Presentation on theme: "1. One reason why it is important for a business to coordinate the distribution and promotion of a new product is to make sure that the product is A. attractive."— Presentation transcript:
1. One reason why it is important for a business to coordinate the distribution and promotion of a new product is to make sure that the product is A. attractive to all customers. B. designed to appeal to a target market. C. competitively priced. D. available when customers want it.
1.D Available when customers want it. Businesses usually coordinate distribution with other marketing functions, such as promotion. One reason why it is important to coordinate the distribution and promotion of a new product is to make sure that the product is available when customers want it. If businesses promote products but those products are not available when promised, customers may decide to buy from competitors. Most products do not appeal to all customers. Businesses do not coordinate the distribution and promotion of a new product in order to make sure that it is designed to appeal to a target market or is competitively priced.
2.How can a product's unique aspects be used to determine in what channels it will be sold? A. Customers refuse to buy a product if its unique aspects are sold through unexpected channels. B. A product's unique aspects specify in what channels the product must be sold. C. Customers associate a product's unique aspects with distribution to a few or to many locations. D. Specific distribution channels can only be used for specific unique aspects of a product.
2.C Customers associate a product's unique aspects with distribution to a few or to many locations. When products have expensive or unique components, customers expect the products to be sold in a few locations due to their expense to develop. Customers would be surprised to see costly products being mass distributed to many businesses. Although a product's unique aspects might suggest certain distribution channels, businesses are free to determine where their products will be offered. It's unlikely that customers would refuse to buy a product if its unique aspects were promoted and sold in unexpected channels.
3. One reason a channel of distribution that has strong leadership is often able to avoid conflict within the channel is because the leader has the A. capacity to regulate change. B. personality to develop friendships. C. ability to provide training. D. authority to demand cooperation.
3.D Authority to demand cooperation. Strong leaders have the authority and power to influence others and direct the actions of others. A channel of distribution that has strong leadership is often able to avoid conflict within the channel because the leader has the authority to set goals for the entire channel and demand cooperation, which reduces the possibility of conflict. The leader's authority makes it possible for the leader to assign specific responsibilities to each channel member and persuade members to accomplish their individual tasks. When each member is cooperating and working for the good of the channel, there is less chance of conflict. It is not necessary for the leader to develop friendships. Channel leaders usually do not provide training. It is not possible to regulate change, although an effective leader will help channel members adjust to change.
4.To maintain positive relationships, all distribution channel members must A. limit ongoing communication. B. coordinate their efforts. C. develop competing goals D. have equal power.
4.B Coordinate their efforts. Distribution channel members are the businesses or individuals who assist in moving goods and services from the producer to the consumer. So consumers get the products they want when they need them, the channel members must work together, or coordinate their efforts to efficiently transfer goods and services. This involves fostering positive relationships, which requires open, ongoing communication to accomplish the common goal of satisfying the customer. In most situations, the distribution chain has a channel leader (e.g., producer) that possesses more power or leverage than the other channel members.
5. Which of the following is a true statement about channel-member relationships in the supply chain: A. Members can often reduce conflict by focusing on the common goal of customer satisfaction. B. Because the producers are the channel leaders, they usually have more negotiating power. C. Technological advancements have made interaction among channel members unnecessary. D. To minimize horizontal conflict, most wholesalers in the supply chain charge slotting fees.
5.A Members can often reduce conflict by focusing on the common goal of customer satisfaction. Channel members are all of the businesses or individuals that move goods and services from the producer to the end user. The channel members depend on each other to make sure the end users receive the products when they need them and where they need them. Therefore, it is important for all channel members to remember that their common goal is customer satisfaction, especially when one or more of them disagree about a course of action that another channel member wants to take. Producers are not always channel leaders, nor do they necessarily have more negotiating power. Because the channel members are interdependent, interaction among the members is necessary. Slotting fees may cause a channel conflict rather than reduce it.
6. What is an important aspect of a customer-centric business? A. Reducing the number of touch points with customers B. Limiting the employees' decision making C. Being satisfied with the status quo D. Aligning business activities with customer needs
6.D Aligning business activities with customer needs. A customer-centric business focuses on customer needs and wants. To focus on the customers' needs and wants, the business must ensure that its business objectives and activities align with its customers' needs and wants. A customer-centric business must continuously improve its processes and products to accommodate its customers' changing needs and wants—the business cannot be satisfied with the status quo. A customer-centric business allows its employees to provide input and make decisions in relation to customer relationships. Touch points are all of the opportunities that businesses have to connect with customers and reinforce their brand value. A customer- centric business is not likely to reduce the number of customer touch points.
7. Many people make the mistake of thinking that customer relationship management refers solely to A. people. B. strategies. C. processes. D. technology.
7.D Technology. Many people make the mistake of thinking that customer relationship management refers solely to technology. It involves technology, but it also involves strategies, processes, and most importantly, people. It combines these elements for the purpose of building, maintaining, and maximizing the long-term value of customer relationships.
8. Which of the following is a benefit of customer relationship management: A. The ability to double the business's profits B. A work force that does not commit errors C. A decrease in customer advocacy D. The opportunity to create targeted marketing campaigns
8.D The opportunity to create targeted marketing campaigns. The opportunity to create targeted marketing campaigns is one benefit of customer relationship management. The more you know about your customers and their changing needs and wants, the more you know what kinds of marketing communications they will respond to. CRM does not provide an error-free work force. It should result in an increase in customer advocacy. It should help the business increase its profits, but it will not necessarily double them.
10. Which of the following situations is an unethical action associated with customer relationship management: A. Allowing customers the ability to opt-out of the updates that the business provides B. Implementing a frequent-buyers program for the business's customers C. Collecting customer information with authorization to develop a customer profile D. Selling customer lists without the customers' consent to third parties
10.D Selling customer lists without the customers' consent to third parties. It is unethical for a business to sell its customers' information to third parties without the customers' permission because it is a breach of privacy. When privacy is breached, trust is broken, and customers may defect to the business's competitors. Implementing a frequent-buyers program, collecting information with authorization, and allowing customers to opt-out of updates are ethical actions.
11. Which of the following types of customer relationship management software would be most appropriate for a company that is looking for a more efficient way to track leads, prospects, and customers: A. Sales force automation technology B. Campaign management software C. Personalization technology D. Matching engine technology
11.A Sales force automation technology. Many companies use sales force automation (SFA) technology to support, coordinate, and increase the productivity of their sales professionals. SFA technology, which is a type of customer relationship management software, can help to automate many aspects of the sales process, such as tracking leads, prospects, and customers. Other SFA technology features include contact management, sales forecasting, and sales report generation. Campaign management software is used by marketers to develop, execute, and track the effectiveness of promotional campaigns to targeted groups of potential or established customers. Businesses often use personalization technology to target certain products to certain customers based on the customers' purchase history. Matching engine technology works in a similar manner. Based on a particular customer's needs or preferences, matching engine technology determines the product offering that would best appeal to that customer.
12. An important aspect of using technology in customer relationship management involves A. allowing employees to have complete access to customer information. B. posting customer information on the business's web site. C. updating customer information in the computer database. D. providing customers with excessive product information.
