ABC's of Relationship Selling through Service 13th Edition ABC's of Relationship Selling through Service 13th Edition - Test Bank Instant Download - Complete Test Bank With Answers Sample Questions Are Posted Below ABC's of Relationship Selling, 13e (Futrell) Chapter 5 Sales Knowledge: Customers, Products, Technologies 1) According to the Core …
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ABC’s of Relationship Selling through Service 13th Edition ABC’s of Relationship Selling through Service 13th Edition – Test Bank
Instant Download – Complete Test Bank With Answers
Sample Questions Are Posted Below
ABC’s of Relationship Selling, 13e (Futrell)
Chapter 5 Sales Knowledge: Customers, Products, Technologies
1) According to the Core Principles of Professional Selling, most customers do not care how much a salesperson knows about a product until the salesperson shows honesty and caring.
Answer: TRUE
Explanation: Placing the customer’s welfare before one’s own welfare is key to having a successful sales career according to the Core Principles of Professional Selling. It is important to remember that people do not care how much you know until they know how much you care.
Difficulty: 2 Medium
Topic: The Core Principles: Knowledge
Learning Objective: 05-01 Explain why it is so important to be knowledgeable.
Bloom’s: Understand
AACSB: Ethics
Accessibility: Keyboard Navigation
2) According to the text, salespeople who are product experts develop ethical, long-term relationships with customers.
Answer: FALSE
Explanation: It is important to remember that people do not care how much you know until they know how much you care. Ethical service builds customer relationships and is based on the truth.
Difficulty: 1 Easy
Topic: The Core Principles: Knowledge
Learning Objective: 05-01 Explain why it is so important to be knowledgeable.
Bloom’s: Remember
AACSB: Ethics
Accessibility: Keyboard Navigation
3) Sales training is the effort put forth by an employer to provide the opportunity for the salesperson to receive job-related skills and knowledge that improve sales success.
Answer: TRUE
Explanation: Sales training is the effort an employer puts forth to provide the opportunity for the salesperson to receive job-related culture, skills, knowledge, and attitudes that result in improved performance in the selling environment. Successful companies thoroughly train new salespeople and maintain ongoing training programs for their experienced sales personnel.
Difficulty: 2 Medium
Topic: Sources of Sales Knowledge
Learning Objective: 05-01 Explain why it is so important to be knowledgeable.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
4) Knowledge of selling is gained only through the company’s formal training program.
Answer: FALSE
Explanation: Like many professional careers, selling is a skill that is truly developed only through experience. Sales knowledge obtained through education, reading, formalized sales training, and word-of-mouth is helpful in enhancing overall sales ability, but actual experience is the critical source of sales knowledge.
Difficulty: 1 Easy
Topic: Sources of Sales Knowledge
Learning Objective: 05-01 Explain why it is so important to be knowledgeable.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
5) Salesperson knowledge is simply about a product or service.
Answer: FALSE
Explanation: It is not true that salesperson knowledge is simply about a product or service. Buyers expect a great deal from today’s salesperson. Buyers want salespeople to aid them in meeting their professional, organizational and personal goals.
Difficulty: 1 Easy
Topic: Why Is Salesperson Knowledge Important?
Learning Objective: 05-01 Explain why it is so important to be knowledgeable.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
6) Nowadays, salespeople are not expected to be knowledge brokers for their sellers.
Answer: FALSE
Explanation: In fact, salespeople are increasingly expected to be knowledge brokers for their sellers. That means, the salesperson must possess a range of information, including knowledge about: a) their customers, b) their customer’s business and industry, c) their customer’s organization, d) key dynamics and trends that can influence their customer.
Difficulty: 2 Medium
Topic: Know Your Customers
Learning Objective: 05-02 Discuss the major body of knowledge needed for increased sales success.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
7) Prospects want to do business with salespeople who know their business and the products they sell.
Answer: TRUE
Explanation: Prospects and customers want to do business with salespeople who know their business and the products they sell. When a prospect has confidence in the salesperson’s expertise, a sales presentation becomes more acceptable and believable to the prospect.
Difficulty: 1 Easy
Topic: Why Is Salesperson Knowledge Important?
Learning Objective: 05-01 Explain why it is so important to be knowledgeable.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
8) To reduce the amount of time that must be devoted to sales training, modern companies do not teach their salespeople about the company’s history.
Answer: FALSE
Explanation: Knowledge of your firm’s development since its origin provides you with promotional material and builds your confidence in the company. Firms such as IBM still provide personnel with information about the company’s history and development.
Difficulty: 2 Medium
Topic: Know Your Company
Learning Objective: 05-02 Discuss the major body of knowledge needed for increased sales success.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
9) A successful salesperson focuses only on gaining knowledge about the specific product being sold because that is the only information that customers demand.
Answer: FALSE
Explanation: Salespeople need to know about the history, policies, and services of their employer in addition to understanding a specific product. Salespeople also need to be knowledgeable about competitors.
Difficulty: 2 Medium
Topic: Know Your Company
Learning Objective: 05-02 Discuss the major body of knowledge needed for increased sales success.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
10) Salespeople should familiarize themselves with the company’s price, discount, and credit policies so that they can use them as a competitive advantage.
Answer: TRUE
Explanation: Discount information becomes an important part of the sales presentation. It is important for salespeople to familiarize themselves with the company’s price, discount, and credit policies so that they can use them as a competitive advantage and enhance their professional image with the buyer.
Difficulty: 2 Medium
Topic: Know Your Product’s Pricing and Discount Policies
Learning Objective: 05-03 Illustrate how to use this knowledge during the sales presentation.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
11) Many companies offer customers various types of discounts, which are usually developed at the business unit level by the firm’s product managers.
Answer: FALSE
Explanation: Many companies offer customers various types of discounts from normal prices to entice them to buy. These discounts are usually developed at the corporate level by the firm’s marketing managers.
Difficulty: 2 Medium
Topic: Know Your Product’s Pricing and Discount Policies
Learning Objective: 05-03 Illustrate how to use this knowledge during the sales presentation.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
12) One method to obtain information on competitors is through advertisements.
Answer: TRUE
Explanation: Advertisements provide useful information about competitors. A salesperson learns about the features and prices of competing products for the purpose of making comparisons.
Difficulty: 1 Easy
Topic: Know Your Competition, Industry, and Economy
Learning Objective: 05-03 Illustrate how to use this knowledge during the sales presentation.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
13) Monitoring advertising and sales promotion activities enables salespeople to include current data and prices into sales presentations.
Answer: TRUE
Explanation: Keeping abreast of your company’s advertising and sales promotion activities is a must. By incorporating these data into your sales presentation, you can provide customers with a world of information that they probably know little about and that can secure the sale.
Difficulty: 2 Medium
Topic: Know How To Help Your Customers Resell Your Products
Learning Objective: 05-03 Illustrate how to use this knowledge during the sales presentation.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
14) Brenda Hernandez is a manager of a plant that processes recycled plastic to prepare them for sale to retail supermarkets. She recently saw an advertisement for a machine her company could buy to reduce the cost of reclaiming the recycled plastic by 20 percent. This ad is an example of trade advertising.
Answer: FALSE
Explanation: The ad for a machine is a type of industrial advertising that is aimed at individuals and organizations that purchase products for use in manufacturing.
Difficulty: 2 Medium
Topic: Know How To Help Your Customers Resell Your Products
Learning Objective: 05-03 Illustrate how to use this knowledge during the sales presentation.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
15) In the area of sales promotions, the letters POP stand for priced-on-purchase.
Answer: FALSE
Explanation: Point-of-purchase (POP) displays allow a product to be seen easily and purchased. A product POP display may include photographs, banners, drawings, coupons, counter displays, or floor stands.
Difficulty: 1 Easy
Topic: Sales Promotion Generates Sales
Learning Objective: 05-03 Illustrate how to use this knowledge during the sales presentation.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
16) Shelf-facing refers to the number of individual products placed side-by-side on the shelf.
Answer: TRUE
Explanation: Shelf facings are the number of individual products placed beside each other on the shelf. Shelf positioning can stimulate sales.
Difficulty: 1 Easy
Topic: Sales Promotion Generates Sales
Learning Objective: 05-03 Illustrate how to use this knowledge during the sales presentation.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
17) A premium is an article of merchandise offered as an incentive to the user to sample a product or visit a store.
Answer: TRUE
Explanation: A premium is an article of merchandise offered as an incentive to the user to take some action. The premium may act as an incentive to buy, to sample the product, to come into the retail store, or to stir interest so the user requests further information
Difficulty: 1 Easy
Topic: Sales Promotion Generates Sales
Learning Objective: 05-03 Illustrate how to use this knowledge during the sales presentation.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
18) Premiums are used solely to get customers to come into the retailer’s store.
Answer: FALSE
Explanation: A premium is an article of merchandise offered as an incentive to the user to take some action. The premium may act as an incentive to buy, to sample the product, to come into the retail store, or to stir interest so the user requests further information.
Difficulty: 2 Medium
Topic: Sales Promotion Generates Sales
Learning Objective: 05-03 Illustrate how to use this knowledge during the sales presentation.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
19) The three major categories of premiums are contests and sweepstakes, consumer premiums, and dealer premiums.
Answer: TRUE
Explanation: Contests and sweepstakes, consumer premiums, and dealer premiums are the three types of premiums. Premiums encourage customers to sample products and visit retail stores.
Difficulty: 1 Easy
Topic: Sales Promotion Generates Sales
Learning Objective: 05-03 Illustrate how to use this knowledge during the sales presentation.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
20) The use of technology provides salespeople with more efficient account control and better time and territory management.
Answer: TRUE
Explanation: The use of a certain form of sales technology enables salespeople to monitor customer accounts and territories faster and more efficiently. Having a better awareness of each account’s status leaves more time for customer contacts.
Difficulty: 1 Easy
Topic: Technology And Selling
Learning Objective: 05-04 Explain the main technologies used by salespeople.
