Negotiation/ Selling Test 3
25. Why should a salesperson use visual aids and get a prospect actively involved in the communication process? A. to avoid repetitive customization B. to create a sustainable competitive advantage C. to get and keep the prospect's attention D. to prevent any distractions from interrupting the presentation E. to do any or all of the above
C
27. Which of the following statements about the buyer's attention and understanding is FALSE? A. Some product benefits cannot be explained adequately in non-technical language. B. If the salesperson does not successfully involve the prospect in the presentation, his or her attention will wander. C. To strengthen impact, appeals should be focus on only one of the prospect's five senses. D. The buyer's attention span is affected by his or her personality. E. Many buyers have difficulty forming clear images from the written or spoken word.
C
32. Which of the following statements about the use of humor in sales presentations is true? A. If used at all, humor should always be derived from the buyer's personal experiences. B. Let the prospect figure out where the humor is; keep a straight face when telling a joke. C. Remember the time spent laughing over a good joke will put everyone more at ease. D. Sell the joke like you sell your product and your company. E. All of the above statements about the use of humor in sales presentations are true.
C
33. The worst type of objection the purchasing agent for the hospital could have is: A. his claim that the x-ray equipment is too expensive. B. his statement that a competing firm offers better service. C. his secret belief that the company cannot meet his needed delivery times. D. his negative response to the salesperson's contention that her company only uses quality materials. E. his contention that the x-ray equipment is not easy to use.
C
38. Why would a salesperson for Visa stain-resistant fabric give his prospective client a shirt made of the Visa fabric? A. The shirt is meant to be a bribe. B. Prospects expect gifts before they will consider a salesperson's product. C. The shirt is meant to gain and keep the buyer's interest in the fabric. D. The gift of the shirt is an unethical act but not an illegal one. E. The salesperson would not give the prospect a shirt because it would be both unethical and illegal.
C
39. For which of the following products would samples be most effective as a sales aid? A. flame thrower B. funeral service C. carpet cleaner D. life insurance E. none of the above
C
39. Which of the following would be classified as an objection related to needs? A. "I don't have the time to look at all the carpet samples you brought in today." B."I understood your company's mercury disposal program is being challenged by the Environmental Protection Agency." C."Our new production method does not yield any flammable wastes, so we can't use your company's oil waste disposal cans." D. "I need to take some time to examine your proposal before making a final decision." E. "The gravity feed eye wash station takes up too much floor space because of the 16 gallons of saline wash it holds."
C
45. Which of the following statements about testimonials is true? A. Progressive sales organizations rarely use testimonials. B. To be valid, testimonials must be sworn before a notary public. C. Testimonials are particularly useful when selling intangibles and relatively new and unusual products. D. The most effective testimonials are generic, which makes them usable with more types of customers. E. None of the above statements about testimonials is true.
C
48. Which of the following is NOT an example of the "I don't like your company" objection? A. "Can your firm offer the same credit terms we've been receiving from Wiggins Company?" B. "How do I know you'll be in business next year?" C. "I wish you included free regular maintenance" D. "Your company isn't very well known, is it?" E. "I won't advertise on a station with such a small audience"
C
50. It has become clear the buyer at Leapheart Construction doesn't think April can handle her job as a supplier sales rep. She has been one of her firm's three most successful sales reps for the past seven years, and was recently assigned the Leapheart account due to a corporate restructuring. Leapheart in recent years has purchased about $15,000 worth of materials per quarter, but since April took the account, the volume has dropped drastically. Most of her sales calls end when the buyer, Sam, says something like, "Look, little lady, I don't need someone like you in here telling me how to build houses. Why don't you just run along and bake some cookies or something." April has been professional in every way, but now believes for the good of her firm the account should be given to a different salesperson who Sam might find more acceptable. The person who will handle the account in the future is Wayne. The change is called a(n): A. pressure transfer. B. conversion. C. turnover. D. clean sweep. E. territory waiver.
