(Test Bank) Fundamentals of Selling: Customers for Life through Service

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Chapter 01 - The L ife, Times, and Career of the Professional Salesperson 1-1 © 2014 by McGraw -Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Chapter 01 The Life, Times, and Career of the Professional Salesperson Learning Objectives: 01-01 Define and explain the term selling . 01-02 Explain why everyone sells, even you. 01-03 Explain the relationship between the definitio n of personal selling and the Golden Rule of Personal Selling. 01-04 Discuss the reasons as to why people might choose a sales career. 01-05 Enumerate some of the various types of sales jobs. 01-06 Describe the job activities of salespeople. 01-07 Defi ne the characteristics that salespeople believe are needed for success in building relationships with customers. 01-08 List and explain the 10 steps in the sales process. True / False Questions 1. Selling and marketing are interchangeable terms for t he same business activity. Answer: False Learning Objective: 01 -01 Topic: What Is Selling? Blooms: Remember AACSB: Analytic Level of Difficulty: Easy Explanation: Selling is a marketing component that refers to the personal communication of information to persuade a prospective customer to buy something. Marketing is an organizational function and a set of processes for creating, communicating and delivering value to customers and for managing customer relationships in ways that benefit the organ ization and its stakeholders. 2. According to recent Gallup surveys, most Americans believe that traditional salespeople are overly interested in the needs of customers. Answer: False Learning Objective: 01 -03 Topic: The Golden Rule of Personal Selling Blooms: Understand AACSB: Analytic Level of Difficulty: Medium Explanation: As Gallup’s survey poll of Americans indicates, people view traditional salespeople as having their self -interest as a priority. This type of salesperson is preoccupied with his or her own well -being —usually defined in terms of making money —and thus is selfish and cannot be trusted. Chapter 01 - The L ife, Times, and Career of the Professional Salesperson 1-2 © 2014 by McGraw -Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 3. Personal selling refers to the personal communication of information to unselfishly persuade a prospective customer to buy something that satisfi es that individual's needs. Answer: True Learning Objective: 01 -01 Topic: A New Definition of Personal Selling Blooms: Remember AACSB: Analytic Level of Difficulty: Easy Explanation: Personal selling refers to the personal communication of information to unselfishly persuade a prospective customer to buy something —a good, a service, an idea, or something else —that satisfies that individual’s needs. 4. The Golden Rule of Personal Selling describes the willingness to plan and execute product , price, distribution, and promotion plans so as to create exchanges that satisfy individual and organizational objectives. Answer: False Learning Objective: 01 -03 Topic: The Golden Rule of Personal Selling Blooms: Remember AACSB: Analytic Level of D ifficulty: Easy Explanation: The Golden Rule of Personal Selling refers to the sales philosophy of unselfishly treating others as you would like to be treated. Reciprocity is not expected. 5. As a salesperson’s self -interest decreases, a salesperson’s i nterest in providing customer service is more likely to increase. Answer: True Learning Objective: 01 -03 Topic: The Golden Rule of Personal Selling Blooms: Understand AACSB: Analytic Level of Difficulty: Medium Explanation: As interest in serving o thers improves, a person’s self -interest lessens. The more the salesperson considers the customer’s interest, the better the customer service. Chapter 01 - The L ife, Times, and Career of the Professional Salesperson 1-3 © 2014 by McGraw -Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 6. An employee at a fast -food restaurant who asks the manager for a raise is engaged in the selling process. Answer: True Learning Objective: 01 -02 Topic: Everybody Sells! Blooms: Understand AACSB: Analytic Level of Difficulty: Medium Explanation: You are involved in selling when you want someone to do something. Therefore, an employee persuading a manage r for a raise is in the process of selling. 7. Unlike traditional and Golden Rule salespeople, professional salespeople have a tendency to attribute sales success to others rather than to their own actions. Answer: False Learning Objective: 01 -03 Topic: The Golden Rule of Personal Selling Blooms: Remember AACSB: Analytic Level of Difficulty: Easy Explanation: Golden Rule salespeople tend to attribute positive results to others rather than to their own personal efforts. Professional salespeo ple attribute results to personal efforts as well as to their employer, customers, and the economy. 