. The introduction to Chapter 2 focuses on Megan Foley, a vice president of an engineering firm. What does Megan suggest that business owners employ as a secret weapon to boost sales and build more solid client relationships?
a.
a code of ethics to guide employee behaviour
b.
a security system for client information
c.
the power of trust as a competitive differentiator
d.
using competitive intelligence to improve a product or service offering
ANSWER:
c
2. According to the textbook, what describes the extent of the buyer’s confidence that he or she can rely on the salesperson’s integrity?
trust
empathy
dependability
honesty
a
3. As a salesperson for a construction materials manufacturer, Rachel focuses on providing her customers with any and all information she has available regarding the products she sells and any interactions that take place between buyer and seller. Which aspect of trust does this illustrate?
integrity
reliability
security
openness
d
4. As a salesperson for an electrical parts wholesaler, Imad is very careful not to share information with respect to the operations of one of his customers with another. Which aspect of trust does this illustrate?
confidentiality
5. As an experienced and successful salesperson for a clothing manufacturer, Lise takes care to always follow company policies and procedures when dealing with her customers. Which aspect of trust does this illustrate?
b
6. According to the textbook, what is the challenge associated with the concept of trust in thecontext of buyer–seller relationships?
The seller defines trust, and it can mean different things to different people.
The concept of trust is universally understood.
The buyer defines trust, and it can mean different things to different people.
The concept of trust is not necessarily a requirement for doing business in today’s highly automated markets.
7. Which statement best describes a key difference between traditional sales tactics and today’s trust-based relationship selling methods?
In trust-based relationship selling, dependability takes on greater importance.
Traditional selling tactics focus more on logistical issues to demonstrate trust.
In trust-based relationship selling, the concept of trust is based on a larger set of factors.
Traditional selling tactics require higher levels of trust to be successful.
8. As a successful salesperson for an automotive parts manufacturer, Zach is known by his customers for always following through on any commitments he makes. Which of the following aspects of trust does this illustrate?
9. Omar is a new sales rep for an automotive supplier. He is careful to never be late for an appointment and to always follow through immediately on promises he makes to his customers. These behaviours help Omar to build trust with his customers. What do his customers perceive Omar to be?
an expert
candid
dependable
competent
10. Hunter is a new salesperson who does not yet possess a great deal of product knowledge. He is often asked questions to which he does not know the answer. By being upfront with his customers about not knowing the answers and then making an effort to find them, how does Hunter build trust?
He is perceived as an expert.
He is perceived as candid.
He is perceived as compatible.
He is perceived as competent.
11. What aspect of trust is addressed by a salesperson who truly cares about partnerships with customers, advocating for them in the event of a problem arising?
candour
customer orientation
12. Suppose you are a salesperson for a salesforce automation consulting company. After working with a potential customer for several weeks, you determine that a lower-cost and lower-margin solution is best for your customer. Although a more-expensive and higher-margin system will work, by recommending the lower-cost solution, what are you demonstrating?
knowledge
likeability
13. According to the textbook, what will long-term sales success in any industry be built on?
repeat business from customers in long-term purchase contracts
customer referrals from satisfied customers who trust their salesperson
salespersons commitment to the business
stability of salesperson representation
14. Increased competition has resulted in buyer’s markets in most industries. How has that affected personal selling?
a renewed emphasis on adversarial, win-lose approaches to selling
buyers preferring to spread out purchasing between more sellers
a move toward long-term buyer–seller relationships based on trust and mutual achievement of objectives
sellers preferring to do more profitable business with fewer buyers
15. What aspect of trust is addressed by a salesperson knowing what he or she needs to know, and by his or her company having the ability and resources to get the job done right?
expertise
16. What aspect of trust is addressed by a salesperson who can be relied upon to keep his or her promises?
compatibility
17. What aspect of trust is addressed by a salesperson who is honest in his or her spoken word and whose presentations are fair and balanced?
18. Helga is a salesperson for a business insurance company. Recently, she told several of her customers about new legislation that may adversely affect their businesses. How is Helga earning trust?
Her customers will perceive her to be likeable.
Her customers will perceive her to be candid.
Her customers will perceive her to be dependable.
Her customers will perceive her to be customer-oriented.
19. When a salesperson makes an effort so that buyers like doing business with him or her and the company, which of the following aspects of trust is being addressed in a sales context?
