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Sale
Q:
Karyn Fleishman is the lead sales representative on a team selling super-powered microscopes to research laboratories and other research institutions. She and her team just made a presentation to the buying team of a large lab, and they are about to enter the negotiation process to work toward closing a deal.
The selling team should most likely be prepared to:
A) deal with buyers that have well-developed negotiation skills
B) give concessions quickly to show good will to the buyers
C) settle most of the points of contention right away
D) revalue the microscope to make the sale
E) stick to the most important consideration: price
Q:
Karyn Fleishman is the lead sales representative on a team selling super-powered microscopes to research laboratories and other research institutions. She and her team just made a presentation to the buying team of a large lab, and they are about to enter the negotiation process to work toward closing a deal.
Karyn's team has already uncovered the lab's needs during the consultative questioning stage of the presentation. Which of the following is most likely true?
A) The team should practice debating features and benefits before the negotiation.
B) The team should continue to gather as much information on the lab and the lab's buying team as possible before the negotiation.
C) The team has already missed their best window of opportunity for negotiations.
D) The team should be more aggressive about offering discounts to achieve a fast close.
E) The team is more prepared than they need to be for the negotiation process.
Q:
The sales director of a food supply house to restaurants has been analyzing sales for the past two years and has discovered that sales representatives have been losing sales, giving larger discounts than they should, and giving away too many "freebies" to clients.
The negotiation training stresses that sales representatives should avoid making price the focal point of the presentation. This requires the sales representatives to refocus on:
A) positioning the product on quality instead of price
B) using the postponement method when asked about price
C) timing the presentation to mention price last instead of first
D) using the pricing sheet to create tiers of discounts
E) targeting sales to buyers with less money
Q:
The sales director of a food supply house to restaurants has been analyzing sales for the past two years and has discovered that sales representatives have been losing sales, giving larger discounts than they should, and giving away too many "freebies" to clients.
As part of negotiation skills training, the sales representatives learn about handling customer objections. A common customer objection regards the quality of produce and meat. How should a sales representative most likely address this objection?
A) Emphasize the firm's commitment to customer service after a sale.
B) Offer a specific delivery time so restaurants know when to expect products.
C) Engage in transactional selling methods to develop a strategic relationship.
D) Offer a discount on the first years' orders to gain the buyer's trust.
E) Deny that a quality problem exists by showing certifications from local farmers.
Q:
The sales director of a food supply house to restaurants has been analyzing sales for the past two years and has discovered that sales representatives have been losing sales, giving larger discounts than they should, and giving away too many "freebies" to clients.
The sales director could most likely help the sales representatives to understand the firm's financial objectives by clarifying:
A) cold calling methods
B) trial close techniques
C) reservation values
D) logrolling rules
E) unbundling tools
Q:
The sales director of a food supply house to restaurants has been analyzing sales for the past two years and has discovered that sales representatives have been losing sales, giving larger discounts than they should, and giving away too many "freebies" to clients.
A salesperson who goes into a negotiation process without any preparation is likely either to lose the sale or to:
A) make concessions to the buyer too quickly
B) create a win-win solution for both parties
C) sell a product that lacks superior benefits
D) give the prospect too much information
E) promote the competition's product
Q:
The sales director of a food supply house to restaurants has been analyzing sales for the past two years and has discovered that sales representatives have been losing sales, giving larger discounts than they should, and giving away too many "freebies" to clients.
What area of the sales process are the sales representatives weak in, according to the results of the sales director's analysis?
A) price calculations
B) negotiation skills
C) presentation skills
D) rapport building
E) showmanship
Q:
Professional buyers often learn to use specific tactics in dealing with salespeople. List three tactics that were identified in Homer Smith's book, Selling Through Negotiation.
Q:
List five common types of buyer concerns.
Q:
When a salesperson bends a little and acknowledges that the prospect is at least partially correct, the salesperson is using the ________ method of negotiating an objection.
Q:
One way to empathize with the client's objection and turn objections into sales is to use the "feel-felt- ________" strategy.
Q:
The ________ method of negotiating an objection is popular with customers because they can get fully acquainted with the product without making a major commitment.