8. Golden Rule salespeople tend to believe that money is to be shared and that customer service is a top priority . Answer: True Learning Objective: 0 1-03 Topic: The Golden Rule of Personal Selling Blooms: Remember AACSB: Analytic Level of Difficulty: Easy Explanation: Golden Rule salespeople are customer -focused, so customer service is important. Money is not the main motivation of Golden Ru le salespeople, so money should be shared. Chapter 01 - The L ife, Times, and Career of the Professional Salesperson 1-4 © 2014 by McGraw -Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 9. A retail salesperson sells goods or services to consumers for personal and business use. Answer: False Learning Objective: 01 -05 Topic: Why Choose a Sales Career? Blooms: Remember AACSB: Analytic Leve l of Difficulty: Easy Explanation: A retail salesperson sells goods or services to consumers for their personal, nonbusiness use. Retailers do not sell goods or services for business usage. 10. A customer contact person performs the same tasks as a salesperson. Answer: True Learning Objective: 01 -05 Topic: Why Choose a Sales Career? Blooms: Remember AACSB: Analytic Level of Difficulty: Easy Explanation: Each customer contact person takes your money and provides a good or service in retu rn. Customer contact person is another name for a salesperson. Although the title may be different, their job is the same —to help you buy. 11. Direct sellers sell face -to-face to consumers who use the products for their personal use. Answer: True Learning Objective: 01 -05 Topic: Why Choose a Sales Career? Blooms: Remember AACSB: Analytic Level of Difficulty: Easy Explanation: Direct sellers sell face -to-face to consumers —typically in their homes —who use the products for their personal us e. 12. A wholesale salesperson would sell athletic shoes to a sporting goods store which in turn would resell the shoes to individual customers. Answer: True Learning Objective: 01 -05 Topic: Why Choose a Sales Career? Blooms: Understand AACSB: Ana lytic Level of Difficulty: Medium Explanation: Wholesalers (also called distributors) buy products from manufacturers and other wholesalers and sell to other organizations. A wholesale salesperson sells products, such as shoes, to resellers, such as sport ing goods stores. Chapter 01 - The L ife, Times, and Career of the Professional Salesperson 1-5 © 2014 by McGraw -Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 13. A detail salesperson concentrates on directly soliciting orders. Answer: False Learning Objective: 01 -06 Topic: Why Choose a Sales Career? Blooms: Remember AACSB: Analytic Level of Difficulty: Easy Explanation: A deta il salesperson concentrates on performing promotional activities and introducing new products rather than directly soliciting orders. The medical detail salesperson seeks to persuade doctors, the indirect customers, to specify a pharmaceutical company’s trade name product for prescriptions. 14. The role of a service salesperson is selling the benefits of intangible products such as financial services. Answer: True Learning Objective: 01 -06 Topic: Why Choose a Sales Career? Blooms: Remember AACSB : Analytic Level of Difficulty: Easy Explanation: A service salesperson must sell the benefits of intangible or nonphysical products such as financial, advertising, or computer repair services. Services, like goods, are either technical or nontechnic al in nature. 15. Order -getters ask what the customers want or wait for customers to place an order. Answer: False Learning Objective: 01 -06 Topic: Why Choose a Sales Career? Blooms: Remember AACSB: Analytic Level of Difficulty: Easy Explanati on: Order -takers may ask what the customer wants or wait for the customer to order. They do not have a sales strategy and often use no sales presentation. Order -getters get new and repeat business using a creative sales strategy and a well -executed sales presentation. Chapter 01 - The L ife, Times, and Career of the Professional Salesperson 1-6 © 2014 by McGraw -Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 16. Jobs such as inside retail sales and outside delivery are typically performed by order - getters. Answer: False Learning Objective: 01 -06 Topic: Why Choose a Sales Career? Blooms: Understand AACSB: Analytic Level of Difficulty: Medium Explanation: Inside retail sales and outside delivery are tasks performed by order -takers. Order -getters are involved with more complex tasks that require creative sales strategies. 17. A divisional sales manager has a higher ranking in most firms than a regional sales manager . Answer: True Learning Objective: 01 -05 Topic: Why Choose a Sales Career? Blooms: Remember AACSB: Analytic Level of Difficulty: Easy Explanation: In the sales personnel career path, a divisional sales manager is o ne rank higher than a regional sales manager. 