Bloom’s: Remember
AACSB: Technology
Accessibility: Keyboard Navigation
21) Customer Relationship Management (CRM), is a technology system that helps companies manage information about existing and potential customers.
Answer: TRUE
Explanation: Many CRM systems include contact management technology, a listing of all the customer contacts that a salesperson makes in the course of conducting business. This form of technology is like an electronic collection of business cards and includes such information as the contact’s name, title, company, address, phone number, fax number, and e-mail address.
Difficulty: 1 Easy
Topic: Knowledge of Technology Enhances Sales and Customer Service
Learning Objective: 05-04 Explain the main technologies used by salespeople.
Bloom’s: Remember
AACSB: Technology
Accessibility: Keyboard Navigation
22) According to the text, time is the most vulnerable asset a salesperson has to manage.
Answer: TRUE
Explanation: As a salesperson, the most vulnerable asset you have to manage is time. Improvement of time management directly increases productivity.
Difficulty: 2 Medium
Topic: Knowledge of Technology Enhances Sales and Customer Service
Learning Objective: 05-04 Explain the main technologies used by salespeople.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
23) According to the text, The value of a CRM system lies in its ability to manage knowledge.
Answer: TRUE
Explanation: The value of a CRM system lies in its ability to manage knowledge. CRM software often combines sales, marketing, and customer service data into one information technology platform. For example, the CRM system may include insight from the salesperson’s colleagues.
Difficulty: 2 Medium
Topic: Knowledge of Technology Enhances Sales and Customer Service
Learning Objective: 05-04 Explain the main technologies used by salespeople.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
24) Electronic calendar management can result in improved time management.
Answer: TRUE
Explanation: As a salesperson, the most vulnerable asset you have to manage is time. Electronic calendar management, as a part of sales force automation, can make time management easier and less prone to errors or oversights.
Difficulty: 1 Easy
Topic: Knowledge of Technology Enhances Sales and Customer Service
Learning Objective: 05-04 Explain the main technologies used by salespeople.
Bloom’s: Remember
AACSB: Technology
Accessibility: Keyboard Navigation
25) Sales force automation systems are used for managing customer follow-up calls.
Answer: TRUE
Explanation: A sales force automation system reminds salespeople to send thank-you letters and schedule follow-up phone calls to customers. It also can notify the sales manager if these follow-ups are not completed.
Difficulty: 2 Medium
Topic: Knowledge of Technology Enhances Sales and Customer Service
Learning Objective: 05-04 Explain the main technologies used by salespeople.
Bloom’s: Understand
AACSB: Technology
Accessibility: Keyboard Navigation
26) A GIS is capable of revealing customer buying patterns.
Answer: TRUE
Explanation: A geographic information system (GIS) allows salespeople to view and manipulate customer and/or prospect information on an electronic map. Also, a GIS may reveal customer buying patterns that otherwise may not be apparent.
Difficulty: 1 Easy
Topic: Knowledge of Technology Enhances Sales and Customer Service
Learning Objective: 05-04 Explain the main technologies used by salespeople.
Bloom’s: Remember
AACSB: Technology
Accessibility: Keyboard Navigation
27) For salespeople who need to be constantly in touch with their clients, technology allows a functioning virtual office in the salesperson’s home, their vehicle, hotel room, or even local coffee shop.
Answer: TRUE
Explanation: Due to the availability, processing speeds, and expanding reach of technology, salespeople are able to conduct business in a variety of venues that effectively serve as virtual offices. Laptops, tablets, cell phones, printers, data services, and Wi-Fi allow salespeople to stay in constant contact with their customers even when driving between cities or states.
Difficulty: 1 Easy
Topic: Knowledge of Technology Enhances Sales and Customer Service
Learning Objective: 05-04 Explain the main technologies used by salespeople.
Bloom’s: Remember
AACSB: Technology
Accessibility: Keyboard Navigation
28) E-mails sent to customers can be written in a more casual format than business letters sent by conventional mail.
Answer: FALSE
Explanation: In creating an e-mail to customers, use the same professional writing skills you would in a business letter. Correct grammar, sentence structure, spelling, and content are extremely important in building customer relationships.
Difficulty: 1 Easy
Topic: Knowledge of Technology Enhances Sales and Customer Service
Learning Objective: 05-04 Explain the main technologies used by salespeople.
Bloom’s: Remember
AACSB: Technology
Accessibility: Keyboard Navigation
29) Salespeople who use a virtual office are not as efficient as those who work out of a stable office.
Answer: FALSE
Explanation: In their virtual offices, salespeople can stay in constant contact with their customers even when driving between cities or states. In some ways, a virtual office offers more efficiency than a typical office situation.
Difficulty: 1 Easy
Topic: Knowledge of Technology Enhances Sales and Customer Service
Learning Objective: 05-04 Explain the main technologies used by salespeople.
Bloom’s: Remember
AACSB: Technology
Accessibility: Keyboard Navigation
30) The emergence of the cloud technology has restricted more mobile, portable opportunities for salespeople.
Answer: FALSE
Explanation: The cloud has enabled more mobile, portable opportunities for salespeople. The cloud allows access to software anywhere, as long as the individual is connected to the internet. Today’s salesperson can access CRM technology, order processing, and other important purchasing and background data from their tablet, smartphone or other computing device.
Difficulty: 2 Medium
Topic: Sales: Internet and the Cloud
Learning Objective: 05-04 Explain the main technologies used by salespeople.
Bloom’s: Understand
AACSB: Technology
Accessibility: Keyboard Navigation
31) Increased worldwide interaction requires access and exchange of data on a global basis.
Answer: TRUE
Explanation: When salespeople travel far from home, the need for the right information, at the right time, in the right place becomes critical. Increased worldwide interaction requires access and exchange of data on a global basis.
Difficulty: 2 Medium
Topic: Global Technology Provides Service
Learning Objective: 05-04 Explain the main technologies used by salespeople.
Bloom’s: Understand
AACSB: Technology
Accessibility: Keyboard Navigation
32) In sales, the need for netiquette mostly arises when using cell phones.
Answer: FALSE
Explanation: Netiquette is the term used for etiquette on the Internet. In sales, the need for netiquette mostly arises when sending or distributing e-mail.
Difficulty: 2 Medium
Topic: Technology Etiquette
Learning Objective: 05-04 Explain the main technologies used by salespeople.
Bloom’s: Understand
AACSB: Technology
Accessibility: Keyboard Navigation
33) The rules of netiquette encourage you to use all capital letters in e-mail that needs to be communicated quickly.
Answer: FALSE
Explanation: Using all capital letters in an e-mail is the equivalent of shouting at the receiver, so normal capitalization rules should be followed.
Difficulty: 2 Medium
Topic: Technology Etiquette
Learning Objective: 05-04 Explain the main technologies used by salespeople.
Bloom’s: Understand
AACSB: Technology
Accessibility: Keyboard Navigation
34) Etiquette rules for using a cell phone advise users to avoid cell yell.
Answer: TRUE
Explanation: Yelling on a cell phone can be offensive to a customer and unnecessary. Most phones have sensitive microphones that can pick up even a whisper. There is no need to speak louder on your cell phone than you would on any other phone.
Difficulty: 1 Easy
Topic: Technology Etiquette
Learning Objective: 05-04 Explain the main technologies used by salespeople.
Bloom’s: Remember
AACSB: Technology
Accessibility: Keyboard Navigation
35) Net price is the standard price charged to customers.
Answer: FALSE
Explanation: List price is the standard price charged to customers. Net price is the price after allowance for all discounts.
Difficulty: 2 Medium
Topic: App: Types of Prices
Learning Objective: 05-02 Discuss the major body of knowledge needed for increased sales success.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
36) FOB shipping point means the buyer pays all shipping costs.
Answer: TRUE
Explanation: FOB (free on board) means the buyer pays transportation charges on the goods. The title to goods passes to the customer when they are loaded on shipping vehicles.
Difficulty: 2 Medium
Topic: App: Types of Prices
Learning Objective: 05-02 Discuss the major body of knowledge needed for increased sales success.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
37) Cumulative quantity discounts are price reductions received for buying a certain amount of a product over a stated period of time.
Answer: TRUE
Explanation: Cumulative quantity discounts are discounts the customer receives for buying a certain amount of a product over a stated period, such as one year. These discounts reflect savings in manufacturing and marketing costs.
Difficulty: 1 Easy
Topic: App: Discounts Lower the Price
Learning Objective: 05-02 Discuss the major body of knowledge needed for increased sales success.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
38) Sterling Industries offers customers cash discounts for paying their bills within 10 days. Assume a Sterling Industries customer purchases $10,000 worth of goods on October 1 and the cash discount is “2/10 net 30.” If the customer pays his bill on October 9, the amount due will be $9,000.
Answer: FALSE
Explanation: Cash discounts are earned by buyers who pay bills within a stated period. The customer’s payment should be $9,800 because 2/10 net 30 translates into a 2 percent discount, or $200.
Difficulty: 3 Hard
Topic: App: Discounts Lower the Price
Learning Objective: 05-02 Discuss the major body of knowledge needed for increased sales success.
Bloom’s: Apply
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
39) Markup is the dollar amount of money added to the product cost to determine its selling price.
Answer: TRUE
Explanation: Markup is the dollar amount added to the product cost to determine its selling price. Markup often is expressed as a percentage and represents gross profit, not net profit.
Difficulty: 2 Medium
Topic: App: Discounts Lower the Price
Learning Objective: 05-02 Discuss the major body of knowledge needed for increased sales success.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
40) Gross profit is the money that remains after paying the costs of marketing and operating the business.
Answer: FALSE
Explanation: Gross profit is the money available to cover the costs of marketing the product, operating the business, and profit. Net profit is the money remaining after the costs of marketing and operating the business are paid.
Difficulty: 2 Medium
Topic: App: Discounts Lower the Price
Learning Objective: 05-02 Discuss the major body of knowledge needed for increased sales success.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
41) Markup can only be derived from the product’s cost.
