Presentation on theme: "1. Which of the following are characteristics of a well-written executive summary: A. Error-free, simple, and creative B. Clear, concise, and error-free."— Presentation transcript:
1. Which of the following are characteristics of a well-written executive summary: A. Error-free, simple, and creative B. Clear, concise, and error-free C. Creative, concise, and informal D. Concise, informal, and error-free
1.B Clear, concise, and error-free. An executive summary is a section of a formal report that highlights the most important information that appears in the body of the document. A well-written executive summary should be clear, concise, and error-free. An executive summary should be easy to read and simple to understand. Because an executive summary is part of a formal report, it should follow a formal format. An executive summary does not need to be creative—its primary purpose is to inform the reader about essential facts.
2. What should the first section of an executive summary contain? A. A letter of authorization B. A recommended course of action C. A statement of the report's purpose D. An acknowledgement of the report's sponsors
2.C A statement of the report's purpose. The executive summary provides an overview of the entire report and contains the most important information included in the body of the report. The first section of the executive summary should inform the reader about the purpose of the report—the reason the report exists. For example, if the report addresses a specific business problem, the report should cite the problem in the purpose statement of the executive summary. Recommendations are addressed in the recommendations section of the report. A letter of authorization might be included in a proposal that a business submits to a potential client. By signing the letter of authorization, the client provides approval to proceed with an activity or project. The first section of an executive summary does not acknowledge sponsors. Sponsors support activities, events, or projects rather than reports.
3. Which of the following types of material are often included as attachments to the appendix of short reports: A. Conclusions and recommendations B. Table of contents C. Title page D. Supporting documents.
3.D Supporting documents. The purpose of the short report is to present information in a concise and simple manner. Therefore, documents that support the information presented in the appendix of a short report often are included as attachments rather than as parts of the main body. Readers of the report have the option to review the supporting documents or to rely solely on the information in the short report. Table of contents, title page, and conclusions and recommendations are main parts of the short report.
4. Which of the following should businesspeople be sure to include in simple written reports: A. Necessary information only B. Extensive charts and graphs C. Complete bibliography D. Names of all references
4.A Necessary information only. A characteristic of simple written reports is that they are concise and usually contain only necessary information. The purpose of simple written reports is to present important information in a clear manner. Adding additional or supporting information that is not absolutely necessary decreases the effectiveness of simple written reports. Extensive charts and graphs, complete bibliographies, and the names of all references may be included in complex written reports, but they are not used in simple written reports.
5. Employees often use simple written reports to provide managers with __________ information. A. extensive B. analytical C. in-depth D. routine
5.D Routine. Employees often use simple written reports to provide managers with routine information, such as the number of items sold each week. Routine information is the type of data that managers need on a regular basis in order to monitor the operation of the business. Simple written reports are straightforward and direct and contain only routine business information. They do not contain analytical, extensive, or in-depth information, which is usually presented in complex written reports.
6. Which of the following is an advantage of labor specialization by job task: A. Decreased worker dependency B. Improved worker morale C. Reduced boredom D. Increased worker efficiency
D Increased worker efficiency. Workers become highly skilled at the tasks they perform because they do the same tasks repeatedly. However, worker morale may worsen because of the increased boredom of doing the same job over and over. This can result in increased absenteeism, grievances, and complaints. Worker dependency increases because workers must rely on one another in order to complete the final product.
7. A worker who sorts all of a business's mail every day is performing a task that has A. high depth and low scope. B. low depth and low scope. C. low depth and high scope. D. high depth and high scope.
B Low depth and low scope. Scope is the number of different operations you do on the job and the frequency with which you do them. Depth is the amount of control you have over the tasks that you do. Receiving, sending, and sorting mail are routine tasks.
8. Members of Local Union 999 refuse to buy products that are made by their company, Chip Rite. This is an example of A. picketing. B. boycotting. C. striking. D. ratifying.
B Boycotting. Boycotting occurs when union members refuse to buy a company's products because of a labor-management conflict. Picketing occurs when union members carry signs and protest. To ratify is to approve or vote in favor of something. Striking occurs when union members refuse to work.
9. When union members of Local 654 arrived at work today, they found a sign on the door stating that the business had closed temporarily and the employees were not allowed to work. This is a pressure strategy known as a(n) A. lockout. B. injunction. C. boycott. D. strike vote.
A Lockout. A lockout normally occurs when contract negotiations break down, and company officials want to force the union to bargain. An injunction is a court order forbidding the carrying out of certain acts. A strike vote is taken by union officials to determine whether union members should strike, i.e., stop working in order to force management to meet their demands. A boycott is a strategy in which union members refuse to buy a company's products.
10. According to the law of diminishing returns, continuing to hire additional employees will eventually cause the workers' individual production level to A. decrease. B. level off. C. increase. D. remain unchanged.
A Decrease. The law of diminishing returns states that after a certain point, hiring additional employees will result in smaller increases in the overall level of production. Overall productivity reaches its highest level when there are a certain number of employees using the available resources to do the work. If businesses hire additional employees, the individual production level decreases because there are too many employees using the same resources, such as equipment. In order for production to increase at the desired level when businesses hire more employees, the business also needs to buy additional equipment and supplies and expand its space. According to the law of diminishing returns, continuing to hire additional employees does not cause individual production to level off, increase, or remain unchanged.
11. Major Company hired a fifth employee and production increased by 1,000 units per week, so it hired a sixth employee and production increased by an additional 900 units per week. What should the company expect to happen if it continues to hire more employees and does nothing to the work environment? A. Level of production will increase proportionately. B. Production per employee will fluctuate. C. Production per employee will become more stable. D. Production per employee will decrease.
D Production per employee will decrease. The law of diminishing returns states that after a certain point, hiring additional employees will result in a decrease in the overall level of production. Overall productivity reaches its highest level when there are a certain number of employees using the available resources to do the work. If businesses hire additional employees, the level of production begins to decrease because there are too many employees using the same resources, such as equipment. In order for production to increase when businesses hire more employees, the business also needs to buy additional equipment and supplies and expand its space.
12.Based on the information in the following chart, determine the point at which the law of diminishing returns begins to take effect: Number of Workers Units of Products Produced A. Six workers B. Three workers C. Five workers D. Four workers
D Four workers. The law of diminishing returns states that, at some point, continuing to add workers will reduce overall productivity. This occurs because there are limited amounts of other variables such as work space and raw materials. In the chart, the law of diminishing returns begins to take effect when the fourth worker is hired. Production increased by 14 with the addition of the second worker, and again by 14 with the addition of the third worker. However, the addition of the fourth worker only increased production by 8, which is the beginning of the decline. Adding the fifth and sixth workers created an even greater decline in productivity.
13. In which of the following situations would consumers' purchasing power decrease: A. Federal income-tax rates decrease by 1/2%. B. Pay raise is 5% and inflation rate is 6%. C. Take-home pay remains at a constant level. D. Interest rates decrease from 8% to 7%.
