Chapter 14
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Questions and Answers

It has been found that too few companies leverage the advantage of salespeople as listening posts in terms of competitive intelligence.

True

In one study conducted by a hospital, it was reported that banning medical device representatives from the operating room led to an increase in hip replacement costs because the surgeons were no longer aware of lower-cost devices to use as implants.

False

In an organizational setting, a gatekeeper is often involved in the preapproach stage.

True

Citing testimonials is often helpful for a salesperson when trying to address a customer's logical objections in the sales presentation step.

<p>False</p> Signup and view all the answers

From the buyer's perspective, a key aspect of an effective sales presentation is the adaptability of the salesperson.

<p>True</p> Signup and view all the answers

Positive conversion is turning a customer's objection in the sales process into the exact reason for the purchase of the product or service.

<p>True</p> Signup and view all the answers

In the sales process, the trial close is asking the customer to buy but not asking for immediate payment.

<p>False</p> Signup and view all the answers

A canned sales presentation style is based on a Pavlovian approach to sales.

<p>True</p> Signup and view all the answers

The canned sales presentation assumes that each prospect will react in the same way, which is its major limitation.

<p>True</p> Signup and view all the answers

In the selling formula approach, the salesperson follows a defined script that leads to buyer action after generating interest and desire.

<p>False</p> Signup and view all the answers

In the second stage of the needs satisfaction approach, the salesperson ensures that the buyer recognizes that the product meets the customer's needs, which will lead to closure of the sale.

<p>False</p> Signup and view all the answers

The most customer-oriented of all sales approaches is the needs satisfaction approach.

<p>True</p> Signup and view all the answers

The three stages of the selling formula approach are need development, need awareness, and need fulfillment.

<p>False</p> Signup and view all the answers

Helping customers arrive at better solutions than they would have discovered on their own is a part of the consultative selling approach.

<p>True</p> Signup and view all the answers

Trust is at the core of the need satisfaction method.

<p>False</p> Signup and view all the answers

The simplest way to organize a sales force is by product line.

<p>False</p> Signup and view all the answers

The more homogeneous the customer base, the more a company might have a geographic organization in terms of its sales force structure.

<p>True</p> Signup and view all the answers

The geographic approach to sales force organization requires salespeople to have the broadest knowledge of the company’s product line.

<p>True</p> Signup and view all the answers

With a sales force based on product organization, specialization in structure can lead to a customer getting multiple calls by the same seller organization.

<p>True</p> Signup and view all the answers

The most appropriate way for healthcare organizations to organize a sales force is the product structure.

<p>False</p> Signup and view all the answers

As the cost of health care has increased, the influence of employed physicians has increased within healthcare systems in the decision to purchase devices and supplies.

<p>False</p> Signup and view all the answers

A focus on a solutions strategy is most possible with a sales force structure based on customer organization.

<p>True</p> Signup and view all the answers

The workload method determines sales force size by assessing the number of accounts to be called on based on their size and their profit value to the organization.

<p>False</p> Signup and view all the answers

The workload method does not recognize that the cost of servicing accounts may vary, which is a limitation of this method in determining sales force size.

<p>True</p> Signup and view all the answers

The first step in developing an effective sales force is recruiting to solicit a large number of potential job applicants from which to select.

<p>False</p> Signup and view all the answers

Ninety percent of firms are now using social media sites such as Facebook and LinkedIn for recruitment of job applicants.

<p>True</p> Signup and view all the answers

Almost 90% of all employers eliminate candidates for a job based on prior screening of the applicants on the Internet.

<p>False</p> Signup and view all the answers

The in-depth personal interview is the first step in eliminating individuals who are not qualified for the sales position that the company is seeking to fill.

<p>False</p> Signup and view all the answers

The structured interview allows candidates to be compared using the same dimensions, which makes it the best interview tool for recruiting candidates.

<p>False</p> Signup and view all the answers

Structured interviews are the best approach to use with job applicants.

<p>True</p> Signup and view all the answers

Putting potential candidates in role-playing interviews is part of the stress interview.

