Test Bank for Selling Today: Partnering to Create Value, 14th Edition

Selling Today: Partnering to Create Value, 14e (Manning/Ahearne/Reece) Chapter 2 Evolution of Selling Models That Compliment the Marketing Concept 1) The development of a personal selling philosophy most likely involves: A) a full acceptance of the limits of the marketing concept B) a full appreciation of the tenets of the free enterprise system C) a desire to sell internationally D) assuming the role of a problem-solver in helping customers make complex buying decisions E) assuming the role of a competitor for customers’ business Answer: D Diff: 2 Objective: LO 2.1: Discuss the evolution of personal selling models as an extension of the marketing concept 2) Sales departments and marketing departments often compete for: A) the largest number of employees in the company B) the biggest customers C) financial resources and budget share D) management’s favor E) product to give away Answer: C Diff: 2 Objective: LO 2.1: Discuss the evolution of personal selling models as an extension of the marketing concept 3) The ultimate goal of the “marketing concept” is: A) product diversification B) customer satisfaction C) brand loyalty D) rising profit margins E) efficiency of production Answer: B Diff: 2 Objective: LO 2.1: Discuss the evolution of personal selling models as an extension of the marketing concept 1 Copyright © 2018 Pearson Education, Inc. 4) Which of the following statements would NOT be an application of the marketing concept? A) Let’s speed up production and get these products to customers faster by eliminating the field test. B) Let’s show these product designs to some prospective buyers for their reactions. C) Let’s examine our points of distribution to see if we’re reaching the market effectively. D) Let’s do some research to see which colors consumers prefer. E) Let’s ask customers which products they used most heavily. Answer: A Diff: 2 AACSB: Analytical Thinking Objective: LO 2.1: Discuss the evolution of personal selling models as an extension of the marketing concept 5) When UPS was first established, founder Jim Casey described the firm’s focus as follows: A) to become a leader in international shipping B) to become the world’s most profitable company C) to render perfect service to our stores and their customers D) to become the world’s most efficient shipping company E) to become the fastest shipper in the world Answer: C Diff: 2 Objective: LO 2.1: Discuss the evolution of personal selling models as an extension of the marketing concept 6) The marketing mix consists of product, promotion, place, and: A) personnel B) principle C) perfection D) pride E) price Answer: E Diff: 1 Objective: LO 2.1: Discuss the evolution of personal selling models as an extension of the marketing concept 7) The promotion element of a marketing program can be subdivided into the areas of: A) sales, promotion, and advertising B) market research, personnel, and product publicity C) product research, product design, product production, and product publicity D) public relations, place, personal selling, and personnel E) sales promotion, public relations, personal selling, and advertising Answer: E Diff: 2 Objective: LO 2.1: Discuss the evolution of personal selling models as an extension of the marketing concept 2 Copyright © 2018 Pearson Education, Inc. A company has developed a calendar/messaging/paperwork center that helps working mothers organize their families’ schedules and paperwork. All the mothers who have tried it have loved it, and it is priced comparably to normal planners, although it offers much more. 8) The product was developed by gathering focus groups of mothers and asking them what they need and what they wish normal planners offered them. This method of product development most likely: A) is costly and inefficient B) is performed by the marketing department C) subscribes to the marketing concept D) reduces the barriers to purchasing E) is a method developed in the last decade Answer: C Diff: 3 AACSB: Application of Knowledge Objective: LO 2.1: Discuss the evolution of personal selling models as an extension of the marketing concept 9) As part of the marketing mix, the makers of the calendar will be running an advertising campaign directed at working mothers. Another part of the marketing mix is sending salespeople to sell: A) calendars to retail outlets B) calendars to working mothers C) organizational skills to working mothers D) nostalgia to organizers E) organizational skills to online reviewers Answer: A Diff: 3 AACSB: Application of Knowledge Objective: LO 2.1: Discuss the evolution of personal selling models as an extension of the marketing concept 3 Copyright © 2018 Pearson Education, Inc. XFormation is a company that develops and delivers custom trainings for products, procedures, and change at companies. XFormation developers have extensive knowledge of adult learning theory, and the trainers are dynamic, engaged teachers. 