B Pay raise is 5% and inflation rate is 6%. When the inflation rate is higher than the percent of raise that employees receive, the purchasing power of those employees decreases. This has a negative effect on the economy because the higher inflation rate means higher prices for goods and services. Although the employees received a raise, the raise was not equal to the rate of inflation so employees actually lost purchasing power. They have more money to spend, but the goods and services they want cost more than their pay increase. When interest rates decrease, consumers' purchasing power usually increases. Consumers' purchasing power does not change if their take-home pay remains at a constant level and all other variables remain the same. A decrease in federal income-tax rates usually increases consumers' purchasing power.
14. How do spending levels impact the economy in an inflationary period? A. Consumers and businesses spend less. B. Overall spending generally remains unchanged. C. Consumers spend less, but businesses tend to spend more. D. Consumers keep spending no matter what; businesses are more cautious.
A Consumers and businesses spend less. When inflation sets in and prices rise, consumers change their spending habits, which is disruptive to the economy. Depending on the degree of inflation, consumer spending can fall dramatically, especially on larger purchases such as homes. The housing industry has been hard-hit during inflationary periods. Businesses also adjust their spending habits, and when interest rates on business loans are high, for example, they may cut back on factory orders to reduce the cost of borrowing. A decline in orders often causes factory layoffs. Changes in spending habits cause ripple effects and can have a dramatic impact on the economy.
15. Melanie's country is experiencing an economic recession. The best thing that she can do to help the economy expand is to ________ her money. A. collect B. save C. earn D. spend
D Spend. If consumers do not go out and spend, businesses have less revenue to bounce back during a recession. Businesses will then lay off more employees who, in turn, will spend less, and the recession will deepen. Saving, collecting or earning money will keep it from being reinvested in the economy, thereby not helping the economy to grow.
16. When inflation levels are low, businesses often consider A. increasing interest rates. B. reducing their personnel. C. decreasing outputs. D. expanding their operations.
D Expanding their operations. Inflation refers to the rise in prices within an economic system. When inflation levels are low, the economy often experiences a period of expansion. Consumer purchasing power increases, which often increases the demand for goods and services. Interest rates are often low during an economic expansion, so it is a good time for a business to borrow money to expand its operations. When a business expands its operations, it might purchase equipment or increase its outputs (e.g., production, personnel) to meet the higher product demand. During an economic contraction, inflation rates increase and as a result consumer spending decreases, outputs decrease, and unemployment and interest rates tend to increase.
17. What often happens to an economy during a mildly inflationary period? A. Increased growth B. Decreased prosperity C. Decreased profits D. Increased unemployment
A Increased growth. During a mildly inflationary period, wages usually increase more slowly than the prices of goods. Therefore, the cost of the goods sold is higher than the cost of labor. As a result, businesses earn more profits which enables them to expand and hire more employees. The economy grows because more people are working and have income to spend. This situation occurs only during a mildly inflationary period because if inflation rises to a higher level, the economy experiences a decrease in prosperity. High inflation also causes increased unemployment and decreased profits for businesses.
18. When a nation's inflation rate is low, prices tend to A. remain stable. B. increase dramatically. C. fluctuate daily. D. reduce currency values.
A Remain stable. Inflation is a rapid rise in prices that may occur when demand exceeds supply or when productivity declines and costs of labor go up. Generally, low inflation rates range between one percent and four percent, which indicates a strong economy and stable prices. Although some products' prices fluctuate on a daily basis (e.g., gasoline), not all prices do. High inflation causes a decrease in the value of a nation's currency.
19. Which of the following transactions would be counted in the gross domestic product: A. A florist purchases plants from a nursery. B. A bakery purchases 50 pounds of sugar. C. A customer purchases a sweater. D. A restaurant purchases meat from a wholesaler.
C A customer purchases a sweater. This is an example of a personal consumption expenditure. Personal consumption expenditures include the final market value of all services and new and used goods purchased for consumption by individuals and nonprofit institutions. In the case of the restaurant, the florist, and the bakery, the purchases will be resold to consumers, and that value will be counted in GDP.
20. How does double counting affect the gross domestic product? A. It causes trade surpluses, which help the GDP. B. It decreases the GDP. C. It inflates the GDP. D. It causes economic declines, which hurt the GDP.
C It inflates the GDP. Double counting is counting the same production more than once in determining GDP. This makes the value of GDP appear larger than it really is. Double counting does not cause economic declines, which occur when the GDP is not growing, or trade surpluses, which exist when the United States exports more goods than it imports.
21. If transfer payments were counted in calculating gross domestic product, the GDP would A. appear to be greater than it actually is. B. appear to be less than it actually is. C. not include government spending. D. not be affected.
A Appear to be greater than it actually is. The value of government payments, or transfers, of tax dollars to certain groups of people is not counted. These groups include welfare recipients, veterans, and disaster victims. Since these people do not provide goods or services in exchange for the money they receive, no increase in the GDP results, and counting these payments would inflate GDP.
22. Why do governments usually calculate the unemployment rate on a monthly basis? A. To detect changes in the economy B. To help workers find new jobs C. To determine which businesses are failing D. To prepare for receiving less tax money
A To detect changes in the economy. The unemployment rate is an indication of the health of the economy. If the rate is low, then most people who want to work have jobs and income to support themselves. If the unemployment rate starts to increase, it is an indication that workers are losing their jobs, which might result in a slowdown in the economy. By calculating the unemployment rate on a monthly basis, governments are able to detect changes in the economy at an early stage. Then, they may be able to take steps to correct problems before they become serious and lead to a recession. Governments do not calculate the unemployment rate to help workers find new jobs, determine which businesses are failing, or prepare for receiving less tax money.
23. A person who quits one job and spends a short amount of time out of work while looking for a new position is an example of __________ unemployment. A. seasonal B. structural C. cyclical D. frictional
D Frictional. Frictional unemployment describes people who are temporarily between jobs. These people have the skills and training they need to work but are unemployed because they are looking for jobs or are between jobs. They will be out of work for only short periods of time; therefore, they do not contribute to the national unemployment problem. Structural unemployment results when people have job skills, but the jobs that require those skills do not currently exist. Cyclical unemployment occurs during periods of time when there is low demand for workers. Seasonal unemployment occurs when people are out of work because of factors that involve the time of year.
24. What is one reason why the overall unemployment rate understates the actual employment situation? A. Underemployed people are listed. B. The rate is not seasonally adjusted. C. Discouraged workers are not included. D. The rate reflects regional differences.
C Discouraged workers are not included. Discouraged workers are those people who want to work but have given up looking for jobs. Most of these people have been out of work for a long time and no longer show up in the records that track people who are looking for work or receiving unemployment benefits. As a result, the unemployment rate usually is higher than indicated because of the people who are not included. The unemployment rate is seasonally adjusted. Underemployed people are not included in the unemployment rate because they are working. The overall unemployment rate does not reflect regional differences; however, there are rates available for specific geographic areas.
25. The best time for a business to purchase new equipment is when A. job growth declines. B. consumer demand decreases. C. interest rates are low. D. the gross domestic product falls.
C Interest rates are low. Interest is the money payments for the use of borrowed money. Payment amounts vary when interest rates change. The best time for a business to make an expensive purchase is when the interest rates are low because the business will pay less money to finance the loan so it can obtain the equipment. Low interest rates are common during an expansion of the business cycle. Declines in consumer demand, job growth, and the gross domestic product are economic conditions that often occur when the business cycle experiences a contraction.