C
51. Ever since Alain first called on Premier Meat Packers, he has had trouble dealing with its purchasing agent who seems to resent the fact that Alain was born in France and speaks with a French accent. Alain actually lost a sale because the Premier agent contended that he couldn't understand Alain's accent. The agent thought Alain had promised delivery in two weeks, and the agent needed the order filled in two days. Due to problems like this and other condescending remarks made by the agent, a _____ is the best action for Alain's company. A. pressure transfer B. conversion C. turnover D. clean sweep E. territory waiver
C
51. Which of the following is NOT one of the tips for effectively using computers in sales presentations? A. Be prepared by having backup batteries, adapters, disks, or CDs B. Make sure both you and the customer can comfortably view the output C.To avoid embarrassing downtime when systems crash, have your technical support team on call when you are making presentations D. Really get to know your software E. Make sure your audience has ample opportunity to ask questions
C
52. Which of the following is an example of an objection related to the price? A."I do not understand why you think I need to replace bumper cars; no one has been injured in the ones we currently have. B. "I can't buy the landscaping services of your company because it is too new to have any kind of reputation at all." C. "The fresh cut tulips you want to sell me are not that superior in quality to other tulips that I can buy for less money." D. "I will not allow the carnival workers at this state fair to sell temporary tattoos because I believe they are trashy." E "I don't think we need a shopping cart mover; we've just always let one of the stock boys cruise the . parkinglotandgathercartsmanually.
C
54. Ramiro is cold calling on prospects for his company's office canteen management service. Which of the following objections is he NOT likely to encounter? A. The buyer says she does not have time to discuss his proposal. B. The buyer is not interested in his service. C. The buyer has considered his proposal and decided it is not worth the cost. D. The buyer has been harassed by other aggressive salespeople and does not want to meet with Ramiro. E. The buyer is tired and not in the mood to listen.
C
55. Sunil was illustrating the ease with which the gear shift lever on his company's newly designed lawn mower can be repaired when the bolt holding the lever to the body of the mower would not budge even after a good dosage of lubricant. What is the most appropriate way for Sunil to handle this situation? A. Find himself a more reliable company to work for. B. Immediately call his company's vice-president of production and request an explanation. C. Take a humorous tone and realize mistakes do happen. D. Write the buyer a personal letter of apology. E. Recognize the sale is lost.
C
58. When dealing with the buyer's objections, successful salespeople do NOT: A. develop and maintain a positive attitude about objections. B. relax and listen, never interrupt the buyer. C. postpone known concerns before they arise. D. make sure the objection is not just an excuse. E. anticipate objections in preparing helpful responses.
C
61. Since Melanie's proposal will be sent to the home office in Cedartown to convince executives that the local Vinson Mountain branch office needs the vacuum molding machine she is selling, Melanie would be smart to: A. include her resumé so people in the Cedartown office will be knowledgeable about her. B. enclose a self-addressed, stamped envelope for a reply. C. secure the support of the Vinson Mountain branch manager. D. have the documents delivered by an overnight express company. E. do all of the above
C
61. Which of the following statements about forestalling objections is true? A It should be avoided in written proposals, since it may draw buyer attention to weaknesses that . otherwise would not have been noticed. B. Salespeople use it to deal with aspects of their product offering that are not vulnerable to competition. C. Forestalling keeps prospects from having to publicly change their position, since the objection is never uttered. D. With skill a salesperson will eventually be able to forestall all objections. E. At all costs, avoid any mention of price.
C
64. The proactive method of anticipating objections and answering them before the customer has a chance to raise them is known as: A. pulling. B. predicting. C. forestalling. D. heading-off. E. postponing.
C
70. By investing in a John Deere PowerTech engine for $3,200, the pallet manufacturer was able to show a net savings of $500 in annual maintenance costs. Calculate the return on investment for the engine. A. 1.6 percent B. 6.4 percent C. 15.6 percent D. 21.3 percent E. 32 percent
C
75. The cost of the new saw to cut wood veneers is $14,000. Because of a revolutionary new cutting blade, the new saw will not cause the veneer to splinter and will make clean cuts. This clean cut will save the company $1,200 each year. Using the formula in the text, calculate the payback period for the $14,000 investment. A. 1.67 years B. 8.6 years C. 11.67 years D. 86 years E. cannot be calculated from the information provided
C
76. When the purchasing team at PDQ Plastics Inc. recalculates the value of future income to be earned by a new molding machine into today's dollars, they are: A. quantifying qualitative information. B. measuring opportunity costs. C. discounting the cash flows. D. calculating ROI. E. reducing the payback period.