10) Xformation’s marketing mix needs to: A) be balanced across all four of the Ps because the product is not complicated or difficult to understand B) rely heavily on promotion, especially personal selling, to help the client purchase custom trainings C) focus on price, because XFormation’s competition can provide identical training at a lower price point D) further refine the product, and offer more standardized options for clients E) pay more attention to place, and consider how the location of the office affects sales volume Answer: B Diff: 3 AACSB: Application of Knowledge Objective: LO 2.1: Discuss the evolution of personal selling models as an extension of the marketing concept 11) A company that ignores the marketing concept will not have any negative effects. Answer: FALSE Diff: 2 Objective: LO 2.1: Discuss the evolution of personal selling models as an extension of the marketing concept 12) Business firms vary in terms of how strongly they support the marketing concept. Answer: TRUE Diff: 1 Objective: LO 2.1: Discuss the evolution of personal selling models as an extension of the marketing concept 13) It is not as important to focus on the marketing concept if a company has an established product. Answer: FALSE Diff: 2 Objective: LO 2.1: Discuss the evolution of personal selling models as an extension of the marketing concept 14) There is no set path to using the marketing concept successfully. Answer: TRUE Diff: 1 Objective: LO 2.1: Discuss the evolution of personal selling models as an extension of the marketing concept 4 Copyright © 2018 Pearson Education, Inc. 15) When measured by either the number of people employed or expenses as a percentage of sales, personal selling is often the major promotional method used by American businesses. Answer: TRUE Diff: 2 Objective: LO 2.1: Discuss the evolution of personal selling models as an extension of the marketing concept 16) The marketing concept is the foundation of the sales methods and techniques used since the 1950s. Answer: TRUE Diff: 1 Objective: LO 2.1: Discuss the evolution of personal selling models as an extension of the marketing concept 17) Peter Drucker stated that “the ________ defines the business.” Answer: customer Diff: 1 Objective: LO 2.1: Discuss the evolution of personal selling models as an extension of the marketing concept 18) List and describe the four parts of the marketing mix. Answer: 1. Price–What the product will cost the customer 2. Product–The qualities and specifications of the product 3. Place–Where the customer can buy the product 4. Promotion–How the company will promote the product to the customer Diff: 1 Objective: LO 2.1: Discuss the evolution of personal selling models as an extension of the marketing concept 19) In consultative selling, the customer is seen as: A) a person to be served B) a prospect to be sold C) a point on the funnel D) progress toward a quota E) a challenge to be overcome Answer: A Diff: 1 Objective: LO 2.2: Describe the evolution of consultative selling from the marketing era to the present 5 Copyright © 2018 Pearson Education, Inc. 20) Consultative selling emphasizes need identification, which the salesperson achieves by: A) leading with the benefits of the product or service, not the features B) giving a professional sales presentation that engages multiple modalities C) mirroring the client’s speech and body language to establish rapport D) carefully labeling all the steps to install and use the product E) asking the client questions and listening carefully to the answers Answer: E Diff: 2 Objective: LO 2.2: Describe the evolution of consultative selling from the marketing era to the present 21) Transactional selling is less complicated than consultative selling because: A) consultative selling takes into consideration the clients’ varying needs B) consultative selling requires giving the client the product at the lowest price possible C) consultative selling is an earlier form of selling than transactional selling D) all sales begin with transactional selling E) a higher percentage of transactional sales close than do consultative sales Answer: A Diff: 3 Objective: LO 2.2: Describe the evolution of consultative selling from the marketing era to the present 22) A key ingredient in the consultative selling process is: A) discounting appropriately B) serving the client C) overcoming objections D) selling in teams E) asking for the sale Answer: B Diff: 2 Objective: LO 2.2: Describe the evolution of consultative selling from the marketing era to the present 6 Copyright © 2018 Pearson Education, Inc. A company has developed a calendar/messaging/paperwork center that helps working mothers organize their families’ schedules and paperwork. All the mothers who have tried it have loved it, and it is priced comparably to normal planners, although it offers much more. 23) Because this product looks similar to other products and only differentiates itself when a customer uses it, customers might be more influenced to buy it because of: A) advertising on websites geared to women B) marketing campaigns in non-traditional outlets C) word of mouth endorsements from other mothers D) teacher recommendations E) telephone marketing campaigns Answer: C Diff: 3 AACSB: Application of Knowledge