Answer: FALSE
Explanation: The percentage markup is based on either the product’s selling price or its cost.
Difficulty: 2 Medium
Topic: App: Discounts Lower the Price
Learning Objective: 05-02 Discuss the major body of knowledge needed for increased sales success.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
42) Which term refers to an employer’s effort to provide the opportunity for salespeople to learn about the job-related skills, knowledge, and attitudes that lead to sales success?
Answer: B
Explanation: Sales training is the effort an employer puts forth to provide the opportunity for the salesperson to receive job-related culture, skills, knowledge, and attitudes that result in improved performance in the selling environment.
Difficulty: 1 Easy
Topic: Sources of Sales Knowledge
Learning Objective: 05-01 Explain why it is so important to be knowledgeable.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
43) Which of the following statements about sales training is true?
Answer: D
Explanation: Successful companies thoroughly train new salespeople and maintain ongoing training programs for their experienced sales personnel. Companies are interested in training primarily to increase sales volume, salesperson productivity, and profitability, and training is beneficial to all parties in a sales transaction.
Difficulty: 1 Easy
Topic: Sources of Sales Knowledge
Learning Objective: 05-01 Explain why it is so important to be knowledgeable.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
44) Identify the correct statement about sales training.
Answer: A
Explanation: Experience is the main way to gain sales knowledge. Successful companies thoroughly train new salespeople and maintain ongoing training programs for their experienced sales personnel. Companies are interested in training primarily to increase sales volume, salesperson productivity, and profitability.
Difficulty: 2 Medium
Topic: Sources of Sales Knowledge
Learning Objective: 05-01 Explain why it is so important to be knowledgeable.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
45) According to the text, salespeople need to have sales knowledge to:
Answer: B
Explanation: Salespeople today must be knowledgeable to increase the salesperson’s self-confidence, to build the buyer’s confidence in the salesperson, and to build relationships through truly caring about the needs of others.
Difficulty: 2 Medium
Topic: Why Is Salesperson Knowledge Important?
Learning Objective: 05-01 Explain why it is so important to be knowledgeable.
Bloom’s: Understand
AACSB: Communication
Accessibility: Keyboard Navigation
46) Identify the incorrect statement about the buyer’s expectations from a knowledgeable salesperson.
Answer: B
Explanation: Salesperson knowledge is not simply about a product or service. Buyers expect a great deal from today’s salesperson. Buyers want salespeople to aid them in meeting their professional, organizational and personal goals. For instance, buyers want salespeople who are: 1) well versed in building a relationship as well as providing the ongoing service needed to maintain the relationship, 2) able to furnish important information on the environment and help interpret the information, 3) able to demonstrate important interpersonal qualities, such as communication and other relationship-building behaviors.
Difficulty: 2 Medium
Topic: Why Is Salesperson Knowledge Important?
Learning Objective: 05-01 Explain why it is so important to be knowledgeable.
Bloom’s: Understand
AACSB: Communication
Accessibility: Keyboard Navigation
47) Salespeople need to have knowledge for all of the following EXCEPT:
Answer: E
Explanation: Four important reasons for the salesperson to have selling knowledge are (1) to increase the salesperson’s self-confidence, (2) to build the buyer’s confidence in the salesperson, (3) to build relationships through truly caring about the needs of others, and (4) to meet the buyer’s expectations.
Difficulty: 2 Medium
Topic: Why Is Salesperson Knowledge Important?
Learning Objective: 05-01 Explain why it is so important to be knowledgeable.
Bloom’s: Understand
AACSB: Communication
Accessibility: Keyboard Navigation
48) As per the text, in order to be a knowledge broker, which one of the following pieces of information would be LEAST important for a salesperson?
Answer: E
Explanation: Salespeople are increasingly expected to be knowledge brokers for their sellers. That means, the salesperson must possess a range of information, including knowledge about: a) their customers, b) their customer’s business and industry, c) their customer’s organization, d) key dynamics and trends that can impact their customer.
Difficulty: 2 Medium
Topic: Know Your Customer
Learning Objective: 05-02 Discuss the major body of knowledge needed for increased sales success.
Bloom’s: Understand
AACSB: Communication
Accessibility: Keyboard Navigation
49) A salesperson selling ________ to ________ would most likely have the most extensive product knowledge.
Answer: E
Explanation: In general, consumer-goods salespeople require less information about the technical nature of their products; however, selling high-technology products to highly knowledgeable industrial buyers requires extensive knowledge.
Difficulty: 2 Medium
Topic: Know Your Company
Learning Objective: 05-02 Discuss the major body of knowledge needed for increased sales success.
Bloom’s: Understand
AACSB: Communication
Accessibility: Keyboard Navigation
50) Salespeople trying to gather general information about their own company may be LEAST interested in learning about:
Answer: E
Explanation: All salespeople need to know the background and current operating policies of their companies. These policies are your guidelines, and you must understand them to do your job effectively. Information on company growth, policies, procedures, production, and service facilities is often used in sales presentations.
Difficulty: 2 Medium
Topic: Know Your Company
Learning Objective: 05-02 Discuss the major body of knowledge needed for increased sales success.
Bloom’s: Understand
AACSB: Communication
Accessibility: Keyboard Navigation
51) Which of the following pieces of information would be LEAST important for a salesperson to know about the product she sells?
Answer: E
Explanation: Salespeople need to be experts about the products they sell, which includes knowing performance and sales data as well as features and benefits. It is less important to know how a product is made.
Difficulty: 2 Medium
Topic: Know Your Product
Learning Objective: 05-02 Discuss the major body of knowledge needed for increased sales success.
Bloom’s: Understand
AACSB: Communication
Accessibility: Keyboard Navigation
52) A typical salesperson’s product knowledge should primarily include:
Answer: A
Explanation: Salespeople primarily need to know the product’s features, advantages, and benefits. Understanding and communicating the FAB of the product will increase sales success.
Difficulty: 2 Medium
Topic: Know Your Product
Learning Objective: 05-02 Discuss the major body of knowledge needed for increased sales success.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
53) To truly know channels of distribution, a salesperson should know:
Answer: C
Explanation: It is essential to understand the channel of distribution your company uses to move its products to the final consumer. Knowledge of each channel member (also called reseller) is vital and should include information regarding the product lines kept in stock.
Difficulty: 2 Medium
Topic: Know Your Channels of Distribution
Learning Objective: 05-02 Discuss the major body of knowledge needed for increased sales success.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
54) Which information is the LEAST important for a salesperson to know about a channel member that sells the same products as the salesperson’s employer?
Answer: E
Explanation: Salespeople should know the distribution and pricing policies of each channel member as well as the product lines carried. Information about past purchases would also be useful.
Difficulty: 2 Medium
Topic: Know Your Channels of Distribution
Learning Objective: 05-02 Discuss the major body of knowledge needed for increased sales success.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
55) Why do some businesses require that new salespeople work on the company’s assembly line?
Answer: B
Explanation: Many companies have their new salespeople work in the manufacturing plant or in the warehouse. This hands-on experience provides extensive product knowledge and may help in future selling.
Difficulty: 2 Medium
Topic: Know Your Product
Learning Objective: 05-02 Discuss the major body of knowledge needed for increased sales success.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
56) The value or worth of a product that attracts the buyer to exchange money or something of value for the good or service is its:
Answer: A
Explanation: Price refers to the value or worth of a product that attracts the buyer to exchange money or something of value for the product. A product has some want-satisfying attributes for which the prospect is willing to exchange something of value.
Difficulty: 1 Easy
Topic: Know Your Product’s Pricing and Discount Policies
Learning Objective: 05-03 Illustrate how to use this knowledge during the sales presentation.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
57) Terrence sells office equipment and is asked by a prospect, “How does your product compare to the one I’m currently using?” To prepare for this question, Terrence should have:
Answer: B
Explanation: A salesperson needs to be prepared to discuss product features, advantages, and benefits in comparison to other products and confidently show why the salesperson’s product will fulfill the buyer’s needs better than competing products. One method to obtain information on competitors is through advertisements.
Difficulty: 2 Medium
Topic: Know Your Competition, Industry, and Economy
Learning Objective: 05-03 Illustrate how to use this knowledge during the sales presentation.
Bloom’s: Understand
AACSB: Communication
Accessibility: Keyboard Navigation
58) A salesperson, promoting a new type of energy drink to a grocery-store chain, develops a plan integrating promotions within the grocery store, such as in-store sampling, along with national initiatives conducted by the energy drink manufacturer, such as national advertising and social media programming. This exemplified how:
Answer: C
Explanation: In some industries, salespeople assist their customers to resell their product to the end-user. The main ingredients of a firm’s promotional effort may include personal selling, advertising, publicity, and sales promotion. Therefore, an understanding of marketing is often essential for the salesperson. By incorporating these data into a sales presentation, the salesperson can provide customers with a world of information that they may know little about and that can secure the sale.
Difficulty: 2 Medium
Topic: Know How To Help Your Customers Resell Your Products
Learning Objective: 05-03 Illustrate how to use this knowledge during the sales presentation.
Bloom’s: Understand
AACSB: Communication
Accessibility: Keyboard Navigation
59) Which type of advertising is undertaken by the manufacturer and directed toward the wholesaler or the retailer?
Answer: C
Explanation: Trade advertising is undertaken by the manufacturer and directed toward the wholesaler or retailer. Such advertisements appear in trade magazines serving only the wholesaler or retailer.
Difficulty: 1 Easy
Topic: Know How To Help Your Customers Resell Your Products
Learning Objective: 05-03 Illustrate how to use this knowledge during the sales presentation.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
60) Which type of advertising is aimed at individuals and organizations who purchase products used for manufacturing other products?
Answer: D
Explanation: Industrial advertising is aimed at individuals and organizations that purchase products used in manufacturing other products. Trade advertising is undertaken by the manufacturer and directed toward the wholesaler or retailer.