18. Nonfinancial rewards given by the company are referred to as commissions. Answer: False Learning Objective: 01 -04 Topic: Why Choose a Sales Career? Blooms: Remember AACSB: Analytic Level of Difficu lty: Easy Explanation: Sometimes called psychological income or intrinsic rewards, nonfinancial rewards are generated by the individual, not given by the company. You know the job has been done well —for instance, when you have helped the buyer through the purchase of your product. Commissions are financial rewards given to salespeople. Chapter 01 - The L ife, Times, and Career of the Professional Salesperson 1-7 © 2014 by McGraw -Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 19. Given that sales jobs offer higher nonfinancial rewards than most other areas of corporate America, the compensation of salespeople is typically lower than that of workers in areas like production who are at a comparable level in the organization. Answer: False Learning Objective: 01 -04 Topic: Why Choose a Sales Career? Blooms: Remember AACSB: Analytic Level of Difficulty: Easy Explanation: Both corpora te and field sales managers typically receive higher salaries than others (such as production, advertising, product, or personnel managers) at the same organizational level. In many cases, the higher the sales position, the greater the benefits offered. 20. Financial rewards for professional salespeople are commonly solely based on performance. Answer: True Learning Objective: 01 -04 Topic: Why Choose a Sales Career? Blooms: Remember AACSB: Analytic Level of Difficulty: Easy Explanation: Many are attracted to selling because in a sales career financial rewards are commonly based solely on performance. Many professional salespeople have opportunities to earn large salaries. 21. According to the typical sales personnel career path, the firs t managerial level job that a salesperson can expect to earn is that of regional sales manager . Answer: False Learning Objective: 01 -04 Topic: Why Choose a Sales Career? Blooms: Understand AACSB: Analytic Level of Difficulty: Medium Explanation: On the sa les personnel career path, the first management position is district sales manager. Regional sales manager is one level up from district sales manager. Chapter 01 - The L ife, Times, and Career of the Professional Salesperson 1-8 © 2014 by McGraw -Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 22. Top salespeople speak the other person's language, both in verbal and nonverbal communication. Answer: True Learning Objective: 01 -07 Topic: Success in Selling —What Does It Take? Blooms: Remember AACSB: Analytic Level of Difficulty: Easy Explanation: Great salespeople are great communicators. Top salespeople speak the other person’s language, both in verbal and nonverbal communication. 23. In order to build long -term relationships with customers, salespeople need to present adequate information to buyers and apply e nough pressure t o ensure quick sales. Answer: False Learning Objec tive: 01 -07 Topic: C—Characteristics for the Job Examined Blooms: Understand AACSB: Analytic Level of Difficulty: Medium Explanation: The salesperson’s job is to present the necessary information for the buyer to make an educated decision. Patience rather than pressure in closing the sale goes a long way toward building a long -term relationship. 24. Self-control refers to a sales person's intelligence , product knowledge, and discipline rather than to emotions, passions, and desires. Answer: False Learning Objective: 01 -07 Topic: C—Characteristics for the Job Examined Blooms: Understand AACSB: Analytic Level of Difficulty: Medium Explanation: Self-control concerns a salesperson’s emotions, passions, and desires. Self - control refers to the discipline needed to prepare for sales presentations and be patient with customers; however, it does not relate to intelligence or product knowledge. Chapter 01 - The L ife, Times, and Career of the Professional Salesperson 1-9 © 2014 by McGraw -Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 25. Emotional self -control is difficult for many salespeople to develop because of personal and financial investments in making sales to customers. Answer: False Learning Objective: 01 -07 Topic: C—Characteristics for the Job Examined Blooms: Understand AACSB: Analytic Level of Difficulty: Medium Explanation: Self-control is the most difficult trait for a salesperson to d evelop. Self -control involves restraining emotions, passions, and desires for self -gain even when the salesperson must sell to make a living. There is considerable incentive for the salesperson to use pressure or lie, for example, to compel the customer to buy something that may not be needed or that is falsely represented. 26. An outside salesperson operates with less direct supervision compared to other employees in an organization. Answer: True Learning Objective: 01 -05 Topic: Sales Jobs Are Dif ferent Blooms: Understand AACSB: Analytic Level of Difficulty: Medium Explanation: Other employees usually work under close supervisory control, whereas the outside salesperson typically operates with little or no direct supervision. 