12.C Updating customer information in the computer database. Customer relationship management (CRM) is the combination of strategies, processes, and policies that a business uses to meet or exceed customer expectations and to provide customers with outstanding experiences at every touch point. An important aspect of CRM is ensuring that customer data are current. For example, if the customer notifies the business about a change of address and the business does not update its computer database to reflect the change, the business's promotional mailings and invoices will not reach the customer in a timely manner, if at all. In another situation, a business might have multiple database records for one customer. If the business sends multiple (excessive) copies of promotional materials (e.g., product catalog) to the customer based on the data in the database, the customer may become annoyed. Sending multiple copies of a single mailing to one customer is also a waste of the business's money. To maintain the customer's privacy, the business should not post customer information on its web site, nor should it allow its employees to have complete access to a customer's confidential information.
13. Which of the following is a characteristic of taxes: A. Restricted to businesses B. Levied by governments C. Encouraged by consumers D. Applied only to tangibles
13.B Levied by governments. Taxes are levied by various levels of government for different reasons. One reason is to generate revenue to fund programs. All levels of government, from small cities to the national level, need money to operate. They obtain this money by levying taxes on individuals and businesses. Taxes are not restricted to businesses or applied only to tangibles. Although consumers pay taxes, they usually do not encourage additional taxes.
14. The government decides to pass a new law requiring certain standards of air cleanliness be met. They will levy a tax on production of automobiles that produce gas emissions above a certain limit. However, they provide tax incentives to automobile manufacturers for research and development of new cars with lower gas emissions. This is an example of A. direct controls. B. transfer payments. C. hidden costs. D. rent seeking.
14.A Direct controls. The government is directly interfering with the normal operations of a free market. An example of a transfer payment is unemployment compensation paid to a factory worker who has been laid off. An example of hidden costs would be any unaccounted for effect that the new emissions-standards-friendly production might have on the environment. Rent seeking is when someone or some group seeks benefit to themselves or their group at the expense of someone else. An example of this would be a lobbyist pushing through a bill that only benefits its constituency at the expense of another
15. During economic fluctuations, taxes serve the purpose of ___________ the economy. A. destroying B. reducing C. expanding D. stabilizing
15.D Stabilizing. Taxes stabilize the economy because in times of need they can provide greater social services but be reduced in times of economic growth. Taxes do not reduce or destroy the overall size of the economy, though taxes can reduce individuals' disposable incomes. Taxes also do not expand the economy because they do not create new money or wealth, they redistribute it.
16. What should an employee do if a coworker is spreading malicious gossip about another worker? A. Refuse to pass on the information B. Deny hearing the rumor C. Ask for supporting evidence D. Check out the accuracy of the message
16.A Refuse to pass on the information. Gossip that may hurt a person or damage that person's reputation or character is malicious. Employees who spread malicious gossip about coworkers are behaving unethically. If an employee hears malicious gossip about a coworker, that employee should refuse to pass on the information. Employees who try to stop the spread of malicious gossip are behaving ethically because most gossip is inaccurate. If employees hear malicious gossip about a coworker, they should not deny hearing the rumor, ask for supporting evidence, or check out the accuracy of the message.
17. Which of the following is confidential information that would be unethical for an employee to provide to others without permission from the business: A. Dates of an upcoming special sale B. Posting of available positions C. Well-publicized expansion plans D. List of employees who will be promoted
17.D List of employees who will be promoted. Certain information is considered confidential, and businesses expect employees who have access to that information to keep it private. For example, information about employee promotions is confidential and should not be divulged until the business is ready to make the announcement. If an employee has access to this information or learns this information ahead of time, it would be unethical to tell others. Available positions, dates of an upcoming sale, and well-publicized expansion plans are not examples of confidential information.
18. Which of the following is an example of people using persuasion in business: A. Requesting product specifications from a vendor or manufacturer B. Delivering or distributing goods to a customer on a timely basis C. Distributing a report to company officers that recommends policy changes D. Presenting the company's annual financial statement to the board of directors
18.C Distributing a report to company officers that recommends policy changes. Persuasion is the effort of an individual or group of individuals to influence the attitudes or behavior of another individual or group of individuals. Recommendations for altering established policies is an example of trying to initiate change. Requesting product specifications, distributing goods on a timely basis, and presenting a financial statement are not examples of persuasion because a change in attitude or behavior is not the primary goal.
19. When you use persuasion, you often try to get people to A. agree on a plan of action. B. express their opinions. C. ignore the rights of others. D. understand their behavior.
19.A Agree on a plan of action. Persuasion is the ability to get people to see things your way, to do things your way, and to agree with you. When you use persuasion, you often try to get people to agree on a plan of action. An example is convincing your group of friends to attend the school play. Persuasion also involves influencing people to change their opinions or behavior rather than express their opinions or understand their behavior. When people are aggressive, they often ignore the rights of others.
20. Which of the following is an example of effective negotiations: A. Department heads and staff share company goals. B. Business owners offer workers a pay raise. C. Customer agrees to a higher price. D. Supervisors discourage questions regarding a policy change.
20.C Customer agrees to a higher price. Effective negotiations reach agreements that are satisfactory to both parties. In this example, seller and buyer were able to negotiate a higher price that was agreeable to both. Each of the other examples represents unilateral actions or release of information. Discouraging questions would lead to ineffective negotiations.
21. Which of the following is a common negotiating strategy: A. Using authority B. Speaking C. Bargaining D. Being aggressive
21.C Bargaining. Bargaining often is an effective negotiating strategy. When bargaining, each person proposes solutions and uses "give-and- take" tactics to reach an agreement. Each person may have to give up something in the process, but each person gets something in return. Silence rather than speaking is also a common negotiating strategy. Another strategy involves claiming not to have authority rather than using authority. Being aggressive is not a negotiating strategy.
22. What type of negotiating style often involves a "no-compromise" attitude? A. Accommodating B. Collaborative C. Competitive D. Combative
22.D Combative. Those who use the combative style of negotiating are ready to fight for what they want at any cost. It often involves a "no-compromise" attitude. This style is useful in short-term situations, particularly if you won't see the other person again. However, it usually does not build long-term relationships. The collaborative style involves people working together to create an outcome that benefits both parties. The competitive style is similar to a rivalry in which one party wins and one party loses. The accommodating style often involves people agreeing to something they don't really want.
23. A manager is most likely to use financial information when A. determining resources available to fund a new project. B. researching the demographics of a new target market. C. calculating the number of on-the-job injuries in the past year. D. establishing lines of authority within an organization.
23.A Determining resources available to fund a new project. Managers use financial information on many occasions, including when planning strategies, executing strategies, and evaluating the execution of strategies. For example, a manager would use financial information to determine what financial resources are available to fund a new project that s/he is planning. To research the demographics of a new target market, information gathered through market research would be more useful. Financial information is not used to calculate the number of on-the-job injuries or to establish lines of authority within an organization.
24. The price of raw materials used in manufacturing a product was double what had been projected for the year. Which of the following could the business determine by analyzing its financial information: A. Supply and demand B. Equipment costs C. Variances D. Errors in forecasting
24.C Variances. Businesses analyze their financial information to determine the differences between what they had forecast and what actually happened. By doing this, they can account for those differences and improve future forecasts. In this scenario, equipment costs were not a factor. The business could not determine from its financial information whether the supply of raw materials decreased or demand increased. Forecasts are estimates based on information known at the time the forecast was made and will not be exactly what actually happens. In this scenario, therefore, the variances would not be considered forecasting errors.