20. Salespeople often adapt their appearance and communication style to that of their customers. How does this help them to build trust?
Their customers perceive them as being experts.
Their customers perceive them as being customer-oriented.
Their customers perceive them as being compatible.
Their customers perceive them as being candid.
21. Which statement best describes the key difference between compatibility/likability and the other dimensions used by salespeople to build trust?
Compatibility/likability should also be established with key gatekeepers within the customer’s organization in addition to the customer.
The dimension of compatibility/likability is less important than the other dimensions used to build trust, as customers tend to pay more attention to value created than to emotion.
Due to sales force turnover, the dimension of compatibility/likability is the least transferable dimension used to build trust.
It is difficult to prove that a relationship exists between compatibility/likability and purchase intentions.
22. According to the textbook, why should a salesperson have a good knowledge of the company he or she works for and the industry in which it competes?
It helps to ensure consistent levels of value-added service to customers.
Knowing the company’s history provides valuable context for understanding its current strategy.
Knowing the industry will provide the salesperson with competitive salary information.
Company and industry knowledge are two areas that customers often use to test new salespeople at the beginning of a relationship.
23. Ivan has been selling lawn service door-to-door for the past ten years. Recently, he took a new job selling industrial cleaning equipment to large factories and institutions where he was assigned a territory that contained 35 long-term accounts. Ivan is having trouble adjusting to his new role. What is the most likely source of his difficulty?
Ivan is having trouble trying to keep busy due to the greater amount of free time available in his new position.
Ivan is having difficulty relating to his new customers, who seem to be more concerned with the technical aspects of the industrial equipment than how it will solve their problems.
In contrast to his previous job, Ivan now has to develop and maintain long-term relationships based on trust.
The customers that Ivan is now calling on are only concerned about price and delivery terms.
24. Which statement best describes the relationship between knowledge and trust in a sales context?
The more the salesperson knows, the easier it will be to build trust and gain the confidence of buyers.
The more the buyer knows, the easier it will be to build trust and have confidence in sellers.
Research has shown that there is no relationship between knowledge and trust in a sales context.
Salespeople trying to sell to customers who have high levels of product knowledge often find that conversations end in arguments over technical details of the products.
25. Which statement best characterizes the relationship between product knowledge and sales success?
Product knowledge is best shared in moderation to avoid appearing like a know-it-all.
Product knowledge helps to establish credibility and trust with customers.
Salespeople are not expected to have high levels of product knowledge, as this is what technical support specialists do.
To be successful, salespeople only need to know the features of the products that they sell.
26. In order for salespeople to fine-tune a market offer to the specific needs of their customers, what part of their knowledge base must be strong?
industry
market
technology
product (including service and price)
27. Why should salespeople have a complete understanding of their companies’ pricing policies?
because they are often responsible for negotiating price with their customers
because they must avoid getting into costly price negotiations with customers
because they must prevent being legally obligated to honour a quoted price
because they want to be perceived as being more dependable
28. Pierre is a new salesperson for Ace Computer Co. and is responsible for business-to-business sales. Because he transferred from the engineering staff, Pierre knows better than any other salesperson the technical specifications and performance statistics of the computers he sells. Unfortunately, Pierre is relatively unfamiliar with how businesspeople use the computers on a day-to-day basis. Which type of knowledge does Pierre need to work on?
competitor
technical
market and customer
29. According to the textbook, how have many companies responded to the increased need for salespeople to have specialized market and customer knowledge?
by increasing educational requirements when hiring
by segmenting their overall customer base by type
by increasing training requirements for new hires
by encouraging salespeople to obtain memberships in relevant trade associations
30. According to the textbook, which of the following most accurately reflects buyers’ information needs?
Buyers need to know everything about the markets in which they compete.
Buyers are not interested in factual knowledge unless it relates to fulfilling their specific needs.
Buyers are interested in learning as much factual knowledge as they can.
Buyers don’t expect salespeople to be able to provide them with valuable information.