27. The acronym ABC S represents the tools needed for creating a successful marketing mix. Answer: False Learning Objective: 01 -07 Topic: Relationship Selling Blooms: Understand AACSB: Analytic Level of Difficulty: Medium Explanation: The letters ABCS stand for analyze, ben efits, commitment, and service, which are the four main elements in the customer relationship process used by salespeople to build long-term relationships. 28. Salespeople should avoid providing information to their companies or customers about competito rs' activitie s or market opportunities since such actions violate client confidence and are considered unethical. Answer: False Learning Objective: 01 -06 Topic: What Does a Professional Salesperson Do? Blooms: Understand AACSB: Analytic Chapter 01 - The L ife, Times, and Career of the Professional Salesperson 1-10 © 2014 by McGraw -Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Level of Difficul ty: Medium Explanation: Salespeople should provide information to their companies on such topics as competitors’ activities, customers’ reactions to new products, complaints about products or policies, market opportunities, and their job activities. Sales people are a vital part of their employers’ information retrieval system and such actions are expected and ethical. 29. A salesperson’s conceptual skill s allow the salesperson to see the selling process as a whole and the relationship among its parts. Answer: True Learning Objective: 01 -06 Topic: The Future for Salespeople Blooms: Understand AACSB: Analytic Level of Difficulty: Medium Explanation: Conceptual skill is the cognitive ability to see the selling process as a whole and the relationship a mong its parts. Conceptual skill involves the seller’s thinking and planning abilities. It involves knowing where one’s product fits into the customer’s business or how the beginning of a sales presentation relates to asking for the order. 30. Conceptual skills are especially important for the creative order -getters . Answer: True Learning Objective: 01 -06 Topic: The Future for Salespeople Blooms: Understand AACSB: Analytic Level of Difficulty: Medium Explanation: Conceptual skill is the cognitive ability to see the selling process as a whole and the relationship among its parts. Although all sellers need conceptual skills, they are especially important for the creative order -getters. 31. E-selling is limited to sales made through the use of Web sites. Answer: False Learning Objective: 01 -06 Topic: The Future for Salespeople Blooms: Understand AACSB: Technology Level of Difficulty: Medium Explanation: E-selling is not limited to Web site sales. E -selling involves using technology to improve the selling process and enable salespeople to service their customers better. Chapter 01 - The L ife, Times, and Career of the Professional Salesperson 1-11 © 2014 by McGraw -Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 32. Salespeople do not need increase sales in old accounts if they are generating a sufficient quantity of new customers. Answer: False Learning Objective: 01 -06 Topic: The Futu re for Salespeople Blooms: Understand AACSB: Analytic Level of Difficulty: Medium Explanation: A company’s sales each period come from two groups: new customers and repeat customers. It always costs more to attract new customers than to retain current customers. Therefore, customer retention is more critical than customer attraction. 33. The sales process refers to the checklist salespeople use to prepare for addressing prospects' objections. Answer: False Learning Objective: 01 -08 Topic: Building Re lationships through the Sales Process Blooms: Remember AACSB: Analytic Level of Difficulty: Easy Explanation: The sales process refers to the salesperson’s sequential series of actions that leads toward the customer taking a desired action and e nds with a follow -up to ensure purchase satisfaction. This desired action by a prospect is usually buying, which is the most important action. 34. Acts such as building rapport, uncovering needs, and designing sales presentation strategies are collective ly referred to as prospecting. Answer: False Learning Objective: 01 -08 Topic: Building Relationships through the Sales Process Blooms: Understand AACSB: Analytic Level of Difficulty: Medium Explanation: Prospecting is the first step in the sales process. Prospecting refers to determining the person or organization that could be a potential customer. Building rapport and uncovering needs occur later in the sales process during the approach stage. Chapter 01 - The L ife, Times, and Career of the Professional Salesperson 1-12 © 2014 by McGraw -Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 35. The final step in the selling process is customer fo llow-up. Answer: True Learning Objective: 01 -08 Topic: Building Relationships through the Sales Process Blooms: Remember AACSB: Analytic Level of Difficulty: Easy Explanation: The last step in the 10 -step sales process is customer follow -up and service. This step ensures a positive and long -lasting customer relationship. Multiple Choice Questions 36. Surveys have found that salespeople are rated low on ethics and honesty. What is the most likely r eason for such