25. Which of the following is a way that businesses can use financial information: A. To identify trends B. To select selling strategies C. To conduct focus groups D. To create an economic system
25.A To identify trends. Through financial-information analysis, businesses can recognize what products are selling well and in what colors, styles, models, and sizes. Over time, this helps businesses spot trends in customer buying habits so that the businesses provide more of the products customers are buying and less of those that are not selling well. Selling strategies are largely determined by the nature of the product being sold rather than by financial information. Focus groups are used to collect customer reactions to and opinions about product features or company image. Businesses function in economic systems rather than creating them.
26. Why does a company need a flow of money into the business? A. To borrow B. To exist C. To sell D. To invest
26.B To exist. Money must flow into a business before it can ever exist. Entrepreneurs usually borrow money from a bank or obtain financing from investors in order to go into business. This initial flow of money is used to purchase the goods and services needed to start the business. Businesses receive money from the sale of goods and services. Entrepreneurs often obtain start-up money by borrowing it from investors.
27. Established businesses receive their primary flow of money from A. loans. B. credit. C. fees. D. sales.
27.D Sales. Sales are the primary way in which money flows into an established business. Businesses receive money by selling goods and services either to other businesses or to the final customer. Some businesses sell on credit, which means that the customer will pay for the goods or services over a period of time, usually with interest. Businesses spend money to pay fees and loans.
28. What is often one of the largest sources of money flowing out of a business? A. Payroll and benefits B. Accounts receivable C. Profit and loss D. Goods and services
28.A Payroll and benefits. Payroll and benefits are often one of the largest sources of money flowing out of a business because businesses must pay employees for their labor. Many businesses also pay for employee benefits, such as health insurance, paid vacation, sick leave, tuition reimbursements, and retirement savings. Businesses bring money in by selling goods and services. Accounts receivable are all the monies owed to a firm by its customers. Profit and loss indicates if the business is making sufficient money to cover its expenses.
29. Which of the following is an example of current liabilities that a business should include in its balance sheet: A. Owner's equity B. Accounts receivable C. Employees' salaries D. Mortgage loans
29.C Employees' salaries. Liabilities are debts that a business owes. Liabilities are classified as current, which means that the debts will be paid off during the year, or long- term, which means that they will be paid off over a period of time. Employees' salaries are current liabilities because the business is expected to pay its employees for their work on a regular basis throughout the year. Mortgage loans are long-term liabilities because businesses usually make mortgage payments for several years. Accounts receivable are assets because they are all the monies owed to the business by its customers. Owner's equity is the amount an owner has invested in the business plus or minus profits and losses.
30. Which of the following are the categories that businesses use to summarize information on their balance sheets: A. Cash, budget, and credit B. Equity, budget, and cash C. Liabilities, equipment, and sales D. Assets, liabilities, and equity
30.D Assets, liabilities, and equity. A balance sheet is a financial statement that captures the financial condition of the business at that particular moment. The business summarizes its financial condition by categorizing data into three groups—assets, liabilities, and equity. An asset is anything that the business owns or that can be converted into cash. Assets include cash, equipment, and sales income. Liabilities are the business's debts. As a liability, a credit balance is money that a business owes to its suppliers or lenders. Equity is the net worth of the business after subtracting all liabilities from all assets. A budget is an estimate of income and expenses for a certain period of time. A budget is not a category of information that is listed on a balance sheet.
31. The reason why a business prepares a balance sheet is to determine its A. estimated annual income. B. average cash flow. C. current financial situation. D. future sales goal.
31.C Current financial situation. A balance sheet is a financial statement that captures the financial condition of the business at that particular moment. It indicates what the business owns, what it owes, and its worth as of a certain date. By preparing a balance sheet, a business can determine if it has sufficient assets to cover its liabilities and still have money remaining, or if its liabilities are more than its assets. A business does not prepare a balance sheet to determine its average cash flow, estimated annual income, or future sales goal.
32. What category of an income statement indicates total profit? A. Gross profit B. Bottom line C. Cash flow D. Net profit
32.A Gross profit. Gross profit is determined by subtracting the cost of goods sold/cost of sales from revenue. It is the total amount of money a business makes as a profit before all other remaining expenses have been deducted. Determining the gross profit helps businesses to see how much money they invested in making or obtaining their products versus how much it costs to operate the business. The bottom line is net profit, which is the money remaining after operating expenses are subtracted from gross profit. Cash flow is the movement of money into and out of a business.
33. By comparing the categories in an income statement, a business will be able to determine if it is A. earning too much income. B. paying too little for supplies. C. spending too much on expenses. D. acquiring goods for too low a price.
33.C Spending too much on expenses. By themselves, the elements of an income statement are simply categories and totals. A business needs to be able to see how the categories are affecting each other and the bottom line. By comparing categories, a business will be able to determine if it is spending too much on expenses and not earning sufficient profit. Most businesses try to spend as little as possible when purchasing supplies or acquiring goods. Businesses try to earn as much income as possible.
34. One reason why a business compares its income statement figures with those of competitors is to find out how it is doing in relation to A. industry standards. B. research projections. C. economic forecasts. D. marketing procedures.
34.A Industry standards. Even when a business is earning a profit, it will still want to know how it is doing by industry standards. A competitive analysis of income statement figures helps a business to see its strengths and weaknesses in relation to those of the competition. Businesses usually do not share their marketing procedures with competitors. Economic forecasts and research projections indicate how businesses might do in the future.
35. Businesses use budgets to estimate how they will A. spend their money. B. file their taxes. C. calculate their assets D. depreciate their assets.
35.A Spend their money. A budget estimates how a business will earn and spend its money. Businesses use budgets to estimate how they will spend the money they earn as income. Businesses have expenses, and budgets help businesses plan how to allocate income in order to pay those expenses. Businesses do not use budgets to calculate their assets, file their taxes, or depreciate their assets.
36. By regularly reviewing their budgets, businesses are able to determine if they are A. offering loans to employees. B. paying interest to customers. C. following their financial plans. D. receiving discounts from vendors.
36.C Following their financial plans. By regularly reviewing their budgets, businesses are able to determine if they are following their financial plans. With a budget, businesses are able to see at a glance where things are off course, and then make whatever adjustments are needed to get back on track. Businesses usually do not pay interest to customers or offer loans to employees. Budgets do not indicate if businesses receive specific discounts from vendors, although the total amount paid to vendors would be estimated in a budget.
37. Why do businesses use budgets to estimate income? A. To increase losses B. To increase shrinkage C. To plan purchases D. To develop services
37.C To plan purchases. Budgets guide financial decisions, such as what to buy and how much to pay. Businesses use budgets to estimate income to know how much money will be available to spend on purchases. By knowing when income is expected, businesses can plan to make purchases during a specific time period. Businesses do not use budgets to estimate income in order to increase losses, increase shrinkage, or develop services.
38. When marketing researchers code the various responses on a questionnaire, they are __________ to each answer. A. computing a total score B. tabulating the response C. rating the agreement D. assigning a numeric value
38.D Assigning a numeric value. Coding is the process of assigning a numeric value to the various responses on a marketing questionnaire or survey. Some questionnaires contain built-in codes such as when the respondent is asked to rate agreement with a question on a scale of one to five. The numbers from one to five are the numeric codes. For other types of questionnaires, researchers often establish a master code. For example, there are six possible responses to a certain question and the third answer has a numeric value of three, but that number is not printed on the questionnaire. Once the responses are coded and individuals complete the questionnaire, researchers are able to tabulate the responses, rate the agreement to each answer, and compute a total score.