31. According to the textbook, to thoroughly know the industry and your customers’ business, you must know _______________?
where to find the information
who your competitor is
what price was paid for the last order
who was the previous salesperson in your territory
32. In order to better understand their own product’s position in the marketplace, what do salespeople need?
a high degree of technical knowledge
a high degree of competitor knowledge
a high degree of product knowledge
a high degree of customer knowledge
33. In order for salespeople to be able to deliver complete comparative product information in sales presentations, what must they possess?
customer knowledge
adaptability
competitor knowledge
confidence
34. Which trend has helped salespeople the most to improve their knowledge of markets and customers in order to build trust?
increased number of companies switching to trust-based relationship selling
increased educational requirements for hiring salespeople
increased emphasis on privacy and security of information
increased access to information via the Internet, smartphones, and e-mail
35. According to the textbook, what would be the primary objective of a salesperson working to achieve high levels of market, customer, and competitor knowledge?
to reduce the length of time spent preparing for sales calls
to improve his or her ability to communicate with buyers on their level
to determine his or her differential competitive advantage in the marketplace
to provide high levels of service differentiation
36. Technology has provided faster and more efficient ways for salespeople to communicate with their customers. With respect to communicating with customers, which strategies should salespeople follow?
Use e-mail because it is quick and can be read/sent any time of the day or night.
Use voice mail because most people are familiar with it.
Use the telephone because it is inexpensive and allows for two-way interaction.
Use whatever communication method the customer prefers.
37. With respect to developments in communications technology, how have cell phones had both positive and negative effects on personal selling?
Intense competition between cell phone service providers has reduced long distance charges but increased equipment surcharges.
Cell phones provide for more human interaction than facsimile machines, which is less productive.
Buyers, sellers, and managers have immediate access to each other.
Using cell phones cuts down on the amount of paper used in the selling process, which can create problems when attempting to trace mistakes in order processing.
38. According to the textbook, which type of communications technology sometimes backfires on sales organizations by actually frustrating their customers rather than helping them?
e-mail
facsimile
voice mail
texting
39. With respect to developments in communications technology, why did the facsimile machine have a major effect on personal selling?
Most facsimile machines can send and receive at the same time.
Facsimile machines made possible the electronic transmission of signed purchase orders.
Facsimile machines can send one document to multiple locations simultaneously.
Using facsimile machines reduced the amount of paper used in the selling process.
40. According to the textbook, what does ethics refer to?
correct behaviour for the situation at hand
the right and wrong conduct of individuals and the institutions of which they are a part
moral conduct as determined by the government and society
laws governing orderly behaviour within society
41. With respect to sales and ethics, which statement is the most accurate?
Ethics are universal, so they are the same in every country.
Because ethical standards for a profession are based on society, they may vary from country to country.
Ethical standards are, by definition, legal standards and should be enforced consistently.
Salespeople are less susceptible to engaging in unethical behaviour because of the high visibility of their activities.
42. What is the relationship between personal selling and ethics?
Salespeople are exposed to greater ethical pressures than those in other occupations.
Research has shown that highly ethical salespeople are more successful than those who are not.
Salespeople have few opportunities to engage in unethical behaviour because of the high visibility of their activities.
Enforcing high ethical standards in the sales profession is made easier by the large governing bodies that regulate the industry.
43. According to the textbook, why are salespeople interested in ethical behaviour?
Sales ethics are closely related to trust, which forms the basis for a successful selling approach in today’s marketing environment.
Sales ethics have changed over time as customers have become more accepting of minor ethical transgressions due to increasingly competitive markets.
Salespeople must respond to the ethical standards set by their customers.
44. According to the textbook, why do many people hold negative stereotypes of salespeople?
In the past, media such as the press and popular entertainment have fostered the negative image of salespeople.
People who interact with salespeople on a frequent basis perpetuate negative stereotypes of salespeople.
The development of professional codes of ethics by companies has drawn attention to the problems of the profession.
Concern regarding corporate governance due to recent scandals such as Enron has focused attention on unethical behaviour by salespeople in many industries.
45. According to the textbook, in addition to personal ethics, which of the following provides a basis for deciding what is right and wrong in a given situation?
group norms of behaviour
cultural values
formal codes of conduct
46. As presented in the textbook, both the Sales and Marketing Executives International (SMEI) and Canadian Professional Sales Association (CPSA) publish a professional salesperson’s code of ethics. Which statement best characterizes a salesperson’s motivation for adhering to these codes?
Failure to adhere to the code of ethics results in sanctions against the member and a significant financial penalty.
Failure to adhere to the code of ethics results in legal action being taken against the member.