Objective: LO 2.2: Describe the evolution of consultative selling from the marketing era to the present 24) Company management is having a difficult time deciding whether to allot more money to a marketing campaign involving ad buys and promotional events, or to a staff of sales representatives to sell the organizers. What factor should they consider in allotting the budget? A) A national marketing campaign can cost more than the yearly salaries of an entire sales department. B) A marketing campaign can reach prospects in several geographic areas at the same time. C) Salespeople can visit several retail outlets a day. D) Salespeople work on commission. E) Even with a marketing campaign, retail outlets will need to order through and be trained on product knowledge by salespeople. Answer: E Diff: 3 AACSB: Application of Knowledge Objective: LO 2.2: Describe the evolution of consultative selling from the marketing era to the present 7 Copyright © 2018 Pearson Education, Inc. XFormation is a company that develops and delivers custom trainings for products, procedures, and change at companies. XFormation developers have extensive knowledge of adult learning theory, and the trainers are dynamic, engaged teachers. 25) Which of the following is the main goal for XFormation salespeople in terms of product strategy? A) Create products that customers really want to buy instead of products that the company wants to sell. B) Understand all the training products they sell and how to customize a package for the customer. C) Examine how they can add value for customers so the customers will continue to contract with XFormation on a long-term basis. D) Give a presentation to the customer after planning out the objectives carefully ahead of time. E) Understand the customer’s needs and what and how they need to buy. Answer: B Diff: 3 AACSB: Application of Knowledge Objective: LO 2.2: Describe the evolution of consultative selling from the marketing era to the present 26) Which of the following is the customer strategy that XFormation salespeople should use? A) Understand all the training products they sell and how to customize a package for the customer. B) Examine how they can add value for customers so the customers will continue to contract with XFormation on a long-term basis. C) Give a presentation to the customer after planning out the objectives carefully ahead of time. D) Spend enough time with the customer that the salesperson lives and breathes the customer’s business. E) Understand the customer’s needs and what and how they need to buy. Answer: E Diff: 3 AACSB: Application of Knowledge Objective: LO 2.2: Describe the evolution of consultative selling from the marketing era to the present 27) E-commerce has contributed to the decline in popularity of transactional selling. Answer: TRUE Diff: 2 AACSB: Information Technology Objective: LO 2.2: Describe the evolution of consultative selling from the marketing era to the present 8 Copyright © 2018 Pearson Education, Inc. 28) Consultative-style selling practices have become popular because they can be easily mastered. Answer: FALSE Diff: 1 Objective: LO 2.2: Describe the evolution of consultative selling from the marketing era to the present 29) Consultative selling, which emerged in the late 1960s and early 1970s, is an extension of the marketing concept. Answer: TRUE Diff: 1 Objective: LO 2.2: Describe the evolution of consultative selling from the marketing era to the present 30) Consultative selling emphasizes ________, which the salesperson does by asking the client questions and listening carefully to the answers. Answer: need identification Diff: 1 Objective: LO 2.2: Describe the evolution of consultative selling from the marketing era to the present 31) List and describe the features of consultative selling. Answer: 1. See the client as a person to be served, not a prospect to be sold. 2. Identify the buyer’s needs with two-way communication. 3. Consultative selling involves need identification, problem solving, and negotiation instead of manipulation. 4. Consultative selling involves service at every stage of the process. Diff: 3 Objective: LO 2.2: Describe the evolution of consultative selling from the marketing era to the present 32) In a market characterized by vigorous competition, look-alike products and customer loyalty that depends on quality relationships as well as quality products, the salesperson should fully utilize the: A) product strategy B) customer strategy C) presentation strategy D) relationship strategy E) marketing strategy Answer: D Diff: 2 Objective: LO 2.3: Define strategic selling and name the four broad strategic areas in the Strategic/Consultative Selling Model 9 Copyright © 2018 Pearson Education, Inc. 33) A well-thought-out plan for establishing, building, and maintaining quality relationships is a: A) relationship strategy B) customer strategy C) product strategy D) presentation strategy E) personal selling philosophy Answer: A Diff: 2 Objective: LO 2.3: Define strategic selling and name the four broad strategic areas in the Strategic/Consultative Selling Model 34) Sharon