Chapter 17

Question 1

Personal selling becomes a more important promotional tool as product value and complexity and increase.

Answer 1

T

Question 2

Dave is in charge of finding sponsors for the 2013 Riverbend Festival. He is meeting with marketing
representatives from Wrangler jeans and First Tennessee National Bank, attempting to convince them
to sponsor the event. Dave is engaged in personal selling.

Answer 2

T

Question 3

When compared to other forms of promotion, personal selling:
a. is more important as the number of potential customers increases.
b. is more effective in selling frequently purchased products.
c. can use a message customized to the immediate needs of the customers.
d. is best for selling simple, low-involvement products.
e. is less expensive.

Answer 3

C

Question 4

Personal selling is more important than advertising and sales promotion if:
a. the products being sold are standardized.
b. there are many customers for the product being sold.
c. the product being sold has a low value.
d. the buyers of the product are extremely dispersed.
e. the products being sold are technically complex.

Answer 4

E

Question 5

For which of the following products would its producer be more likely to choose personal selling
rather than advertising or sales promotion to market it?
a. Garden hose
b. HD television
c. Dry-cleaning
d. Coffee mug
e. Breakfast cereal

Answer 5

B

Question 6

Generally speaking, personal selling becomes more important as the number of potential customers _____ and as the value of the product _____.
a. increases; grows
b. increases; shrinks
c. decreases; shrinks
d. decreases; grows
e. None of the above.

Answer 6

D

Question 7

Personal selling is more important than advertising and sales promotion if the products being sold:

a. have a low value.

b. are standardized.

c. have many consumers.

d. are technically complex.

Answer 7

D

Question 8

What is ideal for personal selling?

A. Large customers
B. Small customers
C. When demand exceeds supply
D. When supply exceeds demand

Answer 8

B

Question 9

What does newer thinking in personal selling emphasize?

A. Developing relationships with the buyers
B. Developing new products
C. Developing relationships with the suppliers
D. Increasing profits

Answer 9

A

Question 10

With relationship selling, the objective is to build long-term branded relationships with customers, not
just to sell products.

Answer 10

T

Question 11

With relationship selling, the salesperson would spend most of his or her contact time with the
prospect talking about the product because the salesperson does not want to waste the customer’s time.

Answer 11

F

Question 12

_____ is a sales practice that involves building, maintaining, and enhancing interactions with customers in order to develop long-term satisfaction through mutually beneficial partnerships.
a. Networking
b. Adaptive selling
c. Stimulus-response selling
d. Relationship selling
e. Needs-dependent selling

Answer 12

D

Question 13

Which of the following is not true of traditional personal selling methods?
a. They often attempt to persuade the buyer to accept a point of view.
b. The objectives of the salesperson are frequently at the expense of the buyer.
c. They have disappeared in the wake of relationship selling.
d. They entail making a one-time sale and then moving on to the next prospect.
e. They sometimes create a win–lose outcome.

Answer 13

C

Question 14

Relationship selling is a _____ process that emphasizes _____ as a key ingredient in identifying prospects and developing them as long-term, satisfied customers.
a. multistage, empathy
b. popular, assertiveness
c. short-term, persuasion
d. win-lose, personalization
e. modern, standardization

Answer 14

A

Question 15

Relationship selling:
a. is also called adaptive selling.
b. is most concerned with making a sale.
c. is more typically used when selling low-involvement products in the consumer market.
d. is more concerned with developing customer trust than with making a sale.
e. is declining in popularity among businesses because the costs are becoming prohibitive

Answer 15

D

Question 16

Relationship selling is also called:
a. long-term selling.
b. win–win selling.
c. consultative selling.
d. experiential selling.
e. interactive selling

Answer 16

C

Question 17

_____ is the ultimate goal of a new trend in marketing that focuses on understanding customers as individuals instead of as part of a group.
a. Organizational optimization
b. Consumer relationship marketing (CRM)
c. Total quality management (TQM)
d. Customer relationship management (CRM)
e. Market aggregation