C
78. "Carla, if instead of spending the $20,000 you're asking us to put into this new advertising idea, we put that money in a new packaging machine to replace the one in the Cartersville plant, we'll save $3,500 annually in maintenance and utility costs." The buyer is basing this objection on: A. sunk costs. B. net present value. C. opportunity costs. D. payback period. E. all of the above
C
79. The _____ is the return a buyer would have earned from a different use of the same investment capital. A. sunk cost B. net present value C. opportunity cost D. gross revenue E. net revenue
C
80. The Peoria Cabinetworks can either spend $18,000 to buy a new laminating machine or use that money to build an extension on its loading dock. The salesperson selling the laminating machine must realize that buyers should look at all _____ before making any major investments. A. sunk costs B. net present values C. opportunity costs D. gross revenues E. net revenues
C
82. Ramiro decides to keep relatively high levels of inventory even though it costs him more. Most likely Ramiro thinks the cost of _______________ are greater than the benefits of increasing his turnover rate. A. collateral B. portfolios C. stockouts D. revenue enhancements E. handouts
C
26. In making her presentation to the building contractor, Lea not only told him about the new wallboard's superiority, she let him see and feel a sample. Lea is using a: A. multiple-sense appeal. B. triple whammy. C. collaborative approach. D. mixed media approach. E. composite appeal.
A
34. Salespeople refer to concerns or questions raised by buyers as: A. objections. B. stumbling blocks. C. grievances. D. skepticism. E. tribulations.
A
36. Joe sells ergonomically-designed office furniture. Joe would find it easier to sell to a customer who: A. asked Joe if there were any financial benefits to buying Joe's company's office furniture. B. sat quietly through the entire presentation. C. spent the time during the presentation looking at the fabric swatches Joe had bought. D. stared out the window at some men cutting a tree during the entire presentation. E. after continually looking at his watch during the presentation finally asked Joe, "What time is it?"
A
40. Which of the following is NOT one of the five major types of objections? A. objections related to satisfaction B. objections related to need C. objections related to product D. objections related to price E. objections related to time
A
46. The best writer of a testimonial is: A. someone above reproach and respected by his or her peers. B. a friend of the salesperson. C. unknown to the prospect. D. someone who no longer uses the product. E. the chief executive officer (CEO) of the selling firm.
A
46. Which of the following would be classified as an objection to the company for whom the salesperson is selling? A. "Isn't your company new in this field?" B. "How do I know you'll meet that delivery schedule?" C. "We can't make a reasonable profit if we have to pay that much for merchandise." D. "Sorry, we're all stocked up." E. "I was looking for a lighter shade of red."
A
47. Which of the following is an example of an objection related to source? A."You're not an engineer; you can't understand the difficulty of drilling for oil in sub sea conditions at 15,000 psi of pressure." B. "The lifelike quality of your silk flowers is just not worth the extra costs your company charges." C. "I need to take some time and consider if I want to pay $3500 for an industrial-strength vacuum cleaner." D."I have always considered the Nitrile gloves to be of superior quality and have never considered buying another brand." E."While I do need entertainment for the Winter Carnival, I have heard that this particular entertainer has shown up to perform drunk."
A
49. A major reason for a turnover (TO) is the: A. prejudice of the buyer. B. buyer's lack of funds to make a purchase. C. inadequacy of the salesperson's call frequency. D. inability of the salesperson to handle objections properly. E. salesperson's lack of product knowledge.
A
49. The use of laptop computers by salespeople in their demonstrations has increased dramatically in recent years. Which of the following statements about their use is true? A. Salespeople use collateral management systems to archive catalog, and retrieve digital media and text. B. Computers are generally not able to offer excellent visuals and graphics. C. It is difficult to perform what-if analyses on laptop computers. D. A laptop computer can store only a small amount of information. E. Information in laptop computers is more difficult to retrieve than in larger computers.