Q:
The ________ method of negotiating buyer resistance is one of the most convincing ways to overcome buyer skepticism.
Q:
A(n) ________ is a benefit that will, in most cases, outweigh the customer's specific concern.
Q:
Determining your BATNA and ZOPA will help you in negotiations because:
A) the process will be delayed and you may be able to wear the buyer down
B) you will have a leg up on buyers, who are restricted from performing these assessments
C) you will only make the sale if your BATNA determination matches your buyer's exactly
D) they determine the best fair price for a product based on economies of scale in production
E) they tell you what you will be willing to accept before you walk away from the negotiation
Q:
Logrolling refers to:
A) selling customers new products
B) expanding sales territories and shifting customers
C) asking customers to pay full price in the short term
D) offering an alternate solution to a negotiation problem
E) increasing customer service to reach a win-win solution
Q:
Which of the following best describes a misunderstanding?
A) a failure to ask enough probing questions to identify a problem
B) a failure to agree even when both sides understand each other
C) a failure to accurately understand the other person's point
D) an inability to reach a win-win agreement
E) an inability to negotiate across cultures
Q:
What is the most likely benefit of using indirect denial to handle a prospect's concerns?
A) identifying the main concerns of the prospect
B) showing respect for the prospect's opinion
C) countering inaccurate information
D) resolving the issue conclusively
E) preventing price resistance
Q:
In negotiations, the walk-away point that represents the lowest offer a party would be willing to accept is known as the ________.
A) reservation value
B) best alternative
C) peak price point
D) price objection
E) zone of possible agreement
Q:
The iceberg metaphor shows that many customers try to negotiate on price because:
A) price is often inflated to attempt to maximize profits for the company
B) price is the most easily quantifiable characteristic of any product
C) they were trained to negotiate on price and price alone
D) they feel that they are not fulfilling their duties as buyers if they do not attempt to get lower prices
E) they do not realize that other factors, such as service and terms, can be more important to long-term satisfaction
Q:
Which of the following is most likely a true statement about price?
A) Transactional buying at a low price involves a strategic relationship with the seller.
B) Features and benefits are not always related to the price of a product.
C) Lower prices are equivalent to lower costs and higher quality.
D) The highest quality can never be obtained at the lowest price.
E) Paying too much is typically worse than paying too little.
Q:
Cost represents the:
A) relationship between price and amortization
B) initial amount the buyer pays for the product
C) amount the buyer pays for a product as it is used over a period of time
D) true value of the product in non-financial terms
E) buyer's contribution to the negotiations
Q:
If a company uses a low-price strategy, the company should most likely consider which of the following when negotiating with transactional buyers?
A) selling at the cost of manufacturing the product to improve economies of scale
B) eliminating features that contribute to a higher selling price
C) increasing the number of features of the product
D) matching competitors' prices
E) changing branding
Q:
Reducing the price by unbundling some items is an effective technique a salesperson can use with a buyer who uses which of the following tactics?
A) budget limitation tactic
B) take-it-or-leave-it tactic
C) let-us-split-the-difference tactic
D) "if...then" tactic
E) "sell low now, make profits later" tactic
Q:
An agreement to keep the same price but reduce prices in the future is often a successful response to which of the following tactics used by buyers?
A) budget limitation tactic
B) take-it-or-leave-it tactic
C) let-us-split-the-difference tactic
D) "if...then" tactic
E) "sell low now, make profits later" tactic
Q:
Balance of power is most likely the issue a salesperson must consider when responding to a ________ tactic.
A) budget limitation
B) feel-felt-found
C) let-us-split-the-difference
D) "if...then"
E) "sell low now, make profits later"
Q:
Which tactic most likely involves making a price concession to the buyer?
A) budget limitation
B) take-it-or-leave-it
C) let-us-split-the-difference
D) "if...then"
E) "sell low now, make profits later"
Q:
A salesperson should most likely review the benefits of the product before making price concessions to a buyer who engages in ________ tactics.
A) budget limitation
B) take-it-or-leave-it
C) let-us-split-the-difference
D) "if...then"
E) "sell low now, make profits later"
Q:
Working to reach an agreement that is mutually satisfactory to both buyer and seller is also called:
A) negotiation
B) agreement
C) practice theory
D) tactics
E) strategy
Q:
Which of the following is true with respect to negotiations in foreign cultures?