Wiley is a sales representative employed by a leading producer of pharmaceuticals used in veterinary medicine. Recently she attended a university-sponsored seminar that focused on new research findings in selected areas of veterinary medicine. Ms. Wiley is most likely attempting to develop a: A) relationship strategy B) customer strategy C) service strategy D) presentation strategy E) product strategy Answer: E Diff: 2 AACSB: Analytical Thinking Objective: LO 2.3: Define strategic selling and name the four broad strategic areas in the Strategic/Consultative Selling Model 35) One broad strategic area of the Strategic/Consultative-Selling Model is: A) marketing strategy B) research strategy C) customer strategy D) service strategy E) budget strategy Answer: C Diff: 2 Objective: LO 2.3: Define strategic selling and name the four broad strategic areas in the Strategic/Consultative Selling Model 10 Copyright © 2018 Pearson Education, Inc. 36) Eric Villa obtained a license to sell real estate and then accepted a sales position with a local Century 21 agency. To prepare for this new position, he purchased and read a research report entitled “Buying Habits of Today’s Home Buyers.” Mr. Villa is most likely attempting to develop a: A) presentation strategy B) product strategy C) customer strategy D) relationship strategy E) price strategy Answer: C Diff: 2 AACSB: Analytical Thinking Objective: LO 2.3: Define strategic selling and name the four broad strategic areas in the Strategic/Consultative Selling Model 37) The four broad strategic areas of the Strategic/Consultative Selling Model are: A) connected to each other B) in conflict with each other C) independent of each other D) not independent of each other E) identical to each other Answer: D Diff: 2 Objective: LO 2.3: Define strategic selling and name the four broad strategic areas in the Strategic/Consultative Selling Model 38) Preparing objectives for the sales demonstration and a plan to reach those objectives is the: A) product strategy B) customer strategy C) presentation strategy D) relationship strategy E) marketing strategy Answer: C Diff: 2 Objective: LO 2.3: Define strategic selling and name the four broad strategic areas in the Strategic/Consultative Selling Model 39) The customer strategy always takes into consideration: A) maintaining a close partnership B) the customer’s needs C) the profit margins of the product D) the relationship between the selling partners E) the company’s sales quotas Answer: B Diff: 1 Objective: LO 2.3: Define strategic selling and name the four broad strategic areas in the Strategic/Consultative Selling Model 11 Copyright © 2018 Pearson Education, Inc. 40) The evolution of strategic selling can most likely be traced to: A) a need to use fewer salespeople to sell more products B) the growing demand for less expensive products C) the need for salespeople to master sales force automation practices D) new sources of raw materials E) several trends that resulted in a more complex selling environment Answer: E Diff: 2 Objective: LO 2.3: Define strategic selling and name the four broad strategic areas in the Strategic/Consultative Selling Model Jenny Johansson sells customized buses like the ones bands use while on road tours. Her company has recently assigned her to a new territory in the Upper Midwest, and she is reevaluating the sales strategies she used in her old territory in New England. 41) Jenny is working on her sales strategy for a mid-sized town in her territory. One of her ideas is to stretch out of the traditional prospect pool of traveling performers, who are not headquartered in the Upper Midwest, and open up new markets with corporations that need customized buses for executives. This thinking process Jenny is participating in is called: A) the value proposition B) the marketing mix C) presentation strategy D) strategic planning E) optimization Answer: D Diff: 3 AACSB: Application of Knowledge Objective: LO 2.3: Define strategic selling and name the four broad strategic areas in the Strategic/Consultative Selling Model 42) At a party, Jenny talks to a flight attendant who mentions the passenger she had in first class who needed a second seat for his oxygen and other medical equipment. Jenny realizes that modifying buses for medical needs instead of luxury could open a whole new market. This is an example of: A) product strategy B) transactional selling C) the persuader stage D) the marketing mix E) the marketing concept Answer: E Diff: 3 AACSB: Application of Knowledge Objective: LO 2.3: Define strategic selling and name the four broad strategic areas in the Strategic/Consultative Selling Model 12 Copyright © 2018 Pearson Education, Inc. 43) While making a sales presentation to the head of a local company, Jenny discovers that the head is routinely stopped and delayed at airport security because of a joint replacement that sets off alarms but doesn’t show up easily in the x-ray machines. This adds another 3-4 hours to some trips, and has caused him to miss 10 flights in the previous year. This conversation is: A) need identification B) relationship building C) price negotiation D) qualifying the prospect E) post-sales service Answer: A Diff: 3 AACSB: Application of Knowledge Objective: LO 2.3: Define strategic selling and name the four broad strategic areas in the Strategic/Consultative Selling Model XFormation is a company that develops and delivers custom trainings for products, procedures, and change at companies. XFormation developers have extensive knowledge of adult learning theory, and the trainers are dynamic, engaged teachers. 