Selling Chapters 1-5

Selling analytics is an attempt to gain insights into customers by using data mining and analytic techniques.

True

Six sigma selling programs are designed to reduce and eliminate errors in the selling system.

True

Tampering with a competitor's product in a store to make the product less appealing is unethical conduct.

True

The muscles around the eyes reveal whether a smile is real or polite.

True

When spending from their company's expense accounts, salespeople should act as though they are spending their own money.

True

When the office manager of an established dentist orders a case of the same brand of dental floss that the dentist's office has been using for years from the same source, it is considered a straight rebuy.

True

Because salespeople's activities in the field cannot be closely monitored, their employers trust them to act in the company's best interests.

True

Broad and vigorous arm movements indicate that a customer is emphatic about the point being communicated verbally.

True

During a sales interaction, the salesperson should verify the information he or she is collecting from the customer, and a useful way to do this is to repeat—word for word—what has been said.

True

Feedback in sales communication can be either verbal or nonverbal.

True

Global sourcing is a key factor in achieving a sustainable competitive advantage.

True

If salespeople want to sell effectively, they have to recognize that the buyer has needs that are met not only by the product but also by the selling process itself.

True

In general, senior executives get more involved in important purchase decisions that have a greater effect on the performance of their organization.

True

In the context of the social style matrix, amiables do not take risks and stick to their opinions.

True

In the early days of selling, companies studied and wrote down the sales pitches of their most successful people and created canned sales pitches.

True

Joshua represents a large drug manufacturer and calls on physicians to explain to them the benefits of prescribing his firm's products to their patients. Joshua is a missionary salesperson.

True

Knowledge about sales situations is equally important to having product knowledge for a salesperson.

True

One outcome of supplier relationship management (SRM) is the ability to consolidate purchases and negotiate better terms.

True

Salespeople need to know about their competitors' products as well as their own because they are frequently asked to compare their products to competitors' offerings.

True

Salespeople selling original equipment manufacturer (OEM) products need to demonstrate that their products help customers produce products that will offer superior value.

True

Salespeople should not send long e-mail messages or large attachments unless buyers are expecting them.

True

Salespeople need to understand that purchases made by their customers' customers are based on

derived demand.

From a buyer's perspective, value in a purchase decision equals

the benefits received − (the selling price + the time and effort to purchase).

If the terms of a contract specify FOB (free on board) factory, then

the buyer assumes the responsibility and risk for any loss during transportation.

When selling a product, the collection of buyer-specific benefits that a seller offers to a buyer is known as

the customer value proposition.

A seller's profit is

the selling price minus the cost of goods sold and the selling costs.

According to UCC, orders become contracts to sell when

they are signed by an authorized representative of the salesperson's company.

In the context of the quadrants of the social style matrix, a significant weakness of expressive salespeople is that

they can seem opinionated, undisciplined, and unstable.

According to UCC, a sale is made

when the contract is completed and the title exchanges hands.

One way to define the speaking-listening differential is to say that

customers can listen to words at a rate that is about five times faster than the rate at which salespeople can speak.

In the context of the most common sales presentation types, salespeople have the greatest opportunity to adapt their presentations to customer needs when using the __________ presentation.

customized

Which of the following is a suggestion for active listening?

All of the answers are correct.

Which of the following questions should one ask oneself to determine whether a sales behavior or activity is unethical?

All of the answers are correct.

According to the social style matrix, people with an expressive style focus on the future, directing their time and effort toward achieving their vision.

True

The selling price of a product is $8,000. The cost and hassle involved in buying the product is $175. The benefit received from the product to a buyer is labeled "A." The seller's profit is $400. In this case, which of the following equations will accurately calculate the buyer's profit?

A − ($8,000 + $175)

__________ laws are established by local, state, or federal regulatory agencies.

Administrative

Which of the following statements is a good advice for salespeople concerned about the proper use of hand gestures?

Avoid dropping your hands down by your sides and keeping them there while presenting.

__________ occurs when salespeople make unfair or untrue statements to customers about a competitor, its products, or its salespeople.

Business defamation

Valerie's goal as a sales representative is to __________, which is the total benefit that her company's products and services provide to buyers.

Create value

Active listening is as important when conversing over the phone as when conversing in person.

True

Larry, an inexperienced sales rep, has asked you to suggest ways to deal with potential ethical problems. What should you suggest?

Develop and maintain a personal code of ethics.

__________ feedback provides information about what you are doing right and what you are doing wrong.

Diagnostic

__________ sell products made by a number of manufacturers to businesses.

Distributor salespeople

A canned presentation provides more opportunity for the customer to participate in the sales interaction than does an outlined presentation.

False

According to the social style matrix, prospects who are categorized as "analyticals" expect sales interviews to proceed at a quick pace.

False

Bribes typically have no negative consequences for the purchasing agent's firm—only for the purchasing agent as an individual.

False

Customers usually view information from independent sources to be less credible than company advertising.

False

During a sales presentation, a contemplative posture is considered a negative nonverbal signal.

False

During face-to-face communication, voice characteristics account for 90 percent of the message received.

False

Emotional needs are directly related to the performance of a product rather than the personal gratification an individual gets from the product.

False

End-user buying situations exclude the purchase of capital equipment and services.

False

Gatekeepers are usually the ones who start the buying process.

False

Generally, salespeople spend more than 50 percent of their time on-site in face-to-face meetings with customers and prospects.