A
50. _____ is any system used to archive catalog, and retrieve digital media and text. A. Sales asset management system B. Marketing information system (MIS) C. Database marketing D. Database selling aid (DSA) E. Computer marketing assistant (CMA)
A
57. A request for proposal (RFP): A. is used when the customer has a firm idea of the product needed. B. is often referred to as a payback period request. C. means that the salesperson will not need to use the needs identification process. D.should be prepared using the finest paper, printing, and ink available as well as the skill of your most adept marketers. E. is used when the salesperson has a firm idea of the product needed.
A
58. Which of the following statements concerning RFPs (request for proposal) is true? A. It may prove to be advantageous to the salesperson to help the customer set specifications. B. Some customers call RFPs proposed negotiation points (PNPs). C.Buyers appreciate proposals that contain stacks of materials that require the buyer to search for answers he or she needs. D. The original RFP may specify the seller's delivery expectations. E. All of the above statements about RFPs are true.
A
60. A written proposal, according to the text, should have three parts, an executive summary, a budget, and: A. a description of the current situation relative to the proposed solution. B. a collection of testimonials from satisfied customers. C. a statement of support from the buying committee. D. photographs of the selling company's officers and buildings. E. the selling firm's pro-forma balance sheet.
A
60. When responding to a buyer's objection, a salesperson should: A. listen as though you have never heard that objection before B. hand the buyer a testimonial or other visual aid refuting that point as soon as you recognize the objection C. take that lull in your presentation as time to make sure the rest of your presentation notes are organized D. raise your hand and stop the buyer's objection as soon as you recognize it E. do none of the above
A
62. Jorge is developing a presentation for a customer. He wants to show how his product will meet the prospect's needs and how it is different from the offerings of competitors. Jorge is developing a: A. customer value proposition. B. stack the numbers analysis. C. turkey trot proposition. D. prototype synthesis. E. benefit to yield proposal.
A
66. Kenya showed the office manager at Arunden Wholesale Nursery how he could pay for the new copier she was suggesting by bringing more of Arunden's printing jobs in-house and saving money that had previously been spent with local printers. Kenya is using _____ to quantify the solution. A. cost benefit analysis B. return on investment C. net present value D. payback period E. opportunity cost
A
72. The payback period: A. indicates how quickly the investment money will be returned in the form of cash inflows or savings. B. can be determined by using depreciation values. C. is in no way a determination of personal risk involved in any buying decision made by a purchasing agent. D. requires that the buyer know the net present value of his or her investment in order to calculate. E. is accurately described by all of the above.
A
74. The deep-frying system for the supermarket deli is exactly like the old one except that it uses less electricity--$10 less electricity per day than the old fryer. Assume there are 21 workdays per month when the fryer is in use. Using the formula in the text, what is the payback period for the $1500 investment in the new fryer? A. A little more than seven months B. A little less than six years C. A little over 9.5 years D. 12.5 years E. none of the above
A
85. Fiona, a manager of a retail store, wants to know whether she is maximizing her return on space. She will likely calculate the ____________ for each area of the store. A. sales per square foot B. cost-benefit C. return on investment D. QR correlation coefficient E. sales per employee
A
33. Charts are particularly useful when: A. copies of recent ads are necessary. B. communicating large amounts of information. C. you need to show that other buyers have been satisfied with your good or service. D. the salesperson needs to perform what-if analyses using information supplied by the prospect during the presentation. E. any of the above conditions occur.
B
37. A new restaurant equipment salesperson who is trying to make the most effective use of her visual aids should NOT: A. arrange her visuals in a logical order. B. vary the art styles, layouts, and scales for her collection of charts and figures to keep them interesting. C. make sure the buyer can see the visuals. D. maintain proper control of the visuals, otherwise the prospect may start thumbing through your catalog . or looking ahead at other visuals before you finish the current visual. E. let the visual interfere with her interaction with the buyer.
