Mktg 354 Ch.14

To avoid _____, salespeople should regularly audit their own customer service. A. expansion B. synergy C. complacency D. dependability E. resistance to change

complacency

Which of the following is most likely to occur in the commitment stage of developing partnerships? A. Evaluating after-sales services B. Gathering precall information C. Managing change D. Cold calling prospects E. Getting an initial order

Managing change

Corporate culture: A. shapes the attitudes of employees. B. reflects the values and beliefs held by senior management. C. influences the development of programs and policies. D. determines how employees act. E. all of the above.

all of the above.

Which of the following represents a way by which a salesperson can ensure having a good number of personal contacts in the customer's firms? A. By using the electronic data interchange system to control communication with the customer B. By using specialty advertising items to make the selling firm's presence felt in the customer's firm C. By cultivating three relationships each at three organizational levels of the customer's firm D. By minimizing the use of strategies like cross-selling, full-line selling, and upselling with the customer's firm E. By avoiding action on any trust-destroying conflict that the customer may have

By cultivating three relationships each at three organizational levels of the customer's firm

Which of the following statements about upgrading is true? A. It is the same as cross-selling. B. The objective of upgrading is to expand the seller's business by selling to the customer in bulk quantities. C. To upgrade a customer the salesperson must show that the initial purchase was not exactly what the customer needed. D. During the needs identification phase of upselling, it is a good idea to emphasize that the initial decision was a good one. E. All of the above.

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

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? A. Recognition B. Expansion C. Exploration D. Commitment E. Awareness

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? A. Recognition B. Expansion C. Exploration D. Commitment E. Co-development

Exploration

CarlTech knows how important it is to process and deliver orders to clients on time. Recently, the company made some major changes to streamline the process by which its salespeople monitor and process orders. As a part of this initiative, it installed a system which allows the computers of the salespeople and customers to communicate directly. This system allows its customers to place orders across different time zones and geographical locations. CarlTech is using a(n) _____ system in this scenario. A. database management B. specialty advertising C. electronic data interchange D. sales asset management E. collateral management

electronic data interchange

The first thing a salesperson should do in dealing with a customer's complaint is: A. offer a satisfactory solution. B. emphasize that another member of the selling firm is at fault. C. determine whether the buying or selling firm is at fault. D. represent the customer's position to the selling firm's personnel. E. encourage the customer to tell his or her whole story.

encourage the customer to tell his or her whole story.

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. A. exploration B. commitment C. awareness D. expansion E. dissolution

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. A. exploration B. commitment C. awareness D. expansion E. dissolution

exploration

In the _____ stage of developing a partnership, the relationship is defined through the development of expectations for each party. A. commitment B. exploration C. awareness D. expansion E. dissolution

exploration

After building awareness, the next stage in the development of a partnership is: A. recognition. B. expansion. C. exploration. D. commitment. E. insight.

exploration.

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. A. cross-selling B. upgrading C. full-line selling D. saturation selling E. insight selling

full-line selling

With _____, the emphasis is on helping the buyer realize the synergy of carrying all associated products of the same brand or manufacturer. A. solo exchange transactions B. insight selling C. cross-selling D. upgrading E. full-line selling

full-line selling

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. B. getting acquainted with the client's needs. C. using the strategy of bulldozing. D. engaging in full-price selling. E. all of the above.

generating more reorders.

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: A. adopt an antagonistic attitude. B. assume the problem is the customer's fault. C. handle the grievance in a friendly manner. D. attempt to sell a different product to the customer. E. do none of the above.

handle the grievance in a friendly manner.

To improve the likelihood of reorders, a salesperson can: A. be present at the time of the purchase. B. make sure the customer has access to his or her company's catalogs. C. provide the customer with various specialty advertising items which contain the selling firm's name, logo, and Web site. D. provide the customer with periodic maintenance and repair on his or her purchase. E. all of the above.

all of the above.

A champion is also known as a(n): A. influential adversary. B. gatekeeper. C. spotter. D. internal salesperson. E. driver.

internal salesperson.

When Marion convinced a customer to replace his old Pondmaster 1000 aquarium filter with the new and improved Pondmaster 1500, she was engaging in: A. cross-selling. B. upgrading. C. repositioning. D. full-line selling. E. incremental selling.

upgrading.

Which of the following statements about complaints is true? A. It is wise to assume that all complaints are unjustified. B. It is not the job of the salesperson to forestall future complaints. C. Firms do not set up procedures for dealing with claims over $200 because claims this large may require legal advice. D. A fair settlement made in the customer's favor helps to resell the company and its products. E. A customer who doesn't complain is a happy customer.