39. Which of the following is often part of the process of reviewing and analyzing marketing data to make them useful: A. Ranking the questions B. Designing the surveys C. Checking for mistakes D. Searching for sources
39.C Checking for mistakes. The data collection process is not error free. Consequently, researchers usually review the marketing data obtained from interviews, surveys, and questionnaires in order to check for mistakes. For example, answers may have been incorrectly recorded or the wrong people may have been interviewed. These mistakes affect the accuracy of the marketing data as well as the usefulness of the data. As a result, researchers try to eliminate as many mistakes as possible in order to have accurate information that will be useful in making marketing decisions. Before marketing information is obtained, researchers design the surveys, rank the questions, and search for sources.
40. Which of the following is an example of a business tabulating the results of a marketing survey: A. Analyzing the information to make it useful to the business B. Counting the number of respondents who agreed with the questions C. Assigning a numeric value to the various responses on the survey D. Comparing the results with results from other types of research
40.B Counting the number of respondents who agreed with the questions. In many cases, processing marketing information involves tabulating the results. Tabulating is counting the number of respondents who answered each question with one of the possible answers. For example, if 100 people responded to a survey, businesses need to know how many of them agreed, disagreed, or had no opinion about the questions. Also, tabulating helps businesses to determine if some people did not answer all the questions, which might have an effect on the accuracy of the results. Tabulating does not involve analyzing the information to make it useful, or comparing the results with results from other types of research. Coding is assigning a numeric value to the various responses on the survey.
41. Which of the following is an example of range: A. Most consumers buy four CDs per month. B. Consumers buy an average of five CDs per month. C. Consumers buy between three and seven CDs per month. D. Half of all consumers buy more than five CDs per month.
41.C Consumers buy between three and seven CDs per month. Range is the distance between the smallest and largest value in a set of responses. In the example, three was the smallest number of CDs purchased and seven was the largest number. The distance between three and seven is the range. Range is often used to describe the relation between numbers, such as the variation between the number of CDs purchased. Mean is the average, such as consumers buying an average of five CDs per month. Mode is the most common response, such as most consumers buy four CDs per month. Median is the exact middle, such as half of all consumers buying more than five CDs per month.
42. What are the primary advantages of using descriptive statistics? A. The data are not described in numerical form and can be transferred easily. B. You can reach conclusions that extend beyond what the data shows. C. You are able to make charts easily and create unbound reports faster. D. It allows you to summarize data and make comparisons across units.
42.D It allows you to summarize data and make comparisons across units. Descriptive statistics are summaries of data that make large amounts of information more manageable. Reaching conclusions involves making inferences rather than using descriptive statistics. Descriptive statistics can be described in numerical form. The use of descriptive statistics does not necessarily enable you to make charts easily.
43. Which of the following statements is an example of a measure of central tendency: A. Twelve members of the community swim team are fifteen years old. B. The average U.S. male buys frozen pizza four times every thirty days. C. Morrow County gasoline taxes have increased 15 percent in six months. D. The distance between point A and point B is 55 kilometers.
43.B The average U.S. male buys frozen pizza four times every thirty days. A measure of central tendency is a term used in marketing research that indicates the center of distribution. The number represents a value derived by a sample taken that falls between the lowest and highest value rating, which can be measured as mode, mean, or median. A mean is an average. The mean is determined by adding the sum of the data values and dividing by the number of values in the set (e.g., sample size). Specific distances between two points, members of a swim team, and increases in gasoline taxes state exact values and do not necessarily represent or state data in terms of averages.
44. Customers are more likely to spend a lot of time evaluating several options before buying a product when A.the product is perishable. C.the need is immediate. B.the product is expensive. D.brand insistence is a factor.
44.B The product is expensive. Because money is a limited resource, customers tend to spend more time comparing and evaluating the features and benefits of expensive items before making a decision to buy. Individuals tend to spend more time evaluating options when buying homes, cars, and computers. Businesses tend to spend more time evaluating items such as operating equipment and contract services (e.g., ad agencies and tech support) before making a decision. Customers are less likely to spend a lot of time evaluating perishable items (e.g., food) or things that they need immediately (emergency health care). If a customer has a high level of loyalty to a specific brand, then the customer will spend less time evaluating competitors' products before making a decision to buy.
45. When customers have low involvement with a product, and there is little difference among brands, what type of buying behavior are they exhibiting? A.Habitual C.Complex B.Variety D.Basic
45.A Habitual. Customers exhibit habitual or routine buying behavior when buying staple items such as sugar, orange juice, and toothpaste. These types of items are inexpensive, require little involvement or thought, and in most situations, there are few differences among brands. Complex buying behavior involves high customer involvement because the items are expensive and purchased infrequently. Characteristics of variety- seeking buyers are low involvement, but a higher recognition of brand differences. Many variety-seekers switch brands often. Basic is not a type of buying behavior.
46. Complex buying behavior is most likely involved when the customer is purchasing A.a car. C.socks. B.a meal. D.gasoline.
A A car. Product type affects a customer's buying behavior. Customers who exhibit complex buying behavior are highly involved in the purchase because the product tends to be more expensive and risky. When the purchase is a form of self-expression, it affects the customer's status or image, and brand is an important factor. Because cars are expensive and vary in dependability and style, customers tend to spend more time evaluating their options before buying. Meals, shoes, and movie tickets are routine purchases, so customers tend to exhibit habitual buying behavior rather than complex buying behavior when purchasing these items.
47. If a business lowers the price of a product for the purpose of taking business away from competitors, the result of this action often is a(n) A.decrease in cost. C.C. gain in market share. B.increase in profit. D.D. reduction in staff.
C Gain in market share. Businesses take action for the purpose of achieving certain results. One of the results that a business might want to achieve is a gain in market share, which is a business's portion of the total industry sales in a specific market. An action that a business might take to obtain this result is to lower the price of a product for the purpose of taking business away from competitors. If the price is lower, the business has an opportunity to gain market share. If the price is significantly lower, the business might lose money in the short-term, while increasing market share. Lowering the price of a product will not result in a decrease in cost or a reduction in staff.
48.. Morgan Health Supply Company wants to expand its product line this year. It uses its budget surplus to invest in new products rather than to remodel its offices. This is an example of which positive action companies should take: A.Provide excellent customer service. B.Align strategies and activities with goals. C.Demonstrate corporate responsibility. D.Utilize touch points to reinforce company image.
B Align strategies and activities with goals. By investing its budget surplus into new products rather than office remodeling, Morgan Health Supply Company is aligning its strategies and activities with its goal of expanding its product line. The new product line won't necessarily guarantee excellent customer service, demonstrate corporate responsibility, or utilize touch points to reinforce company image.
49. Technological advances can help companies provide more customer service with fewer employees, but why must the companies be careful? A.Technology cannot provide 24-7 service. B.Computers and telephones break down regularly. C.Current employees may go on strike. D.Customers may feel they are losing their human touch.
D Customers may feel they are losing their human touch. Technological advances can help companies provide more customer service with fewer employees, but companies must be careful because customers may feel they are losing their human touch if they can only reach an automated telephone service or get online to receive help. Computers and telephones may break down, but not necessarily on a regular basis. Current employees may not be happy if their jobs are replaced with technology, but they will not necessarily go on strike. Technology can provide 24-7 service, which is one of its benefits.