A) Different cultural expectations can cause miscommunication.
B) It is sometimes advisable to become antagonistic during negotiations.
C) Business rituals are largely the same across cultures.
D) German buyers are unlikely to look you in the eye.
E) In China, negotiations are less straightforward than in Japan.
Q:
If a customer tells a sales representative from Johnson Supply, "I've always purchased my supplies from the Ralston Company," this person is most likely raising an objection to:
A) product
B) time
C) need
D) source
E) price
Q:
When a customer says, "I would rather not tie up my money in a large order," the resistance most likely falls into which category?
A) time
B) product
C) price
D) source
E) process
Q:
A professional buyer says, "My final offer is $9,500, take it or leave it." The best way to cope with this type of resistance is to:
A) lower your price, but make sure the sale still results in a profit for your company
B) confidently review the superior benefits of your product and attempt another close
C) make a counteroffer that is about 10 percent under your first price quote
D) review the unique features of the product or service
E) unbundle features of the product
Q:
Which of the following is an acceptable way to cope with the loyalty objection?
A) Work on recruiting internal champions to build more support for your message.
B) Point out, in specific terms, the weak points of the competing product.
C) Point out how dependence on just one supplier can be risky.
D) Encourage the prospect to quit the present supplier.
E) Undermine confidence in the current supplier by intimating that the company is having financial troubles.
Q:
If you are familiar with your product as well as your competition's product, which method of negotiating buyer resistance is best for overcoming buyer skepticism?
A) defamation
B) feel-felt-found
C) third-party testimony
D) indirect denial
E) demonstration
Q:
One of the most common buyer concerns in the field of selling is:
A) lack of need recognition for the product
B) personality conflict with the salesperson
C) loyalty to another firm
D) resistance to price
E) customer service
Q:
The best way to overcome a sincere need objection by a business prospect is to:
A) explain how the prospect should engage in comparison shopping
B) make the price the major selling point of the sales presentation
C) prove that the product will improve the prospect's profits
D) compare the product to others on the market
E) reiterate all the features of the product
Q:
When a customer raises a valid objection that cannot be answered with a denial, the salesperson should most likely take which of the following actions?
A) discuss superior benefits
B) engage in back-pedaling
C) begin a pricing approach
D) re-start the presentation
E) criticize the competition
Q:
The "feel-felt-found" method is used in conjunction with which of the following?
A) indirect denial
B) direct denial
C) trial offer
D) superior benefit
E) demonstration
Q:
When a prospect has voiced an objection, it is most likely best for the salesperson to:
A) suggest postponing the negotiations
B) divert attention to a product feature
C) illustrate the product's high quality
D) deny the accuracy of the objection
E) clarify the true nature of the problem
Q:
A buyer's resistance to a salesperson's product is usually caused by:
A) the salesperson failing to negotiate well
B) another product satisfying the buyer's needs
C) friends and acquaintances recommending the product
D) the product's advanced stage in the product life cycle
E) the product's price being equal to the buyer's current product
Q:
Adding value with a cluster of satisfactions would be an effective way to deal with:
A) time resistance
B) adaptive selling
C) price resistance
D) third-party testimonials
E) decision postponements
Q:
Which of the following is an acceptable method of negotiating the price objection?
A) Make price the focal point of your presentation.
B) Clarify the link between price and quality.
C) Focus on an individual product feature.
D) Apologize for the product's high prices.
E) Lower the price if the customer balks.
Q:
Which tactic would most likely be used by buyers trained in price negotiation?
A) product compromise
B) sixty-forty
C) budget limitation
D) cards on the table
E) maybe...if
Q:
When people say, "Your price is too high," they probably mean, "You haven't sold me yet."
Q:
A stall tends to mean that the customer appreciates the benefits of a product but is unwilling to engage in negotiations.
Q:
Sales resistance is a natural response that tends to provide the salesperson with valuable information about the consumer.
Q:
The "budget limitation tactic" is often used by buyers who have been trained in negotiation.