26. Fluctuations in interest rates often have an impact on the use of A. tax incentives. B. credit. C. discounts. D. rebates.
B Credit. Credit is the arrangement by which businesses or individuals can purchase now and pay later. When businesses and individuals buy on credit, they pay interest on the amount of credit. If interest rates increase, businesses and individuals often stop buying on credit because it is too expensive. For example, if the interest rate is 4% and the amount of credit is $100, the cost of buying on credit is $4. However, if the interest rate increases to 15%, the cost of $100 credit is $15. Therefore, high interest rates usually cause businesses and consumers to hold off buying expensive items on credit. Fluctuations in interest rates do not have an impact on the use of tax incentives, discounts, or rebates.
27. Why does the Federal Reserve System raise interest rates? A. To fight inflation B. To increase demand for products C. To decrease supply of products D. To overcome inequalities of income distribution
A To fight inflation. When a product's demand exceeds its supply, the product's price will go up. Then, inflation increases, and economic growth begins to slow. As the product's price increases, its demand decreases. Less demand leads to less production, and eventually, unemployment. By raising interest rates, the Fed strengthens the value of the dollar, attracting foreign investors, putting more money into the economy. Inequalities of income distribution are not addressed by increased interest rates.
28. Why should a businessperson understand business cycles? A. To prevent the cycles from happening B. To make plans that will help to level out cycles C. To determine the cause of each cycle D. To predict the exact beginning of cycles
B To make plans that will help to level out cycles. By understanding whether business activities will be expanding or contracting, businesspeople can take steps to avoid the extreme ups and downs of business cycles. They can anticipate changes that will be needed in employment, production, pricing, and purchasing. These plans, however, will not prevent cycles from happening. Unfortunately, businesspeople cannot predict precisely when business cycles will begin or end, how long they will last, or how severe they will be. There is no single cause of business cycles.
29. What action expands economic activities? A. Increasing inventory levels B. Decreasing the purchase of durable goods C. Increasing the unemployment rate D. Decreasing investments in capital goods
A Increasing inventory levels. When producers are optimistic about business activity, they increase their inventory levels in order to be prepared for the increase in demand. This action expands economic activities. Increasing the unemployment rate, decreasing the purchase of durable goods, and decreasing investments in capital goods would contract economic activities.
30. Which of the following occurs as a result of discoveries: A. Economic activities contract. B. New jobs are created. C. Money supply decreases. D. Production levels decrease.
B New jobs are created. Economic activities are often stimulated or expanded by the discovery of new products, ways of doing something, and resources. They encourage expansion rather than contraction of economic activities. As a result, production levels increase, and the money supply increases.
31. A country imports goods and services from other countries in order to A. create a trade deficit. B. create a trade surplus. C. participate in domestic trade. D. satisfy domestic wants and needs.
D Satisfy domestic wants and needs. Countries import goods that are in short supply or unavailable in their own countries. A country may create a trade deficit by importing more goods than it exports, but that is not the purpose of importing. A trade surplus exists when the value of a country's exports is greater than the value of its imports. Domestic trade is trade within a country's borders.
32. The U.S. produces widgets faster and cheaper than Switzerland. In this example, the U.S. has a(n) __________ advantage. A. constructive B. comparative C. absolute D. predictable
C Absolute. The uneven distribution of productive resources enables one country to be able to produce a good or service more cheaply than another country can. For example, efficient factories and skilled labor may enable the United States to produce office machines more cheaply than they can be produced in Malaysia. A comparative advantage is the benefit that a country obtains from specializing in and producing goods and services at which it is relatively most efficient. Advantages usually are not predictable. Constructive advantage is not a widely used term to describe concepts related to international trade.
33. Which of the following factors is most likely to cause a country's currency value to fall: A. Rapid inflation B. Standards C. Decentralization D. Fewer exports
A Rapid inflation. Most countries have their own currency. A currency value can change in relation to other countries' currency values. Many factors can affect a currency's value. When inflation rises quickly, the currency's value falls because it costs more money to buy goods and services. A weak currency tends to increase exports because other countries can buy more items with their strong currency. Standards are specifications or statements that a business uses as a basis for comparing or judging goods or services. Decentralization is a way of organizing something so that responsibility and authority are distributed among many departments or individuals.
34. In a floating exchange-rate system, currency values are determined by A. changes in supply and demand. B. the World Trade Federation. C. a nation's import quotas. D. a corporation's business strategies.
A Changes in supply and demand. The value of a nation's currency fluctuates in a floating exchange-rate system. Although many factors can affect the value of a nation's currency, the floating- exchange rate is driven by the supply of and demand for the currency. For example, suppose that a lot of people want to exchange their currencies for the U.S. dollar on Tuesday. The increase in demand will cause the price of the U.S. dollar to increase. If demand drops, so will the value of the U.S. dollar. A specific nation's import quotas, a powerful corporation's business strategies, and the activities of the World Trade Federation may affect the supply or demand for a particular nation's currency.
35. Which of the following is a factor that often enables certain countries to trade successfully with each other: A. Similar business subcultures B. Same religious institutions C. Equal governmental systems D. Identical language traits
A Similar business subcultures. The business subculture of each country has its own unique beliefs, values, and ways of conducting business. The business subcultures of some countries are very similar to those of other countries. For example, the United States and the United Kingdom have similar business subcultures, which means that the businesspeople in these countries understand each other and conduct business in similar ways. Because of this, they trade successfully with each other. Countries that have different business subcultures may not be able to trade as successfully with each other because their businesspeople have different ways of doing business and may not understand each other as well. Different countries have different language traits, religious institutions, and governmental systems which may make it difficult for them to trade with each other.
36. Which of the following is an example of body language that is accepted in the business cultures of certain countries: A. Wearing emblems and symbols B. Hugging and holding hands C. Acting individually D. Speaking figuratively
B Hugging and holding hands. Body language is communicating without words through facial expression, posture, eye contact, or physical distance. Certain types of body language are accepted in some cultures but not in others. For example, in Arab countries, businesspeople hug when they meet and often hold hands while discussing business issues. Businesspeople in other cultures would consider this type of body language to be inappropriate. Wearing emblems and symbols, acting individually, and speaking figuratively are not examples of body language, although they have different meanings and levels of importance to businesspeople in the different cultures throughout the world.
37. What is an important social and cultural factor that has an impact on global trade? A. Politics B. Technology C. Language D. Economics
C Language. Social and cultural aspects of a country include the customs, habits, and traditions of the people. Language is an important socio- cultural factor that involves how people communicate, both verbally and nonverbally, as well as the meaning of words and gestures. It is important for businesses involved in global trade to understand the language of other countries to avoid speaking or acting in a way that might be considered offensive. Technology, politics, and economics are factors that have an impact on global trade, but they are not social and cultural factors.
38. Which of the following is a factor that may cause employees to feel stressed: A. Constant tiredness B. Inability to sleep C. Nature of the job D. Difficulty breathing
C Nature of the job. Some jobs are stressful simply because of the type of work involved. Employees who are involved in hazardous occupations, for example, may routinely feel stressed. Employees who are responsible for the well-being of others or who have responsibility for handling large sums of money may experience stress. Many occupations, by nature, are stressful, and people entering those occupations need to be aware of the potential and know how to deal with stress if it occurs. Inability to sleep, difficulty breathing, and constant tiredness are physical signs of stress rather than causes of stress.
