Chapter 2 Quiz

Which of the following is NOT considered an issue that would create an exogenous shock?

A past customer that purchases a property through another agent

The marketing concept consists of three elements. Which of the following describes customer orientation?

Agents that have identified the needs of groups of buyers, sellers, and even other agents

Which of the following is TRUE?

Agents that practice the marketing concept acquire new listings after identifying consumer needs.

An individual enters into a transaction and is clearly the buyer. What other customer roles can this individual take in their current transaction?

Both the user and the decider

How can agents impress sellers in order to gain the listing?

Demonstrate their product knowledge

Although there are many things that enhance the image of a real estate firm, which of the following is NOT typically one of them?

Having customers on hold for more than 17 seconds

If an agency's promotional campaign states that the office is open at 8:00 am, then someone should be in the office answering the phones starting at 8:00 am. The same can be said about the hours of an open house or returning phone calls in a timely manner. These have to do with

Performance

___________ can be defined as doing what you say you will do, and doing it in a timely manner.

Performance

The tool MOST often used to discover an agency's weaknesses is identified by the acronym

SWOT

When agents take the time to explain a lease agreement to a prospective tenant, they are addressing which of the following elements?

Safety and regulations

Which of the following elements is addressed when agents take the time to explain a written offer or a listing agreement?

Safety and regulations

Which of the following elements is addressed when agents take the time to explain the various features of a home and how they work, especially to first-time homebuyers?

Safety and regulations

Suppose a real estate office advertises office hours from 8:00 am until 5:00 pm. However, agents and the staff consistently come to work at 9:00 am. Which of the following does the broker need to address?

Systems orientation

Agents often identify the role players involved in every transaction. Which of the following typically negotiates the transaction?

The buyer

Promotional campaigns that stress aggressive pricing strategies are most attractive to which of the following customer roles?

The buyer

Which of the following is the gatekeeper?

The individual that informs the decider of the details or other information about the proposal

Which of the following best describes an individual that may be a part of a transaction and who can persuade the decision maker to come to a reasonable conclusion?

The influencer

Suppose an investor had the credit and negotiated the purchase of a property for her brother-in-law. The brother-in-law moves into the property. Which of the following also describes the investor and the brother-in-law?

The investor is the buyer and the brother-in-law is the user

Customers expect their interests to be protected by their real estate agent. Which of the following calls for agents to protect those interests?

The marketing concept

Which of the following breakdown long-term goals into manageable weekly and daily goals that must be completed?

Time management skills

An agent shows Mr. and Mrs. Johnson a home. A few days later the agent receives a call from their seller. Afterward the agent calls and reaches Mr. Johnson to inform them that a significant price reduction has come in on a home they viewed three days earlier. However, several days later it's discovered that Mr. Johnson chose not to share this information with Mrs. Johnson. Mr. Johnson took on the customer role of

a gatekeeper

Agents often take a great deal of time to research information and use it in the field. It's understandable that they can easily become possessive of that information. When they don't share this information with others in the office, the broker may view it as

a system breakdown

Operating multiple tasks without conflict is a sign of

a system orientation

A building contractor has experienced a successful year constructing and selling single-family residential homes for the past two years. The contractor has a book full of buyers waiting for their homes to start construction. A month ago, the contractor completed a transaction to purchase 160 acres on which to build 70 new homes. Construction funding was secured immediately thereafter and construction began. However, almost simultaneously, market interest rates for home mortgages shot up dramatically in an attempt to tamp down inflation. The contractors' book of buyers all but disappeared. This is an example of

an exogenous shock

Agents that do not get a name, address, and phone number before ending a call with a prospect

are having difficulty implementing the marketing concept

Staying in touch with past customers involves

building a referral base

The result of touching base with past clients is called

building a referral base

The gatekeeper

controls how and if the information is distributed to the decision maker

The __________ is the one who makes the purchase decision but may not necessarily be the one with the credit to make the purchase.