Difficulty: 1 Easy
Topic: Know How To Help Your Customers Resell Your Products
Learning Objective: 05-03 Illustrate how to use this knowledge during the sales presentation.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
61) Proctor & Gamble wants to reach all users of the firm’s products, both industrial buyers and consumers. The firm would most likely use ________ advertising because it has the greatest reach.
Answer: B
Explanation: National advertising is advertising designed to reach all users of the product, whether consumers or industrial buyers. Trade ads are directed at wholesalers and retailers but not consumers.
Difficulty: 1 Easy
Topic: Know How To Help Your Customers Resell Your Products
Learning Objective: 05-03 Illustrate how to use this knowledge during the sales presentation.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
62) Local supermarkets and department stores regularly advertise nationally distributed brand products. Which of the following advertisement types are they most likely to use?
Answer: A
Explanation: Retail advertising is used by a retailer to reach customers within its geographic trading area. Local supermarkets and department stores regularly advertise nationally distributed brand products.
Difficulty: 1 Easy
Topic: Know How To Help Your Customers Resell Your Products
Learning Objective: 05-03 Illustrate how to use this knowledge during the sales presentation.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
63) Advertisements in a local newspaper for a locally owned garden center are examples of ________ advertising.
Answer: D
Explanation: Retail advertising is used by a retailer to reach customers within its geographic trading area. Trade ads are aimed at wholesalers.
Difficulty: 1 Easy
Topic: Know How To Help Your Customers Resell Your Products
Learning Objective: 05-03 Illustrate how to use this knowledge during the sales presentation.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
64) Which of the following would most likely include a trial sample or request consumers to complete a questionnaire to receive a free product sample?
Answer: E
Explanation: Direct-mail advertising is mailed directly to the consumer or industrial user; it is an effective method of exposing these users to a product or it reminds them that the product is available to meet a specific need. Often, trial samples or coupons accompany direct-mail advertising.
Difficulty: 2 Medium
Topic: Know How To Help Your Customers Resell Your Products
Learning Objective: 05-03 Illustrate how to use this knowledge during the sales presentation.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
65) Smith-Lockwood, a gift store, ran a half-page advertisement in a regional newspaper for Howard Miller brand clocks. Smith-Lockwood’s Howard Miller supplier reimbursed the store’s owner for the media cost. This is most likely an example of ________ advertising.
Answer: E
Explanation: Cooperative, or co-op, advertising is advertising the retailer conducts with the cost paid for by the manufacturer or shared by the manufacturer and retailer. Industrial ads are aimed at groups that purchase products for manufacturing.
Difficulty: 2 Medium
Topic: Know How To Help Your Customers Resell Your Products
Learning Objective: 05-03 Illustrate how to use this knowledge during the sales presentation.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
66) A veterinarian ran a local newspaper advertisement announcing it was the exclusive distributor of Hill brand gourmet pet food. The Hill salesperson reimbursed the veterinarian for the media cost. This is an example of ________ advertising.
Answer: E
Explanation: Cooperative, or co-op, advertising is advertising the retailer conducts with the cost paid for by the manufacturer or shared by the manufacturer and retailer. Industrial ads are aimed at groups that purchase products for manufacturing.
Difficulty: 2 Medium
Topic: Know How To Help Your Customers Resell Your Products
Learning Objective: 05-03 Illustrate how to use this knowledge during the sales presentation.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
67) In most cases national and retail advertising is aimed at:
Answer: C
Explanation: Generally, national and retail advertising are aimed at the final consumers. Trade and industrial advertising are aimed at other members in the channel of distribution and other manufacturers.
Difficulty: 2 Medium
Topic: Know How To Help Your Customers Resell Your Products
Learning Objective: 05-03 Illustrate how to use this knowledge during the sales presentation.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
68) An advertisement for Carr cabinet doors that is directed at people in the woodworking industry ran in a publication called Custom Woodworking Business. The ad explained why Carr cabinet doors were the perfect finishing touch for all cabinets. This manufacturer used ________ advertising to reach potential users.
Answer: A
Explanation: Trade advertising is undertaken by the manufacturer and directed toward the wholesaler or retailer. Such advertisements appear in trade magazines serving only the wholesaler or retailer.
Difficulty: 2 Medium
Topic: Know How To Help Your Customers Resell Your Products
Learning Objective: 05-03 Illustrate how to use this knowledge during the sales presentation.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
69) Companies do all of the following while advertising their products EXCEPT:
Answer: E
Explanation: Firms advertise to build cooperation with channel members, educate customers about products, reduce post-purchase cognitive dissonance, and develop leads. Ads may help create sales between a salesperson’s calls but not before.
Difficulty: 2 Medium
Topic: Know How To Help Your Customers Resell Your Products
Learning Objective: 05-03 Illustrate how to use this knowledge during the sales presentation.
Bloom’s: Understand
AACSB: Communication
Accessibility: Keyboard Navigation
70) Sheila Dunn is the author of a children’s book. A retail bookstore chain has agreed to advertise Sheila’s book aggressively with lots of countertop literature racks, posters, banners, and life-size images of the characters from her book. All of these are examples of:
Answer: B
Explanation: Point-of-purchase (POP) displays allow a product to be seen easily and purchased. A product POP display may include photographs, banners, drawings, counter displays, or floor stands.
Difficulty: 2 Medium
Topic: Sales Promotion Generates Sales
Learning Objective: 05-03 Illustrate how to use this knowledge during the sales presentation.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
71) Which of the following is most likely an example of a trade sales promotion?
Answer: B
Explanation: Trade sales promotion encourages resellers to purchase and aggressively sell a manufacturer’s products by offering incentives like sales contests, displays, special purchase prices, and free merchandise. Consumer sales promotion includes free samples, contests, coupons, and demonstrations to consumers.
Difficulty: 1 Easy
Topic: Sales Promotion Generates Sales
Learning Objective: 05-03 Illustrate how to use this knowledge during the sales presentation.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
72) Which of the following is most likely an example of a consumer sales promotion?
Answer: D
Explanation: Consumer sales promotion includes free samples, consumer contests, coupons, and demonstrations to consumers. Trade sales promotion encourages resellers to purchase and aggressively sell a manufacturer’s products by offering incentives like sales contests, displays, special purchase prices, and free merchandise.
Difficulty: 2 Medium
Topic: Sales Promotion Generates Sales
Learning Objective: 05-03 Illustrate how to use this knowledge during the sales presentation.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
73) Shelf positioning refers to the:
Answer: D
Explanation: Shelf positioning refers to the physical placement of the product within the retailer’s store. Shelf facings are the number of individual products placed beside each other on the shelf.
Difficulty: 2 Medium
Topic: Sales Promotion Generates Sales
Learning Objective: 05-03 Illustrate how to use this knowledge during the sales presentation.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
74) Shelf facings are defined as:
Answer: E
Explanation: Shelf facings are the number of individual products placed beside each other on the shelf. Shelf positioning refers to the physical placement of the product within the retailer’s store.
Difficulty: 2 Medium
Topic: Sales Promotion Generates Sales
Learning Objective: 05-03 Illustrate how to use this knowledge during the sales presentation.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
75) The major obstacle a salesperson faces when trying to get retailers to place new products on store shelves is:
Answer: B
Explanation: The major obstacle faced when attempting to obtain shelf space for products is limited space. A retail store has a fixed amount of display space and thousands of products to stock. You compete for shelf space with other salespeople and with the retailer’s brands.
Difficulty: 2 Medium
Topic: Sales Promotion Generates Sales
Learning Objective: 05-03 Illustrate how to use this knowledge during the sales presentation.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
76) Manufacturers are LEAST likely to use premiums for:
Answer: B
Explanation: A premium may act as an incentive to buy, to sample the product, to come into the retail store, or to stir interest so the user requests further information. Premiums serve a number of purposes: to promote consumer sampling of a new product, to introduce a new product, to encourage point-of-purchase displays, and to boost sales of slow products.
Difficulty: 2 Medium
Topic: Sales Promotion Generates Sales
Learning Objective: 05-03 Illustrate how to use this knowledge during the sales presentation.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
77) Kellogs cereal manufacturer recently offered miniature versions of a popular cartoon character in their cereal boxes. The term used for this marketing tool is:
Answer: A
Explanation: A premium is an article of merchandise offered as an incentive to the user to take some action. The premium may act as an incentive to buy, to sample the product, to come into the retail store, or to stir interest so the user requests further information.
Difficulty: 2 Medium
Topic: Sales Promotion Generates Sales
Learning Objective: 05-03 Illustrate how to use this knowledge during the sales presentation.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
78) To make the most efficient use of technology and software applications as sales tools, salespeople should use them to:
Answer: D
Explanation: Computers enable salespeople to be more productive on the job. A computer helps salespeople manage sales leads and create customer files.
Difficulty: 1 Easy
Topic: Technology And Selling
Learning Objective: 05-04 Explain the main technologies used by salespeople.
Bloom’s: Remember
AACSB: Technology
Accessibility: Keyboard Navigation
79) A salesperson was selling industrial power generators to a manufacturing firm when the purchase manager said, “I really like the specifications, but I am not going to give the order without knowing its warranty details” The salesperson, utilizing his tablet, visited her firm’s main computer database, and handed the purchase manager a printout of the generator’s warranty details immediately. This incident best exemplifies how:
Answer: B
Explanation: Accessing information quickly can enhance sales. In this case, technology solved a sales problem and built the customer’s confidence in the salesperson and the product.
Difficulty: 2 Medium
Topic: Global Technology Provides Service
Learning Objective: 05-04 Explain the main technologies used by salespeople.
Bloom’s: Understand
AACSB: Technology
Accessibility: Keyboard Navigation
80) Which of the following statements about how sales technology impacts the productivity of salespeople is incorrect?
Answer: E
Explanation: Sales technology tools are at the heart of salespeople’s ability to provide top-quality customer service by receiving and sending out information. Sales technology is impacting salespeople—in all aspects of their lives.