Answer 17

D

Question 18

Using technology provided by Smart Button software, the WNBA’s Los Angeles Sparks have implemented a new system that gathers information about its best customers, season ticket holders, and rewards those customers in many ways, including free tickets to Sparks home games and cash prizes.
This is an example of a(n) _____ system.
a. organizational optimization
b. corporate relationship marketing (CRM)
c. total quality management (TQM)
d. customer relationship management (CRM)
e. call response marketing (CRM)

Answer 18

D

Question 19

What is the primary focus of Customer Relationship Management (CRM)?
a) Increasing product prices
b) Decreasing consumer loyalty
c) Placing customers at the center stage
d) Reducing sales

Answer 19

C

Question 20

In CRM, what is the main objective of managing every contact with customers?
a) To ignore customer needs
b) To understand customer needs and collect relevant information
c) To discourage customer engagement
d) To decrease sales

Answer 20

B

Question 21

How is data collected and leveraged in CRM?
a) To ignore customer preferences
b) To decrease customer satisfaction
c) To serve customer needs better and increase sales
d) To discourage customer loyalty

Answer 21

C

Question 22

What is the first step in CRM, where companies focus on customer needs and collect relevant data?
a) Understanding interactions with current customers
b) Capturing customer data
c) Identifying customer relationship
d) Leveraging customer information

Answer 22

C

Question 23

What is the primary focus of companies in the initial step of Customer Relationship Management (CRM)?
a) Developing marketing campaigns
b) Collecting payments from customers
c) Understanding customer needs and preferences
d) Training customer service representatives

Answer 23

C. Learning step and collect relavant data

Question 24

What do companies do in the “Understand Interactions with Current Customers” step of Customer Relationship Management (CRM)?
a) Develop marketing campaigns
b) Collect payments from customers
c) Identify all customer touchpoints
d) Train customer service representatives

Answer 24

C

Question 25

How are interactions managed in the context of understanding customer behavior? a) To minimize customer satisfaction b) To ensure negative customer experiences c) To discourage customer loyalty d) To ensure positive customer experiences

Answer 25

D

Question 26

What is the primary objective of capturing customer data in Customer Relationship Management (CRM)? a) To discourage customer interactions b) To minimize data collection efforts c) To ensure positive customer experiences d) To effectively sell products

Answer 26

D

Question 27

What is the first step in the Data Collection Plan for CRM? a) Capturing data at all touchpoints b) Analyzing customer data c) Developing marketing campaigns d) Training customer service representativ

Answer 27

A

Question 28

What are examples of touchpoints where companies aim to capture customer data? a) Only online interactions b) Only exposure to advertising c) Point of sale interactions, personal interactions, online interactions, purchase history, and exposure to advertising d) Only purchase history

Answer 28

C

Question 29

What is the purpose of employing knowledge management techniques in CRM? a) To decrease data accuracy b) To discourage centralized database management c) To centralize the database for shared access d) To avoid capturing customer data

Answer 29

C

Question 30

What is the role of a Data Warehouse in CRM? a) To discourage customer interactions b) To minimize data collection efforts c) To create a centralized database for shared access d) To avoid capturing customer data

Answer 30

C

Question 31

Who can access the centralized database created through Data Management in CRM? a) Only customer service representatives b) Only top-level executives c) Everyone within an organization and sometimes suppliers and customers d) No one, as it is restricted access

Answer 31

C

Question 32

Companies create a centralized database that can be shared by everyone. This is called: Select one: a. Customer relationship management b. Supply chain management c. Data mining d. Data warehouse e. Control center

Answer 32

D

Question 33

Customer relationship management requires that organizations develop relationships with their customers through touch points and data mining.

Answer 33

T

Question 34

What is data mining in the context of leveraging customer information in Customer Relationship Management (CRM)? a) Ignoring company data b) Using customer information to identify trends and relationships c) Minimizing customer interactions d) Discouraging personalized communication

Answer 34

B

Question 34

Volvo has a Web site that caters to car enthusiasts who might want to see concept cars evolve into reallife products. Volvo would likely have used data mining to locate people who were car enthusiasts and innovators.

Answer 34

T

Question 35

Apple, Inc. has stores, a Web site, and a toll-free phone number where consumers can provide valuable information to the company in developing a CRM system. All these possible areas of the company where consumers can communicate with the business are called: a. touch points. b. focus areas. c. data mining. d. information search periods. e. experimental points.