Failure to adhere to the code of ethics results in losing membership in the organization and the right to use the respective sales professional designation.
Failure to adhere to the code of ethics results in lost sales due to lack of trust and loss of reputation.
47. According to the textbook, what is the Canadian Competition Act term for an illegal agreement between sellers to prevent or unduly lessen competition or to unreasonably enhance the price of a product by selling at the same price?
price fixing
bid rigging
price discrimination
predatory pricing
48. According to the textbook, what is the Canadian Competition Act term for an agreement in which competitors agree in advance who will win a contract based on the tenders submitted?
49. According to the textbook, what is a salesperson doing when knowingly and systematically selling the same goods or services at different prices to different buyers?
50. Sometimes a firm or an individual deliberately sets prices to incur losses for a long time, either to eliminate a competitor, or to inhibit competition in the expectation that the firm or individual will be able to recoup its losses later by charging prices above competitive levels. According to the textbook, what is the term for this?
51. What is being practised by firms or individuals that advertise products at bargain prices that are not available in reasonable quantities, with the intent to try to sell more expensive products instead?
bait and switch selling
52. What is the term for fees or commissions paid on the recruitment of others to make sales rather than on the basis of product sales?
pyramid selling
express warranty
53. Which of the following areas of unethical behaviour would include being dishonest, exaggerating, hustling or scamming customers, and withholding information?
deceptive practices
illegal activities
noncustomer-oriented behaviour
negligence
54. Which of the following areas of unethical behaviour would include defrauding or conning customers and misusing company assets?
55. Which of the following areas of unethical behaviour include a salesperson being pushy and using hard-sell tactics, fast talking, and high pressure?
56. What do all provinces in Canada use to attempt to protect consumers from the persuasive influence of salespeople?
standards of practice known as the buyer’s remorse clause
legislation known as a cooling off period
industry-specific codes of ethical behaviour
legislation restricting negligence in selling behaviour
57. A salesperson entering and driving his company car on amateur night at the local drag racing strip would most likely be considered guilty of which of the following areas of unethical behaviour?
misrepresentation
misuse of company assets
58. What is the term for a salesperson providing a warranty or guarantee that obligates the selling company even if the salesperson does not intend to honour the warranty?
59. What is the term for making a false claim about a product or its performance?
60. What is the term for a salesperson making a claim about a product or its performance without exercising reasonable care to make sure that the claim is accurate?
61. After making a number of sales calls on a new customer, Frank was relieved and excited to receive a large order from this customer via cell phone while driving home from his sales territory. From an ethical perspective, what should Frank do?
As an order given verbally is an enforceable contract, Frank does not need to do anything more at the present time.
Frank should immediately confirm the details of the sale in writing to the customer to minimize any risk of disagreement due to misunderstanding.
As an order given verbally is not an enforceable contract, Frank needs to get a signed sales order sent by facsimile or e-mail for it to be legally binding.
To avoid misrepresentation, Frank needs to offer the customer the benefit of a thirty day cooling off period for orders given verbally.
62. Lina has been selling automobile manufacturing equipment for the past five years and lately has been under considerable pressure to achieve her sales objectives due to poor economic trends in her area. In a recent sales presentation, Lina exaggerated the performance capabilities of the proposed equipment and later received a substantial order from the customer. From an ethical perspective, which of the following statements best describes her situation?
As long as her exaggerations were made verbally, she cannot be held liable for any shortcomings in performance of the equipment sold.
Lina knows that she can rely on the concept of implied warranty to relieve the company of any liability for performance problems with the equipment sold.
Salespeople exaggerating the performance capabilities of their products are an expected part of business and customers know to discount such claims when making a decision.
Due to the concept of the basis of the bargain, Lina is guilty of misrepresentation, and her company may be held liable for any shortcomings in performance of the equipment.
63. Trust in a selling relationship can mean different things to different people.
True
False
64. Reliability and integrity are important components of trust.
65. In a selling context, trust and honesty mean the same thing.
66. In a selling relationship, the seller defines the meaning of trust.
67. Trust is composed of a variety of components, including honesty, candour, competence, and customer orientation.
68. Due to its universal nature, trust in a transaction-oriented sales interaction and in relationship selling is essentially the same.
69. To be successful, long-term buyer–seller relationships need to be based on mutual trust and value-added benefits.
70. Expertise is important to building trust in a sales context because buyers want to deal with salespeople who know how to help them achieve their bottom-line objectives.
