ch09Student: ___________________________________________________________________________

1. Unless you can get the buyer actively involved in the communication process, the buyer's attention will probably turn to other topics.   True    False

 2. To strengthen impact, sellers should make multi-sense appeals.   

True    False 3. On average people immediately forget 50 percent of what they hear.   

True    False 4. In "I've Got a Better Idea" sales rep Amir Pernah built a partnership with his customer by secretly

evading state regulations on promotion of alcoholic products.   True    False

 5. Once a salesperson has found an effective method of presentation, he or she should use it regularly with

all prospects.   True    False

 6. The recommended approach for showing trends and relationships is a series of tables.   

True    False 7. If a prospect does not buy, it is inappropriate to leave a gift with that individual.   

True    False 8. In "Show and Tell That Sells" industrial buyer Regina Conner describes how visiting the production

facilities of potential suppliers can make a significant difference in purchase decisions.   True    False

 9. After Ingrid used a particular visual in her presentation, she would be smart to remove it from sight unless

the prospect asks her not to do so.   True    False

 10. One of the most effective methods of appealing to the buyer's senses is through product demonstrations or

performance tests.   True    False

 11. Murphy's Law is a real part of sales demonstrations.   

True    False 12. Since a buyer's RFP contains specifications for the desired product and delivery schedules, it makes sense

for a salesperson to be involved in the specifying process if at all possible.   True    False

 13. To make the buying process more competitive, firms that issue RFPs usually require sellers to avoid

direct reference to those documents when submitting a proposition in response.   True    False

 14. Few people at the buying firm will read the executive summary of a salesperson's written proposal.   

True    False 15. Customer value proposition is another name for quantifying the source of the problem.   

True    False 

16. Often the simplest method of quantifying the solution is to list the costs and benefits to the buyer.   True    False

 17. Quantifying the solution is most important when the prospect is in a high risk situation.   

True    False 18. Payback period can be a good measure of personal risk for a buyer.   

True    False 19. The longer the payback period, the better a buyer likes it.   

True    False 20. Net present value analysis allows a buyer to compare the net value of future cash inflows to the initial

investment.   True    False

 21. Inventory turnover is measured by dividing the average retail price of the inventory on hand by the annual

sales.   True    False

 22. ECR, AR, QR, and JIT are acronyms referring to systems designed to maximize inventory holdings.   

True    False 23. One of the best ways to deal with jitters associated with a sales presentation is to minimize your practice

and preparation in order to reduce stress.   True    False

 24. In the opening profile Andrew Gaffke stresses the importance of having a carefully crafted:   

A. FAB.B. halo effect.C. product opening.D. value proposition.E. need payoff analysis.

 25. Why should a salesperson use visual aids and get a prospect actively involved in the communication

process?   A.  to avoid repetitive customizationB.  to create a sustainable competitive advantageC.  to get and keep the prospect's attentionD.  to prevent any distractions from interrupting the presentationE.  to do any or all of the above

 26. In making her presentation to the building contractor, Lea not only told him about the new wallboard's

superiority, she let him see and feel a sample. Lea is using a:   A. multiple-sense appeal.B.  triple whammy.C.  collaborative approach.D. mixed media approach.E. composite appeal.

 27. Which of the following statements about the buyer's attention and understanding is FALSE?   

A. Some product benefits cannot be explained adequately in non-technical language.B. 

If the salesperson does not successfully involve the prospect in the presentation, his or her attention will wander.

C. To strengthen impact, appeals should be focus on only one of the prospect's five senses.D. The buyer's attention span is affected by his or her personality.E. Many buyers have difficulty forming clear images from the written or spoken word.

 

28. For which of the following products would a multiple-sense approach be effective for ensuring the buyer's understanding of the product?   A. products for cleaning public restroomsB.  fresh produceC.  toilet paperD.  low-fat baconE. any or all of the above

 29. According to the text, the manner in which the salesperson handles the product can be used to

communicate:   A.  respect for the prospect.B. his or her degree of comfort with the product.C. how well the product has been accepted by other buyers.D.  that the product is valuable.E.  the contents of the salesperson's portfolio.