B
37. Kerry encounters far more objections at the point in a sales call when he actually attempts to gain buyer commitment than at any other time. This pattern suggests he: A. needs to learn some better closing techniques. B. may be omitting significant selling points in his presentation. C. is asking too many questions during the presentation. D. is doing a good job, since this is a normal pattern. E. is creating an excessive level of interest in new prospects.
B
38. Which of the following statements about objections is FALSE? A. Some buyers have a habit of raising objections just to watch the salesperson squirm. B.People who object to get more information are usually stalling; they hope the salesperson will give up rather ask for commitment. C. Legitimate objections regarding needs can arise if the prospect has not been fully qualified. D. Some people resist change simply because it is different from their experience. E. A prospect who doesn't understand may be unwilling to tell the sales rep so.
B
40. For which of the following products would samples be least effective as a sales aid? A. paper towels B. oil well drilling platform C. stain-removers D. automobile seat covers E. bottles and aluminum cans
B
41. Selling a new and different good, service, or idea is called: A. initial marketing. B. pioneer selling. C. advocacy marketing. D. original selling. E. venture marketing.
B
42. In "Show and Tell That Sells" industrial buyer Regina Conner describes how: A. demonstrations as part of a sales presentation can be effective B. visiting the production facilities of potential suppliers can influence purchase decisions C. implication questions can lead to displays of feature dumps D. a trial close can be enhanced by sharing cost information E. selective perception generates visual interpretation
B
42. When Anton was trying to convince supermarket owners to stock his company's new tea-flavored popsicles, he received many objections because most did not see a need for this product. Anton was engaged in: A. initial marketing. B. pioneer selling. C. advocacy marketing. D. original selling. E. venture marketing.
B
45. Which of the following would be classified as an objection related to the product? A. "My company has always used Troy Refrigeration to repair our freezer display units." B. "I don't understand how your company's system can remove water vapor from our gas pipelines." C. "I recently heard that your company has had to declare bankruptcy." D."I don't believe the money we would earn from using your company's sub sea oil production system would offset its costs." E. "I don't have the time to look at your company's line of laparoscopic surgical equipment today.
B
47. Which of the following statements about portfolios is true? A. Because of cultural and language differences, portfolios should be avoided in international selling situations. B. Remember to look at the buyer, not the visual. C. Items in the portfolio should be placed in it in the order in which they will be used to make sure none is omitted. D. Only insurance salespeople place their portfolios in a binder. E. Every portfolio should include the tangible product itself.
B
52. A product demonstration: A. automatically leads to a sale. B. allows prospects to prove to themselves the product works the way the salesperson claims. C. often wastes time the salesperson should be talking about the product. D. often distracts a prospect from the reason for the sales call. E. does none of the above
B
56. A salesperson who wants to make effective use of handouts during his or her sales presentation should: A. avoid having any white space. B. let the goal of the presentation determine what information should be included in the handout. C. remember information overload is better than information underload. D. use text rather than graphics whenever possible. E. use homemade-appearing handouts to avoid appearing too sophisticated.
B
63. Jorge is developing a customer value proposition for a prospect. He will include: A. a quantified projection of reasonable market share costs. B. features/benefits tailored to the prospect and proof the benefits exist. C. visual presenters of sales asset management solutions. D. a prototype synthesis based on generally accepted accounting procedures. E. all of the above
B
65. Rhonda is suspicious about Adam's statement that his company cannot afford her product. Her precall research on the firm suggested not only do they need the new piece of equipment, but also that financing can be obtained from a local bank. In fact, the more she thinks about it, there was something about the tone of his voice that makes her believe this was just a(n) _____ to hide his real objection to buying. A. explanation B. excuse C. motive D. thought E. objective
B
67. Jennifer showed the Reiser Company billing department that spending $8,000 to buy two top-of-the-line laser printers that would print both the invoice "form" and the information about a particular sale on plain paper at the same time would save the company $32,000 because preprinted forms would no longer have to be purchased and filled in using a typewriter. "That's a savings of 300 percent!" he said. She could have called the 300 percent a(n): A. cost benefit analysis. B. return on investment. C. net present value. D. payback percentage. E. opportunity cost.
