Ch.3 - Textbook Help

It is unusual for salespeople to have to think about ethics on the job. T/F

False

The practice of reciprocity: A) involves an illegal exchange of cash B) is monitored closely by the FCPA C) results in improved competition among sales and marketing firms D) is illegal when one company pressures another company to join an agreement E) is another name for slander

is illegal when one company pressures another company to join an agreement

If you are not breaking the law, then you are definitely acting in an ethical manner. T/F

False

Individuals with high levels of emotional intelligence rarely display the qualities needed to be successful in sales because they appear untrustworthy. T/F

False

It is almost impossible for management to develop guidelines for sales personnel regarding the giving of gifts to customers. T/F

False

Anne, a sales representative for a software firm, is heading to Europe for a sales presentation. Anne is unsure about the practice of gift giving and wants to make sure that she is perceived as ethical by the other firm. Which of the following should Anne LEAST likely do in this situation? A) Check the company policy about gift giving. B) Ensure that the gift is a small, thoughtful token. C) Give the gift before doing any business with the customer. D) Avoid giving the impression of buying the customer's favor. E) Ensure that the customer views the gift as a gesture of goodwill.

Give the gift before doing any business with the customer.

Culture is the sum total of beliefs, values, knowledge, ethnic customs, and objects that people use to adapt to their environment. T/F

True

Ethical standards tend to filter down from the top of a business organization. T/F

True

Product disparagement constitutes a type of business defamation. T/F

True

The major outcome of a business agreement based on reciprocity is a mutual exchange of benefits. T/F

True

The role of the salesperson is to diagnose buyer need and determine how to create value from the situation. T/F

True

________ are deep personal beliefs and preferences.

Values

Which of the following would be most helpful to salespeople in dealing with bribery? A) a well-established corporate policy on bribing B) knowing that bribery is sometimes illegal C) knowing that bribery is often unethical D) a sales manager who has given bribes

a well-established corporate policy on bribing

In the partnering-style seller/buyer relationship, what is the foundation for creating value? A) emotional intelligence B) communication skills C) customer-oriented strategies D) organizational policies E) ethical decision making

ethical decision making

The term ________ can be defined as a mutual exchange of benefits, as when a firm purchases product from its own customers.

reciprocity

In consultative sales, the customer's primary focus is a trustworthy: A) product B) salesperson C) organization D) culture E) industry

salesperson

Raj, a sales representative for a software firm, Orion, is giving a sales presentation to Marion, a buyer for a large manufacturing firm, Global-Tech. A sales agreement between the two firms would establish a partnering relationship and a strategic alliance. Which of the following questions is most important to Marion as she makes a buying decision? A) Is Raj a well-qualified sales representative? B) Can Raj be trusted to offer viable solutions? C) Will Raj's product be delivered in a timely manner? D) What competencies can Orion provide to Global-Tech? E) Are the values and principles of Orion and Global-Tech similar?

Are the values and principles of Orion and Global-Tech similar?

A majority of states have passed legislation establishing a cooling-off period during which the consumer may void a contract to purchase goods and services. T/F

True

Which of the following most likely has the LEAST influence on a salesperson's ethical behaviors? A) sales manager's actions B) company policies and practices C) salesperson's personal values D) consumer group statements E) behaviors of top management

consumer group statements

"Erosion of character" takes place when employees: A) have too many clients B) are not trained adequately C) do not have enough product knowledge D) engage in dishonest behavior E) compete with others in the same company

engage in dishonest behavior

Taking time to establish a proper rapport with customers will most likely lead to: A) guaranteed sales B) open communication C) a faster sales cycle D) a slower sales cycle E) lower commissions

open communication

When a customer reveals confidential information about a competitor to a salesperson, the preferred course of action is for the salesperson to: A) preserve the confidentiality of information they receive B) accurately relate the details to top management C) inform the competing company about the useful information in exchange for a sale D) request that the customer not comment further because of the conflict of interest E) clarify the details to make sure the information is correct

preserve the confidentiality of information they receive

In transactional sales, the customer's primary focus is a trustworthy: A) product B) salesperson C) organization D) culture E) industry

product

The major types of business defamation are business slander, business libel, and ________.

product disparagement

Which of the following is LEAST likely a characteristic of a person with a high level of emotional intelligence? A) self-confidence B) professionalism C) adaptability D) optimism E) empathy

professionalism

In general, U.S. ethical codes when doing business in foreign countries tend to be: A) more accepting of bribery but less accepting of libel B) more accepting of libel but less accepting of bribery C) more relaxed than the codes of other countries D) the same as the codes of other countries E) stricter than the codes of other countries

stricter than the codes of other countries

Which of the following would be the best application of principles regarding gift giving to customers? A) Give gifts before doing business with a customer. B) Determine the gift-receiving policy of the customer's company. C) Once begun, maintain a regular and consistent pattern of gift giving. D) Clearly explain the conditions you expect of the customer who accepts a gift. E) Give a gift proportional to the sale you expect to make from the customer.

