying all associated products of the same brand or manufacturer.

full-line

Clark, a fellow salesperson, has become very frustrated by his inability to handle customer complaints. "Frankly, I don't know what to do when a customer starts telling me about a problem," he says. You should advise Clark to:

handle the grievance in a friendly manner.

House accounts

have no "true" salesperson.

Anton has determined the facts in his customer's complaint. His next step should be to:

offer a solution and gain agreement that the proposed solution is acceptable.

Mack is a salesperson. His _____ for next year is to sell $525,000 worth of merchandise in his territory.

revenue quota

A _____ plan typically pays a certain amount per sale, and the plan includes a base and a rate but does not include a salary.

straight commission

The major advantage of the straight commission compensation approach is that it

ties compensation directly to performance.