<p>True</p> Signup and view all the answers

The best way to assess personality and social skills is with the structured interview.

<p>False</p> Signup and view all the answers

It has been found that it takes several unstructured interviews to equal the reliability of one structured interview.

<p>True</p> Signup and view all the answers

When it is difficult to determine the effect of a salesperson’s efforts on sales rather than pay any incentive through commission, it is better to use a bonus with salary as part of the compensation package.

<p>False</p> Signup and view all the answers

Nonsales activities tend to be less attended to by salespeople when the compensation is primarily based on commission.

<p>True</p> Signup and view all the answers

Pretesting a compensation plan should always be done prior to implementing any commission-based plan.

<p>False</p> Signup and view all the answers

Nonfinancial incentives are often used to relate to a salesperson's higher-order needs such as self-esteem.

<p>True</p> Signup and view all the answers

Effective evaluation measures of a sales force should include both input and output measures.

<p>True</p> Signup and view all the answers

Which of the following roles do salespeople not perform?

<p>Facilitating</p> Signup and view all the answers

Hybrid selling involves:

<p>using face-to-face and digital customer approaches.</p> Signup and view all the answers

When the salesperson leads the buyer through a canned presentation, there is the expectation of a response (a purchase). This method is:

<p>the stimulus-response approach.</p> Signup and view all the answers

The advantage of the stimulus-response approach to selling is that:

<p>it ensures that the salesperson will follow the intended message.</p> Signup and view all the answers

The major limitation to the stimulus-response sales presentation approach is that:

<p>it does not encourage prospect involvement in the sales presentation.</p> Signup and view all the answers

The approach that assumes that the buyer goes through a series of steps internally before they purchase is the logic behind which method?

<p>Selling formula</p> Signup and view all the answers

Which of the following is the most marketing-oriented sales presentation approach?

<p>Need satisfaction</p> Signup and view all the answers

In the need awareness stage of the need satisfaction method of selling, the key objective of the sales representative is to ensure that the:

<p>customer recognizes all the same needs as the salesperson.</p> Signup and view all the answers

At the need fulfillment stage of the need satisfaction selling method, the salesperson:

<p>highlights the buyer's needs and how the product meets those needs.</p> Signup and view all the answers

Which of the following is not one of the three primary ways a consultative sales approach delivers value to the customer?

<p>Assists in structuring a new paradigm by which the business process can be reformulated or reconfigured</p> Signup and view all the answers

Having a relationship perspective and trust is a central part of which sales approach?

<p>Consultative selling</p> Signup and view all the answers

The simplest way to organize a sale force is by:

<p>geography.</p> Signup and view all the answers

When the customer base is homogeneous, the sales force structure can be:

<p>geographic.</p> Signup and view all the answers

The major advantages of geographic organization to the sales force structure is:

<p>travel time and cost.</p> Signup and view all the answers

The problem of needing to have broad knowledge of the customers is particularly problematic in which form of sales force structure?

<p>Geographic</p> Signup and view all the answers

Customers often receive multiple sales calls from the same organization when the sellers use which sales structure?

<p>Customer</p> Signup and view all the answers

Having a broad understanding of the product and service mix is the major limitation of which sales forces structure?

<p>Customer</p> Signup and view all the answers

In order to use the workload method, it is necessary to estimate:

<p>the work effort required to service an account.</p> Signup and view all the answers

The major limitation to the workload method is that it does not:

<p>account for the varying effectiveness of the individual salesperson.</p> Signup and view all the answers

Prior to recruiting any individual for a sales job, it is essential that the organization:

<p>conducts an analysis of the sales job.</p> Signup and view all the answers

Which of the following factors is an indicator of an unsuccessful salesperson?

<p>All of these are correct.</p> Signup and view all the answers

Which of the following questions is not illegal under the Equal Opportunity Guidelines to ask on a personal history form in the hiring process of an individual?