Q:
Research shows that a neutral third party's testimony tends to provide a weak argument when answering a customer's concern.
Q:
In some cases the statement, "I don't need your product," is a conditioned response.
Q:
Customers who perceive added value are less likely to choose a competing product simply on the basis of price.
Q:
According to the text, you usually get what you deserve, no matter how you negotiate.
Q:
Traditional selling principles stressed that the "we versus they" and the "win-win" were similar concepts for negotiating sales resistance.
Q:
A growing number of professional buyers have completed training in negotiation.
Q:
The direct-denial method of negotiating objections is a very common approach used in the field of selling.
Q:
If you believe in your product and understand its unique features, then preparing for price resistance is unnecessary.
Q:
Direct denial may be appropriate when a customer's objection is based on misinformation.
Q:
The foundation for win-win negotiations is a relationship with the customer built on trust and rapport.
Q:
Negotiation is defined as "working to reach an agreement that is satisfactory to either the buyer or the seller."
Q:
ScranTone is a paper mill and supplier serving the Upper Midwest. Since the commercial paper market is saturated, the only room for growth is to expand existing accounts or to win over competitors' accounts. Kevin Salazar is a sales representative who has gotten another meeting with the head of purchasing for the copy centers at a large university system. The purchasing agent has been buying from ScranTone's main competitor for three years. Kevin met with the purchasing again two months ago but was unable to make a sale.
If the head of purchasing does not respond to Kevin Salazar's sales presentation by placing an order, Kevin should most likely:
A) remove the buyer from the CRM system
B) send the purchasing agent a letter outlining the weaknesses of the competition
C) make contact with the purchasing agent again in six months
D) call the purchasing agent to ask for the order in two weeks
E) send the purchasing agent a bound paper presentation for further review
Q:
ScranTone is a paper mill and supplier serving the Upper Midwest. Since the commercial paper market is saturated, the only room for growth is to expand existing accounts or to win over competitors' accounts. Kevin Salazar is a sales representative who has gotten another meeting with the head of purchasing for the copy centers at a large university system. The purchasing agent has been buying from ScranTone's main competitor for three years. Kevin met with the purchasing again two months ago but was unable to make a sale.
What is one possible pitfall Kevin Salazar should be aware of when giving the presentation?
A) He needs to promote the benefits of ScranTone without saying anything negative about the current supplier.
B) The buyer must have disliked Kevin not to have purchased from him in the past.
C) He needs to talk down to the buyer to make sure the buyer understands.
D) A successful presentation could end up with an order bigger than ScranTone can handle.
E) This account could make or break his quota for the month.
Q:
ScranTone is a paper mill and supplier serving the Upper Midwest. Since the commercial paper market is saturated, the only room for growth is to expand existing accounts or to win over competitors' accounts. Kevin Salazar is a sales representative who has gotten another meeting with the head of purchasing for the copy centers at a large university system. The purchasing agent has been buying from ScranTone's main competitor for three years. Kevin met with the purchasing again two months ago but was unable to make a sale.
The first step Kevin Salazar should take in preparing for the presentation is to:
A) revisit the discount schedule for educational purchasers
B) review his notes from the previous presentation he made to the buyer
C) renew his personal commitment to pursuing the sale
D) research the competition on the Internet
E) revise the standard PowerPoint presentation
Q:
ScranTone is a paper mill and supplier serving the Upper Midwest. Since the commercial paper market is saturated, the only room for growth is to expand existing accounts or to win over competitors' accounts. Kevin Salazar is a sales representative who has gotten another meeting with the head of purchasing for the copy centers at a large university system. The purchasing agent has been buying from ScranTone's main competitor for three years. Kevin met with the purchasing again two months ago but was unable to make a sale.
Why would Kevin Salazar most likely meet with purchasing agent again after being denied a sale?
A) Kevin's sales manager requires that he use a canned presentation.
B) Kevin needs to meet a quota of sales presentations for the month.
C) The competition offers an inferior product to Kevin's company.
D) The previous presentation focused too much on customer needs.
E) Kevin wants to show a strong commitment to getting the buyer's business.