71. Developing expertise is not enough to build trust; a salesperson must translate this expertise to make contributions for the buyer.
72. The dependability of a salesperson’s actions is known as predictability.
73. Keeping promises made to customers is important for a salesperson to build candour.
74. Stretching the truth to secure an order from a customer is the easiest way for a salesperson to build candour, an important component of trust.
75. A salesperson working on developing a customer orientation will place as much emphasis on the short-term needs of the customer as on his or her own needs.
76. Salespeople who cover both the pros and cons of their market offer while making sales presentations are more likely to be perceived as customer-oriented than those who do not.
77. Salespeople who are trusted and perceived as customer-oriented may be considered by their customers as advisers rather than salespeople.
78. In today’s highly competitive markets, building rapport with professional buyers is considered unnecessary to the selling process.
79. Likeability and compatibility are necessary for trust building with customers.
80. Research has shown that knowledge is of little importance when it comes to building trust with customers.
81. Likeability and compatibility are important factors for salespeople attempting to build relationships with key gatekeepers at their customers’ companies.
82. While salespeople’s knowledge of their company and their products is important to building trust, knowledge of their industry is not.
83. Most customers expect salespeople to be knowledgeable about the products they are selling.
84. It is more important for salespeople to carry a good product than to provide good service.
85. Salespeople may use service to differentiate themselves from their competitors.
86. Salespeople need be concerned only with knowing the price of their products, and not their company’s pricing policies.
87. Salespeople need be concerned only with knowing their customers, and not the market in which their customers operate.
88. For a salesperson, expertise is closely associated with knowledge of the market.
89. Salespeople need to be concerned with knowing not only their own products, but also their competitors’ products.
90. Salespeople’s knowledge of their competitors’ products will help them better understand their own.
91. The development of communications technology such as the facsimile machine and cell phones has had relatively little impact on the sales profession.
92. For salespeople, implementing voice mail is guaranteed to dramatically improve customer satisfaction.
93. Technology can often be a barrier to communication between salespeople and their customers.
94. According to the textbook, ethics refers to right and wrong conduct of individuals and the institutions of which they are a part.
95. Ethical standards for a profession are based on society’s standards.
96. As a whole, salespeople face fewer ethical pressures than individuals in other professions.
97. Sales ethics is closely related to trust.
98. According to a survey of customers discussed in the textbook, a salesperson showing concern for his or her interest rather than the client’s is considered unethical.
99. According to a survey of customers discussed in the textbook, a salesperson passing the blame for something that he or she did wrong is considered unethical.
100. According to a survey of customers discussed in the textbook, a salesperson attempting to sell products or services that the customer does not need is considered ethical.
101. According to a survey of customers discussed in the textbook, a salesperson accepting favours from customers so the seller feels obliged to bend policies is considered unethical.
102. According to a survey of customers discussed in the textbook, a salesperson withholding information is considered ethical if the information does not materially impact the transaction in question.
103. According to a survey of customers discussed in the textbook, a salesperson exaggerating the benefits of a product or service to secure a sale is considered unethical.
104. A salesperson who is pushy and uses high-pressure sales tactics is considered to be practising noncustomer-oriented behaviour.
105. An agreement between sellers to prevent or unduly lessen competition or to unreasonably enhance the price of a product by selling at a fixed price is an unethical practice known as predatory pricing.
106. Knowing and systematically selling the same goods or services at different prices to different buyers is an unethical practice known as price fixing.
107. An agreement in which competitors agree in advance who will win a bid based on the tenders submitted is an unethical practice known as bid rigging.
108. While in some cultures, providing bribes as incentives to do business is considered an acceptable practice, in Canada, bribery is considered unethical and is illegal.
109. A firm or individual advertising products at bargain prices that it does not have available in reasonable quantities, for the purpose of trying to sell more expensive products instead, is said to be practising misrepresentation.
110. In the past, popular media such as television programs, movies, and theatre productions have contributed to the negative image of salespeople with respect to unethical behaviour.
111. A salesperson making a false claim about a product or service is practising negligence.
112. The product liability created when a salesperson makes a claim about a product without exercising reasonable care to see that the claim is accurate is known as negligence.
113. A salesperson may create a product liability for his or her company by virtue of promises made verbally to customers.
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