<p>All of these are illegal questions.</p> Signup and view all the answers

The goal of the stress interview is to:

<p>observe how the candidate will react in on-the-job conditions.</p> Signup and view all the answers

Unstructured interviews are useful to assess an applicant's:

<p>personality.</p> Signup and view all the answers

Interviewing of job candidates can be improved by using:

<p>structured interviews.</p> Signup and view all the answers

In a sales position in which the majority of the responsibility is relationship maintenance, the appropriate compensation structure would be:

<p>straight salary.</p> Signup and view all the answers

When sales volume is declining, the compensation plan that is particularly disadvantageous to an organization is:

<p>straight salary.</p> Signup and view all the answers

Missionary sales tasks tend to be focused on the least by salespeople under which type of compensation plan?

<p>Commission</p> Signup and view all the answers

Pretesting is particularly critical under which form of compensation plan?

<p>Combination</p> Signup and view all the answers

In order for supplemental incentives to succeed as part of a compensation plan, it is important that:

<p>salespeople believe they have an opportunity to win.</p> Signup and view all the answers

Study Notes

Salesperson Training - True/False Questions

  • Competitive Intelligence: Companies benefit from salespeople acting as "listening posts" for competitive intelligence.
  • Medical Device Costs: A study found that restricting medical device representatives from operating rooms did not increase hip replacement costs.
  • Gatekeeper Role: A gatekeeper is often involved in the pre-approach stage of organizational sales.
  • Testimonials in Sales: Citing testimonials is less effective at addressing customer objections in a sales presentation.
  • Sales Presentation Adaptability: A key aspect for effective sales presentations is the salesperson's adaptability to the buyer.
  • Positive Conversion: Changing customer objections to reasons for purchase is a positive sales outcome.
  • Trial Close: The trial close prompts the customer to contemplate a purchase without focusing on immediate payment.
  • Canned Sales Presentations: Canned sales presentations use a formula-based approach, similar to Pavlov's conditioning.
  • Prospect Uniformity: Canned sales presentations often assume all prospects react similarly, which is a weakness.
  • Selling Formula Approach: This involves following a predefined script to engage prospective buyers.

Sales Force Organization and Effectiveness

  • Needs-Satisfaction Approach: The customer-centric approach focuses on understanding buyer needs.
  • Sales Approach Stages: The selling formula does not involve need development, awareness, and fulfillment stages.
  • Consultative Selling: Helping customers find solutions is a piece of consultative selling.
  • Trust: Trust is not core to the need satisfaction method.
  • Sales Force Structure: Organizing by product line is not the simplest structure; geographic organization is, particularly when homogeneous.
  • Geographic Sales Force: Salespeople in a geographic structure need the broadest product knowledge.
  • Product-Based Structure: Product-based structure can lead to multiple calls from the same seller.
  • Healthcare Sales Force Structure: A product-based structure is not the most appropriate for healthcare organizations.
  • Physician Influence: The influence of employed physicians in healthcare purchasing decisions has not increased with rising healthcare costs.
  • Sales Force Size: The workload method for determining sales force size considers the number of accounts, size, and profit values but does not account for the cost of servicing accounts which vary.

Sales Interviews and Processes

  • Sales Force Development: Recruiting a larger pool of applicants is not the first step in forming a sales force.
  • Online Recruiting: Social media sites like Facebook and LinkedIn are commonly used for hiring.
  • Pre-screening: A significant percentage of employers pre-screen applicants on the internet.
  • Interviews: Structured interviews are the less effective approach for recruiting candidates; unstructured interviews can be used to assess personality.
  • Role-Playing: Including role-playing in interviews provides insight into personality.
  • Stress Interviews: These are viewed as part of the interview process in some contexts.
  • Equal Opportunity Guidelines: Questions about personal history (e.g., age, religion) are discouraged in interviews.
  • Compensation Structure: Commission-based pay can de-emphasize non-sales tasks.
  • Compensation Plan Pretesting: Pretesting a compensation plan is not essential – testing is important.
  • Salesperson Incentives: Incentives (non-financial and financial) can encourage the salesperson to meet higher-order needs.

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Description

Test your knowledge on key concepts in salesperson training with this True/False quiz. Covering topics such as competitive intelligence, adaptability in presentations, and the roles within sales processes, this quiz challenges your understanding of effective sales strategies.

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