39. One way that employees can control and manage their level of stress is to A. avoid developing too many friendships. B. add more responsibility to their lives. C. hurry to complete complicated tasks. D. set realistic standards for themselves.
D Set realistic standards for themselves. Employees who set realistic standards for themselves rather than expecting perfection all the time are usually able to control and manage their level of stress. It is important for employees to understand that they cannot perform perfectly in all situations and that they will make some mistakes. Being aware of this helps employees to manage stress because they will not set their goals so high that they will often be unable to achieve them. Striving to obtain perfection all the time increases stress and may cause employees to think that they are failures if they don't live up to those expectations. Adding more responsibility often increases stress. Hurrying to complete complicated tasks is an indication that employees are experiencing stress. Developing friendships is an effective way to reduce stress.
40. Why is it important for employees to learn how to manage stress? A. To achieve goals B. To prioritize tasks C. To budget time D. To remain healthy
D To remain healthy. Stress is a mental, physical, or emotional feeling of pressure or tension. When stress increases or continues for a period of time, it can have dangerous effects on employees. Many employees who have high levels of stress are more likely to catch colds or the flu. As a result, it is important for employees to learn how to manage stress to remain healthy. Learning how to prioritize tasks and budget time are ways that employees might be able to manage stress. Employees often become stressed when they are trying to achieve goals.
41. Which of following situations is an example of a response error: A. Tim did not answer the last two questions on a written survey. B. Jenny coded a survey respondent's answer with the number two instead of the number three. C. Ben found that the sample group was not representative of the target market. D. Angela developed a written survey containing open-ended questions.
A Tim did not answer the last two questions on a written survey. Response errors occur when respondents do not correctly answer or complete a survey. These errors may affect the quality of the overall data and the analysis process. Because Tim didn't answer two questions on a survey, a response error occurred. Errors may be intentional or unintentional. For example, a respondent might refuse to answer a question because s/he believes it is too personal, while another respondent might not answer a question because s/he did not see it. Incorrect coding is an editing error. When a sample group is not representative of the target market, a procedural error occurs. Developing open-ended survey questions does not indicate a response error.
42. When Elliot was tabulating marketing research data, he transposed some numbers as he was converting raw data into numerical values. What type of error occurred? A. Measurement B. Recording C. Sampling D. Response
B Recording. Errors can occur at any stage during the marketing-research process. When a researcher transposes numbers while transferring information from surveys or other research documentation into a computer spreadsheet or in a written document, it is a recording error. The example does not present a measurement, sampling, or response error.
43. What should researchers consider when evaluating the design of questionnaires? A. Names of developers B. Size of paper C. Types of questions D. Number of participants
C Types of questions. There are several types of questions that can be written for use in a questionnaire. These include open-ended questions that require more than a "yes" or "no" answer, simple "yes" or "no" questions, and multiple-choice questions. The type of question used has an effect on the information that will be collected. Researchers evaluate the type of question that will be used to obtain the most useful response. Researchers do not consider the size of paper, the names of developers, or the number of participants when evaluating the design of questionnaires.
44. When evaluating the wording of a survey, the editor should make sure that each question contains A. simple words without jargon. B. impressive but vague language. C. clear, technical terms. D. vocabulary with dual meanings
A Simple words without jargon. Wording is an important consideration when developing a survey. To obtain objective, honest answers, respondents must be able to understand the questions. This requires the use of simple and clear (not vague) wording so respondents are not confused when they read the questions. Jargon is technical language, which may confuse respondents. Surveys should not contain words with dual meanings because these words may confuse respondents, too.
45. What is the benefit of clearly stating a research problem or issue? A. It determines the sample size needed for the marketing research project. B. It helps to keep marketing research focused and relevant. C. It determines the findings of the marketing research project. D. It helps the researcher to determine whether a short- or long-term study is needed.
B It helps to keep marketing research focused and relevant. A clear definition as to the research objective or problem is essential. Stated clearly, it serves as a guide to keeping marketing research focused and relevant. Without a clearly defined objective or problem, any research done will have unnecessary waste and unclear results. The problem or objective does not determine the needed sample size or the study's length. The research findings should result from implementation of the scientific method in the research process. Pre-determining the findings violates proper research methodology.
46. Which of the following is a benefit of using multiple methods to acquire marketing research data: A. Helps the researcher to ensure the validity and reliability of the findings B. Helps the researcher determine the causes of exploratory research C. Enables the researcher to see a broader picture than using one method D. Enables the research to omit steps in the research process
C Enables the researcher to see a broader picture than using one method. By incorporating multiple methods to collect marketing research data, researchers obtain different viewpoints of the research study. Using both qualitative and quantitative data- collection methods, researchers can overcome the limitations of each method. Causes are associated with causal research methods--not with exploratory research. Use of multiple methods does not impact the findings' validity and reliability. When researchers use multiple data-collection methods, they are adding more steps to the research process rather than omitting steps.
47. The main purpose of the headline in a print advertisement is to A. supply information. B. identify the business. C. attract attention. D. express the product's benefits.
C Attract attention. Headlines attract attention by making a statement or suggestion, asking a question, or giving a benefit. Advertisers hope that readers will then go on to read the ad's copy, the text that supplies information about the company and/or its products and their benefits. The business identification is the element of the ad that identifies the business sponsoring the ad.
48. Determine which of the following is a true statement about print ads: A. Ad copy is intended to catch the reader's attention. B. Advertisers like to use as much copy as possible. C. Ad copy can be any length that the advertiser wants. D. Advertisers must include the price of products in ads.
C Ad copy can be any length that the advertiser wants. The advertiser can use as much copy as s/he feels is needed to promote the product. This is usually limited also by the amount of money the advertiser wishes to spend. Advertisers do not use as much copy as possible, but use the amount of copy that they feel is appropriate to the product. There is no requirement that advertisers quote the price of their products, but many ads do include price. The headline rather than the copy is intended to catch the reader's attention.
49. Why do advertisers use endorsements in their print ad copy? A. To benefit from a user's personal experience B. To encourage readers to take action C. To show different uses for a product D. To strengthen the sales message
D To strengthen the sales message. Endorsement copy cites a reputable outside source such as a testing laboratory that has certified that the product meets certain standards. This provides backup for the sales message. Testimonial copy presents a user's personal experience with the product. Ad copy that is focused on a product's uses will feature the different ways a product can be used. Action copy uses phrases such as “Come in today" to encourage readers to take action.
50. One reason why it is important to coordinate the headline and illustrations in an advertisement is to make the reader A. aware of the cost involved. B. appreciate the style of layout. C. understand the company name. D. want to read the message.
D Want to read the message. The headline and the illustrations are two of the main elements in an advertisement. They should be coordinated to make the reader want to read the message in the copy, which is the third element in the ad. For example, the headline should attract attention and lead the reader to the illustration, which supports the headline. The coordinated headline and illustration create a desire in the reader to want to know more about the subject of the ad and, therefore, to read the message. It is not important to coordinate the headline and illustrations to make the reader appreciate the style of layout, understand the company name, or be aware of the cost involved.