Difficulty: 2 Medium
Topic: Knowledge of Technology Enhances Sales and Customer Service
Learning Objective: 05-04 Explain the main technologies used by salespeople.
Bloom’s: Understand
AACSB: Technology
Accessibility: Keyboard Navigation
81) Sales force automation breaks down into three technologically broad areas of functionality. They are personal productivity, order processing, customer service, and:
Answer: E
Explanation: Sales force automation refers to three main areas: personal productivity, order processing and customer service, and communications.
Difficulty: 2 Medium
Topic: Knowledge of Technology Enhances Sales and Customer Service
Learning Objective: 05-04 Explain the main technologies used by salespeople.
Bloom’s: Understand
AACSB: Technology
Accessibility: Keyboard Navigation
82) Sales technology can help salespeople have an efficient time management system through the use of:
Answer: C
Explanation: Improvement of time management directly increases productivity. Electronic calendar management, as a part of sales force automation, can make time management easier and less prone to errors or oversights.
Difficulty: 1 Easy
Topic: Knowledge of Technology Enhances Sales and Customer Service
Learning Objective: 05-04 Explain the main technologies used by salespeople.
Bloom’s: Remember
AACSB: Technology
Accessibility: Keyboard Navigation
83) ________ is a technology system that helps companies manage information about existing and potential customers.
Answer: A
Explanation: CRM (customer relationship management) is a technology system that helps companies manage information about existing and potential customers.
Difficulty: 1 Easy
Topic: Knowledge of Technology Enhances Sales and Customer Service
Learning Objective: 05-04 Explain the main technologies used by salespeople.
Bloom’s: Remember
AACSB: Technology
Accessibility: Keyboard Navigation
84) Todd, a sales representative for a textbook publisher, knows the name and direct line of each client’s administrative assistant. Which type of software system most likely helps Todd keep track of this information?
Answer: D
Explanation: CRM (customer relationship management) is a technology system that helps companies manage information about existing and potential customers.
Difficulty: 1 Easy
Topic: Knowledge of Technology Enhances Sales and Customer Service
Learning Objective: 05-04 Explain the main technologies used by salespeople.
Bloom’s: Remember
AACSB: Technology
Accessibility: Keyboard Navigation
85) Which of the following is NOT a feature associated with electronic calendar management?
Answer: E
Explanation: Order information would most likely be included in a contact management program. Electronic calendars can link events with contact information, prioritize events, and ensure that scheduling conflicts do not occur.
Difficulty: 2 Medium
Topic: Knowledge of Technology Enhances Sales and Customer Service
Learning Objective: 05-04 Explain the main technologies used by salespeople.
Bloom’s: Understand
AACSB: Technology
Accessibility: Keyboard Navigation
86) Which of the following would most likely remind a salesperson to send a thank-you letter to a sales prospect?
Answer: C
Explanation: A sales force automation system begins working as soon as the initial meeting is entered into the system. A few simple commands tell it to remind you to send a thank-you letter and schedule a follow-up phone call.
Difficulty: 2 Medium
Topic: Knowledge of Technology Enhances Sales and Customer Service
Learning Objective: 05-04 Explain the main technologies used by salespeople.
Bloom’s: Understand
AACSB: Technology
Accessibility: Keyboard Navigation
87) A salesperson who used a(n) ________ would be able to track customer buying patterns.
Answer: E
Explanation: A geographic information system (GIS) allows salespeople to view and manipulate customer and/or prospect information on an electronic map. A GIS can also reveal customer buying patterns that otherwise may not be apparent.
Difficulty: 1 Easy
Topic: Knowledge of Technology Enhances Sales and Customer Service
Learning Objective: 05-04 Explain the main technologies used by salespeople.
Bloom’s: Remember
AACSB: Technology
Accessibility: Keyboard Navigation
88) Which of the following would most likely be used by a salesperson to make a sales presentation that includes product video clips?
Answer: D
Explanation: Computer-based presentations can be a powerful presentation tool. PowerPoint presentations with short product video clips provide a means of creating a customized dynamic video and sound discussion of the product.
Difficulty: 1 Easy
Topic: Knowledge of Technology Enhances Sales and Customer Service
Learning Objective: 05-04 Explain the main technologies used by salespeople.
Bloom’s: Remember
AACSB: Technology
Accessibility: Keyboard Navigation
89) Salespeople use geographic information systems to:
Answer: C
Explanation: A geographic information system allows salespeople to view and manipulate customer and/or prospect information on an electronic map. Salespeople can plan sales calls geographically and efficiently.
Difficulty: 1 Easy
Topic: Knowledge of Technology Enhances Sales and Customer Service
Learning Objective: 05-04 Explain the main technologies used by salespeople.
Bloom’s: Remember
AACSB: Technology
Accessibility: Keyboard Navigation
90) A salesperson would most likely get benefits of using podcasts and other forms of e-learning modules by:
Answer: A
Explanation: Podcasts and other forms of e-learning modules are an excellent way to train salespeople on product knowledge and selling skills. They can provide coaching and practical advice at a moment’s notice.
Difficulty: 2 Medium
Topic: Knowledge of Technology Enhances Sales and Customer Service
Learning Objective: 05-04 Explain the main technologies used by salespeople.
Bloom’s: Understand
AACSB: Technology
Accessibility: Keyboard Navigation
91) The Internet is best described as:
Answer: A
Explanation: The Internet, often referred to as the Net, is a global network of computers. Similar in some ways to the telephone system, it reaches every country in the world.
Difficulty: 2 Medium
Topic: Sales: Internet and the Cloud
Learning Objective: 05-04 Explain the main technologies used by salespeople.
Bloom’s: Understand
AACSB: Technology
Accessibility: Keyboard Navigation
92) Due to the availability, processing speeds, and expanding reach of technology, salespeople are able to conduct business in a variety of venues that effectively serve as _______?
Answer: D
Explanation: Due to the availability, processing speeds, and expanding reach of technology, salespeople are able to conduct business in a variety of venues that effectively serve as virtual offices.
Difficulty: 1 Easy
Topic: Knowledge of Technology Enhances Sales and Customer Service
Learning Objective: 05-04 Explain the main technologies used by salespeople.
Bloom’s: Remember
AACSB: Technology
Accessibility: Keyboard Navigation
93) Which of the following refers to a technology approach that enables a more mobile, portable opportunity for salespeople by allowing access to software anywhere, as long as the individual is connected to the Internet.
Answer: D
Explanation: The Cloud refers to a technology approach that enables a more mobile, portable opportunity for salespeople by allowing access to software anywhere, as long as the individual is connected to the Internet.
Difficulty: 1 Easy
Topic: Sales: Internet and the Cloud
Learning Objective: 05-04 Explain the main technologies used by salespeople.
Bloom’s: Remember
AACSB: Technology
Accessibility: Keyboard Navigation
94) Netiquette is most closely related to:
Answer: C
Explanation: Netiquette is the term used for etiquette on the Internet. No matter how quickly the Internet changes, netiquette is still based on the Golden Rule, or “do unto others as you would have done to you.”
Difficulty: 2 Medium
Topic: Technology Etiquette
Learning Objective: 05-04 Explain the main technologies used by salespeople.
Bloom’s: Understand
AACSB: Technology
Accessibility: Keyboard Navigation
95) Netiquette:
Answer: B
Explanation: Netiquette is the term used for etiquette on the Internet. Since the Internet changes so rapidly, netiquette does also.
Difficulty: 1 Easy
Topic: Technology Etiquette
Learning Objective: 05-04 Explain the main technologies used by salespeople.
Bloom’s: Remember
AACSB: Technology
Accessibility: Keyboard Navigation
96) According to some experts, what has been an effect of the increased use of technology for communication with customers?
Answer: E
Explanation: According to Mary Mitchell, author of The Complete Idiot’s Guide to Business Etiquette, people seem to express rudeness a lot more than they used to—especially online. In her opinion, one of the reasons for increased rudeness is that electronic communication has reduced the amount of human-to-human contact, which makes it easier to be rude.
Difficulty: 2 Medium
Topic: Technology Etiquette
Learning Objective: 05-04 Explain the main technologies used by salespeople.
Bloom’s: Understand
AACSB: Technology
Accessibility: Keyboard Navigation
97) When communicating with e-mail messages, you should never:
Answer: D
Explanation: Brief messages that include friendly closings, salutations, and subject headings are considered appropriate. However, using all capital letters is equivalent to shouting.
Difficulty: 2 Medium
Topic: Technology Etiquette
Learning Objective: 05-04 Explain the main technologies used by salespeople.
Bloom’s: Understand
AACSB: Technology
Accessibility: Keyboard Navigation
98) Which of the following is appropriate when e-mailing customers?
Answer: D
Explanation: Bad news, flaming, all capital letters, and repeat messages are considered improper e-mail etiquette. Using dates and greetings is appropriate.
Difficulty: 2 Medium
Topic: Technology Etiquette
Learning Objective: 05-04 Explain the main technologies used by salespeople.
Bloom’s: Understand
AACSB: Technology
Accessibility: Keyboard Navigation
99) Which of the following is an appropriate guideline to follow when communicating with a cell phone?
Answer: A
Explanation: Courteous salespeople focus on the people in front of them rather than the one on the telephone. If you are expecting important information from a colleague but need to be in a public area, switch your phone to message mode and ask them to send a text message to your phone.
Difficulty: 2 Medium
Topic: Technology Etiquette
Learning Objective: 05-04 Explain the main technologies used by salespeople.
Bloom’s: Understand
AACSB: Technology
Accessibility: Keyboard Navigation
100) Which of the following is NOT a guideline to follow when communicating with a cell phone?
Answer: E
Explanation: Caller ID, and voice mail are all tools that should be used for proper cell phone etiquette. It is inappropriate to engage and cell yell and unnecessary because cell phones have sensitive microphones.
Difficulty: 2 Medium
Topic: Technology Etiquette
Learning Objective: 05-04 Explain the main technologies used by salespeople.