B
68. When a sales rep divides the net profits (or savings) produced for a client by the amount of money the client is investing, the resulting figure is called the: A. net revenue. B. return on investment. C. net present value. D. payback percentage. E. opportunity cost.
B
84. ECR, QR, AR, and JIT systems help retailers: A. increase sales through avoiding stockouts. B. save money through reduced inventories. C. increase revenue through enhance advertising effectiveness. D. save money through reduced digital collateral management. E. all of the above
B
24. In the opening profile Andrew Gaffke stresses the importance of having a carefully crafted: A. FAB. B. halo effect. C. product opening. D. value proposition. E. need payoff analysis.
D
29. According to the text, the manner in which the salesperson handles the product can be used to communicate: A. respect for the prospect. B. his or her degree of comfort with the product. C. how well the product has been accepted by other buyers. D. that the product is valuable. E. the contents of the salesperson's portfolio.
D
31. In the opening profile Rachel Gober has found four keys to handling objections including all of the following EXCEPT: A. anticipate objections. B. prepare your response. C. credence objections from the beginning by helping the buyer to trust you. D. focus on the goal. E. ask questions and listen to the answers.
D
31. Which of the following statements about the use of humor in sales presentations is true? A. Humor should never be used in sales presentations. B. Be sure to use humor that is relevant to the group to which you are selling--such as tax humor for accountants. C. Do not practice telling jokes because rehearsed jokes are boring. D. Don't apologize before telling a joke. E. All of the above statements about the use of humor in sales presentations are true.
D
43. Which of the following is identified by the text as an underlying reason why buyers raise objections? A. The buyers want to challenge the fact that a particular salesperson's company does not permit any cash rebates. B. The buyers have more time than money. C. The buyers do not understand the concept of pioneer selling. D. The buyers misunderstand what the salesperson is describing. E. All of the above are identified by the text as an underlying reason why buyers raise objections.
D
53. Which of the following is an example of an objection related to time? A "We always get a special discount when we order more than two gross of T-shirts with our company . name and logo imprinted on them." B."I don't see how overalls made out of Tyvek are going to offer my employees any more protection than the overalls I usually order." C"I understand your booking agency is being sued for its failure to provide a three-piece band for the . cotillion ball, and I don't want to do business with you until that case is settled." D"Give me a couple of days to look at some other amusement ride suppliers before I decide which rides . toputintothenewsectionoftheamusementpark." E. "I am not reordering from you because it took more than a month for your company to fill my last order."
D
54. Which of the following is good advice concerning the use of demonstrations as part of a sales presentation? A.If your prospect has seen a competitor's demonstration, skip over parts of your demonstration that would be redundant. B. Allowing previous buyers of your product to assist you in your demonstration is dangerous and should be avoided. C. Make your demonstration a separate, stand-alone activity. D. If the demonstration includes dead time, plan what you will do during the lull. E. All of the above is good advice when using demonstrations as a part of the sales presentation.
D
55. Which of the following actions exhibits the positive attitude necessary to handle objections properly? A. Treat the prospect as an adversary. B. When you're right, don't be afraid to argue. C. Pretend to be empathetic. D. Answer sincerely. E. Do all of the above.
D
56. The greatest evidence of Margaret's sincerity in dealing with her customers will be: A. letters from other customers she has satisfied. B. the things she says. C. her company's reputation. D. her actions. E. certifications she has earned.