51. Which of the following are the elements of an advertisement that should be coordinated to make the ad effective: A. Illustration, layout, artwork, text B. Copy, typeface, color, slogan C. Headline, illustration, copy, signature D. Signature, slogan, type size, font
51.C Headline, illustration, copy, signature. The four main elements of an advertisement are the headline, illustration, copy, and signature. These elements should be coordinated to make the ad effective and promote the theme of the ad. Each element strengthens the others and guides the reader through the ad. Some ads include a slogan, although a slogan is not one of the elements. Typeface, color, artwork, type size, and font are parts of the layout of the ad rather than elements of an advertisement. Text is another term for copy.
52. What is one of the functions of certain types of public-relations activities? A. Market segmentation B. Product research C. Damage control D. Sales management
C Damage control. In some cases, businesses use public-relations activities to counter negative publicity or to respond to negative information. This is an example of controlling the damage that may have been caused by a specific incident. For example, if the media reports that a product has been tampered with and resulted in injury to some customers, a business would use public-relations activities to reassure the public that every attempt was being made to keep the product safe. This helps to control the negative information and maintain good relations with the public. Product research, market segmentation, and sales management are not functions of public-relations activities.
53. Which of the following situations is an example of a public-relations activity: A. Evan coordinates an upcoming sales promotion with the company's purchasing manager. B. Jana prepares a press release about her firm's new licensing agreement with a large company. C. Colleen telephones a prospective customer to try to schedule a product demonstration. D. Eli reviews a report to determine which clients have overdue payments due on their accounts.
B Jana prepares a press release about her firm's new licensing agreement with a large company. The public-relations department is the area of the business that is responsible for establishing good relations between the business and the public. Public-relations staff members are responsible for developing and distributing press releases. Press releases include newsworthy information about the business and are provided to the media to obtain publicity. Businesses often distribute press releases to announce new products, employee promotions, mergers, awards, licensing agreements, etc. Sales promotion is a product-promotion activity. Calling on prospective customers to schedule product demonstrations is a sales activity. Reviewing an overdue- accounts report is an accounting activity.
54. Which of the following is the main internal audience for public-relations activities: A. Unions B. Suppliers C. Employees D. Managers
C Employees. Most businesses provide information to employees, the business's main internal audience. Providing information is a public- relations activity because it is intended to maintain good relations with employees. Employees tend to work more effectively and have higher morale when they are well informed and have accurate information about the business's plans and goals. Providing accurate information also reduces rumors, which may have a negative impact on employees. Suppliers and unions are not internal audiences although they have direct contact with many businesses. Even though managers are employees, they usually are the ones who provide information to employees. Therefore, they are not the main internal audience.
55.One reason why it is important for businesses to use public-relations activities to reach external audiences is to A. measure the community response. B. sell useful products. C. pass on positive information. D. compile customer databases.
C Pass on positive information. One of the main functions of a business's public-relations activities is to reach external audiences, those groups that are outside of the company. These groups include the local community, government officials, customers, suppliers, creditors, etc. The external audience has a significant impact on the business because customers buy products, government officials enact rules and regulations, and creditors loan money. If the business does not maintain good relations with the external audience by providing positive information, it may have difficulty operating or even fail. Public-relations activities are not intended to sell useful products, measure the community response, or compile customer databases.
56. Which of the following is an example of a public-relations activity that involves communicating with an internal audience: A. Developing an employee newsletter B. Holding a weekly press conference C. Distributing a press release D. Making a donation to a charity
A Developing an employee newsletter. A business's public-relations efforts involve creating and maintaining goodwill between the business and the public. There are often many subgroups of the public with whom the business wants to maintain good relations, such as the customers, shareholders, local residents, community organizations, local businesses, local residents, and the business's own employees. The business's employees are part of the business's internal audience. Maintaining positive relationships with employees is important because employees are often customers who buy the business's products. They also talk to their friends and family about the business and its products. Therefore, it is important for a business's public- relations department to develop and implement public-relations activities that affect its employees. One activity that the public-relations staff members are often responsible for is developing the employee newsletter. The newsletter updates the employees about new products, community events, employee promotions, awards, etc. Press conferences, press releases, and charity donations are activities that involve informing the business's external audiences about the business's activities.
57. One reason why it is effective for businesses to use trade shows as a way of communicating with their target audiences is because the consumers who attend the shows are the A. major competitors. B. most likely prospects. C. important local residents. D. potential employees.
B Most likely prospects. The target audience is a group of consumers who are the most likely prospects for a good, service, image, or idea. As a rule, only those consumers who are interested in the products being displayed will attend a particular trade show which is an event where businesses display and/or demonstrate their products to build sales leads and interest. Therefore, participating in trade shows is an effective way for businesses to communicate with the consumers who are the most likely prospects to buy from the business. A business's major competitors usually participate in the same trade shows, but the competitors are not the target audience. Trade shows often attract consumers from throughout the country rather than only important local residents who may not be part of the target audience. Consumers attending trade shows usually are not potential employees.
58. What is a reason to give out promotional items at a trade-show exhibit? A. To notify participants that your company will have a booth at the trade show B. To create recall after the trade show C. To explain the company's unique selling proposition D. To provide industry certification for trade-show participation
B To create recall after the trade show. Small items such as pens/pencils and key rings bearing the company's contact information are often handed out at trade shows so that potential clients will see the company's name again following the trade show. Notifying participants that the company will have a booth at the trade show is done before the trade show begins. Industry certification requires meeting certain criteria such as passing an examination and having a certain number of years of work experience. Explaining a company's unique selling proposition would occur in a sales situation in which the salesperson and client would have more time to talk than at a trade show. Promotional items are also given to trade-show participants to attract booth traffic and to provide contact information.
59. Which of the following do businesses often consider when evaluating whether to participate in trade shows: A. Size of host city B. Access to sales contacts C. Availability of hotel accommodations D. Distance to airport
B Access to sales contacts. Trade shows are events where businesses display and/or demonstrate their products to build sales leads and interest. A major consideration when evaluating whether to participate is access to sales contacts. The business wants to have access to its target audience, the group of consumers who are the most likely prospects to buy the business's products. If many potential customers will be attending the trade show, it would be valuable for the business to participate in order to have contact with them. The size of the host city, the availability of hotel accommodations, and the distance to the airport are not primary considerations when evaluating whether to participate in trade shows.
60. A primary factor that a business considers when deciding to participate in a trade show is the A. business's operating policies. B. number of expected visitors. C. business's inventory levels. D. cost of the concessions.
B Number of expected visitors. Trade shows are events where businesses display and/or demonstrate their products to build sales leads and interest. A business considers many factors when deciding to participate in a particular trade show. Some factors that businesses consider are the trade-show location, travel and hotel expenses, booth costs, target audience, and the number of expected visitors. If the number of expected visitors is low and the show takes place in a distant location, the costs of participation may not be feasible. Operating policies, inventory levels, and the costs of buying food at concession stands are not primary factors that a business considers when deciding if it should participate in a trade show.
61. The promotional plan of a business is based on the business's A. financial plan. B. marketing plan. C. merchandise plan. D. advertising campaign.