50. The financial component of a marketing plan helps a business to compare the projected costs of implementing the plan with the expected A.benefits. C.losses. B.expenses. D.strategies.
A Benefits. The financial component of a marketing plan includes information about how much it will cost a business to implement the plan. Businesses use this information to compare the projected costs with the expected benefits to make sure that the benefits exceed the costs. For example, a business would not want to spend more to implement a marketing plan than it would be able to generate in revenue. A business would not expect losses. The projected costs of a marketing plan include the expenses to perform the required activities and implement the strategies.
51. What type of information do businesses include in their marketing plans? A.Billing methods C.Payroll systems B.Pricing strategies D.Accounting procedures
B Pricing strategies. A marketing plan is a set of procedures or strategies for attracting the target customer to a business. An important part of a marketing plan is the pricing strategies that a business will use to attract those customers. Businesses want their prices to be low enough to appeal to customers but high enough to cover costs and earn a profit. Businesses analyze a variety of information about expenses, prices charged by competitors, and customers' wants in order to decide how to price their products. Businesses do not include information about billing methods, payroll systems, or accounting procedures in their marketing plans.
52. One of the main reasons for developing a marketing plan is to identify the strategies necessary to achieve the marketing A.functions. C.mix. B.objectives. D.share.
B Objectives. Marketing objectives are the goals a business seeks to reach with its marketing plan, which is a set of strategies for attracting the target customer to the business. One of the main reasons for developing a marketing plan is to identify those strategies that are the plans of action for achieving marketing goals and objectives. Marketing functions are interrelated activities that must work together to get goods and services from producers to consumers. Marketing mix is the combination of the four elements of marketing—product, place, promotion, and price. Market share is an organization's portion of the total industry sales in a specific market.
53. When conducting an external environmental analysis, businesses often focus on A.previous demand. C.marketing goals. B.industry growth.D.financial costs.
B Industry growth. Many businesses focus on industry growth when conducting an external environmental analysis because the marketing strategies that a business develops often depend on how fast the industry is growing. If an industry is growing rapidly, a business needs to develop a marketing plan to attract and maintain customers and deal with increasing competition. If the industry is at the saturation level, a business can only grow if it develops a marketing plan to try to take customers away from competitors. A business conducts an environmental analysis to determine the current situation rather than to focus on previous demand. Conducting an environmental analysis helps a business to determine its marketing goals and the financial costs involved in meeting those goals.
54. An international soft-drink company that wants to add bottled spring water to its product mix has determined there are four major brands that currently hold the majority of the market share for that product. The strengths and weaknesses of each potential competitor have been examined. This is an example of a(n) A.action plan. C.situation analysis. B.marketing strategy. D.purpose and mission.
C Situation analysis. Information regarding competitors, their products, and their strengths and weaknesses is collected as part of an external environment analysis. This type of analysis is one aspect of the overall situation analysis. Gathering such information is not an example of marketing strategy, action plans, or purpose and mission.
55. If you were trying to convince someone to use quantitative sales forecasting, which of the following factors would you stress: A.Variety of opinions C.Minimal cost B.Factual basisD.Ease with which findings are understood
B Factual basis. The primary advantage of quantitative sales forecasting methods as compared with qualitative forecasting methods is that they provide more exact data, because quantitative forecasting is based on facts rather than on opinion. The costs, however, are usually higher because the business will need to pay people to conduct surveys, to purchase the results of outside surveys, to subscribe to various publications, or to buy computer systems to assemble and analyze the data. Although a variety of resources can be used as sources of information, the data are based on facts rather than opinions. Individuals often experience more difficulty understanding numerical data than understanding others' opinions.
56. Which of the following is an example of an internal change that could affect a business's sales forecast: A.A direct competitor is planning a new promotional campaign. B.The birth rate increased following the Iraqi war. C.A new product line is to be offered by the business. D.The economy is struggling with a major drop in stock market prices.
C A new product line is to be offered by the business. Internal changes are circumstances within the business. They include changes in personnel, promotion, pricing, product lines, distribution processes, and marketing strategies. The business has control over internal changes and can adapt its sales forecast accordingly. External changes occur outside the business, and businesses have no control over these changes. Competitors' actions, population changes, and economic changes are examples of external factors that can affect sales forecasts.
57.. A manufacturer expects product sales to increase during the coming year. How does this information affect product production? A.Production should decrease. C.Production should remain stable. B.Production should increase. D.Production should not be affected.
B Production should increase. Businesses need to know the amount of products they can expect to sell in order to plan the most efficient production of those products. In this case, anticipated increases in sales should be matched by increased production in order to meet the shift in demand. By decreasing production or keeping it stable, the business would not have a sufficient supply of products available to meet the demand. This could result in ill will and lost sales for the company
58. Which of the following activities reflects creativity: A.Completing a sales check according to company policy B.Replacing merchandise sold from a window display C.Referring an irate customer to the store manager D.Suggesting a new use for an existing product
D Suggesting a new use for an existing product. Creativity is the ability to generate unique ideas, approaches, and solutions. The other alternatives are routine responses or job responsibilities.
59. Which of the following personality traits is often associated with creative people: A.Acting independently C.Preferring routine activities B.Exhibiting low energy levels D.Shunning recognition and praise
A Acting independently. Most creative people prefer working with minimal or no supervision. They also exhibit high energy levels, prefer new experiences and variety, and desire recognition and praise.
60. A member of a sales team said, "Our sales always decline this time of year. We just need to wait a few months until they pick up again." What barrier to creativity is the sales-team member exhibiting? A.Limiting code of behavior C.Criticism B.Need to be right the first time D.Stress
A Limiting code of behavior. It is easy to fall into patterns of behavior that suffocate creativity. People convinced that their problems are unavoidable won't look for solutions. Stress is due to worry and fatigue. Creativity requires people to explore alternatives and take risks; therefore, people who have to be right the first time can't take the chance of being wrong.
61. The essence of time management is to A.set a fixed schedule and follow it. B.eliminate the need to prioritize activities. C.focus on spreading work over a period of time. D.control events in order to accomplish priorities.
61.D Control events in order to accomplish priorities. All people need to learn how to manage their time. They need to maintain control over the events in their lives so that there is a balance among those events. This involves planning and organizing their personal and professional activities. Time management involves prioritizing activities, but it does not mean setting a fixed schedule and never deviating. Schedules should have some flexibility built in to take care of unexpected events. Time management focuses on making the best use of time rather than on spreading work over a period of time.
62. Rob wrote down the following information: 1. Finish research paper Tuesday 2. Call for dental appointment What time-management approach did Rob use? A.Setting objectives C.Using free time B.Delegating activities to others D. Identifying time wasters
A Setting objectives. By setting objectives, you define what you want to accomplish. Activities are delegated when you ask others to do some of the work. Free time is time left over after your tasks are completed or when a planned activity is canceled. Time wasters, which include procrastination and having an unorganized work area, should be identified and minimized.
63. An effective time-management approach for the manager of a large staff of employees would be to A.build flexibility into his/her schedule. B.fill each day's work schedule completely. C.block off six hours of uninterrupted work time daily. D.delegate most managerial responsibilities to an assistant.