44) Which of the following is an example of a relationship strategy salespeople for XFormation could use? A) Create rapport and a good relationship with the customer so the customer ultimately buys. B) Understand all the training products they sell and how to customize a package for the customer. C) Examine how they can add value for customers so the customers will continue to contract with XFormation on a long-term basis. D) Give a presentation to the customer after planning out the objectives carefully ahead of time. E) Understand the customer’s needs and what and how they need to buy. Answer: C Diff: 3 AACSB: Application of Knowledge Objective: LO 2.3: Define strategic selling and name the four broad strategic areas in the Strategic/Consultative Selling Model 13 Copyright © 2018 Pearson Education, Inc. 45) As a presentation strategy, which of the following makes the most sense for XFormation sales representatives to follow? A) Understand all the training products they sell and how to customize a package for the customer. B) Examine how they can add value for customers so the customers will continue to contract with XFormation on a long-term basis. C) Rehearse the standardized presentation so extensively that it is smooth and flawless, and any prospect would buy from the salesperson. D) Give a presentation to the customer after planning out the objectives carefully ahead of time. E) Understand the customer’s needs and what and how they need to buy. Answer: D Diff: 3 AACSB: Application of Knowledge Objective: LO 2.3: Define strategic selling and name the four broad strategic areas in the Strategic/Consultative Selling Model 46) A strategy can be best described as a collection of techniques, practices, or methods you use when you are face to face with a customer. Answer: FALSE Diff: 2 Objective: LO 2.3: Define strategic selling and name the four broad strategic areas in the Strategic/Consultative Selling Model 47) The four major strategies that form the strategic/consultative selling model are independent of one another. Answer: FALSE Diff: 2 Objective: LO 2.3: Define strategic selling and name the four broad strategic areas in the Strategic/Consultative Selling Model 48) Typical salespeople spend about 30 percent of their time in actual face-to-face situations. Answer: TRUE Diff: 2 Objective: LO 2.3: Define strategic selling and name the four broad strategic areas in the Strategic/Consultative Selling Model 49) The presentation strategy includes a reminder that outstanding service should be the overriding theme of every sales presentation. Answer: TRUE Diff: 1 Objective: LO 2.3: Define strategic selling and name the four broad strategic areas in the Strategic/Consultative Selling Model 14 Copyright © 2018 Pearson Education, Inc. 50) ________ evolved because of broader and more diverse product lines, demand for specific customized solutions, and more competition. Answer: Strategic selling Diff: 2 Objective: LO 2.3: Define strategic selling and name the four broad strategic areas in the Strategic/Consultative Selling Model 51) A(n) ________ is a well-thought-out plan for establishing, building and maintaining quality selling relationships. Answer: relationship strategy Diff: 2 Objective: LO 2.3: Define strategic selling and name the four broad strategic areas in the Strategic/Consultative Selling Model 52) A(n) ________ strategy is a carefully conceived plan that will result in maximum responsiveness to customers. Answer: customer Diff: 2 Objective: LO 2.3: Define strategic selling and name the four broad strategic areas in the Strategic/Consultative Selling Model 53) List and describe the five strategic steps of the Strategic Consultative/Selling Model. Answer: 1. Developing a personal selling philosophy. This involves adopting the marketing concept, valuing personal selling, and assuming the role of problem-solver. 2. Developing a relationship strategy. Success in selling depends heavily on the salesperson’s ability to develop, manage, and enhance interpersonal relations with the customer. 3. Developing a product strategy. Products and services represent the problem-solving tools available to salespeople. 4. Developing a customer strategy. Sales and marketing efforts must be organized around the needs and desires of the customer. 