B Marketing plan. The promotional plan should be a part of the overall marketing strategy of the business. The financial plan is the overall budget of a business. The merchandise plan is a sales budget used to project a business's sales for a product line, department, or store. It is concerned with buying decisions. An advertising campaign is a series of advertisements planned around a central theme. An advertising campaign would be based on the decisions made in developing the promotional plan, such as the budget allocated to advertising.
62. Which of the following usually is included in a business's promotional plan: A. Timetable for completion B. Previous sales figures C. Table of organization D. Projected profit margins
A Timetable for completion. A promotional plan is a guide for a business to follow in promoting the company and its goods and services. The plan usually includes a timetable for completion. The timetable specifies when ads will run and when publicity efforts will take place during the life of the promotional plan. The timetable provides structure for the plan. Previous sales figures, a table of organization, and projected profit margins are not included in a business's promotional plan.
63. Which of the following is the best example of the coordination of promotional activities: A. Advertising an upcoming sale a week ahead of time B. Using personal selling to earn a sales commission C. Obtaining publicity for the firm's new product line D. Sending out samples of a new product that is on display
D Sending out samples of a new product that is on display. In this situation, the promotional activities of display and sales promotion are being coordinated for the purpose of introducing and selling a new product. Advertising a sale or obtaining publicity for new products are examples of single promotional efforts, not coordinated efforts. Using personal selling to earn a sales commission is an effort to reach a personal goal.
64. One way a business can coordinate its promotional activities is to A. alternate institutional and promotional ads. B. make sure salespeople know what is being promoted. C. watch to see what competitors are promoting. D. include both old and new products in its promotions.
B Make sure salespeople know what is being promoted. In order to do a good job of personal selling, which is a form of promotion, salespeople need to know what items are being promoted. Their selling efforts can then be coordinated with the promotions. Competitors' promotions are promotional activities outside the business. Promotion funds are not usually spent on old products. Alternating institutional and promotional ads is not an example of coordinating promotional activities but of using two different forms of promotion.
65. The salesperson should demonstrate to customers only those product features that A. interest the customers. B. are already familiar. C. are easy to demonstrate. D. back up the sales dialog.
A Interest the customers. Customers are not interested in, nor can most of them absorb, information about every single feature of a product. The features that interest the customer, and the benefits of those features, will help to sell the item. The sales dialog should describe any unusual or outstanding features of the product, but those features would not be demonstrated if they do not interest the customer. Choosing features that are easy to demonstrate is "taking the easy road" and may not make the sale.
66. The number of items the salesperson shows the customer at one time should be A. planned. B. specific. C. limited. D. unrestricted.
C Limited. While the number of products shown should be limited to avoid confusion, it does not need to be fixed—at only two items, for example. Showing an unrestricted, or unlimited, number of items would be very confusing. Customers often ask to see certain items or additional items, but the salesperson cannot plan what items to show in advance.
67. An example of the use of product demonstration is A. measuring the height of a customer. B. preparing popcorn in a microwave oven. C. having a customer try on a shirt. D. handing out sale brochures.
B Preparing popcorn in a microwave oven. Product demonstration is the actions of the salesperson in the sales presentation that show the product's features. Preparing popcorn shows customers what the microwave oven will do. Having a customer try on a shirt, giving customers brochures, or measuring a customer's height maybe part of making a sale, but they are not demonstrations.
68. A good way to handle a customer objection is to A. turn the objection into a selling point. B. smile and walk away from the customer. C. show the customer a different product. D. strongly disagree with the objection.
A Turn the objection into a selling point. An objection is a point of difference between a customer and a salesperson that may prevent a sale. Salespeople should welcome customer objections because they indicate the customer's interest. Walking away from the customer, showing a different product to the customer, and strongly disagreeing with the objection are not be appropriate ways to handle an objection because they could result in lost sales.
69. The salesperson should pause before answering a customer's objections in order to A. delay dealing with the objection. B. show empathy for the customer. C. get the customer's full attention. D. let the customer see that s/he is upset.
C Get the customer's full attention. The salesperson should not rush to answer customers' objections, but s/he should not delay dealing with the objection. Instead, s/he should make sure the customer has finished, pause for a minute, collect his/her thoughts, and then respond calmly and quietly. This helps to show the customer that the salesperson is not upset about the objection. Showing empathy for customers involves letting them know that you understand their point of view.
70. The best way to convert cost (price) objections into selling points is to sell the __________ of the product. A. style B. value C. brand D. delivery
B Value. Objections to cost (price) are generally the result of a customer's/client's concern with receiving fair value in exchange for the purchase price. Although style, brand, and delivery are all factors in judging the value of a product, the overriding consideration is the need to justify the price in terms of value to the customer.
71. A guideline to follow in closing sales is to A. perfect and use one closing technique. B. pressure the customer to buy. C. maintain a positive attitude. D. leave the decision up to the customer.
C Maintain a positive attitude. A salesperson should show interest in the job and in customers in order to do a good job of closing sales. Customers should not be pressured into buying products that they may not need or want. This may facilitate an immediate sale but may result in lost sales in the long run. Salespeople should tactfully guide the customer toward a buying decision rather than leaving the customer to decide alone. No one closing technique is appropriate in all sales situations. Salespersons should understand the various ways to close the sale and be prepared to use the most appropriate close or combination of closes.
72. Salespeople should avoid overselling because it tends to A. help customers to decide. B. create a positive atmosphere. C. indicate a lack of interest. D. interfere with buying decisions.
D Interfere with buying decisions. Overselling often leaves customers in a state of indecision because too many features or benefits are presented. This causes sales to be lost. Overselling creates a negative atmosphere. When salespeople oversell, they appear more interested in making sales than in satisfying customer needs.
73. Salespeople should display self-confidence in closing sales in order to A. show customers that the salespeople are not pushy. B. show customers that the salespeople are eager. C. gain the interest of customers. D. reassure customers about their buying decisions.
D Reassure customers about their buying decisions. By displaying self- confidence, salespeople can encourage customers to buy and reassure customers that their buying decision was a good one. Customer interest must be gained in the beginning of the selling process in order for a closing to take place. Displaying self-confidence does not indicate that salespeople are eager or being pushy.
74. Which of the following is an example of suggestion selling: A. "That tie would be my choice." B. "That silk tie is $28.50." C. "This tie matches your shirt." D. "This tie is 100% silk."
C "This tie matches your shirt." Suggestion selling is a sales technique in which the salesperson attempts to increase the customer's purchase by suggesting additional products after the original decision to buy has been made. Suggesting a tie that matches a shirt may lead the customer to buy both. Saying which tie appeals to the salesperson is simply voicing an opinion. The other alternatives present features of the ties.
75. A benefit of suggestion selling to the salesperson is that it can A. increase the salesperson's total sales. B. make selling more enjoyable. C. provide important contacts. D. prepare the salesperson to become a manager.
A Increase the salesperson's total sales. This enhances the salesperson's image and may mean increased commissions and/or greater chances of promotion. Suggestion selling does not necessarily provide important contacts, make selling more enjoyable, or prepare the salesperson to become a manager.