A Build flexibility into his/her schedule. The manager's schedule should not be filled completely. The more people you work with, the more flexible you need to be. Blocking off six hours of uninterrupted work time would not be possible. Delegating some activities to others will free the manager to do other tasks, but not all activities could or should be delegated.
64. Which of the following is a technique that many businesses use to identify product opportunities: A.Observing the competition C.Evaluating a prototype B.Testing the market D.Developing a brand
A Observing the competition. Businesses often observe the products developed by competitors in order to identify possible product opportunities. For example, a business might observe that a competitor's new product is popular and selling well. As a result, the business develops a similar product that is somewhat more advanced. By paying attention to what competitors are doing, businesses often are able to identify product opportunities. Once the opportunity is identified, businesses often evaluate a prototype and test the market. One of the final steps before introducing a new product is developing a brand.
65. John is graduating from college and needs to buy clothes suitable for the business world, but he doesn't know where to start. He recognizes that many of his friends also lack the knowledge of what they should buy. He thinks they could easily learn the ropes of creating business wardrobes if there was someplace he could go on the Internet. This product opportunity resulted from A.recognizing what is "cool." B.changing life circumstances. C.releasing new products. D.purchasing a product and needing a related item.
B Changing life circumstances. John is leaving the educational world to go into the business world; therefore, his life is changing. The other alternatives also create chances for product opportunities; however, they do not relate to the scenario.
66. With the arrival of digital television, many customers have purchased new digital televisions. A marketer recognized that these customers would want to do something with their old TVs. This is an example of A.opportunity recognition. C.the need to purchase related items. B.individual development. D.the availability of new information.
A Opportunity recognition. When people recognize that their ideal state is changing, they may recognize product opportunities that would satisfy customers. With individual development, a person is growing or changing such that her/his ideal state no longer exists. In this scenario, customers do not need to purchase related items, and there is no new information identified.
67. Real market opportunity occurs when A.a good or service can be produced efficiently. B.entrepreneurs brainstorm ideas. C.supply exceeds demand. D.an identified want exists.
D An identified want exists. Market opportunity exists when an economic want exists, and there is an idea for a good or service to fulfill that want for which people are willing and able to pay. Market opportunity does not necessarily exist because an entrepreneur brainstorms ideas or when supply exceeds demand. In addition, the level of productivity does not necessarily affect the level of demand.
68. Market opportunity is often affected by A.location. C.rewards. B.timing. D.methodology.
B Timing. Because market opportunity is dependent on wants, timing is often a factor when considering the level of real market opportunity. For example, when engineers at the Ford Motor Company developed the Edsel car, they thought it was a great idea. However, very few people wanted to buy the car. Location can affect the availability of a product in a certain area but does not necessarily affect the level of demand for the product. Reward is a general term used to describe a positive outcome of a specific situation. Methodology is the manner in which a concept, problem, or idea is approached.
69. Six Thinking Hats is a creative-thinking technique that stimulates idea generation by A.assigning each group member a different job. C. providing positive feedback. B.playing the devil's advocate. D.categorizing information.
D Categorizing information. The Six Thinking Hats technique is a creative-thinking technique that utilizes different ways of approaching a problem. Each of the six hats represents one aspect of the situation. For example, the white hat looks at all the facts and data available. The blue hat summarizes and organizes thoughts and information. By placing each aspect into different categories, the situation can be evaluated by using various viewpoints. Playing the devil's advocate or looking at the negatives of the situation is one part of the overall technique. The Six Thinking Hats technique can be used in a group or alone. Therefore, it cannot be assumed that this method of creative thinking is always conducted in a group situation where each group member is assigned a different job. Positive feedback is a general term and is not necessarily a step in the Six Thinking Hats creative-thinking technique.
70. Which of the following is a source that businesses often consider when generating product ideas: A.Design costs C.Customer complaints B.Test results D.Promotional plans
C Customer complaints. Product ideas come from many sources, such as customer complaints. If a business receives many complaints about a product, it might decide to think of a way to redesign the product or develop a new product that will satisfy customers. Since customers are the ones who use a product, their comments and complaints often help businesses generate ideas to solve problems with existing products. After generating ideas, businesses often test the concept and evaluate the cost of design. Promotional plans are intended to make customers aware of a new or updated product.
71. To generate innovative product ideas, a business often A.evaluates traits. C.monitors trends. B.interprets laws. D.measures feedback.
C Monitors trends. A trend is the general direction in which people or events are moving. By monitoring economic, cultural, and societal trends, a business can identify needs and develop new-product ideas to accommodate these needs. Businesses do not need to interpret laws so they can generate product ideas. Traits are an individual's personal characteristics, which s/he expresses by exhibiting a regular pattern of behavior that becomes a part of that person over time. Feedback can take place only after the business generates product ideas.
72. What is the advantage to a business of having its employees generate product ideas as a group? A.More participants provide a variety of perspectives. B.It is easier to develop and implement a product concept. C.Group members tend to reach consensus quickly. D.Screening activities can be distributed among several people.
A More participants provide a variety of perspectives. An advantage to group collaboration is that several people are actively involved in the process, which provides greater potential for a lot of ideas. Because each group member has different life experiences, each person has different perspectives (points of view). When a lot of different ideas are generated, more ideas tend to emerge—ideas that build upon previous ideas. Idea generation is not always an easy process. Screening ideas, reaching consensus about the feasibility of a specific idea, and developing and implementing a product concept are steps of the product-development process that occur after the idea-generation process.
73. A characteristic of product bundling is that the price of the bundle usually is A.adjusted based on the type of customers who purchase the bundle. B.intended to be the same as the prices set by competitors. C.high to reflect the quality and status of each product. D.lower than the combined price of the products sold separately.
D Lower than the combined price of the products sold separately. To promote the bundle and encourage customers to buy, businesses need to make the price of the bundle attractive to customers. Businesses usually do this by pricing the bundle lower than the combined price of the products sold separately. For example, four products sell separately for $12.99 each. A business bundles the four products and sells the total package for $ The bundled price is lower, which usually increases sales. Segmented pricing involves adjusting prices based on the type of customers, such as adults or children. Prestige pricing involves setting a high price to reflect the quality and status of a product. The price of a product bundle is not necessarily intended to be the same as the prices set by competitors. In many cases, one business sets a lower price to be more competitive.
74. Which of the following is an example of product bundling: A.Business selling computer, printer, and scanner as a unit B.Garden shop discounting prices of seasonal merchandise C.Theme park charging admission and selling ride tickets D.Lumber company selling wood chips as small-animal bedding
A Business selling computer, printer, and scanner as a unit. Product bundling involves combining several products and offering them to customers as one product. Usually, the bundled products are offered for one, all-inclusive price. An example is a business selling a computer, a printer, and a scanner as a unit. In many cases, the bundle is less expensive than the cost of each item sold separately. Sometimes, the products can only be purchased as a unit and are not available separately. A lumber company selling wood chips as small-animal bedding is an example of selling by-products. A theme park charging admission and then selling ride tickets is an example of two-part pricing. A garden shop discounting prices of seasonal merchandise is an example of adjusting prices.
75. A primary reason for some businesses to bundle products is to A.obtain referrals. C.control expenses. B.increase sales quotas. D.encourage long-term use.