Answer 35

A. In a CRM system, touch points are all areas of the business where customers have contact with the company and data may be gathered and used to guide and direct the decision making within that business unit.

Question 36

Zappos is an online shoe and apparel retailer that promotes the highest quality of customer service by maintaining the importance of each _____, the point at which customer and store personnel exchange information and develop learning relationships. a. moment of truth b. intervention c. data capture d. response situation e. interaction

Answer 36

E

Question 37

Les Ailes de la Mode, a Quebec retail store that promotes the highest quality of customer service, has not only established itself as a top retailer in the province but also has a credit card and point program company, a cataloger and Internet seller, and even a publisher. Through gathering customer information for its credit cards and point program, through catalog and Internet orders, and through subscriptions to its publications, Les Ailes de la Mode has created several different: a. focus areas. b. touch points. c. interrelationship promotions. d. distribution channels. e. sources of distribution information.

Answer 37

B

Question 38

Communications between customers and organizations that occur in stores or at information kiosks are called: a. live interactions. b. point-of-sale interactions. c. empowerment points. d. survey interactions. e. product interactions.

Answer 38

B

Question 39

Which of the following is an example of a channel through which customer data are traditionally gathered? a. Store visits b. Conversations with salespeople c. Interactions via the Web d. Phone conversations e. All of these

Answer 39

E

Question 40

A(n) _____ allows marketers to track customers’ relationships to the company’s products and services. a. database b. data profile c. algorithm d. byte e. interaction profile

Answer 40

A

Question 41

Walmart captures point-of-sale transactions from thousands of stores in several countries and continuously transmits these data to its massive data warehouse. Walmart allows more than 3,500 suppliers to access data on their products and perform data analyses. These suppliers use the data to identify customer buying patterns at the store level. They use this information to manage local store inventory and identify new merchandising opportunities. Both Walmart and its suppliers are engaged in: a. information formatting. b. database enhancement. c. data mining. d. data shading. e. descriptive modeling

Answer 41

C

Question 42

Outdoor gear retailer Recreational Equipment, Inc. (REI) in Washington collects a vast amount of data through its Web site, direct mailings, and retail stores. When REI considers new store locations, it examines order data to find places with high concentrations of customers buying online and through the company’s catalogs. REI would be using _____ to identify potential store locations. a. information formatting b. database enhancement c. data mining d. data shading e. customer prediction

Answer 42

C

Question 43

How can customer information be utilized in campaign management? a) By avoiding interaction data b) By developing ineffective communication campaigns c) By utilizing interaction data to develop effective communication campaigns d) By minimizing customer preferences

Answer 43

C

Question 44

Which of the following is a common CRM marketing database application? a. Campaign management b. Retaining loyal customers c. Cross selling other products and services d. Designing targeted marketing communications e. All of these

Answer 44

E

Question 45

To target outdoor enthusiasts, Subaru of America added an outdoor life section to its Web site that is organized by area of interest. The site will serve as a platform for co-marketing and promotional programs. This offering of customized products to a customer segment for the purpose of enhancing the auto manufacturer’s customer relationships is an example of: a. campaign management. b. customer aggregation. c. transaction segmentation. d. data mining. e. knowledge management.

Answer 45

A

Question 46

Many high-end hotel chains award points for every dollar spent in one of their hotels. Customers who earn a high number of points are given special privileges that may include upgraded hotel rooms or several free nights. This is an example of the leveraging of customer information to: a. retain loyal customers. b. reinforce competitive promotional decisions. c. cross-sell other products and services. d. design targeted marketing communications. e. induce product trial by new customers.

Answer 46

A

Question 47

Every time Barry orders running shoes from Road Runner Sports, the Web site or the operator on the phone always tries to sell him something in addition to the shoes he ordered, such as socks or other apparel. This is an example of: a. data mining. b. cross-selling. c. trading up. d. database enhancement. e. a database channel.