Bloom’s: Understand
AACSB: Technology
Accessibility: Keyboard Navigation
101) The only time a salesperson should use a speakerphone in an office setting is when he or she is:
Answer: B
Explanation: It may be necessary to conduct a meeting over the telephone through a conference call. This should be the only reason a salesperson uses a speakerphone in an office setting. This prevents private information from being heard.
Difficulty: 2 Medium
Topic: Technology Etiquette
Learning Objective: 05-04 Explain the main technologies used by salespeople.
Bloom’s: Understand
AACSB: Technology
Accessibility: Keyboard Navigation
102) ________ is the standard amount charged to customers for a product.
Answer: A
Explanation: List price is the standard price that is charged to customers. Net price is the price charged after discount allowances.
Difficulty: 1 Easy
Topic: App: Types of Prices
Learning Objective: 05-02 Discuss the major body of knowledge needed for increased sales success.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
103) Cottage in a Teapot is a small retailer of decorative merchandise. The price charged by its suppliers after allowance for all discounts is the ________ price.
Answer: D
Explanation: Net price is the price charged after discount allowances. List price is the standard price that is charged to customers.
Difficulty: 2 Medium
Topic: App: Types of Prices
Learning Objective: 05-02 Discuss the major body of knowledge needed for increased sales success.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
104) A manufacturer that bases its charge to customers on the customer’s location or the customer’s distance from the shipping point is using a ________ price.
Answer: C
Explanation: Zone price is the price of a product based on the geographic location or zone of the customer. List price is the standard price that is charged to customers. Net price is the price charged after discount allowances.
Difficulty: 2 Medium
Topic: App: Types of Prices
Learning Objective: 05-02 Discuss the major body of knowledge needed for increased sales success.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
105) A product is priced FOB destination, which means:
Answer: C
Explanation: FOB (free on board) destination means that the seller pays all shipping costs. With FOB shipping point, the buyer pays transportation charges on the goods.
Difficulty: 2 Medium
Topic: App: Types of Prices
Learning Objective: 05-02 Discuss the major body of knowledge needed for increased sales success.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
106) Which of the following is a quantity discount that involves a one-time reduction in price?
Answer: B
Explanation: A one-time price reduction is a noncumulative quantity discount. Cumulative quantity discounts are discounts the customer receives for buying a certain amount of a product over a stated period, such as one year.
Difficulty: 2 Medium
Topic: App: Discounts Lower the Price
Learning Objective: 05-02 Discuss the major body of knowledge needed for increased sales success.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
107) If one case of Winston brand chocolate molds costs $10.00, but a single order for 10 cases costs a total of $94.00, it is MOST accurate to say that:
Answer: D
Explanation: A one-time price reduction, such as 10 cases for $94.00, is a noncumulative quantity discount. Cumulative quantity discounts are discounts the customer receives for buying a certain amount of a product over a stated period, such as one year.
Difficulty: 3 Hard
Topic: App: Discounts Lower the Price
Learning Objective: 05-02 Discuss the major body of knowledge needed for increased sales success.
Bloom’s: Apply
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
108) A salesperson tells a hardware retailer, “Buy 10 sprayers today and get one free.” The retailer is being offered a ________ discount.
Answer: C
Explanation: A one-time price reduction, such as buy 10 and get one free, is a noncumulative quantity discount. Cumulative quantity discounts are discounts the customer receives for buying a certain amount of a product over a stated period, such as one year.
Difficulty: 3 Hard
Topic: App: Discounts Lower the Price
Learning Objective: 05-02 Discuss the major body of knowledge needed for increased sales success.
Bloom’s: Apply
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
109) When the salesperson told the owner of Pet World, “If you purchase a minimum of 700 pounds of my company’s brand of dog treats over the next 12 months, you’ll receive a discount of 10 percent,” the pet storeowner knew she was getting a ________ discount.
Answer: E
Explanation: Cumulative quantity discounts are discounts the customer receives for buying a certain amount of a product over a stated period, such as one year. A one-time price reduction is a noncumulative quantity discount.
Difficulty: 3 Hard
Topic: App: Discounts Lower the Price
Learning Objective: 05-02 Discuss the major body of knowledge needed for increased sales success.
Bloom’s: Apply
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
110) The customer receives this type of discount for buying a certain amount of a product over a stated period of time.
Answer: D
Explanation: Cumulative quantity discounts are discounts the customer receives for buying a certain amount of a product over a stated period, such as one year. A one-time price reduction is a noncumulative quantity discount.
Difficulty: 2 Medium
Topic: App: Discounts Lower the Price
Learning Objective: 05-02 Discuss the major body of knowledge needed for increased sales success.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
111) Which is the type of discount that would most likely be given to a customer who pays bills within a stated period?
Answer: A
Explanation: Customers who pay bills within a set period of time may earn cash discounts. Consumer discounts are one-time price reductions the manufacturer passes on to channel members or directly to the consumer.
Difficulty: 2 Medium
Topic: App: Discounts Lower the Price
Learning Objective: 05-02 Discuss the major body of knowledge needed for increased sales success.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
112) When the book salesperson told the bookstore manager, “3/15 net 60,” the manager knew that he was receiving a ________ discount.
Answer: B
Explanation: Customers who pay bills within a set period of time may earn cash discounts, such as 3% off the bill if it is paid within 15 days. Consumer discounts are one-time price reductions the manufacturer passes on to channel members or directly to the consumer.
Difficulty: 2 Medium
Topic: App: Discounts Lower the Price
Learning Objective: 05-02 Discuss the major body of knowledge needed for increased sales success.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
113) The Storage Bin Warehouse has reported a number of break-ins in the past few weeks. As a salesperson for No-Doubt Security Products, you believe your extensive line of alarm systems and locks could greatly benefit the retailer. You make an appointment with the Storage Bin manager for early next week. During your preparation for the sales call you learn the warehouse currently uses poor quality locks and has no security system. You plan to offer the manager a security package consisting of 150 Sure-Bolt locks at a price of $10 each and a new alarm system costing $5,000. The terms of the sale are 2/10 net 30. Assuming the Storage Bin manager purchases your suggested order and pays for it in one week, what would be the total cost?
Answer: B
Explanation: Customers who pay bills within a set period of time may earn cash discounts. The total price for the 150 locks is $1,500, so the total bill is $6,500. By paying within 10 days, Storage Bin saves 2% of $6,500, which is $130. Therefore, the amount paid is $6,370 ($6,500 – 130).
Difficulty: 3 Hard
Topic: App: Discounts Lower the Price
Learning Objective: 05-02 Discuss the major body of knowledge needed for increased sales success.
Bloom’s: Apply
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
114) Knight’s Catering Service receives a May 19th invoice for $150 with terms of 3/10 net 30. If Knight’s pays the invoice on May 28th, how much is due?
Answer: B
Explanation: Customers who pay bills within a set period of time may earn cash discounts. Knight’s saves $4.50 by paying within 10 days ($150 x 3% = $4.50).
Difficulty: 3 Hard
Topic: App: Discounts Lower the Price
Learning Objective: 05-02 Discuss the major body of knowledge needed for increased sales success.
Bloom’s: Apply
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
115) The Kentucky Grass Seed Company gives a 33 percent reduction off the retail list price of its best-selling grass seed mix to retailers. This practice is an example of a ________ discount.
Answer: B
Explanation: Trade discounts occur when a manufacturer reduces prices to channel members to compensate them for the services they perform. The trade discount is usually stated as a percentage off the list retail price.
Difficulty: 2 Medium
Topic: App: Discounts Lower the Price
Learning Objective: 05-02 Discuss the major body of knowledge needed for increased sales success.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
116) When the manufacturer reduces prices to channel members to compensate them for the services they perform, it is known as a:
Answer: E
Explanation: Trade discounts occur when a manufacturer reduces prices to channel members to compensate them for the services they perform. The trade discount is usually stated as a percentage off the list retail price.
Difficulty: 2 Medium
Topic: App: Discounts Lower the Price
Learning Objective: 05-02 Discuss the major body of knowledge needed for increased sales success.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
117) While in the supermarket, you notice the label on a jar of Heinz pickle relish is marked, “30 cents off regular price.” This is an example of a ________ discount.
Answer: D
Explanation: Consumer discounts are one-time price reductions the manufacturer passes on to channel members or directly to the consumer. Cents-off product labels are price reductions passed directly to the consumer.
Difficulty: 2 Medium
Topic: App: Discounts Lower the Price
Learning Objective: 05-02 Discuss the major body of knowledge needed for increased sales success.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
118) Which of the following is a one-time price reduction the manufacturer passes on to channel members or directly to customers?
Answer: D
Explanation: Consumer discounts are one-time price reductions the manufacturer passes on to channel members or directly to the consumer. Cents-off product labels are price reductions passed directly to the consumer.
Difficulty: 2 Medium
Topic: App: Discounts Lower the Price
Learning Objective: 05-02 Discuss the major body of knowledge needed for increased sales success.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
119) The ________ is the dollar amount added to the cost of a product to determine its selling price.
Answer: A
Explanation: Markup is the dollar amount added to the product cost to determine its selling price. Gross profit is the money available to cover the costs of marketing the product, operating the business, and profit. Net profit is the money remaining after the costs of marketing and operating the business are paid.
Difficulty: 1 Easy
Topic: App: Discounts Lower the Price
Learning Objective: 05-02 Discuss the major body of knowledge needed for increased sales success.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
120) All of the following are true about markup EXCEPT that it is:
Answer: E
Explanation: Markup is the dollar amount added to the product cost to determine its selling price. Markup often is expressed as a percentage and represents gross profit, not net profit. It is based on either the product’s selling price or its costs.
Difficulty: 2 Medium
Topic: App: Discounts Lower the Price
Learning Objective: 05-02 Discuss the major body of knowledge needed for increased sales success.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
121) ________ is the money available to a firm to cover the costs of marketing its products, operating the business, and profit.