5. Developing a presentation strategy. The presentation is a critical part of the selling process because it is at this point that the salesperson determines whether the customer has a need for the product. Diff: 2 Objective: LO 2.3: Define strategic selling and name the four broad strategic areas in the Strategic/Consultative Selling Model 15 Copyright © 2018 Pearson Education, Inc. 54) When a marketer decides to adopt partnering, emphasis will most likely be placed on: A) selling strategies B) product development C) selling tactics D) the customer E) the salesperson Answer: D Diff: 1 Objective: LO 2.4: Describe the evolution of partnering and the nature of strategic account management 55) Customer loyalty depends on quality products and: A) quality relationships B) low prices C) free shipping D) custom installation E) little contact Answer: A Diff: 2 Objective: LO 2.4: Describe the evolution of partnering and the nature of strategic account management 56) The highest form of partnering is the: A) marketing alliance B) value-added alliance C) partnering alliance D) customer partnership alliance E) strategic selling alliance Answer: E Diff: 2 Objective: LO 2.4: Describe the evolution of partnering and the nature of strategic account management 57) A partnership is beneficial for both parties because the successive sales are: A) equal to the initial sales B) greater than the initial or repeat sales C) not necessarily guaranteed D) a function of the price of the product E) transactional in nature Answer: B Diff: 2 Objective: LO 2.4: Describe the evolution of partnering and the nature of strategic account management 16 Copyright © 2018 Pearson Education, Inc. 58) Account managers from Dentsply International help add value for their dentist customers by: A) giving them cheaper prices for larger orders B) selling more products than the competition C) helping them solve a workplace safety issue for hygienists D) providing various payment options E) expediting shipments during busier months Answer: C Diff: 2 Objective: LO 2.4: Describe the evolution of partnering and the nature of strategic account management 59) Achieving a marketplace advantage by teaming up with another company whose products or services fit well with your own is referred to as a: A) marketing strategy B) customer strategy alliance C) sales strategy D) strategic selling alliance E) successive sales alliance Answer: D Diff: 2 Objective: LO 2.4: Describe the evolution of partnering and the nature of strategic account management 60) For a strategic account relationship to be successful, the first step is for a company to: A) enlist legal assistance to make sure its interests are protected B) talk to the customer to discover what its needs are C) assemble a team of product experts D) define the ethical guidelines that will apply to the relationship E) find out as much about the proposed partner as possible Answer: E Diff: 2 Objective: LO 2.4: Describe the evolution of partnering and the nature of strategic account management 61) Maintaining high ethical standards: A) can strengthen your relationship with a customer B) should be secondary to closing a sale C) is rare in the world of sales D) will lead to lost revenue for a company E) often puts you in conflict with your customers Answer: A Diff: 1 AACSB: Ethical Understanding and Reasoning Objective: LO 2.4: Describe the evolution of partnering and the nature of strategic account management 17 Copyright © 2018 Pearson Education, Inc. 62) CRM software is used to manage information about: A) research and development B) competitors C) prospects and customers D) strategy E) market trends Answer: C Diff: 2 AACSB: Information Technology Objective: LO 2.4: Describe the evolution of partnering and the nature of strategic account management 63) The process of building and maintaining strong customer relationships by providing customer value is called: A) marketing concept B) value-added selling C) customer relationship management D) personal sales philosophy E) customer strategy Answer: C Diff: 1 Objective: LO 2.4: Describe the evolution of partnering and the nature of strategic account management Jenny Johansson sells customized buses like the ones bands use while on road tours. Her company has recently assigned her to a new territory in the Upper Midwest, and she is reevaluating the sales strategies she used in her old territory in New England. 64) Which of the following would be an example of partnering? A) selling a customized bus to the CEO of the bus manufacturer B) renting customized buses to corporate customers through a car service agency that services corporations C) using the same brand of paint on all the buses they customize D) developing a standardized process to ensure the buses all receive the same steps, with differences within those steps E) creating two or more identical customizations for the same customer Answer: B Diff: 3 AACSB: Application of Knowledge Objective: LO 2.4: Describe the evolution of partnering and the nature of strategic account management 18 Copyright © 2018 Pearson Education, Inc. XFormation is a company that develops and delivers custom trainings for products, procedures, and change at companies. XFormation developers have extensive knowledge of adult learning theory, and the trainers are dynamic, engaged teachers. 