D
59. Purchasers who issue RFPs like to see the proposal that responds to the RFP include: A. a positioning map. B. a postscript. C. an index. D. an executive summary. E. all of the above
D
59. Which of the following statements about objections is FALSE? A. Objections present opportunities B. Prospects who object are showing some interest in your presentation C. The salesperson should be glad the prospect raised an objection D. Showing belligerence is an excellent way to encourage objections E. Real objections are logical to the prospect, no matter how they seem to the sales rep
D
62. "You'll notice the trimming machine requires workers to pull two levers at the same time. Although this may appear inconvenient, it assures the worker's hands will not be caught in the blades." In this example, the salesperson is _____ an objection regarding the extra effort required to use the trimming machine. A. revisiting B. denying C. predicting D. forestalling E. passing-up
D
63. At the beginning of her presentation, the Tharp Systems salesperson said, "I know my company's bar code label printer is slightly more expensive than the other brands, but my brand is the only one designed to work with Microsoft Windows applications. This makes it easier for your employees to learn to use because it is similar in operation to other computer programs you already use at this supermarket." In this example, the salesperson is _____ an objection about the cost of the bar code printer. A. revisiting B. denying C. predicting D. forestalling E. passing-up
D
64. Salespeople can strengthen their presentations by showing the prospect the cost of the proposal is offset by added value; this is called: A. magnifying the benefit. B. stacking the numbers. C. stuffing the turkey. D. value analysis. E. building the benefit.
D
69. Ron Hurley purchased everything he needed to make sno-cones for $11,600. Last summer he made a net profit of $6,000 making and selling sno-cones at a local lake. Calculate Hurley's return on investment (ROI). A. 11.6 percent B. 17 percent C. 19.3 percent D. 51.7 percent E. 60 percent
D
73. The length of time it takes for an investment's cash outflow to be returned in the form of cash inflows or savings is the: A. net capital refill. B. return on investment. C. net present value. D. payback period. E. opportunity cost return.
D
77. The _____ of an investment is the value of future income (discounted at the firm's cost of capital) minus the up-front investment costs. A. net opportunity cost B. adjusted payback period C. discounted payback period D. net present value E. adjusted opportunity cost
D
81. Tonya is manager of a retail clothing store. A sales rep calling on her offers overnight delivery on all re- orders at no extra shipping cost. This will allow Tonya carry fewer items in the store and save money by increasing her: A. collateral cost-benefit ratio. B. value analysis. C. portfolio rate of return. D. inventory turnover rate. E. multiple outlet profit performance.
D
28. For which of the following products would a multiple-sense approach be effective for ensuring the buyer's understanding of the product? A. products for cleaning public restrooms B. fresh produce C. toilet paper D. low-fat bacon E. any or all of the above
E
30. One tool salespeople can use to strengthen a sales presentation and to make it more interesting is to use stories. Which of the following recommendations should be followed when using stories in a sales presentation? A. Use vivid word pictures in your stories. B. Try to use stories from your own experiences. C. Make sure you have a reason for telling the story. D. Use the "hook" of the story to tie back directly into the presentation. E. All of the above are recommended actions when using a story to strengthen a sales presentation.
E
32. Lillian cringes when customers make objections during her sales presentation. Buyer's objections: A. should never be encouraged. B. should always be made after the sales presentation. C. are the equivalent to a refusal to buy. D. are most useful when they remain hidden. E. are accurately described by none of the above
E
34. For her sales presentation, Myra wants to design a chart which shows how much faster chronic wounds heal when protected with SoloSite, a water-based ointment. To create the most effective chart, she should: A. avoid the use of pie charts or other graphical representation. B. use complete sentences so the buyer does not have to wonder what words are missing. C. use an occasional misspelling to ask as a check to see if the buyer is paying attention. D. intermingle major and minor selling points. E. do none of the above
E
35. When do buyers raise objections? A. after the sale B. when the salesperson seeks commitment C. when the salesperson seeks an appointment D. during the presentation E. at all of the above times
E
35. Which of the following is suggested by the text as a guideline for the proper use of visual aids? A. Decide ahead of time which visuals you will leave with the buyer and have copies already made when you arrive. B. Check your visuals carefully for errors. C. Always relate features to benefits for the buyer. D. Mark your visuals so you can find them easily. E. all of the above
E
36. A salesperson who wants to make effective use of visual aids should do all of the following EXCEPT: A. use current ads. B. use bullets to emphasize key points. C. label each visual with a title. D. don't overload the buyer with numbers. E. hand every customer any and all available testimonials.