Answer: D
Explanation: Gross profit is the money available to cover the costs of marketing the product, operating the business, and profit. Net profit is the money remaining after the costs of marketing and operating the business are paid.
Difficulty: 2 Medium
Topic: App: Discounts Lower the Price
Learning Objective: 05-02 Discuss the major body of knowledge needed for increased sales success.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
122) ________ is the money that remains after the costs of marketing and operating the business are paid.
Answer: D
Explanation: Net profit is the money remaining after the costs of marketing and operating the business are paid. Gross profit is the money available to cover the costs of marketing the product, operating the business, and profit.
Difficulty: 2 Medium
Topic: App: Discounts Lower the Price
Learning Objective: 05-02 Discuss the major body of knowledge needed for increased sales success.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
123) Markup is:
Answer: B
Explanation: Markup is the dollar amount added to the product cost to determine its selling price. Markup often is expressed as a percentage and represents gross profit, not net profit. It is based on either the product’s selling price or its costs.
Difficulty: 1 Easy
Topic: App: Discounts Lower the Price
Learning Objective: 05-02 Discuss the major body of knowledge needed for increased sales success.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
124) Assume a product costs $3 and a retailer sells it for $6. What is the percentage markup on selling price and cost?
Answer: C
Explanation: The percentage markup is based on either the product’s selling price or its cost. Percentage markup on selling price = amount added to cost/selling price = $3/$6 = 50%. Percentage markup on cost = amount added to cost/cost = $3/$3 = 100%.
Difficulty: 3 Hard
Topic: App: Discounts Lower the Price
Learning Objective: 05-02 Discuss the major body of knowledge needed for increased sales success.
Bloom’s: Apply
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
125) It costs a company $6 to manufacture a product. It sells the product for $10 to a wholesaler who in turn sells it to a retailer for $12. A customer of the retailer buys it for $24. What was the markup on selling price for each member of this product’s channel of distribution?
Answer: A
Explanation: Percentage markup on selling price = amount added to cost/selling price. $4/$10 = 40%; $2/$12 = 16.7%; $12/$24 = 50%.
Difficulty: 3 Hard
Topic: App: Discounts Lower the Price
Learning Objective: 05-02 Discuss the major body of knowledge needed for increased sales success.
Bloom’s: Apply
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
126) ________ is the additional sum of money expected from an investment over and above the original investment.
Answer: D
Explanation: Return on investment (ROI) refers to an additional sum of money expected from an investment over and above the original investment. ROI is often expressed as a percentage; however, salespeople can also use a dollar return on investment.
Difficulty: 1 Easy
Topic: App: Discounts Lower the Price
Learning Objective: 05-02 Discuss the major body of knowledge needed for increased sales success.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
127) “Yo-to-go” is an entrepreneurial venture of a college student named Cathy Frank. She sells yogurts in cups and cones from a trailer at the beach during the tourist season. If Frank pays $500 for cartons of yogurts then sells it all for $1200, how much is her return on investment?
Answer: B
Explanation: Return on investment (ROI) refers to an additional sum of money expected from an investment over and above the original investment. Frank makes $700 on a $500 investment.
Difficulty: 1 Easy
Topic: App: Discounts Lower the Price
Learning Objective: 05-02 Discuss the major body of knowledge needed for increased sales success.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
128) A value analysis is defined as a:
Answer: B
Explanation: A value analysis determines the best product for the money. It recognizes that a high-priced product may sometimes be a better value than a lower-priced product.
Difficulty: 2 Medium
Topic: App: Discounts Lower the Price
Learning Objective: 05-02 Discuss the major body of knowledge needed for increased sales success.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
129) There are numerous types of value analyses that a salesperson can develop for a prospect. One type that is frequently used is the:
Answer: C
Explanation: A salesperson can develop numerous types of value analyses for a prospective buyer. Three types frequently used are (1) product cost versus true value, (2) unit cost, and (3) return on investment.
Difficulty: 2 Medium
Topic: App: Discounts Lower the Price
Learning Objective: 05-02 Discuss the major body of knowledge needed for increased sales success.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
130) Cadwell, Inc., a regional business computer sales firm is attempting to sell a convenience store chain, Gas ‘N’ Go, a new computer-operated pump meter. Terry Williams, owner of the convenience stores, seems interested in Cadwell’s initial proposal but believes the price may be too high. The cost per computer is $1,000, but Cadwell could sell Williams 50 computers for $45,000 with terms of the sale being 2/10 net 30. Williams purchases 50 computers and pays for them five days after the purchase, so his ________ is $882.
Answer: B
Explanation: One method of presenting a product’s true value to a buyer is to break the product’s total costs into several smaller units, or the unit cost. In this case, the unit cost drops from $1,000 to $882.
Difficulty: 2 Medium
Topic: App: Discounts Lower the Price
Learning Objective: 05-02 Discuss the major body of knowledge needed for increased sales success.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
131) What is sales training? How long is the training period for the typical salesperson?
Answer: Sales training is the effort an employer puts forth to provide the opportunity for the salesperson to receive job-related culture, skills, knowledge, and attitudes that result in improved performance in the selling environment. Sales training is an ongoing process that should continue throughout a salesperson’s career.
Difficulty: 2 Medium
Topic: Sources of Sales Knowledge
Learning Objective: 05-01 Explain why it is so important to be knowledgeable.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
132) How does the typical salesperson obtain the knowledge needed to become a successful salesperson?
Answer: The text lists two ways. The first method is formal sales training that teaches information through preliminary training programs and sales meetings. With the second method, the salesperson learns by being on the job.
Difficulty: 2 Medium
Topic: Sources of Sales Knowledge
Learning Objective: 05-01 Explain why it is so important to be knowledgeable.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
133) List four reasons why it is important for a salesperson to have sales knowledge of his company, his buyer, and his market.
Answer: Four important reasons for the salesperson to have selling knowledge are (1) to increase the salesperson’s self-confidence, (2) to build the buyer’s confidence in the salesperson, (3) to build relationships through truly caring about the needs of others, and (4) to meet the buyer’s expectations.
Difficulty: 2 Medium
Topic: Why Is Salesperson Knowledge Important?
Learning Objective: 05-01 Explain why it is so important to be knowledgeable.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
134) What is the difference between trade and industrial advertising?
Answer: Trade advertising is undertaken by the manufacturer and directed to wholesalers and retailers. Industrial advertising is aimed at individuals and organizations that purchase products used in the manufacturing of other products.
Difficulty: 2 Medium
Topic: Know How To Help Your Customers Resell Your Products
Learning Objective: 05-03 Illustrate how to use this knowledge during the sales presentation.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
135) Distinguish between consumer sales promotions and trade sales promotions.
Answer: Consumer sales promotions are aimed at consumers. Trade sales promotions are aimed at resellers and encourage them to purchase from manufacturers and aggressively sell to consumers.
Difficulty: 2 Medium
Topic: Sales Promotion Generates Sales
Learning Objective: 05-03 Illustrate how to use this knowledge during the sales presentation.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
136) Distinguish between shelf positioning and shelf facings.
Answer: Shelf positioning refers to the physical placement of the product within the retailer’s store. Shelf facings are the number of individual products placed beside each other on the shelf.
Difficulty: 2 Medium
Topic: Sales Promotion Generates Sales
Learning Objective: 05-03 Illustrate how to use this knowledge during the sales presentation.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
137) How can a geographic information system (GIS) make a salesperson more efficient?
Answer: A GIS allows a salesperson to view and manipulate customer and/or prospect information on an electronic map. This is extremely useful when visiting an area for the first time. It allows salespeople to plan sales calls geographically and make the most efficient use of their time.
Difficulty: 2 Medium
Topic: Knowledge of Technology Enhances Sales and Customer Service
Learning Objective: 05-04 Explain the main technologies used by salespeople.
Bloom’s: Understand
AACSB: Technology
Accessibility: Keyboard Navigation
138) How does a virtual office benefit a salesperson?
Answer: In a virtual office salespeople can stay in constant contact with their customers even when driving between cities and states. When salespeople arrive at a prospect’s office and the prospect cannot see them immediately, those with a virtual office can go outside to work until they are ready to be seen. The virtual office reduces wasted time.
Difficulty: 2 Medium
Topic: Knowledge of Technology Enhances Sales and Customer Service
Learning Objective: 05-04 Explain the main technologies used by salespeople.
Bloom’s: Understand
AACSB: Technology
Accessibility: Keyboard Navigation
139) Briefly describe what is the Internet and the cloud?
Answer: The Internet refers to the physical infrastructure of the interconnected global computer network. The Cloud is a technology approach that enables a more mobile, portable opportunity for salespeople by allowing access to software anywhere, as long as the individual is connected to the Internet.
Difficulty: 2 Medium
Topic: Sales: Internet and the Cloud
Learning Objective: 05-04 Explain the main technologies used by salespeople.
Bloom’s: Understand
AACSB: Technology
Accessibility: Keyboard Navigation
140) List three important guidelines for cell phone usage.
Answer: (1) The person you are with is the most important person to talk to. (2) Turn off your phone during meetings, sales calls and presentations. (3) Do not engage in cell yell.
Difficulty: 2 Medium
Topic: Technology Etiquette
Learning Objective: 05-01 Explain why it is so important to be knowledgeable.
Bloom’s: Understand
AACSB: Technology
Accessibility: Keyboard Navigation
141) Distinguish between FOB shipping point and FOB destination.
Answer: With FOB shipping point, the buyer pays transportation charges on the goods, the title to goods passes to the customer when they are loaded on shipping vehicles. With FOB destination, the seller pays all shipping costs.
Difficulty: 2 Medium
Topic: App: Types of Prices
Learning Objective: 05-02 Discuss the major body of knowledge needed for increased sales success.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
142) Distinguish between gross profit and net profit.
Answer: Gross profit is the money available to cover the costs of marketing the product, operating the business, and profit. Net profit is the money remaining after the costs of marketing the product and operating the business are paid.