 30. One tool salespeople can use to strengthen a sales presentation and to make it more interesting is to

use stories. Which of the following recommendations should be followed when using stories in a sales presentation?   A. Use vivid word pictures in your stories.B. Try to use stories from your own experiences.C. Make sure you have a reason for telling the story.D. Use the "hook" of the story to tie back directly into the presentation.E. All of the above are recommended actions when using a story to strengthen a sales presentation.

 31. Which of the following statements about the use of humor in sales presentations is true?   

A. Humor should never be used in sales presentations.B. 

Be sure to use humor that is relevant to the group to which you are selling--such as tax humor for accountants.

C. Do not practice telling jokes because rehearsed jokes are boring.D. Don't apologize before telling a joke.E. All of the above statements about the use of humor in sales presentations are true.

 32. Which of the following statements about the use of humor in sales presentations is true?   

A.  If used at all, humor should always be derived from the buyer's personal experiences.B. Let the prospect figure out where the humor is; keep a straight face when telling a joke.C. Remember the time spent laughing over a good joke will put everyone more at ease.D. Sell the joke like you sell your product and your company.E. All of the above statements about the use of humor in sales presentations are true.

 33. Charts are particularly useful when:   

A.  copies of recent ads are necessary.B.  communicating large amounts of information.C. you need to show that other buyers have been satisfied with your good or service.D. 

the salesperson needs to perform what-if analyses using information supplied by the prospect during the presentation.

E. any of the above conditions occur. 34. For her sales presentation, Myra wants to design a chart which shows how much faster chronic wounds

heal when protected with SoloSite, a water-based ointment. To create the most effective chart, she should:   A.  avoid the use of pie charts or other graphical representation.B. use complete sentences so the buyer does not have to wonder what words are missing.C. use an occasional misspelling to ask as a check to see if the buyer is paying attention.D.  intermingle major and minor selling points.E. do none of the above

 

35. Which of the following is suggested by the text as a guideline for the proper use of visual aids?   A. 

Decide ahead of time which visuals you will leave with the buyer and have copies already made when you arrive.

B. Check your visuals carefully for errors.C. Always relate features to benefits for the buyer.D. Mark your visuals so you can find them easily.E. all of the above

 36. A salesperson who wants to make effective use of visual aids should do all of the following

EXCEPT:   A. use current ads.B. use bullets to emphasize key points.C.  label each visual with a title.D.  don't overload the buyer with numbers.E. hand every customer any and all available testimonials.

 37. A new restaurant equipment salesperson who is trying to make the most effective use of her visual aids

should NOT:   A.  arrange her visuals in a logical order.B. vary the art styles, layouts, and scales for her collection of charts and figures to keep them interesting.C. make sure the buyer can see the visuals.D. 

maintain proper control of the visuals, otherwise the prospect may start thumbing through your catalog or looking ahead at other visuals before you finish the current visual.

E.  let the visual interfere with her interaction with the buyer. 38. Why would a salesperson for Visa stain-resistant fabric give his prospective client a shirt made of the

Visa fabric?   A. The shirt is meant to be a bribe.B. Prospects expect gifts before they will consider a salesperson's product.C. The shirt is meant to gain and keep the buyer's interest in the fabric.D. The gift of the shirt is an unethical act but not an illegal one.E. The salesperson would not give the prospect a shirt because it would be both unethical and illegal.

 39. For which of the following products would samples be most effective as a sales aid?   

A.  flame throwerB.  funeral serviceC.  carpet cleanerD.  life insuranceE. none of the above

 40. For which of the following products would samples be least effective as a sales aid?   

A. paper towelsB. oil well drilling platformC.  stain-removersD.  automobile seat coversE. bottles and aluminum cans

 41. Which of the following items could be used to attract and keep a prospect's attention during a sales

presentation for a company that manufactures industrial laundry equipment?   A. a catalog that lists prices and specifications of different models of machines sold by the companyB.  test results showing how little water is wasted by the company's water reclamation systemC. a brochure that compares the company's water reclamation to an ATM machineD. maps indicating all the countries where the company sells its productsE. all of the above

 