Determine the gift-receiving policy of the customer's company.

A company's sales goals will never be in conflict with ethical behavior on the part of salespeople. T/F

False

Most people employed in the fast-paced business world, which is constantly changing, will adopt or discard values quickly. T/F

False

The Uniform Commercial Code is a legal guide that strives to reduce the number of telemarketing calls. T/F

False

The primary focus of trust in transactional sales is trust in the person who sells the product. T/F

False

The salesperson should entertain all customers with the same activity to avoid the appearance of favoritism. T/F

False

Which of the following statements about culture is most likely FALSE? A) Indirect communication is preferred in Africa. B) Harmony is highly valued in Asian countries. C) Gift giving is considered unethical in China. D) Americans value promptness for business meetings. E) Tactfulness is important when doing business in Arab countries.

Gift giving is considered unethical in China.

________ must be viewed as an exchange of value.

Personal Selling

According to the text, one of the "half-truths" that has influenced the erosion of character in business is that: "Corporations exist to maximize shareholder value." T/F

True

Business defamation incurred when an unfair and untrue statement is made about a company in writing is known as ________.

business libel

Teresa Fallon sends a written proposal to a customer. In the proposal, she compares the specifications of her product and a competing product. If the information about the competing product is not true, she is using a form of defamation called: A) business libel B) business slander C) product disparagement D) puffery E) bribery

business libel

Business associations and professional organizations that have created written codes of ethics: A) make it more difficult for salespeople in their industry to close sales B) make it more difficult for competing companies to be honest about benefits and features C) make it easier for salespeople in those industries to know what is considered ethical behavior and what isn't D) make it easier for unethical salespeople to have a false advantage with prospects E) make it easier for law enforcement to build a case against companies for racketeering or collusion

make it easier for salespeople in those industries to know what is considered ethical behavior and what isn't

Which of the following is most useful in guiding a salesperson in ethical behavior? A) official company policies on bribes and kickbacks B) salesperson's actions at previous jobs C) role model provided by sales manager D) competitors' actions E) customer expectations and desires

role model provided by sales manager

Which of the following is most likely a danger of Internet usage in sales? A) changing information about products B) sorting customer information with data mining C) using extranets to place and monitor customer orders D) providing customers with information about competitors E) sending inappropriate e-mails to customers or to each other

sending inappropriate e-mails to customers or to each other

Withholding information is most likely: A) another name for reciprocity B) legal and always ethical C) only unethical if done under duress D) the only logical course of action E) similar to lying in some cases

similar to lying in some cases

"Always doing what you say you will do" builds a relationship with customers based on: A) transactions B) trust C) a written code of ethics D) customer-focused strategy E) product knowledge

trust

If you view your employer's instructions or influence as improper, then you should most likely: A) report your company to your industry's governing body B) do what everyone else is doing C) compromise your values in order to keep your job D) voice opposition to the practice if it is in conflict with your value system E) follow the lead of your colleagues

voice opposition to the practice if it is in conflict with your value system

Reciprocity is sometimes, but not always, unethical behavior. Which of the following situations is an example of reciprocity which is unethical behavior? A) An architect refuses to allow any other builders to build her designs because she doesn't trust the quality of the jobs performed by other builders. The builder does not build designs by other architects because other architects cut corners in the designs. B) A plastics company is willing to develop a special process for coating nonstick cooking equipment. As a thank-you, the cooking equipment company allows employees of the plastics company to use the same employee discount its own employees enjoy for purchases of cooking equipment. C) A restaurant chef buys all his produce from the local farmers' market. The farmers and workers at the market eat their meals at that restaurant on the days they sell at the market. D) A garbage hauling service requires that a hotel chain give a discount to employees of the garbage hauling service in exchange for discounted garbage hauling services for the hotels. E) The merchants in one neighborhood of a large city have decided to engage in a "buy local" campaign and to patronize each other whenever possible, even if they could find slightly lower prices in other areas of the city.

A garbage hauling service requires that a hotel chain give a discount to employees of the garbage hauling service in exchange for discounted garbage hauling services for the hotels.