Difficulty: 2 Medium
Topic: App: Discounts Lower the Price
Learning Objective: 05-02 Discuss the major body of knowledge needed for increased sales success.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
143) It costs Custom Design, Inc., $10 to make a brass and copper candleholder. It sells the candleholder to a wholesaler for $16. The wholesaler sells the candleholder to a gift shop for $20. The gift shop prices the candleholder at $45. What was the markup on selling price for each member of this product’s channel of distribution?
Answer: Manufacturer $16 − $10/$16 = 37.5 percent
Wholesaler $20 − $16/$20 = 20 percent
Retailer $40 − $20/$40 = 50 percent
Difficulty: 3 Hard
Topic: App: Discounts Lower the Price
Learning Objective: 05-01 Explain why it is so important to be knowledgeable.
Bloom’s: Apply
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
144) What kind of advertising would be found in Florist, a magazine with a mission “to inform, inspire, and educate retail florists”?
Answer: Trade advertising
Difficulty: 1 Easy
Topic: Know How To Help Your Customers Resell Your Products
Learning Objective: 05-03 Illustrate how to use this knowledge during the sales presentation.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
145) What is the main obstacle faced by a hair product salesperson who is trying to convince a retailer to give a new shampoo good shelf positioning?
Answer: Limited retail store space
Difficulty: 2 Medium
Topic: Sales Promotion Generates Sales
Learning Objective: 05-03 Illustrate how to use this knowledge during the sales presentation.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
146) Which technology aid commonly used by salespeople can be described as an electronic collection of business cards?
Answer: CRM systems’ contact management technology.
Difficulty: 1 Easy
Topic: Knowledge of Technology Enhances Sales and Customer Service
Learning Objective: 05-04 Explain the main technologies used by salespeople.
Bloom’s: Remember
AACSB: Technology
Accessibility: Keyboard Navigation
147) What is netiquette?
Answer: Netiquette is the term used for etiquette on the Internet. Since the Internet changes so rapidly, netiquette does also.
Difficulty: 1 Easy
Topic: Technology Etiquette
Learning Objective: 05-04 Explain the main technologies used by salespeople.
Bloom’s: Remember
AACSB: Technology
Accessibility: Keyboard Navigation
148) Is it good netiquette for an e-mail user to use flaming when communicating with customers? Briefly explain your answer.
Answer: No. Flaming is the equivalent of a verbal tongue lashing in public.
Difficulty: 2 Medium
Topic: Technology Etiquette
Learning Objective: 05-04 Explain the main technologies used by salespeople.
Bloom’s: Understand
AACSB: Technology
Accessibility: Keyboard Navigation
149) What are the four types of discounts that buyers typically receive?
Answer: Cash, quantity, trade, and consumer.
Difficulty: 2 Medium
Topic: App: Discounts Lower the Price
Learning Objective: 05-02 Discuss the major body of knowledge needed for increased sales success.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
150) When Rupert’s Sandwich Shop received an invoice from Cozzini for $2,550 worth of boneless hams and turkey breasts, it included the following phrase: 1/10 net 30. If the meat was purchased on September 17 and the shop owner wants to pay the bill on September 30, how much should the owner make the check out for?
Answer: He has to pay the full amount of $2,550, as he has missed the cash discount period of 10 days.
Difficulty: 3 Hard
Topic: App: Discounts Lower the Price
Learning Objective: 05-02 Discuss the major body of knowledge needed for increased sales success.
Bloom’s: Apply
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
151) A salesperson can develop numerous types of value analyses for a prospective buyer. List three types of frequently used value analyses.
Answer: (1) Product cost versus true value, (2) unit cost, and (3) return on investment.
Difficulty: 2 Medium
Topic: App: Organizations: Value and ROI
Learning Objective: 05-01 Explain why it is so important to be knowledgeable.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
152) Clearwater Hampers is a small British company that sells luxury food and drink in various combinations in picnic hampers. Food and wine are seen as classic, fail-safe gifts in a market where gift-giving is increasingly tricky. Corporate customers, both in the United Kingdom and abroad, are important to the business. The firm’s products are also available in a number of retail establishments around the world. The leading salesperson for Clearwater Hampers is Peter Austin who has been with the company since it began operation in 1979. The firm’s owners were originally trout farmers who needed a source of income during the winter months and who diversified into selling fine liquors, cheeses, chocolates, and other luxury food items. The company uses a variety of promotions to make prospects aware of the company’s products.
A Clearwater Hampers ad in magazines targeted to retail store managers would be an example of:
Answer: E
Explanation: Trade advertising is undertaken by the manufacturer and directed toward the wholesaler or retailer. Such advertisements appear in trade magazines serving only the wholesaler or retailer.
Difficulty: 1 Easy
Topic: Know How To Help Your Customers Resell Your Products
Learning Objective: 05-03 Illustrate how to use this knowledge during the sales presentation.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
153) Clearwater Hampers is a small British company that sells luxury food and drink in various combinations in picnic hampers. Food and wine are seen as classic, fail-safe gifts in a market where gift-giving is increasingly tricky. Corporate customers, both in the United Kingdom and abroad, are important to the business. The firm’s products are also available in a number of retail establishments around the world. The leading salesperson for Clearwater Hampers is Peter Austin who has been with the company since it began operation in 1979. The firm’s owners were originally trout farmers who needed a source of income during the winter months and who diversified into selling fine liquors, cheeses, chocolates, and other luxury food items. The company uses a variety of promotions to make prospects aware of the company’s products.
Clearwater Hampers spends money on advertising for all of the following reasons EXCEPT to:
Answer: D
Explanation: The firm spends money on advertising to increase sales, inform consumers about a product, develop leads, and educate customers. Cognitive dissonance occurs when a person feels uncertainty about a recent purchase, so the firm would not want to encourage such thoughts.
Difficulty: 2 Medium
Topic: Know How To Help Your Customers Resell Your Products
Learning Objective: 05-03 Illustrate how to use this knowledge during the sales presentation.
Bloom’s: Understand
AACSB: Communication
Accessibility: Keyboard Navigation
154) Clearwater Hampers is a small British company that sells luxury food and drink in various combinations in picnic hampers. Food and wine are seen as classic, fail-safe gifts in a market where gift-giving is increasingly tricky. Corporate customers, both in the United Kingdom and abroad, are important to the business. The firm’s products are also available in a number of retail establishments around the world. The leading salesperson for Clearwater Hampers is Peter Austin who has been with the company since it began operation in 1979. The firm’s owners were originally trout farmers who needed a source of income during the winter months and who diversified into selling fine liquors, cheeses, chocolates, and other luxury food items. The company uses a variety of promotions to make prospects aware of the company’s products.
As Austin sells Clearwater Hampers, he can use his Tablet to do all of the following EXCEPT:
Answer: A
Explanation: With a Tablet, Austin can create reports and sales presentations, monitor customer accounts and product shipments, and track the buying patterns of customers. During a presentation, Austin relies on his own experience and skill to know the best time to initiate a trial close.
Difficulty: 2 Medium
Topic: Technology And Selling
Learning Objective: 05-04 Explain the main technologies used by salespeople.
Bloom’s: Understand
AACSB: Technology
Accessibility: Keyboard Navigation
155) Clearwater Hampers is a small British company that sells luxury food and drink in various combinations in picnic hampers. Food and wine are seen as classic, fail-safe gifts in a market where gift-giving is increasingly tricky. Corporate customers, both in the United Kingdom and abroad, are important to the business. The firm’s products are also available in a number of retail establishments around the world. The leading salesperson for Clearwater Hampers is Peter Austin who has been with the company since it began operation in 1979. The firm’s owners were originally trout farmers who needed a source of income during the winter months and who diversified into selling fine liquors, cheeses, chocolates, and other luxury food items. The company uses a variety of promotions to make prospects aware of the company’s products.
Corporate buyers typically pay for the shipment of hampers to their various recipients, and retailers pay shipping costs for hampers shipped to stores from Clearwater Hampers. In other words, Clearwater Hampers uses:
Answer: B
Explanation: FOB (free on board) shipping point pricing means the buyer pays transportation charges on the goods. The title to goods passes to the customer when the items are loaded on shipping vehicles.
Difficulty: 2 Medium
Topic: App: Types of Prices
Learning Objective: 05-02 Discuss the major body of knowledge needed for increased sales success.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
156) Clearwater Hampers is a small British company that sells luxury food and drink in various combinations in picnic hampers. Food and wine are seen as classic, fail-safe gifts in a market where gift-giving is increasingly tricky. Corporate customers, both in the United Kingdom and abroad, are important to the business. The firm’s products are also available in a number of retail establishments around the world. The leading salesperson for Clearwater Hampers is Peter Austin who has been with the company since it began operation in 1979. The firm’s owners were originally trout farmers who needed a source of income during the winter months and who diversified into selling fine liquors, cheeses, chocolates, and other luxury food items. The company uses a variety of promotions to make prospects aware of the company’s products.
A New York-based retailer purchases picnic hampers for $75,000 on November 1 and is given a cash discount of 3/10 net 30. If the invoice is paid on November 6, the retailer will:
Answer: D
Explanation: Cash discounts are earned by buyers who pay bills within a stated period. In this case, 32/10 net 30 translates into a 3% discount if the bill is completely paid within 10 days of the sale. Three percent of $75,000 is $2,250.
Difficulty: 3 Hard
Topic: App: Discounts Lower the Price
Learning Objective: 05-02 Discuss the major body of knowledge needed for increased sales success.
Bloom’s: Apply
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Original price was: $30.00.$20.00Current price is: $20.00.
Original price was: $30.00.$20.00Current price is: $20.00.
Original price was: $30.00.$20.00Current price is: $20.00.
Original price was: $30.00.$20.00Current price is: $20.00.
Original price was: $30.00.$20.00Current price is: $20.00.
Original price was: $30.00.$20.00Current price is: $20.00.