42. In "Show and Tell That Sells" industrial buyer Regina Conner describes how:   A. demonstrations as part of a sales presentation can be effectiveB. visiting the production facilities of potential suppliers can influence purchase decisionsC.  implication questions can lead to displays of feature dumpsD.  a trial close can be enhanced by sharing cost informationE.  selective perception generates visual interpretation

 43. The salesperson for the BM&M automated sawdust screen walked into the pallet manufacturer's buying

agent's office and handed him a letter from a pallet manufacturer in Georgia. The letter praised the efficiency of the BM&M screen and was especially complementary of the fact that the screen only has six moving parts. This letter is an example of a(n):   A.  affirmation.B.  fabrication.C.  illustration.D.  attestation.E.  testimonial.

 44. "Mr. Smock, here are copies of letters from three owners of flower shops in the tri-cities area who

consistently buy cut flowers for their shops from our company. As you can see, they are extremely pleased with our quick delivery and product freshness." The letters this sales rep is showing Mr. Smock are examples of:   A.  affirmations.B.  fabrications.C.  illustrations.D.  attestations.E.  testimonials.

 45. Which of the following statements about testimonials is true?   

A. Progressive sales organizations rarely use testimonials.B. To be valid, testimonials must be sworn before a notary public.C. Testimonials are particularly useful when selling intangibles and relatively new and unusual products.D. The most effective testimonials are generic, which makes them usable with more types of customers.E. None of the above statements about testimonials is true.

 46. The best writer of a testimonial is:   

A.  someone above reproach and respected by his or her peers.B.  a friend of the salesperson.C. unknown to the prospect.D.  someone who no longer uses the product.E.  the chief executive officer (CEO) of the selling firm.

 47. Which of the following statements about portfolios is true?   

A. 

Because of cultural and language differences, portfolios should be avoided in international selling situations.

B. Remember to look at the buyer, not the visual.C. 

Items in the portfolio should be placed in it in the order in which they will be used to make sure none is omitted.

D. Only insurance salespeople place their portfolios in a binder.E. Every portfolio should include the tangible product itself.

 48. Which of the following situations is an appropriate situation for a sales representative to use a VCR?   

A. Richard must train the salespeople at the retail store that bought his product how to sell it.B. Frank wants his prospect to see the new television commercials that will begin airing next month.C. Cleo desires to show this prospect how others are using the product she sells.D. 

Allison wants to present how quality is built into her product at the factory, but the factory is on the other side of the world.

E. All of the above describe appropriate situations for a sales representative to use a VCR. 

49. The use of laptop computers by salespeople in their demonstrations has increased dramatically in recent years. Which of the following statements about their use is true?   A. Salespeople use collateral management systems to archive catalog, and retrieve digital media and text.B. Computers are generally not able to offer excellent visuals and graphics.C.  It is difficult to perform what-if analyses on laptop computers.D. A laptop computer can store only a small amount of information.E.  Information in laptop computers is more difficult to retrieve than in larger computers.

 50. _____ is any system used to archive catalog, and retrieve digital media and text.   

A. Sales asset management systemB. Marketing information system (MIS)C. Database marketingD. Database selling aid (DSA)E. Computer marketing assistant (CMA)

 51. Which of the following is NOT one of the tips for effectively using computers in sales presentations?   

A. Be prepared by having backup batteries, adapters, disks, or CDsB. Make sure both you and the customer can comfortably view the outputC. 

To avoid embarrassing downtime when systems crash, have your technical support team on call when you are making presentations

D. Really get to know your softwareE. Make sure your audience has ample opportunity to ask questions

 52. A product demonstration:   

A.  automatically leads to a sale.B.  allows prospects to prove to themselves the product works the way the salesperson claims.C. often wastes time the salesperson should be talking about the product.D.  often distracts a prospect from the reason for the sales call.E. does none of the above

 53. Which of the following is good advice concerning the use of demonstrations as part of a sales

presentation?   A. PracticeB. Plan for things to go wrongC. Probe both during and after the demonstrationD. Keep the demonstration simple, concise, and easily understoodE. do all of the above

 54. Which of the following is good advice concerning the use of demonstrations as part of a sales

presentation?   A. 

If your prospect has seen a competitor's demonstration, skip over parts of your demonstration that would be redundant.