Answer 47

B

Question 48

What is targeted communication in CRM? a) Offering generic communication about products and services b) Offering irrelevant communication about products and services c) Offering personalized communication about products and services based on detailed customer understanding d) Avoiding communication with customers

Answer 48

C

Question 49

What do good quality data and ongoing customer relationships provide a foundation for in Customer Relationship Management (CRM)? a) Discouraging customer needs b) Minimizing customer interactions c) Creating marketing initiatives and better-serving customer needs d) Avoiding personalized communication

Answer 49

C

Question 50

Which of the following is not a step in CRM? A. Identifying customer relationships B. Understanding interactions with current customers C. Capturing customer data D. Deleting old data every year

Answer 50

D

Question 51

Which of the following is not the type of data companies need to capture? A. Personal data B. Online interactions C. Exposure to advertising D. Personal interactions

Answer 51

A

Question 52

Companies create a centralized database that can be shared by everyone. This is called: A. Knowledge management B. Customer relationship management C. Supply chain management D. Information management

Answer 52

A

Question 53

What is generating leads? A. Creating a list of prospects who may have an interest in purchasing the product B. Creating a list of prospects who will like to work in the company C. Creating a list of suppliers who are willing to provide raw materials D. Creating a list of manufacturers willing to produce the product

Answer 53

A

Question 54

The first step in the personal selling is: a. qualifying leads b. approaching the customer and probing needs c. developing and proposing solutions d. making a sales presentation e. generating leads

Answer 54

E

Question 55

____, or prospecting, is the identification of those firms and people most likely to buy the seller’s offerings. a. Lead generation b. Lead qualification c. Customer mining d. Referral calling e. Cold calling

Answer 55

A

Question 56

The first step in the selling process is approaching the customer and probing needs

Answer 56

F

Question 57

The seven steps of the selling process closely follow the: a. AIDA concept. b. hierarchy of needs. c. traditional communications model. d. process of forecasting and satisfying industry demand. e. JIT process.

Answer 57

A

Question 58

AutoFry is the leading manufacturer of ventless deep fryers for supermarket deli and food-service operations. It has developed a new high-capacity fryer. The company has decided to purchase a mailing list of thousands of food-service managers and to send out brochures with a detachable card that the managers can use to request more information. AutoFry is involved in: a. lead qualification. b. lead generation. c. sales presentation. d. the close procedure. e. moving through the sales continuum.

Answer 58

B

Question 59

Which of the following methods is NOT mentioned as a way to create a list of prospects in Step 1? a) Networking b) Referrals c) Social media advertising d) Purchasing lists from an outside source

Answer 59

C

Question 60

What is one method mentioned for compiling lists of prospects in Step 1? a) Hosting events b) Online surveys c) Trade shows and conventions d) Direct mail campaigns

Answer 60

C

Question 61

____ involves determining which sales prospects have a recognized need, buying power, and receptivity and accessibility. a. Prospect examination b. Customerization c. Lead reciprocity d. Lead qualification e. Bird-dogging

Answer 61

D

Question 62

Before approaching the customer, a salesperson should learn as much as possible about the prospect’s organization and its buyer.

Answer 62

T

Question 63

The _____ is a process that describes the homework that must be done by a salesperson before he or she contacts a prospect. a. pre-sales dialogue b. preapproach c. prospect customerization d. closing preamble e. sale profiling procedure

Answer 63

B

Question 64

What is the focus of Step 3 in personal selling, which involves Approaching the Customers? a) Handling objections raised by buyers b) Developing and proposing solutions c) Conducting groundwork before approaching customers d) Understanding the industry, competition, and products offered

Answer 64

C

Question 65

Why is it important for salespeople to conduct groundwork before approaching customers in Step 3? a) To minimize customer interactions b) To discourage personalized communication c) To understand the industry, competition, products offered, and how customers intend to use the products d) To avoid capturing customer data

Answer 65

C

Question 66

A _____ is a written document or professional presentation that outlines how a company’s product will meet or exceed the client’s needs. a. customer profile b. needs assessment c. sales proposal d. qualifying document e. forecast of needs

Answer 66

C

Question 67

A _____ is a written document or professional presentation. A _____ is a formal meeting. a. sales proposal; sales performance b. sales performance; sales production c. sales presentation; sales performance d. sales proposal; sales presentation e. sales production; sales proposal