65) Salespeople for XFormation need to be able to successfully: A) convince a prospect to buy B) partner with the prospect to achieve the prospect’s training goals C) communicate why XFormation trainers are the best D) make prospects like them so they will want to buy from them E) persuade prospects that the XFormation training course will serve their needs Answer: B Diff: 3 AACSB: Application of Knowledge Objective: LO 2.4: Describe the evolution of partnering and the nature of strategic account management 66) Customer relationship management (CRM) software aids salespeople in creating and maintaining relationships with customers. Answer: TRUE Diff: 1 AACSB: Information Technology Objective: LO 2.4: Describe the evolution of partnering and the nature of strategic account management 67) A major reason for the demise of the product solution is the growing number of look-alike products. Answer: TRUE Diff: 2 Objective: LO 2.4: Describe the evolution of partnering and the nature of strategic account management 68) The partnering concept, as an enhancement of personal selling, became popular in the 1970s. Answer: FALSE Diff: 1 Objective: LO 2.4: Describe the evolution of partnering and the nature of strategic account management 69) The goal of strategic selling alliances is to achieve a marketplace advantage by teaming up with another company whose products fit well with your own. Answer: TRUE Diff: 1 Objective: LO 2.4: Describe the evolution of partnering and the nature of strategic account management 19 Copyright © 2018 Pearson Education, Inc. 70) Which of the following statements accurately describes value-added selling? A) Value-added selling has emerged as a response to the product strategy. B) Value-added selling has emerged as a response to the customer economy. C) Value-added selling surfaced during the era of transactional selling. D) Value-added selling would not be an appropriate strategy in international markets. E) Value-added selling is only appropriate for services, not products. Answer: B Diff: 2 Objective: LO 2.5: Explain how value-added selling strategies enhance personal selling 71) Salespeople who have the skills and motivation to add value during the sales process are rewarded by: A) exchange theory B) personal selling C) the transactional economy D) the information economy E) the post-consumer economy Answer: D Diff: 2 Objective: LO 2.5: Explain how value-added selling strategies enhance personal selling 72) Which of the following is a step to creating and delivering the customer value model? A) creating the customer’s value needs B) creating the value proposition C) quantifying the value proposition D) questioning the value proposition E) presenting the value proposition Answer: B Diff: 2 Objective: LO 2.5: Explain how value-added selling strategies enhance personal selling Jenny Johansson sells customized buses like the ones bands use while on road tours. Her company has recently assigned her to a new territory in the Upper Midwest, and she is reevaluating the sales strategies she used in her old territory in New England. 73) During a presentation, when communicating the value proposition to the customer, Jenny should most likely focus on: A) the features that make the bus special B) how much money driving a bus saves over chartering a plane C) how the bus will solve problems for the customer D) the gas mileage the bus gets E) the materials used in the modification of the bus Answer: C Diff: 3 AACSB: Application of Knowledge Objective: LO 2.5: Explain how value-added selling strategies enhance personal selling 20 Copyright © 2018 Pearson Education, Inc. A company has developed a calendar/messaging/paperwork center that helps working mothers organize their families’ schedules and paperwork. All the mothers who have tried it have loved it, and it is priced comparably to normal planners, although it offers much more. 74) How can a salesperson add value to the transaction for a retail outlet buying the organizers to resell to customers? A) by giving the outlet the same price rival calendars charge B) by helping the outlet place the order for the organizers C) by providing a free display stand and benefits list to outlets to help them sell D) by delivering the organizers to the outlets E) by penalizing outlets that do not sell many organizers with a smaller discount off retail price Answer: C Diff: 3 AACSB: Application of Knowledge Objective: LO 2.5: Explain how value-added selling strategies enhance personal selling 75) Value-added selling can be defined as a series of creative improvements within the sales process that enhance the customer experience. Answer: TRUE Diff: 2 Objective: LO 2.5: Explain how value-added selling strategies enhance personal selling 76) To create value for a client, a salesperson must be able to persuade the client of the value needs. Answer: FALSE Diff: 2 Objective: LO 2.5: Explain how value-added selling strategies enhance personal selling 77) ________ selling can be defined as a series of creative improvements within the sales process that enhance the customer experience. Answer: Value-added Diff: 1 Objective: LO 2.5: Explain how value-added selling strategies enhance personal selling 21 Copyright © 2018 Pearson Education, Inc.