Which of the following practices is most likely to be viewed by both salesperson and customer as unethical? A) The salesperson gives the customer a cut glass paperweight with the company's name engraved on it at the end of December. B) A salesperson gives a potential customer tickets for front-row seats at a sold-out concert of the potential customer's favorite singer. C) The company throws an annual party for its clients at company headquarters that includes a buffet and open bar. D) At a software convention, a software sales rep takes its top five clients out for dinner at an expensive steakhouse. E) A railway company gives all of its vendors a 20% discount on passenger rail services.

A salesperson gives a potential customer tickets for front-row seats at a sold-out concert of the potential customer's favorite singer.

Harold Timmons is in a position to close a large sale if he conceals certain information that the customer needs to make an intelligent buying decision. Harold's sales manager encourages him to withhold the information and says, "You will not be breaking any law." Which of the following statements would most likely help Harold in this situation? A) A salesperson's ethical sense must extend beyond the legal definition of right and wrong. B) Cooling-off laws prevent customers from being harmed by unethical salespeople. C) The code of ethics established by management justifies all ethical and unethical choices. D) The firm's moral tone is established by salespeople who have daily customer contact. E) An action is ethical if a salesperson can defend it successfully to a group of peers.

A salesperson's ethical sense must extend beyond the legal definition of right and wrong.

According to the author of Integrity Selling for the 21st Century, which of the following statements about values is true? A) Our values change frequently throughout life. B) Most people find it easy to clarify their values. C) A salesperson's values contribute more to sales success than do techniques. D) Values have only limited influence on our behavior. E) Values should be aligned with the culture of the firm.

A salesperson's values contribute more to sales success than do techniques.

Which of the following is a general guideline that serves as a foundation for a personal code of business ethics? A) Personal selling is a stepping stone to more legitimate careers. B) Be honest with yourself and with others. C) Tasks come first, relationships second. D) Your values should not be in conflict with those of your employer. E) Selling is about controlling the interaction and managing the relationship

Be honest with yourself and with others.

Which of the following statements is most likely true about conducting business in China? A) Take the initiative and move quickly to close deals. B) Bow slightly and shake hands when greeting others. C) Making a toast during a banquet is considered bad luck. D) The lowest ranking person in a room should be introduced first. E) Handkerchiefs and clocks are appropriate gifts that suggest good luck.

Bow slightly and shake hands when greeting others.

Edward, a pharmaceutical sales representative, tends to focus primarily on highlighting product features and making quick sales when interacting with customers. Sometimes, Edward misleads customers about the benefits and side effects of certain medications. Edward's sales manager has noticed that Edward's customer retention rate is very low and is concerned about Edward's personal code of ethics. What is the best advice that the sales manager could give to Edward? A) View personal selling as transactional. B) Develop strategic alliances for profitability. C) Focus on tasks first and relationships second. D) Build customer relationships based on honesty. E) Behaviors are the foundation for values and attitudes.

Build customer relationships based on honesty.

Daniel Santiago has just taken a job as a sales rep with a family-owned company that uses its ethics as part of its marketing campaign with the slogan, "Without integrity, service means nothing." After calling on several clients, however, he discovers that the sales rep who previously covered his territory was giving kickbacks to customers in exchange for exclusive contracts with the company. Daniel is fairly certain that his sales manager is not aware of this arrangement. What should Daniel most likely do? A) Daniel should say nothing and continue the kickback plan his predecessor started because it seems to be the norm in this industry. B) Daniel should avoid causing waves with his sales manager and go along with the kickbacks for now, but tell his clients that he will not be able to continue them in the future. C) Daniel should meet with his sales manager immediately to discuss the situation and ask for guidance in how to tell the clients that he cannot continue the kickbacks. D) Daniel should tell the clients that he cannot continue the kickbacks and say nothing to the sales manager if he loses clients that his predecessor worked to develop. E) Daniel should leave the company and look for a position in a firm that does not have a mechanism for giving kickbacks.

Daniel should meet with his sales manager immediately to discuss the situation and ask for guidance in how to tell the clients that he cannot continue the kickbacks.

Martin, a sales representative for a computer firm, receives the latest performance report on the main product he sells. Unfortunately, Martin's product performs slightly behind that of the closest competitor, and Martin is afraid that this information will cause him to lose customers. The research and development team has made some major improvements in the product, but the next performance report is not due out for another six months. What should Martin most likely do to prevent the loss of customers? A) He should pretend that the recent performance report has not come out and tell his customers that he doesn't know when it will be out. B) He should change the numbers on the performance report to indicate that his product performs better than the competition's product. C) He should avoid direct contact with his customers until the next performance report comes out. D) He should expose the performance report but explain to customers that the product has been improved and new data will be available in six months. E) He should change the numbers for the competitor so it looks as if the two companies' products perform equally.