D Encourage long-term use. Product bundling is the practice of putting together a number of goods/services to create a one-price package. Most often, the bundled package is priced so it costs the customer less than if s/he purchased each product separately. Product bundling is often a method that a business uses to get customers to try a product that they normally would not purchase. The hope is that once the customers use the product, they will like it and continue to purchase it, thereby encouraging long-term use. Increasing sales quotas, controlling expenses, and obtaining referrals are not primary reasons for bundling products.
76. Which of the following is a primary factor that a business considers when positioning its corporate brand: A.Form utility C.Target market B.Employees' expectations D.Promotional budget
C Target market. The target market is the particular group of consumers who are the most likely prospects for a good, service, image, or idea. Positioning is a strategy in which a business creates a certain image or impression of a product in the minds of the consumers. To create certain images in the eye of the consumers, the business must consider the audience it wants to attract or its target market. The employees' benefits, form utility, and the company's promotional budget are not primary factors that a business always considers when positioning its corporate brand.
77. Which of the following is an example of a purchase experience touchpoint: A.Customer satisfaction surveys C.Direct sales B.Loyalty programs D.Warranty programs
C Direct sales. Touchpoints are the interactions that customers have with the business, and they can be divided into three categories: pre-purchase, purchase, and post-purchase experiences. Direct sales would occur during a purchase experience. Other examples of purchase experience touchpoints are physical stores and contact with customer representatives. Loyalty programs, customer satisfaction surveys, and warranty programs are examples of post-purchase experience touchpoints.
78. One of the major differences between the decisions made in organizational buying and the decisions made in consumer buying is that organizational buying decisions are A.made by members of senior management. C. made by influential people. B.more frequently made by groups.D.always voted on by supervisors.
B More frequently made by groups. Organizational buying decisions are made by groups more often than consumer buying decisions are. Influential people do not necessarily make organizational buying decisions, although they may influence the final decision. Organizational buying decisions are not always made by senior management, nor are they always voted on by supervisors.
79. What is a characteristic of organizational buying behavior? A.Quick decision making C.Multiple buying influences B.Low levels of demand fluctuation D. Limited buyer-seller contact
C Multiple buying influences. Organizational buying behavior refers to the purchasing habits as they relate to business activities. For example, a large company purchases a new computer system that is used by all personnel. Many people from all departments (e.g., sales, accounting, human resources) are generally consulted when determining needs. Organizational buyers tend to have higher levels of demand fluctuation and ongoing contact with the seller. Because organizations have multiple buying influences, the decision-making process tends to be slower.
80. Which of the following has more effect on the types of services that consumers buy than on the types of services that organizations buy: A.Authority figure C.Limited availability B.Peer pressure D.Reasonable price
B Peer pressure. Consumer buyers are often influenced by peer groups. For example, teenagers are often persuaded to buy tickets to certain concerts because all of their friends are buying tickets. However, organizations usually are not influenced by peer pressure. An authority figure in the organization may make the decision about the types of services to buy. Availability and price are factors that affect the types of services purchased by both consumers and organizations.
81. Which of the following factors have contributed to the increased use of electronic sales presentations vs. face-to-face sales presentations: A.Audio and video conferencing B.Meeting software and improved Internet access speeds C.High-end telecommunication hookups and laptops D.Computing power and video conferencing
B Meeting software and improved Internet access speeds. Technology is helping salespeople contact their prospects and existing customers. Laptops and audio and video conferencing have been available for many years using high-end telecommunications hookups; however, it's only been the last few years that salespeople have been using electronic sales presentations. This increased use is due to improved Internet access speeds, computing power, and meeting software.
82. Sales training should be an ongoing process. Which of the following would most likely be released on an RSS feed in electronic sales training: A.New information to use as a comparison with a competitor's products B.PDF of the company's annual report C.Notification about one's own job promotion D.Memorandum detailing how to avoid responding to questions about a public-relations crisis
A New information to use as a comparison with a competitor's products. RSS feeds can be used to notify salespeople when new training material is available. RSS feeds are aggregators of information and can include links to websites and PDFs, but would not include the PDF itself. Notification of a job promotion should be conducted in person rather than through an impersonal RSS feed. In addition, this is not a sales- training topic. When a public-relations crisis occurs, salespeople should be trained in what to say or to whom the questioner should be referred for information. Spelling out how to avoid responding to questions about the crisis would be inappropriate.
83. According to Maslow's Hierarchy of Needs, which of the following needs is satisfied when a person purchases products that meet his/her most basic needs: A.Physiological C.Safety B.Esteem D.Social
A Physiological. Maslow's Hierarchy of Needs Theory suggests that motivation is related to five levels of needs. Maslow's theory states that basic needs must first be met before a person is motivated to fulfill the next level of needs. The most basic level of needs is physiological, which includes needs such as food, shelter, and air. Therefore, Maslow's theory suggests that a person will purchase food to satisfy a physiological need before s/he will be motivated to purchase a product in another level of needs. The rest of the needs in sequential order are safety, social, esteem, and self- actualization.
84. Tyler is a sales representative for the Lombardo Company and is selling his high-end products to a new purchasing agent. The purchasing agent asks a series of questions about the products' reliability. What type of behavior strategy is the purchasing agent exhibiting? A.Emotional C.Defensive B.Offensive D.Rational
C Defensive. The purchasing agent is concerned about minimizing loss due to a malfunctioning product. This exemplifies a defensive behavior strategy. Tyler can use this information to emphasize the quality of the products and their reliability. Offensive behavior strategy focuses on maximizing gain or profit. That is not what the purchasing agent is attempting to do. Emotional and rational are types of buying motives rather than behavior strategies.
85. A primary reason that salespeople should prospect on a regular basis is because A.their firm expects them to do it. B.they may need to replace lost customers. C.prospecting is an enjoyable selling task. D.failure to prospect causes immediate problems.
B They may need to replace lost customers. Prospecting enables salespeople to replace customers lost through attrition. While the firm's expectations may include prospecting, that is not a primary reason for prospecting. Salespeople should prospect in order to gain job security and earn commissions. Failing to prospect may not cause immediate problems but will probably be harmful over time. Prospecting is not necessarily an enjoyable selling task.
86. What method of prospecting involves asking the dominant member of a group to use or to endorse your products? A.Referral C.Bird dogs B.Endless chain D.Center of influence
D Center of influence. Centers of influence are the dominant members of a group whose opinions are valued by others. The referral method involves asking someone you know, or someone who uses your products, to recommend you and your products to others. The endless-chain method involves asking every prospect to whom you make a presentation to give you the names of others who might be interested in your products. Bird dogs are individuals hired by salespeople to generate prospect lists.
87. Newspapers, conversations, travel, changing seasons, and social gatherings can all be used to identify prospects through the __________ method of prospecting. A.endless-chain C.bird-dog B.personal observation D.cold-call
B Personal observation. Personal observation is the most basic form of prospecting and should be ongoing. The endless chain involves asking every prospect you meet to give you names of other prospects. Cold calls are unannounced visits to prospects about whom you may know very little. Bird dogs are people employed by salespeople to generate prospect lists.
88. Which of the following is a reason why a lead might fail to qualify as a prospect: A.Has a low credit rating C.Has the authority to buy B.Needs the product quickly D.Wants to schedule a meeting
A Has a low credit rating. The ability to pay is an important factor in qualifying leads. If the lead is unable to pay, or is a poor credit risk, the person does not qualify as a prospect. To qualify as a prospect, the person or organization must have both the need and the ability to pay for the product. Need for the product, authority to buy, and accessibility to meet are reasons why leads qualify as prospects.