results? A. People belie ve products are overpriced . B. People lack trust and confidence in sales personnel. C. People perceive that salespeople sell low quality goods . D. Salespeople are unable to encourage impulsive buying during sales calls. E. Most firms lack sales force s that have adequately qualified and trained personnel. Answer: B Learning Objective: 01 -03 Topic: The Golden Rule of Personal Selling Blooms: Understand AACSB: Analytic Level of Difficulty: Medium Explanation: As Gallup’s survey poll of Americans indicates, p eople view traditional salespeople as having their self -interest as a priority. This type of salesperson is preoccupied with his or her own well -being —usually defined in terms of making money —and thus is selfish and cannot be trusted. 37. _____ is tradit ionally defined as the personal communication of information to persuade a prospective customer to buy something which satisfies that individual's needs. A. Marketing B. Personal selling C. Public relations D. Advertising E. Promotion Answer: B Learning O bjective: 01 -01 Topic: What Is Selling? Blooms: Remember AACSB: Analytic Chapter 01 - The L ife, Times, and Career of the Professional Salesperson 1-13 © 2014 by McGraw -Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Level of Difficulty: Easy Explanation: In business, a traditional definition of personal selling refers to the personal communication of information to persuade a prospec tive customer to buy something —a good, service, idea, or something else —that satisfies that individual’s needs. This definition of selling involves a person helping another person. 38. Unlike the traditional definition of personal selling, the new definit ion: A. relates personal selling more closely to transactional marketing. B. identifies electronic selling as the most effective channel. C. stresses the importance of being unselfish in selling. D. excludes telemarketing activities due to ethical conce rns. E. substitutes the word "relationship marketing" for "personal selling." Answer: C Learning Objective: 01 -03 Topic: A New Definition of Personal Selling Blooms: Remember AACSB: Analytic Level of Difficulty: Easy Explanation: The new definit ion inserts the word unselfish into the traditional definition of personal selling. Personal selling refers to the personal communication of information to unselfishly persuade a prospective customer to buy something —a good, a service, an idea, or somethin g else —that satisfies that individual’s needs. 39. The _____ refers to the sales philosophy of unselfishly treating others as you would like to be treated. A. Equity Sales T heory B. Reciprocity Principle C. 80/20 Principle of Sales D. ABCS Rule of Sales manship E. Golden Rule of Personal Selling Answer: E Learning Objective: 01 -03 Topic: The Golden Rule of Personal Selling Blooms: Remember AACSB: Analytic Level of Difficulty: Easy Explanation: The Golden Rule of Personal Selling refers to the s ales philosophy of unselfishly treating others as you would like to be treated. Reciprocity is not expected. Chapter 01 - The L ife, Times, and Career of the Professional Salesperson 1-14 © 2014 by McGraw -Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 40. The Golden Rule of Personal Selling refers to the sales philosophy of: A. unselfishly treating others as you would like to be treated. B. giving more importance to sales maximization than profit maximization. C. making sales mutually beneficial to the buyer and seller. D. obtaining a financial benefit by helping others. E. realizing a major part of the profit from only a few customers. Answe r: A Learning Objective: 01 -03 Topic: The Golden Rule of Personal Selling Blooms: Remember AACSB: Analytic Level of Difficulty: Easy Explanation: The Golden Rule of Personal Selling refers to the sales philosophy of unselfishly treating others a s you would like to be treated. 41. Anderson is a used cars salesperson , and he believes in the Golden Rule of Personal Selling. He would most likely believe that: A. profit maximization is the ultimate goal of business. B. an action is acceptable if i t is legally correct. C. salespeople should be driven by pride and achievement s. D. money and long -term customer loyalty are essential. E. positive sales results are to be attributed to other people. Answer: E Learning Objective: 01 -03 Topic: The Golden R ule of Personal Selling Blooms: Apply AACSB: Analytic Level of Difficulty: Hard Explanation: A Golden Rule salesperson attributes personal success to others. Traditional salespeople are more focused on money, profits, and person accomplishments than on customer relationships and ethics. 42. A salesperson that adheres to the Golden Rule of Personal Selling: A. is primarily motivated by money. B. is driven by pride and recognition . C. focuses on laws rather than morals. D. finds others' interests most im portant. E. requires intensive monitoring from managers . Answer: D Learning Objective: 01 -03 Topic: The Golden Rule of Personal Selling Blooms: Understand AACSB: Analytic