He should expose the performance report but explain to customers that the product has been improved and new data will be available in six months.

An American company has been working on a business deal in a developing nation. This deal will open an entirely new market to the American company, increase stability in the local economy, and provide jobs to thousands of local workers. When the deal reaches the final phases, the local government asks for a sizable bribe from the American company to move forward with the proper permits to continue with the project. Which of the following is the proper analysis of the situation? A) Paying bribes violates U.S. laws, so the deal may fall through. B) Reciprocity is illegal in most foreign countries but not necessarily in the U.S. C) U.S. bribery laws are suspended in foreign countries, so paying the bribe is acceptable. D) According to U.S. laws, bribes are equivalent to gift giving, so they are an accepted aspect of conducting business. E) The U.S. firm must consult the International Uniform Code of Business to determine the legality of the bribe.

Paying bribes violates U.S. laws, so the deal may fall through.

Ron, a sales representative for a software firm, is giving a sales presentation to Mona, a buyer for a large manufacturing firm. Making a sale to Mona would double Ron's sales amount for the month and lead to a large commission. As they're engaging in small talk, Mona mentions to Ron that she's a huge fan of the local college football team. Ron's wife works at that college and can get season tickets for the games. What should Ron most likely do? A) Ron should ask Mona more about her interest in the football team to discover if she would like tickets or if she already has her own. B) Ron should ask his sales manager after the sales meeting if he should offer Mona tickets to the games. C) Ron should assume that by mentioning the team, Mona is subtly letting him know what her preferences are so that he can give her a gift to win her business. D) Ron should offer Mona season tickets to the games to influence her to buy the software product he is selling. E) Ron should let the comment go and continue with the presentation to win Mona's business on the merits of the product and price.

Ron should let the comment go and continue with the presentation to win Mona's business on the merits of the product and price.

Accu-Tech, a small company in a tightly-contested market, discovers that sales reps of the firm's main competitor, Compu-World, have been making false and negative statements about Accu-Tech products and services. One of Accu-Tech's best customers calls the company's CEO asking about the rumors, and the CEO realizes that Accu-Tech may lose business from the Compu-World claims. What should Accu-Tech most likely do? A) Take out a full-page ad in the local newspaper disputing the claims with facts and stating that Compu-World has been lying to customers. B) Talk to Accu-Tech customers in person to give them the facts and research that support the truth about the firm's products and services. C) Contact the Compu-World CEO and arrange to divide up the local market to avoid duplicitous sales tactics. D) Take Compu-World to court for business libel and reciprocity unless the firm issues a public apology. E) Engage in a mass media campaign to spread negative information about Compu-World.

Talk to Accu-Tech customers in person to give them the facts and research that support the truth about the firm's products and services.

Which of the following is a point of view that has most likely eroded character in business? A) Innovation and aggressive development of markets should be rewarded. B) Respect must be earned, not mandated. C) Corporations exist to maximize shareholder value. D) Integrity may not show immediate results but will eventually return to you. E) Teamwork is a core value of successful companies.

Teamwork is a core value of successful companies.

A sales rep is in a foreign country and has spent several days with a buyer for a large chain of convenience stores. At the end of the week, the sales rep feels confident that the buyer is ready to purchase, so he asks for the close. The buyer responds that he will be happy to place a large order for the chain as soon as the sales rep gives him an appropriately-sized gift. What should the sales rep most likely do? A) The sales rep should give the buyer the gift. B) The sales rep should tell the buyer that Americans are not allowed to give gifts in exchange for business. C) The sales rep should convince the buyer that he will give him the gift after the papers are signed, and then refuse to give a gift after the order has been paid. D) The sales rep should consult with his sales manager to determine if gift-giving is an ethical and acceptable practice within the confines of an international business situation. E) The sales rep should give the buyer the gift but make this contingent on a longer-term relationship involving repeat orders.

The sales rep should consult with his sales manager to determine if gift-giving is an ethical and acceptable practice within the confines of an international business situation.

Which of the following is a fairly easy way for a company to discourage unethical behaviors by its employees? A) Have a zero tolerance policy so anyone suspected of unethical behavior would be immediately terminated. B) Require all potential hires to have completed a privately-conducted ethics course before submitting their applications for employment. C) Allow employees to unionize so their actions will be dictated by the union. D) Change the Employee of the Month program to celebrate the employee with the fewest ethical violations. E) Write up an ethical code, refer to it as a company value in the employee handbook and on the website, and ask management to adhere to it strictly to lead by example.