89. Which of the following should a salesperson consider when qualifying leads: A.Potential profits C.Future conflicts B.Development plans D.Immediate returns
A Potential profits. Salespeople consider many factors when qualifying leads. One consideration is the profitability of the potential prospect and order. Some prospects may need the good and be able to pay for it, but order in such small quantities and routinely pay late that the amount of profit becomes insignificant. If these prospects also demand a lot of time and effort on the part of salespeople, the salespeople might decide that the potential profits do not justify the amount of work required. When qualifying leads, salespeople usually do not consider future conflicts, development plans, or immediate returns.
90. What do salespeople need to determine in order to qualify leads? A.Future plans C.Ability to pay B.Name of contact D.Buying patterns
C Ability to pay. Prospects are qualified leads. To qualify leads, salespeople need to determine if the lead has the ability to pay. If a lead needs a product but is unable to pay or is a poor credit risk, the person does not qualify as a prospect. To qualify as a prospect, the lead must have both the need and the ability to pay for the product. Information about buying patterns, name of contact, and future plans is maintained in a prospect list, but this information is not needed to qualify leads.
91. Why should salespeople conduct pre-visit research? A.To be able to apply substitute selling techniques B.To be able to close the sale C.To determine the prospect's buying motives D.To come across as knowledgeable to the prospect
D To come across as knowledgeable to the prospect. When conducting pre-visit research, salespeople should learn as much as possible about prospects, their products, their competitors' products, etc. By acquiring this information, salespeople are prepared for the visit so that they come across as knowledgeable. Having this knowledge also improves salespeople's confidence in their sales abilities. Conducting pre-visit research does not guarantee that salespeople can close sales or apply substitute selling techniques. The prospect's buying motives are determined during the sales visit.
92. Which of the following sources should salespeople consult to obtain the most up-to-date, accurate pre-visit research information about a prospect: A.Competitors' activities C.Prospect's website B.Prior sales records D.Prospect's annual report
C Prospect's website. Prospects need to keep their websites up to date and provide accurate information about themselves and their products so that customers will not be confused about their offerings. Salespeople can also access that information, knowing that it provides a current picture of the prospects' companies. Prior sales records and annual reports would not provide current information; however, they are good resources to analyze as pre-visit research sources. Competitors' activities will not provide up-to-date, accurate information about prospects. Competitors guard their activities so that they are not easily duplicated by others.
93. What is the best closing technique for salespeople to use when asking for an appointment with prospective clients? A.Letting prospects know dates and times salespeople will be in their area B.Recommending a specific meeting date and time C.Offering a choice of dates and times D.Suggesting that prospects determine date and time of meeting
C Offering a choice of dates and times. Salespeople want to retain control of the closing. They do this when they offer prospects choices of dates and times because they will know that their calendar is clear on the specified dates/times. This also shows prospects that salespeople are flexible and are involving prospects in the decision- making process. Recommending a specific meeting date and time results in yes/no responses. Just letting prospects know when salespeople will be in the area will give the impression that the prospects are one of many others who are being treated en masse rather than as individual prospective clients. Letting prospects determine date and time of meeting puts the prospects in charge of the situation.
94. Which of the following should be included in the introduction when calling to set up a sales appointment: A.Benefit for the prospect C.Money-savings claim B.Product prices D.Comparison to competitors' products
A Benefit for the prospect. Whether salespeople are setting up appointments or talking directly to prospects, they should stress benefits. Prospects want to know “what's in it for them.” Quoting product prices over the phone might keep prospects from meeting with salespeople. Salespeople should avoid making money-savings claims because that has become a common benefit that most salespeople use; therefore, it is ignored by prospects. If a product is compared with that of a competitor, salespeople should do that during the sales talk itself-- not when trying to get an appointment with prospects.
95. What type of information about a business customer might a salesperson obtain in order to prepare for a sales presentation? A.Financial status C.Employees' names B.Current vendorsD.Operating hours
B Current vendors. Gathering information about who the business customer currently buys from, specifically competitors, will help a salesperson to prepare an effective sales presentation. If salespeople know who their competitors are, they can tailor their presentations to point out the benefits of their products. They do not want to mention the competitors during the presentation, but knowing who they are will help them to focus on unique product features that are not available on competitors' products. Salespeople need to know the names of key employees but not the names of all employees. Salespeople qualify customers, or determine their financial ability to pay, before approaching customers. Salespeople do not need to know the operating hours unless they are other than during the regular workday.
96. What can salespeople do while preparing for a sales presentation to help them be comfortable during the actual presentation? A.Develop a positive attitude C.Manage their time B.Practice the speechD.Reconfirm the appointment
B Practice the speech. Most sales presentations involve speaking before a group of people. Even salespeople who frequently speak before groups are sometimes nervous. Practicing the speech beforehand is an excellent way to prepare for the actual presentation. Practicing helps to reduce nervousness and builds salespeople's confidence in their ability to present information. Managing their time, developing a positive attitude, and reconfirming the appointment will not necessarily help salespeople be comfortable during the actual presentation.
97. What aspect of their delivery should salespeople try to identify and correct before giving a sales presentation? A.Comfortable volume C.Attentive posture B.Distracting mannerisms D.Immaculate grooming habits
B Distracting mannerisms. Distracting mannerisms such as rocking, touching the hair or face, pacing, or tapping feet can distract audience members from the real message the presenter is trying to convey. Salespeople should try to convey an image of relaxed professionalism that stays away from both distracting mannerisms as well as rigid and unmoving posture and gestures. Practicing in front of a mirror often helps salespeople to identify distracting mannerisms that they can correct before giving the presentation. A comfortable volume, attentive posture that is neither too rigid nor too relaxed, and a professional appearance are positive aspects of delivery.
98. One of the advantages of using a presentation software package to support sales presentations is that it makes the information more A.understandable. C.ethical. B.believable. D.factual.
A Understandable. On many occasions, the information in a sales presentation is technical and complicated. Using a presentation software package to put this information in a visual or graphic format often makes the information more understandable. People may be able to better comprehend complicated information if they can see it displayed rather than merely listening to someone explain it. The visual presentation of technical information reinforces the verbal presentation and promotes understanding. The use of a presentation software package does not make information more factual, believable, or ethical.
99. What is a guideline that salespeople can follow when developing presentation software packages to support sales presentations? A.Avoid using color C.Use small graphics B.Avoid using bullets D.Use large type
D Use large type. When developing presentation software packages, salespeople should remember to use large type that will be easy for customers to read. If customers must strain to read the type, they will be distracted from concentrating on the presentation. The purpose of the software package is to support the sales presentation, and it will not do that if the type is too small to read easily. Salespeople should also use large graphics that are easy to see. Many presentation packages use bullets to emphasize important points and color to attract attention and hold the viewer's interest.
100. When using software programs to design sales presentations, your visual aids should be A.used as often as possible. C.as colorful as possible. B.used only if they support your message.D. complex in nature.
B Used only if they support your message. Because of the improvements in sales presentation software, there are many options available to presentation designers. However, only those things that are vital to your presentation should be included. Graphics that are unnecessary, more complex than needed, or too colorful can detract from the message you are trying to convey in your sales presentation and actually distract customers.