B. 

Allowing previous buyers of your product to assist you in your demonstration is dangerous and should be avoided.

C. Make your demonstration a separate, stand-alone activity.D.  If the demonstration includes dead time, plan what you will do during the lull.E. All of the above is good advice when using demonstrations as a part of the sales presentation.

 55. Sunil was illustrating the ease with which the gear shift lever on his company's newly designed lawn

mower can be repaired when the bolt holding the lever to the body of the mower would not budge even after a good dosage of lubricant. What is the most appropriate way for Sunil to handle this situation?   A. Find himself a more reliable company to work for.B.  Immediately call his company's vice-president of production and request an explanation.C. Take a humorous tone and realize mistakes do happen.D. Write the buyer a personal letter of apology.E. Recognize the sale is lost.

 

56. A salesperson who wants to make effective use of handouts during his or her sales presentation should:   A.  avoid having any white space.B.  let the goal of the presentation determine what information should be included in the handout.C.  remember information overload is better than information underload.D. use text rather than graphics whenever possible.E. use homemade-appearing handouts to avoid appearing too sophisticated.

 57. A request for proposal (RFP):   

A.  is used when the customer has a firm idea of the product needed.B.  is often referred to as a payback period request.C. means that the salesperson will not need to use the needs identification process.D. 

should be prepared using the finest paper, printing, and ink available as well as the skill of your most adept marketers.

E.  is used when the salesperson has a firm idea of the product needed. 58. Which of the following statements concerning RFPs (request for proposal) is true?   

A.  It may prove to be advantageous to the salesperson to help the customer set specifications.B. Some customers call RFPs proposed negotiation points (PNPs).C. 

Buyers appreciate proposals that contain stacks of materials that require the buyer to search for answers he or she needs.

D. The original RFP may specify the seller's delivery expectations.E. All of the above statements about RFPs are true.

 59. Purchasers who issue RFPs like to see the proposal that responds to the RFP include:   

A.  a positioning map.B.  a postscript.C.  an index.D.  an executive summary.E. all of the above

 60. A written proposal, according to the text, should have three parts, an executive summary, a budget,

and:   A.  a description of the current situation relative to the proposed solution.B.  a collection of testimonials from satisfied customers.C.  a statement of support from the buying committee.D. photographs of the selling company's officers and buildings.E.  the selling firm's pro-forma balance sheet.

 61. Since Melanie's proposal will be sent to the home office in Cedartown to convince executives that the

local Vinson Mountain branch office needs the vacuum molding machine she is selling, Melanie would be smart to:   A.  include her resumé so people in the Cedartown office will be knowledgeable about her.B.  enclose a self-addressed, stamped envelope for a reply.C.  secure the support of the Vinson Mountain branch manager.D. have the documents delivered by an overnight express company.E. do all of the above

 62. Jorge is developing a presentation for a customer. He wants to show how his product will meet the

prospect's needs and how it is different from the offerings of competitors. Jorge is developing a:   A.  customer value proposition.B.  stack the numbers analysis.C.  turkey trot proposition.D. prototype synthesis.E. benefit to yield proposal.

 

63. Jorge is developing a customer value proposition for a prospect. He will include:   A.  a quantified projection of reasonable market share costs.B.  features/benefits tailored to the prospect and proof the benefits exist.C. visual presenters of sales asset management solutions.D.  a prototype synthesis based on generally accepted accounting procedures.E. all of the above

 64. Salespeople can strengthen their presentations by showing the prospect the cost of the proposal is offset

by added value; this is called:   A. magnifying the benefit.B.  stacking the numbers.C.  stuffing the turkey.D. value analysis.E. building the benefit.