Write up an ethical code, refer to it as a company value in the employee handbook and on the website, and ask management to adhere to it strictly to lead by example.

Accu-Tech, a small company in a tightly-contested market, discovers that sales reps of the firm's main competitor, Compu-World, have been making untrue and unfair oral statements about Accu-Tech products and services. Which term best describes the actions of Compu-World sales reps? A) business libel B) business slander C) product liability D) product disparagement E) organizational reciprocity

business slander

What form of business defamation arises when an unfair and untrue oral statement is made about a competitor? A) business libel B) reciprocity C) bribery D) puffery E) business slander

business slander

People with high levels of ________ tend to display the characteristics needed for success in sales, such as self-awareness, self-confidence, empathy, and adaptability.

emotional Intelligence

CRM software can most likely help a salesperson to: A) develop better presentation skills B) negotiate long-term contracts C) fulfill commitments to customers D) increase transactional sales E) implement the marketing mix

fulfill commitments to customers

A salesperson from Company A discovers that salespeople from Company B have been telling customers that Company A's safety records are falsified. The most ethical action a sales manager from Company A can take to remedy the situation is: A) have Company A's safety records audited and publish the results of the audit on their website, and ask Company A's salespeople to direct customers to them B) tell Company A's salespeople to match the actions of Company B's salespeople by implying that Company B's safety records may be falsified C) file an anonymous complaint with the Attorney General in the state in which both companies operate D) pay a visit to the corporate offices of Company B and threaten Company B's sales managers with a pricing war unless Company B's sales reps stop spreading false rumors E) create a website detailing the safety records of all the companies in the industry so consumers can compare easily

have Company A's safety records audited and publish the results of the audit on their website, and ask Company A's salespeople to direct customers to them

Reciprocity, as a corporate policy, is: A) always a breach of ethics B) illegal in the U.S., but not in other countries C) only a worry if the heads of the companies know each other personally D) easier to navigate if the companies are in different industries E) occasionally a form of corporate blackmail

occasionally a form of corporate blackmail

) In strategic alliance sales, the customer's primary focus is a trustworthy: A) product B) salesperson C) organization D) culture E) industry

organization

If a potential client hints that they will give you a sale if you give them a gift, you should most likely: A) give the potential customer a gift B) tell your sales manager you are giving the customer a gift in exchange for the sale C) report this to your sales manager and ask for help turning the customer down D) report the customer to the Better Business Bureau or other oversight group E) refer the potential customer to another vendor who may more willingly participate in bribery

report this to your sales manager and ask for help turning the customer down

Yukie, a salesperson for a North American car manufacturer, told one of her prospects that Honda was being investigated in Japan for unfair labor practices. Although she had heard the rumor from someone else, she was confident it was false. Yukie is guilty of: A) libel B) product disparagement C) reciprocity D) false advertising E) slander

slander

A salesperson's sales manager exerts strong influence on whether the sales rep acts ethically or not. A sales manager may not even be aware of the influence she wields or the effect her words or management techniques have on her employees. Of the following actions by a sales manager, which one could most easily be construed by an employee as a directive to use unethical conduct? A) offering an incentive or prize to salespeople who meet or exceed their quotas B) sending an e-mail to the entire department whenever a sales rep closes a sale C) telling sales teams that they need to hit their quotas no matter what it takes D) modifying sales territories to ensure that key accounts are actively monitored E) contacting key accounts to let them know the company stands behind its product

telling sales teams that they need to hit their quotas no matter what it takes

It is important to record the facts of an interaction with a customer in CRM software but not your conclusions, because: A) it is never appropriate to make conclusions from data without consulting the research department B) recording conclusions is a breach of ethics C) coworkers could use this information to sabotage your sales D) this information could become available to the customer in the future E) the competition has access to the same databases you do

this information could become available to the customer in the future

According to the text, ________ influence ________, which then influence ________. A) attitudes; behaviors; values B) behaviors; attitudes; values C) values; attitudes; behaviors D) attitudes; values; morals E) morals; attitudes; values

values; attitudes; behaviors

A company operating exclusively in the United States is considering purchasing a training course in ethics for its employees to help them understand what actions are considered ethical and unethical, especially in relationships with clients. Which of the following makes a difference in whether they should choose a training course? A) cost of the printed version vs. the online version B) whether the course is targeted to a U.S. audience or companies operating in other countries C) number of training modules and how many topics each module covers D) whether or not it covers tax codes E) length of time it will take to complete the course

whether the course is targeted to a U.S. audience or companies operating in other countries