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

Which of the following statements about complaints is FALSE? A. The customer must perceive the settlement of the complaint as being fair. B. The settlement that will be provided must be clearly communicated. C. A salesperson settling a claim should educate the customer to forestall future claims. D. A fair settlement made in the customer's favor helps to resell the company and its products. E. A salesperson who is convinced that a claim is dishonest should take action by filing a case against the customer.

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

Which of the following actions is still necessary after the partnering process reaches the expansion stage? A. Identifying additional needs B. Monitoring order processing C. Ensuring proper use of the product D. Handling complaints E. All of the above

All of the above

Which of the following is a likely reason for a customer complaint? A. The salesperson set the buyer's expectations too high. B. The terms of the sales contract were not met by the salesperson. C. The product required extensive technical expertise to operate. D. The product was used improperly by the customer. E. All of the above.

All of the above.

Which of the following statements is true of the different categories of relationships with suppliers? A. The first stage involves the formation of selective or strategic partnerships. B. An annual contract is an example of a coordinative relationship with a supplier. C. Selective and strategic partnerships are examples of market exchanges. D. Functional partnerships essentially involve an integration of departments across the two companies. E. Strategic partnerships represent the most commonly seen buyer-supplier relationship.

An annual contract is an example of a coordinative relationship with a supplier.

Which of the following is NOT one of the tips for management to encourage effective cross-selling? A. Avoid setting cross-selling goals B. Cross-selling often involves additional training C. Know all of your company's products D. Provide incentives for cross-selling E. Track results of cross-selling efforts

Avoid setting cross-selling goals

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? A. Culmination B. Dissolution C. Commitment D. Awareness E. Covenant

Commitment

Which of the following statements about complaints is true? A. Handling complaints properly is most important during the commitment stage of a partnership. B. Complaints cannot be eliminated; they can only be reduced in frequency. C. Complaints should be predominantly attributed to the customer's handling or misuse of the product. D. Only when complaints are eliminated can a true partnership be formed. E. All of the above.

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

Which of the following is a feature of the dissolution stage of partnership development? A. Keen awareness of the potential plans of the partnering firm B. Insight into the competitor actions C. Extensive network of personal and professional contacts in the partnering firm D. Failure to update oneself about the changes occurring in the industry E. High degree of competence even at the latter stages of a partnering relationship

Failure to update oneself about the changes occurring in the industry

_____ selling is defined as selling the entire line of associated products. A. Full-line B. Cross C. Insight D. Rebate E. Full-price

Full-line

Which of the following occurs in the expansion stage of developing partnerships? A. Developing new products jointly B. Designating the vendor as a preferred supplier C. Sharing proprietary information with the vendor D. Securing complete commitment from the client E. Generating reorders from the customer

Generating reorders from the customer

Which of the following is the first step toward reducing the probability of a trust-destroying conflict? A. Give a clear product description B. Define who has the authority to do what within the selling and buying organizations C. Document any changes made to the contract D. Ignore complaints from the buying center E. Dissolve the relationship

Give a clear product description

Angela is a salesperson for KSU exercise equipment. She wants to sell deluxe exercise stations to Silver Workout Centers. Hans is the assistant regional director of Silver Workout Centers in the greater Chicago area, and is acting as a champion for Angela's product. We should expect all of the following EXCEPT: A. Hans will prevent Angela from meeting the members of the buying center at the home office. B. Hans will sell Angela's proposal at the home office in her absence. C. Angela will provide Hans with a lot of information about her proposal and equipment. D. Hans will be promoting the exercise equipment to other members of the buying center. E. Angela will motivate Hans by showing him how the equipment meets Silver's needs as well as his own.

Hans will prevent Angela from meeting the members of the buying center at the home office.

Which of the following statements about positioning a change is true? A. Positioning a change is not at all similar to positioning a product in the mass market. B. Since the salesperson is acting as the change agent, any positioning of a change should take place in the purchasing department. C. Positioning a change is similar to positioning a product in mass marketing. D. Positioning a change is a reactive way of dealing with an initial turndown by the buying firm. E. Salespeople have a limited role in the process of positioning a proposed change.

Positioning a change is similar to positioning a product in mass marketing.

Which of the following statements about the commitment stage of partnership development is FALSE? A. Commitment to the relationship must permeate both the buying and the selling organizations. B. The seller must take a proactive communication stance. C. The corporate cultures of the two organizations must be compatible. D. Salespeople must discourage direct communication among similar functional areas of the two firms. E. There is an implied or stated pledge to continue the relationship.

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

Which of the following statements is NOT a guideline to use when determining the facts about a customer complaint? A. It is easy to be influenced by a customer who is honestly and sincerely making a claim for an adjustment. B. An inexperienced salesperson might forget that many customers make their case for a claim as strong as possible. C. Whenever possible, the salesperson should examine, in the presence of the customer, the article or product claimed to be defective. D. Experienced salespeople soon learn that products may appear defective when actually nothing is wrong with them. E. Starting an inquiry into the nature of a complaint is an effective way to postpone action to resolve a complaint.