76. Which of the following best describes trading-up: A. Persuading a customer to buy better quality, higher priced goods B. Attempting to build up the total amount of the sale C. Suggesting that the customer buy an assortment of goods D. Using high-pressure methods to sell more
A Persuading a customer to buy better quality, higher priced goods. This technique offers better service to the customer and higher profits to the store. Selling larger quantities and an assortment of goods are legitimate techniques of suggestion selling but are not trading-up. One should not use high-pressure methods because of the risk of offending customers and losing sales.
77. A salesperson can try to identify customers' personality types by A. giving efficient service. B. observing customers' actions. C. serving customers quickly. D. asking personal questions.
B Observing customers' actions. Observing customers' actions gives the salesperson clues to personality type since body language and facial expression transmit attitudes and feelings. Serving customers quickly and giving efficient service are actions that help in handling certain customer types. Asking personal questions of customers is inappropriate.
78. Which of the following is characteristic of an impulsive customer: A. Comparison shops B. Asks many questions C. Selects products quickly D. Challenges salesperson
C Selects products quickly. Impulsive customers usually buy on the spur of the moment. They usually don't want a lot of information when shopping and do not challenge the salesperson with a lot of questions. They generally buy to satisfy inner needs and wants, select their items rather quickly, and want their purchases to be noticed.
79. Which of the following actions would you take if a customer has a fact-finder personality: A. Stress the product's value. B. Consider the customer a challenge. C. Suggest product care techniques. D. Suggest substitutes with caution.
C Suggest product care techniques. These customers want to know as much as possible about the product before they purchase. That would include how to care for the product. The decisive customer wants the product right away and may object to a substitute. The difficult customer is looking for problems and should be considered a challenge. The practical or frugal customer wants to get his/her money's worth and looks for value.
80. Which of the following is a buying decision customers must make before making a purchase: A. When was the product introduced? B. How many businesses sell the product? C. Who already owns the product? D. What brand or style would be best?
D What brand or style would be best? The final decision to purchase a good or service will not occur until several types of buying decisions have been made by the customer. Customers must decide why, where, and what type of product to purchase, as well as how much to pay for the item and when it should be purchased. The identity of other owners of the product, the number of businesses that sell the product, and the length of time the product has been on the market could affect buying decisions, but they are not buying decisions.
81. Which of the following affects the place decision: A. Product features and benefits B. Need for additional information C. Warranty D. Business loyalty
D Business loyalty. Loyalty to a business can affect a customer's place decision. Warranty usually affects the price decision. The need for additional information usually affects the time decision. Product features and benefits usually affect the product decision and the price decision.
82. Which of the following factors affects the customer's time decision: A. Need for additional information B. Loyalty to the business C. Warranty terms D. Availability of customer service
A Need for additional information. The need for additional information can affect a customer's time decision. Customers may delay making the decision to buy if they feel they need additional information about the product. As a salesperson, you should help customers make the decision to buy now by providing additional product information. Warranty terms and customer service usually affect the price decision. Loyalty to the business usually affects the place decision.
83. An important function of using probing in a selling situation is to A. identify the customer's needs/wants. B. prevent any objections. C. spend more time on the sale. D. distract the customer.
A Identify the customer's needs/wants. Probing can help salespeople to identify customers' needs, wants, buying motives, and problems. The salesperson should use this information to offer solutions or ideas that his/her company or product can provide. Probing helps to focus the customer's attention, not to distract him/her. It also helps to reduce the time spent making the sale. It is not possible or desirable to prevent any objections from arising since identifying the customer's real objections may enable the salesperson to overcome them.
84. What is a company/salesperson benefit of using probing in a sales presentation? A. The customer feels important. B. Less time is needed to make a sale. C. The customer feels reassured. D. Product returns are increased.
B Less time is needed to make a sale. Salespeople use probes to obtain information, involve customers, and uncover objections. This technique allows salespeople to resolve problems that customers may have with the company, its policies, or its products. As a result, it'll take salespeople less time in the long run to close a sale. The customer's feelings of importance and reassurance are customer benefits of probing. Product returns are decreased, rather than being increased, through the use of probing.
85. What type of probe should be used to determine what the customer is thinking? A. Opinion-gathering B. Information-gathering C. Closed-end D. Confirming
A Opinion-gathering. These probes involve customers in the sales presentation so that salespeople can determine customers' reactions to what has been said and elicit their comments. Opinion-gathering probes can be used throughout the presentation to let salespeople know whether they are on target with the information that they are presenting. Confirming probes are used to check for understanding or accuracy. Information-gathering probes enable salespeople to find out information about their customers that will be helpful in satisfying customer needs. To determine what a customer is thinking, it's better to use open-ended probes rather than closed-end ones.
86. A salesperson's ability to thoroughly explain a product's benefits is particularly important when selling products with __________ benefits. A. unique B. apparent C. hidden D. exclusive
C Hidden. Hidden benefits are the advantages of goods or services that are not recognizable unless pointed out by the salesperson. Salespeople may not be able to effectively sell products with hidden benefits unless they can explain them thoroughly. Apparent benefits are the easily recognizable advantages of a good or service. Unique or exclusive benefits are the only one of its kind, or exclusive, benefits a competitor's goods or services do not possess.
87. A salesperson has explained a product's features and benefits that appeared to be of interest to the customer. What should the salesperson do if the customer reacts negatively? A. Hand the customer promotional materials and walk away B. Accept the fact that the sale has been lost C. Ask additional questions and explain other features and benefits D. Proceed with the sales presentation
C Ask additional questions and explain other features and benefits. If a customer is not sold on the benefits of a product, it could mean that the salesperson misinterpreted the customer's interests and desires. The salesperson might need to ask additional questions and explain other features and benefits that would appeal to the customer, and change a negative reaction to a positive one. Proceeding with the sales presentation would be appropriate if the salesperson observed that the customer was reacting favorably. Handing the customer promotional materials and walking away would result in a possible loss of a customer. A salesperson should point out additional features and benefits rather than accepting that the sale has been lost.
88. In order to effectively sell to an individual, what should a salesperson do after recognizing that the individual has a need? A. Develop a brochure B. Arrange financing C. Provide information D. Sell a product
C Provide information. To sell effectively, salespeople should provide the information about a good or service that will satisfy the individual's needs. If individuals already know what they need, the salesperson may only need to show them the product and answer a few simple questions. However, if the individuals are not sure about what they want, a salesperson may need to provide a lot of information about price, benefits, uses, warranties, etc. Providing the right information will help make the sale. Only when individuals have all the information they need, will the salesperson be able to sell a product. After an individual decides to buy, a salesperson might offer to arrange financing. Brochures may be used to provide information, but they are prepared in advance.
89. Which of the following is a barrier that a salesperson might encounter when selling to an individual: A. Buyer asks for additional information. B. Buyer does not see a need for the product. C. Buyer wants to see a product demonstration. D. Buyer does not accept phone calls during meetings.
B Buyer does not see a need for the product. In some cases, a salesperson might be unable to convince a customer that the product will satisfy a need or solve a problem. If the buyer does not see a need for the product, it may be impossible for the salesperson to make a sale. To overcome this barrier, a salesperson might need to change the presentation or style of selling to help the customer see the value in the product. Asking for additional information or wanting to see a product demonstration are indications of interest rather than barriers. A buyer who does not accept phone calls during meetings will be able to concentrate on the sales presentation and not be distracted.