E
41. Which of the following items could be used to attract and keep a prospect's attention during a sales presentation for a company that manufactures industrial laundry equipment? A. a catalog that lists prices and specifications of different models of machines sold by the company B. test results showing how little water is wasted by the company's water reclamation system C. a brochure that compares the company's water reclamation to an ATM machine D. maps indicating all the countries where the company sells its products E. all of the above
E
43. The salesperson for the BM&M automated sawdust screen walked into the pallet manufacturer's buying agent's office and handed him a letter from a pallet manufacturer in Georgia. The letter praised the efficiency of the BM&M screen and was especially complementary of the fact that the screen only has six moving parts. This letter is an example of a(n): A. affirmation. B. fabrication. C. illustration. D. attestation. E. testimonial.
E
44. "Mr. Smock, here are copies of letters from three owners of flower shops in the tri-cities area who consistently buy cut flowers for their shops from our company. As you can see, they are extremely pleased with our quick delivery and product freshness." The letters this sales rep is showing Mr. Smock are examples of: A. affirmations. B. fabrications. C. illustrations. D. attestations. E. testimonials.
E
44. Which of the following would BEST be classified as an objection to the features of the good or service the salesperson is selling? A. "Isn't your company new in this field?" B. "I'm not sure I can trust what you're saying." C. "We can't make a reasonable profit if we have to pay that much for merchandise." D. "Sorry, we're all stocked up." E. "I was looking for a darker shade of green."
E
48. Which of the following situations is an appropriate situation for a sales representative to use a VCR? A. Richard must train the salespeople at the retail store that bought his product how to sell it. B. Frank wants his prospect to see the new television commercials that will begin airing next month. C. Cleo desires to show this prospect how others are using the product she sells. D.Allison wants to present how quality is built into her product at the factory, but the factory is on the other side of the world. E. All of the above describe appropriate situations for a sales representative to use a VCR.
E
53. Which of the following is good advice concerning the use of demonstrations as part of a sales presentation? A. Practice B. Plan for things to go wrong C. Probe both during and after the demonstration D. Keep the demonstration simple, concise, and easily understood E. do all of the above
E
57. When dealing with objections, successful salespeople: A. are sincerely empathetic to the buyer's objections. B. make sure the objection is not just an excuse. C. develop and maintain a positive attitude about objections. D. forestall known concerns before they arise. E. do all of the above
E
65. Salespeople can strengthen their presentations by showing the prospect the cost of the proposal is offset by added value. A method of applying this technique, called quantifying the solution, is: A. cost benefit comparison. B. return on investment. C. net present value. D. payback period. E. all of the above
E
66. How do salespeople tell the difference between an excuse and a real objection? A. by observing how the buyer is acting B. by understanding what motivates people to buy C. by learning through experience D. by asking probing questions E. by doing all of the above
E
67. The results of a study showing that 70-100% of the time salespeople offer price discounts when in fact price was not the issue suggests salespeople should: A. observe how the buyer is acting before determining what percentage discount to offer. B. try to understand what motivates people to buy through relationship scenario planning. C. tell small lies rather than large ones. D. avoid asking probing questions so the customer will not talk about price. E. discover the true objection before offering what they think is a solution.
E
71. By investing $36,000 in an electronic gate for the employee parking lot, Risco USA was able to save $90,000 on salaries and benefits previously paid to security guards who monitored the parking lot entrance. The return on investment (ROI) is _____ percent. A. 40 B. 60 C. 66.67 D. 150 E. 250
E
83. Emily is trying to convince her customer that she can help him improve his inventory turnover rate. She will likely describe her company's __________ system. A. ECR B. QR C. AR D. JIT E. any of the above
E
86. Which of the following is recommended as a good way to deal with jitters when making a sales presentation? A. Realize that professional salespeople do not get nervous. B. Pretend you are a dramatic actor who is playing a role in a play. C. Avoid visuals because they will just complicate the presentation process. D.Avoid using any stress management techniques before the presentation because it will alert the prospect to your nervousness. E. None of the above is recommended as a good way to deal with sales presentation jitters.
E