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

Which of the following statements about the follow-up a salesperson performs after a sale is true? A. The nature of the follow-up should reflect the needs of the buying center member being contacted. B. Personal follow-up visits should be avoided because they are expensive and tend to accomplish little. C. Salespeople should follow-up with only those members of the buying center who are directly involved in the use of the product. D. Salespeople should ideally follow the 3-by-3 strategy to make all their follow-up calls. E. Telephone calls are seen as intrusive and must be avoided as a follow-up communication channel.

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

Which of the following statements is true of the tendency of salespeople to not monitor competitor actions? A. When the selling firm is in an invulnerable position, there is no need to study competitor actions. B. Studying competitor actions involves locating data that is not easily accessible to everyone. C. The selling firm is especially vulnerable during a personnel, technological, and directional change. D. Competitor's actions rarely help a company position its products and services better. E. The 3-by-3 strategy is designed specifically to help salespeople understand a competitor's actions.

The selling firm is especially vulnerable during a personnel, technological, and directional change.

_____ is convincing the customer to use a higher-quality product or a newer product. A. Seeding B. Canvassing C. Positioning D. Upgrading E. Feature dumping

Upgrading

Martin was trying to sell pumps for circulating water in goldfish ponds when he realized that the reason he was not able to sell many pumps was the weight of the model he was trying to sell. He approached the firm with the idea to replace every possible metal part of the pump with a hard plastic substitute. After working on his feedback, the pumps became lightweight and were able to meet customers' requirements better. As the _____, Martin saw the project from its conception to the development of a lighter model pump. A. change agent B. gatekeeper C. driver D. spotter E. champion

change agent

In El Salvador, a manufacturer of household insecticide told Dempko Chemical Co. salesperson Nelson Viquez that the company wanted a substitute for the kerosene it had always used in making aerosol household insecticide. Viquez worked extensively with the manufacturer to create a pilot plant and test its pesticides with the addition of Dempko Chemical's Demosol D—a substitute for kerosene. Dempko Chemical and the manufacturer spent a year and a half running laboratory and field tests on the new product, which has been extremely successful in Central America. Viquez acted as a(n): A. change agent. B. influential adversary. C. spotter. D. gatekeeper. E. idea champion.

change agent.

When the buyer-seller relationship has reached the _____ stage of partnership development, there is a stated or implied pledge to continue the relationship. A. culmination B. pinnacle C. commitment D. expansion E. covenant

commitment

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 _____. A. synergy B. complacency C. acceptability D. acquiescence E. competence

complacency

Full-line selling is the sale of those goods and services which are: A. required as a part of the initial order a new customer places. B. purchased by manufacturers and not retailers. C. designed as a line of associated products. D. sold as additional products that are not directly associated with the initial products. E. compulsorily more advanced and more expensive than the initial products.

designed as a line of associated products.

Ralph realizes that most of the people he established a business partnership with are no longer in their organizations. He does not know what his customers are planning next or what his competitors are doing. Ralph is most likely in the _____ stage of business partnerships. A. synergy B. dissolution C. exploration D. expansion E. commitment

dissolution

Anton has determined the facts in his customer's complaint. His next step should be to: A. follow through with the action he has chosen to solve his customer's problem. B. listen to the customer without interrupting when the problem is being described the first time. C. offer a solution and gain agreement that the proposed solution is acceptable. D. discuss how another member of the selling center is actually at fault. E. determine whether his firm or the customer's firm is responsible for the problem.

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

In general _____ status means the vendor is assured of a large percentage of the buyer's business and will get the first opportunity to earn new business. A. reseller B. retailer C. service provider D. preferred supplier E. relationship manager

preferred supplier

Keith Nixon, a salesperson for Paradise Water Gardens, often calls on Olin Wiley, the owner of Lexington Nurseries for sales meetings. He often helps Wiley plan newspaper ads to take full advantage of the co-op advertising allowance that Lexington earns from Paradise. In this example, Nixon is maximizing his sales opportunity with Lexington by: A. ensuring good after-sales service. B. helping service the product. C. providing expert guidance. D. following through with action. E. selling specialty advertising items.

providing expert guidance.

The term _____ refers to the degree to which a change affects an organization. A. scope of change B. change ratio C. rate of change D. change quotient E. change agent

scope of change

An excellent way to generate repeat orders is to be present at buying time, but since not all buyers purchase at predictable times, the salesperson can try to be present in the buyer's mind by using: A. data mining strategies. B. specialty advertising items. C. gatekeepers. D. screens. E. all of the above.

specialty advertising items.