False

Great listeners avoid thinking while they listen so that they can focus on listening.

False

Organizations whose go-to-market strategies rely heavily on advertising and publicity are called sales force-intensive organizations.

False

Performance feedback provides information about what you are doing right and what you are doing wrong.

False

Personal selling is the most effective marketing communication medium because it allows salespeople to manipulate customers.

False

Sales promotions use impersonal forms of mass media to provide information to customers, while advertising offers customers incentives to buy products during a specific period.

False

Salespeople should avoid direct eye contact when addressing a group to avoid coming across as insincere.

False

The first step in supplier relationship management is to determine end-user spending patterns.

False

The __________ is the most active regulatory agency in developing administrative laws affecting salespeople.

Federal Trade Commission

__________ control the flow of information and may limit the alternatives considered in the organizational buying decision process.

Gatekeepers

Which of the following statements is true about Lincoln Law?

It encouraged citizens to press claims against vendors that fraudulently sold to the U.S. government.

Which of the following statements is true of adaptive selling?

It fosters the trust and commitment of buyers.

In the context of the role of salespeople in a business, which of the following statements is true of personal selling?

It helps the salesperson discover the specific needs of each customer.

Which of the following statements is true about the Uniform Commercial Code (UCC)?

It is one of the main statutory laws governing salespeople in the United States.

In the context of the most common sales presentation types, which of the following statements is true about the standard memorized presentation?

Its effectiveness is limited because it offers no opportunity for the salesperson to tailor the presentation to the needs of a specific customer.

Which of the following is an example of reciprocity?

Larry's Uniform Company agrees to buy Harry's landscaping services if Harry will rent its uniforms from Larry.

Which of the following problems is associated with the speaking-listening differential?

Salespeople often become lazy listeners.

In the context of the social style matrix, which of the following best describes drivers?

They are efficient and swift decision makers.

Which of the following best describes responsive people?

They are informal and casual in social situations.

Which of the following statements is true about written agreements?

They are normally required for sales over $500.

__________ sell to firms that resell the products rather than using them within the firm.

Trade salespeople

A customer recognizes a sales representative giving a customized presentation as a professional who is helping provide real value, not just selling products.

True

A salesperson is required to show high levels of creativity when he or she has to sell a service rather than a product to a new customer.

True

A salesperson's job does not end when a customer places an order.

True

Using the life-cycle costing approach, salespeople can demonstrate that

a product with a higher initial cost will have lower overall costs.

Which of the following types of purchase situations requires the least number of people in the organizational buying decision process?

a straight rebuy situation

When a speaker attempts to draw a parallel between one thing and another, he or she is using a(n)

analogy

Statutory laws

are based on legislation passed either by state legislatures or by Congress.

In the context of the Uniform Commercial Code (UCC), an invitation to negotiate

can be in the form of a sales presentation.

Which of the following is usually considered a major financial commitment for manufacturers?

capital equipment items

The set of people and organizations responsible for the flow of products and services from the producer to the ultimate consumer is called a firm's

distribution channel.

Hammond Incorporated supplies its retailers with handheld Crownlink electronic data interchange terminals. All of its retailers use these terminals to transmit merchandise orders to Hammond in Kansas City. Their inventories are always stocked as needed. Shipments are made daily as required by individual retailers. This is an example of a(n) __________ system.

efficient consumer response

The translation of thoughts into words is called

encoding

During a sales presentation, Clara, the salesperson, listens to her customer rather than describing her product to the customer. She nods her head and uses verbal cues such as "I see," "Uh-huh," and "That's interesting" to encourage the conversation. In this scenario, Clara is

engaging in active listening.

The last step in the organizational buying process involves

evaluating product performance.

One of the advantages of personal selling is that it is the most __________ method used to communicate with customers.

flexible

If the salesperson for a paint manufacturer promised a purchasing agent that a certain brand of paint was mildew-resistant (when it was not), the salesperson

gave an expressed warranty.

Studies have shown that using customer relationship management systems

has a positive impact on being adaptive while selling.

Which of the following is a significant part of a salesman's voice characteristics?

inflection

A hospital is considering changing its supplier of replacement joints. While surgeons make the final decision, the hospital's purchasing department is promoting Kyocera because it manufactures one of the cheapest and most durable hip joints in the market. In terms of the buying center, the purchasing department is a(n)

influencer.

Instead of using her company's standard presentation, Fiona has developed an outline presentation. She knows an outline presentation has the advantage of being

informal and natural.

Mike's Autos uses a supply chain management system to schedule the delivery of auto parts to arrive at its plants exactly thirty minutes before the parts are to be used in the assembly process. The company uses a(n) __________ system.

just-in-time inventory control

The 80-20 __________ suggests that salespeople should try to listen 80 percent of the time and talk no more than 20 percent of the time.

listening rule

In terms of touching, buyers fall into two touching groups: contact and noncontact. Noncontact people view contact people as

obtrusive.

Which of the following sources of information would customers usually view to be less credible than the others?

sales literature

Which of the following statements best describes style flexing?

salespeople adjust their behavior to mirror or match that of their customers.

One of the advantages of personal selling over advertising is that

salespeople can change their message if they find their customers losing interest.

The __________ matrix is a training program for building adaptive selling skills that uses two critical dimensions: assertiveness and responsiveness.

social style