Answer 67

D

Question 68

What is the primary focus of Step 4 in personal selling, which involves Developing and Proposing Solutions? a) Approaching the customers b) Handling objections raised by buyers c) Understanding the industry, competition, and products offered d) Preparing sales proposals outlining how the company will deliver its products and demonstrating their value

Answer 68

D

Question 69

Why is Step 4 considered an opportunity for salespeople? a) To discourage customer interactions b) To minimize customer preferences c) To finalize the sale by asking for the next step d) To demonstrate the value of the offerings and convince the customer to make a purchase

Answer 69

D

Question 70

Which of the following statements about handling objections is true? a. A professional salesperson should not anticipate objections. b. A salesperson should view objections as requests for more information. c. Objections should not be used to close the sale. d. A good salesperson dreads having to handle sales objections. e. Objectives can only be handled when they arise, not anticipated beforehand.

Answer 70

B

Question 71

What should the consultative salesperson do when the prospect says, “Are you telling me that your packaging will protect my fragile products better than your competitor’s packaging can?” a. Conduct an unplanned needs assessment. b. Handle the question as an objection. c. Immediately leave the prospect’s office. d. Ask for referrals. e. Modify his or her sales proposal.

Answer 71

B

Question 72

When a salesperson asks for the sale, he or she is: a. closing the sale. b. creating empathy. c. reducing cognitive dissonance. d. creating long-term reciprocal arrangements. e. qualifying the sale.

Answer 72

A

Question 73

Danita is in charge of new business development for her advertising agency. She recently made a sales presentation to the administration of Northwest Medical System to discuss the creative approaches her agency would use to differentiate Northwest Medical from its competition. Danita ended the presentation by asking, “When would you like our firm to begin working on your new brand awareness campaign?” In which stage of the selling process would such a question most likely be asked? a. Closing the sale b. Follow-up c. Dealing with cognitive dissonance d. Handling rejection e. Qualifying the prospect

Answer 73

A

Question 74

_____ is the process during which both the salesperson and the prospect offer special concessions in an attempt to arrive at a sales agreement. a. Conciliation b. Negotiation c. Compromise d. Concession e. Dispensatio

Answer 74

B. Negotiation often plays a key role in the closing of the sale.

Question 75

. When a salesperson offers a discount if a prospect places a larger order, he or she is using the process of: a. summary. b. assumption. c. negotiation. d. adaptation. e. follow-up.

Answer 75

C

Question 76

Salespeople ensure that delivery schedules are met, that the good or service performs as promised, and that buyers are trained in the use of the product. All of these functions are part of _____, the final step in the selling process. a. the preapproach b. closing c. lead qualification d. following up e. the sales presentation

Answer 76

D

Question 77

Which step provides the opportunity for a company to impress on the buyers the value of its offerings? A. Generating leads B. Qualifying leads C. Approaching the customers D. Developing and proposing solutions

Answer 77

D

Question 78

Which of the following is a responsibility for sales management? A. Qualifying leads B. Handling objections C. Follow up D. Defining sales goals

Answer 78

D

Question 79

All of the following are responsibilities and decisions for a sales manager EXCEPT: a. developing the product design b. evaluating the sales force c. compensating and motivating the sales force d. recruiting and training the sales force e. determining the sales force structure

Answer 79

A

Question 80

Effective sales management begins with: a. determining sales goals b. determining the most efficient structure for the sales force c. determination the sales force size d. determining a compensation plan e. recruiting the sales force

Answer 80

A

Question 81

A(n) _____ is a statement of sales goals, usually based on sales volume alone. a. breakeven statement b. trend analysis c. order forecast d. account report e. quota

Answer 81

E

Question 82

Guilden Corporation has instructed its new salesperson that she is responsible for selling five display cases with infrared heating capability per week, plus calling on five current and 10 potential customers. These objectives comprise her: a. promotion goal b. fulfillment c. quota d. contribution e. potentiality

Answer 82

C

Question 83

Sales departments have traditionally been organized by all of the following EXCEPT: a. geographic region b. product line c. competition d. marketing function e. industry

Answer 83

C

Question 84

What factors may companies consider when structuring their sales force? a) Only geographical regions b) Only customer industries c) Only product lines d) Geographical regions, product lines, customer industries, or customer size and type