decider

To differentiate themselves from others, agents must take the time to

demonstrate their uniqueness

Consumer income levels, consumer confidence, interest rate increases, the direction of Treasury bill, bond, or note prices, increases in population density, and other issues outside the control of a building contractor are known as

exogenous shocks

Customer orientation

first identifies the needs of groups of buyers, sellers, or other agents, which may consist of rational or nonrational needs

Taking the time to recognize the various roles each customer plays

helps agents discover the personal or emotional needs of their customers

Agents that observe their net income falling year over year must determine if it is caused by a sudden increase in the cost of living or a decrease in sales volume. If it is a decrease in sales volume it may be a problem with

implementing the marketing concept

An agent runs several advertisements suggesting their listings were asbestos free. The agent wrote the ads after a major expose by several media outlets explained the risks of asbestos on humans. In this example the media acted as a(n)

influencer

When an office manager or the broker coordinates all their marketing activities and makes sure those activities don't conflict with one another or with the overall activities of the company, the firm

is practicing asystems orientation

When agents expend more energy selling the property, rather than re-identifying the customer's needs and addressing them, it's probably because the agent

is product orientation

One issue that brokers/owners have in some offices is in hiring new licensees that have little or no training. The outcome of this

is that high production salespeople move to other offices

Agents that practice customer orientation

list properties that are geographically diverse but with commonalities that are attractive to the target markets.

Most businesses don't produce things regardless of their customers lack of desire or need them. As a result,

most businesses today embrace the marketing concept

Having a distinctive sign and stationery, listening to customers, or viewing properties at the prices the customers want to pay are examples of

office image

The acronym SWOT is a much used marketing tool. One of the letters means

opportunities

Agents often call buyers and sellers even after their obligations to them have ended. They might include them in annual office parties or other events. These kinds of activities are examples of personalizing the business

performance

Some agents provide additional services to their customers, such as free property evaluations, free forms, or free "For Sale By Owner" signs. When they provide these services, they are

personalizing their business

When agents provide their prospects with a free receiving station for incoming faxes, free rental or lease agreements, free property evaluations for their attorney or accountant, and free comparable sales, they are

personalizing their business

Sometimes, an agent feels that a particular property is best suited for a customer, yet the customer doesn't see it that way. The agent can't believe that the prospect doesn't see the advantages of the property. This is an example of having a

product orientation

Prospects purchase homes expecting the plumbing to work, the lights to go on and off, and the roof to be free of leaks. Various things are addressed when building a company image. The item described here concerns

safety and regulations

Agents who explain the complex issues of lease agreements, purchase agreements, or listing agreements are actually addressing

safety issues

When agents take the time to explain lender interest rates, annual percentage rates, and other truth-in-lending issues, they are addressing

safety issues

When it comes to discovering who is the final decision maker, the agents' initial thoughts

should think of everyone in the transaction as the final decision maker, until the interview can narrow it down

Agents are independent and although agents use the information provided by their broker, it is difficult for agents to contribute hard-found data to the group. This may be for fear that they are giving up information that may make them more income. In any case it may jeopardize the firms

systems orientation

Real estate agents are very independent, which often makes it difficult for broker/owners to implement a

systems orientation

Suppose you show a property to prospects and they seem to show an interest in it. After several hours of negotiation in a local restaurant, you prepare an offer but return to the office only to find that this office listing sold two weeks earlier. This situation illustrates a problem in

systems orientation

Which of the following is the MOST difficult for the real estate broker/owner to implement?

systems orientation

Businesses that have learned they must identify consumer needs and meet those needs before developing new products also understand

the marketing concept

An agent has spent the last 45 minutes demonstrating one home. The prospects seem very interested. One of the prospects wants answers to several questions they have, like how wide the built in oven is, how many drawers on the kitchen island, how many cabinets in the home, what's the proximity of the laundry room to the bedrooms, and other issues concerning the features in the home and the benefits they provide. If only one customer role could be assigned, this prospect is

the user

Agents who meet their prospect's needs, even when there is no obligation to do so, are demonstrating

their ability to perform