90. A salesperson who has been negotiating sales terms with a client feels that the client's terms would be harmful to her/his company's well being. What action should the salesperson be prepared to take? A. Stress the product's benefits B. Accept the client's terms to make the sale C. Continue to negotiate with the client D. Walk away
D Walk away. When salespeople negotiate sales terms, they need to be prepared to walk away from the sale if they feel the terms will be detrimental to themselves or to their company. When negotiating, both parties need to “win”-- not just one party. Salespeople want to establish long-term relationships with their clients, so they want to keep the client happy but not harm her/his company. Product benefits would have been stressed earlier in the sales process--the client understands those benefits by the time s/he is ready to negotiate. Continuing to negotiate when the outcome will damage the company tends to waste the time and effort of both parties.
91. At the beginning of a sales negotiation, you've quoted your initial price. The customer follows up by asking for your best price. You know that you can discount your starting price by 15%. What is the most appropriate price for you offer? A. The initial price less 2% B. The initial price less 15% C. The initial price less 10% D. The initial price
A The initial price less 2%. The customer expects to negotiate the price. If you immediately discount the price as much as you can, the customer will expect to get an even larger discount. When you can't give a larger discount at the beginning of the negotiation, the customer will be unhappy. Therefore, salespeople should start small with the amount of discount quoted so that in the end the customer will be happy with the price s/he paid, and your company will make the best deal possible.
92. Why do companies provide sales standards to their salespeople? A. To ensure that salespeople adhere to the company's sales policies B. To identify the sales quotas that salespeople are required to meet C. To designate the sales territories in which the salespeople are permitted to sell D. To provide structure for salespeople to follow without stifling their personalities
D To provide structure for salespeople to follow without stifling their personalities. Sales standards are best practices and minimum operating procedures that companies provide their salespeople so that salespeople know the companies' expectations for their salespeople. Since sales standards identify minimum operating procedures, salespeople are still able to use their creativity and personalities to make sales. Some companies include sales quotas in their sales standards; however, sales standards are not limited to quotas. Sales standards are not related to sales territories. Sales standards and sales policies are not the same thing. Policies set the broad limitations on the activities of salespeople, while sales standards are best practices for salespeople to follow.
93. Mountain Bike Manufacturers has found that salespeople who confirm their sales- call appointments the day before their sales presentations have a 60% higher close rate than salespeople who do not confirm sales visits. This finding has led Mountain Bike Manufacturers to recommend pre-sales visit confirmation contacts to its new hires. This is an example of a sales A. promise. B. cycle. C. standard. D. quota.
C Standard. Sales standards are best practices based on lessons learned that serve as guidelines to provide structure to sales activities. In this situation, Mountain Bike Manufacturers had learned that pre-sales contacts appeared to have some relationship with being able to close sales. By recommending pre-sales contacts, the company was providing structure to sales activities. A sales cycle is the time between an initial customer contact and the sales close. A sales promise is a guarantee given customers about the benefits to be obtained from purchasing a product. A sales quota is the amount, types, or value of sales that a salesperson is expected to make during a designated time period.
94. What is often an effective technique for a salesperson to use when selling goods and services to groups? A. Encourage interaction B. Question each participant C. Avoid summarizing D. Discuss many topics
A Encourage interaction. Selling to groups is often more difficult than selling to one person because of the number of people involved in making the buying decision. One way for a salesperson to effectively sell to a group is to encourage interaction among the members of the group. The salesperson can encourage interaction by opening up the discussion and giving each member an opportunity to participate. A salesperson should be tolerant of all points of view and keep dominant members from taking control of the conversation. A salesperson should follow an agenda and focus on a few main topics. It is not realistic to try to question each participant in the group. Frequent summaries help the group to draw conclusions and move on to the next point.
95. Which of the following is an appropriate guideline for salespeople to follow in selling to a group: A. Try to keep group members from interrupting with questions B. Avoid the use of visual aids during the presentation C. Explain product benefits without emphasizing one over others D. Focus the sales presentation on the group's leader
C Explain product benefits without emphasizing one over others. Salespeople should keep in mind when selling to a group that each individual in the group has different buying motives. While the product's benefits should be thoroughly explained, it is best not to emphasize any one benefit because different benefits will be important to different members of the group. The presentation should not be focused on the group leader but should address all members equally. Visual aids are very effective and frequently used in presentations to groups. In most cases, salespeople should encourage group members to interrupt with questions.
96. By observing customers' facial expressions during a sales presentation, you can learn A. to be empathetic with customers. B. their style preferences. C. which selling points appeal to them. D. their mannerisms.
C Which selling points appeal to them. By observing customers' facial expressions during a sales presentation, you can learn which selling points appeal to them. Expressions of satisfaction, interest, doubt, or disapproval will guide you toward the appropriate sales presentation. You can see from customers' mannerisms whether they are relaxed or uneasy--how they feel in general. Observing customers' actions gives you insight into style preferences. Empathizing is one way to demonstrate interest in the customer.
97. How do customers benefit from the effective use of buying motives in selling? A. They become repeat customers. B. They tell others about the business. C. Their needs and wants are satisfied. D. Their merchandise returns decrease.
C Their needs and wants are satisfied. When salespeople determine and use customer buying motives in selling, customers' needs and wants are satisfied. Decreased merchandise returns, telling others about the business, and becoming repeat customers are benefits to the business.
98. Because of the high interest rates charged on retail credit, the Andrews family decided to pay cash for purchases. Which of the following affected their decision: A. Opinions of friends B. Season of the year C. Educational level D. Economic conditions
D Economic conditions. Consumers' wants, needs, and buying decisions are frequently affected by the condition of the economy. When inflation, unemployment, or interest rates are high, for example, customers may delay buying. Educational level, seasons of the year, and opinions of friends are not involved in this situation.
99. Which of the following is a reason why it is important for a salesperson to accurately complete sales forms: A. To provide delivery instructions B. To calculate shipping charges C. To maintain customer confidence D. To identify seasonal merchandise
C To maintain customer confidence. It is absolutely essential for salespeople to accurately complete sales forms because those are important documents to most businesses engaged in selling. The information on sales forms needs to be accurate in order to charge the customer the correct amount. Customer confidence and goodwill can be harmed severely if a salesperson overcharges customers or charges customers for items they don't receive. Not all sales forms contain information about delivery instructions or shipping charges, although, if needed, this information should be accurate. It is not important for a salesperson to accurately complete sales forms in order to identify seasonal merchandise.
100. Which form does a salesperson need to process for a customer who is purchasing a photocopier and paying for it over an extended period of time? A. Bill of lading B. Warranty C. Credit D. Service contract
C Credit. Once a technical salesperson closes a sale, s/he must often work with the customer to complete forms and process the order. In many cases, customers cannot afford to pay upfront the total amount due for expensive products (e.g., photocopiers). Depending on the business's policies and the customer's financial needs, the salesperson may help the customer secure a line of credit to pay for the photocopier. Credit is the arrangement by which businesses or individuals can purchase now and pay later. The salesperson might need to help the customer complete a credit application and forward the documentation to the appropriate person to process the credit request. A warranty and a service contract might require a salesperson to process the paperwork, but do not directly relate to the payment plan for the actual product. A bill of lading is a contract between a shipper and a transportation company.