Answer 84

D

Question 85

How might large companies structure their sales force? a) Exclusively based on geographical regions b) Exclusively based on product lines c) Utilizing a combination of factors such as geographical regions, product lines, customer industries, or customer size and type d) Based on customer industries only

Answer 85

C

Question 86

What is the purpose of structuring the sales force based on factors like geographical regions, product lines, customer industries, or customer size and type? a) To minimize customer interactions b) To discourage personalized communication c) To effectively reach target markets and cater to diverse customer needs d) To avoid capturing customer data

Answer 86

C

Question 87

How do companies determine the structure of their sales force? a) Based on product variations only b) Based on customer industries and product lines only c) Based on factors such as market spread, customer needs across industries, and product variations d) Based on geographical regions and product lines only

Answer 87

C

Question 88

How do companies address the challenge of high turnover among salespeople? a) By focusing solely on hiring candidates with sales experience b) By providing limited training opportunities c) By implementing assessments and personality tests to select suitable candidates d) By increasing quotas to motivate salespeople

Answer 88

C

Question 89

Why is sales performance easy to see and quantify? a) Because companies focus on hiring candidates with appropriate backgrounds b) Because companies provide extensive training to salespeople c) Because sales performance can be measured in terms of meeting or exceeding quotas d) Because turnover rates are low among salespeople

Answer 89

C

Question 90

What is the focus of companies during the recruitment and training of salespeople? a) Maximizing turnover rates b) Selecting candidates with unrelated backgrounds c) Selecting suitable candidates with appropriate backgrounds and traits d) Providing minimal training opportunities

Answer 90

C

Question 91

What is one reason why companies focus on selecting suitable candidates during recruitment? a) Because it is easy to train new salespeople b) Because it is costly to hire and train new salespeople c) Because turnover rates are low among salespeople d) Because sales performance metrics are unclear

Answer 91

B

Question 92

Why do salespeople have a high turnover at the beginning of their careers? A. Sales performance can be clear in a very short period B. Sales performance is not clear for a very short period C. Sales performance is not clear in the long run D. Sales performance is clear in the long run

Answer 92

A

Question 93

How should companies solve the high turnover of salespeople? A. Make an extra effort to select the appropriate people B. Provide higher compensation C. Define sales goals that are easy to accomplish D. Have more social events

Answer 93

A

Question 94

Which of the following is NOT a responsibility for sales personnel? Group of answer choices Qualifying leads Handling objections Designing products Defining sales goals Proposing solutions

Answer 94

C

Question 95

Generally, companies with lower levels of compensation: a. suffer higher turnover rates b. experience overall decreased cost c. experience increased effectiveness d. experience lower termination rates e. experience improved customer satisfaction

Answer 95

A

Question 96

The most popular sales incentives are _____. a. cash awards b. vacations c. plaques and trophies d. stock options e. public recognition in front of family and peers

Answer 96

A

Question 97

All of the following are typical sales force performance measures EXCEPT: a. size of the sales force b. sales volume c. contribution to profit d. calls per order e. percentage of calls achieving specific goals

Answer 97

A

Question 98

The final stage of sales management is evaluating the effectiveness and performance of the sales force.

Answer 98

T

Question 99

District sales managers at Advanced Bionics often spend three days per week in the field coaching and monitoring sales reps. This time in the field with sales reps is an important final task in the management process known as: a. compensation b. networking c. quota determination d. qualifying sales leads e. evaluating performance

Answer 99

E

Question 100

What are some factors used to evaluate sales performance? a) Salespeople's personal interests b) Revenue generated, profit margins, and buyer satisfaction c) Salespeople's social media activity d) Salespeople's educational backgrounds

Answer 100

B

Question 101

How are compensation and performance measures typically related? a) Compensation is not tied to performance measures b) Compensation is tied to salespeople's personal interests c) Compensation is tied to performance measures to encourage desired behaviors and discourage heavy price discounting d) Compensation is tied to salespeople's social media activity

Answer 101

C

Question 102

Why is performance evaluation important in sales? a) To discourage managers from providing guidance and support b) To discourage performance improvement c) To identify weaknesses at each stage of the sales cycle and provide guidance and support d) To ignore salespeople's performance

Answer 102

C