Q:
ScranTone is a paper mill and supplier serving the Upper Midwest. Since the commercial paper market is saturated, the only room for growth is to expand existing accounts or to win over competitors' accounts. Kevin Salazar is a sales representative who has gotten another meeting with the head of purchasing for the copy centers at a large university system. The purchasing agent has been buying from ScranTone's main competitor for three years. Kevin met with the purchasing again two months ago but was unable to make a sale.
Which need-satisfaction strategy does Kevin most likely use?
A) canned
B) persuasion
C) informative
D) reminder
E) adaptive
Q:
Which of the following should Angie most likely focus on during her presentation?
A) the sleek packaging of CosMetRx products
B) the history of the CosMetRx company
C) the brightening facial effects of the product on the prospect
D) the discounts the prospect can receive if she purchases now
E) the toxin-free ingredients of CosMetRx products
Q:
Of the following, a prospect will be most likely to buy products from Angie if:
A) Angie emphasizes that she needs to earn her commission
B) Angie gives the prospect a gift bag with a minimum purchase
C) the prospect has seen a famous model advertising the brand
D) the prospect can trust safety research about product ingredients
E) the products make the prospect feel good about her appearance
Q:
The proof device Angie is most likely to use is:
A) FDA safety ratings for the ingredients used in the products
B) the makeover itself
C) testimonials by the other CosMetRx sales representatives at the counter
D) survey results of satisfied CosMetRx users
E) a tour of the manufacturing facilities
Q:
Since the majority of Angie's prospects are strangers who walk up to her counter out of the blue, what is the most important preparation Angie should do for the presentation?
A) Learn her products and how to give excellent facials and makeovers.
B) Practice the standardized presentation script.
C) Proofread her PowerPoint presentation to guarantee good grammar and spelling.
D) Quickly search for the prospect on the Internet to glean basic information.
E) Assume the prospect has never used makeup before.
Q:
Which need-satisfaction strategy does Angie most likely use?
A) reminder
B) canned
C) persuasion
D) adaptive
E) informative
Q:
Tyler realizes that the trucking company can purchase tires from other tire companies. With this in mind, Tyler should most likely:
A) promote Kaygo as the industry leader even if this is untrue
B) ignore the features and benefits of the lowest-priced competitor
C) point out quality problems with the firm's current tire provider
D) highlight the drop in prices of Kaygo tires in the last five years
E) focus on favorable differences between Kaygo tires and the next-best alternative
Q:
By creating a spreadsheet that will allow the buyer to enter current fuel costs and see recalculations of fuel costs that would occur from using Kaygo tires, the sales representative is creating:
A) an airtight argument against other tire vendors
B) a way to involve the buyer in the presentation
C) a program that should be created by the IT department
D) an experience so elementary that it will patronize the buyer
E) an ROI statement the buyer can take as a guarantee of savings
Q:
As part of the preparation for the presentation, Tyler should most likely:
A) research the trucking company's operations and needs
B) memorize the standardized presentation script
C) install web conferencing software on the buyer's computer
D) come up with a persuasive argument for the buyer
E) include as many audio visual aids as possible in the presentation
Q:
Of the following, which would be the most effective proof device to demonstrate the benefits of Kaygo tires?
A) a detailed PowerPoint presentation
B) a test-drive in which the buyer can feel the difference in tires
C) a testimonial from another buyer about the excellent post-sale service
D) a research report showing decreased fuel costs from using the tires
E) a series of questions designed to discover what the buyer needs
Q:
Tyler is bringing technical reports, company brochures, and written testimonials from customers to the sales meeting. Which need-satisfaction strategy is Tyler most likely going to use?
A) reminder
B) persuasion
C) informative
D) adaptive
E) canned
Q:
List the guidelines that should be followed when planning a presentation that adds value.
Q:
What are the guidelines for preparing and conducting a group sales presentation?
Q:
A(n) ________ is a portable case or loose-leaf binder containing a wide variety of sales-supporting materials.
Q:
A survey conducted by Selling Power magazine found that 87 percent of salespeople use ________ to deliver their sales presentations.
Q:
Words or phrases that suggest pictorial relationships between objects or ideas are known as ________.
Q:
________ enhance credibility and can take the form of a statement, a report, or a photograph.