 65. Salespeople can strengthen their presentations by showing the prospect the cost of the proposal is offset

by added value. A method of applying this technique, called quantifying the solution, is:   A.  cost benefit comparison.B.  return on investment.C. net present value.D. payback period.E. all of the above

 66. Kenya showed the office manager at Arunden Wholesale Nursery how he could pay for the new copier

she was suggesting by bringing more of Arunden's printing jobs in-house and saving money that had previously been spent with local printers. Kenya is using _____ to quantify the solution.   A.  cost benefit analysisB.  return on investmentC. net present valueD. payback periodE. opportunity cost

 67. Jennifer showed the Reiser Company billing department that spending $8,000 to buy two top-of-the-line

laser printers that would print both the invoice "form" and the information about a particular sale on plain paper at the same time would save the company $32,000 because preprinted forms would no longer have to be purchased and filled in using a typewriter. "That's a savings of 300 percent!" he said. She could have called the 300 percent a(n):   A.  cost benefit analysis.B.  return on investment.C. net present value.D. payback percentage.E. opportunity cost.

 68. When a sales rep divides the net profits (or savings) produced for a client by the amount of money the

client is investing, the resulting figure is called the:   A. net revenue.B.  return on investment.C. net present value.D. payback percentage.E. opportunity cost.

 

69. Ron Hurley purchased everything he needed to make sno-cones for $11,600. Last summer he made a net profit of $6,000 making and selling sno-cones at a local lake. Calculate Hurley's return on investment (ROI).   A. 11.6 percentB. 17 percentC. 19.3 percentD. 51.7 percentE. 60 percent

 70. By investing in a John Deere PowerTech engine for $3,200, the pallet manufacturer was able to show a

net savings of $500 in annual maintenance costs. Calculate the return on investment for the engine.   A. 1.6 percentB. 6.4 percentC. 15.6 percentD. 21.3 percentE. 32 percent

 71. By investing $36,000 in an electronic gate for the employee parking lot, Risco USA was able to save

$90,000 on salaries and benefits previously paid to security guards who monitored the parking lot entrance. The return on investment (ROI) is _____ percent.   A. 40B. 60C. 66.67D. 150E. 250

 72. The payback period:   

A. indicates how quickly the investment money will be returned in the form of cash inflows or savings.B.  can be determined by using depreciation values.C. 

is in no way a determination of personal risk involved in any buying decision made by a purchasing agent.

D. requires that the buyer know the net present value of his or her investment in order to calculate.E.  is accurately described by all of the above.

 73. The length of time it takes for an investment's cash outflow to be returned in the form of cash inflows or

savings is the:   A. net capital refill.B.  return on investment.C. net present value.D. payback period.E. opportunity cost return.

 74. The deep-frying system for the supermarket deli is exactly like the old one except that it uses less

electricity--$10 less electricity per day than the old fryer. Assume there are 21 workdays per month when the fryer is in use. Using the formula in the text, what is the payback period for the $1500 investment in the new fryer?   A. A little more than seven monthsB. A little less than six yearsC. A little over 9.5 yearsD. 12.5 yearsE. none of the above

 

75. The cost of the new saw to cut wood veneers is $14,000. Because of a revolutionary new cutting blade, the new saw will not cause the veneer to splinter and will make clean cuts. This clean cut will save the company $1,200 each year. Using the formula in the text, calculate the payback period for the $14,000 investment.   A. 1.67 yearsB. 8.6 yearsC. 11.67 yearsD. 86 yearsE. cannot be calculated from the information provided

 76. When the purchasing team at PDQ Plastics Inc. recalculates the value of future income to be earned by a

new molding machine into today's dollars, they are:   A. quantifying qualitative information.B. measuring opportunity costs.C. discounting the cash flows.D.  calculating ROI.E.  reducing the payback period.

 77. The _____ of an investment is the value of future income (discounted at the firm's cost of capital) minus

the up-front investment costs.   A. net opportunity costB.  adjusted payback periodC. discounted payback periodD. net present valueE. adjusted opportunity cost

 78. "Carla, if instead of spending the $20,000 you're asking us to put into this new advertising idea, we put

that money in a new packaging machine to replace the one in the Cartersville plant, we'll save $3,500 annually in maintenance and utility costs." The buyer is basing this objection on:   A.  sunk costs.B. net present value.C. opportunity costs.D.  payback period.E. all of the above

 79. The _____ is the return a buyer would have earned from a different use of the same investment

capital.   A.  sunk costB. net present valueC. opportunity costD. gross revenueE. net revenue

 80. The Peoria Cabinetworks can either spend $18,000 to buy a new laminating machine or use that money to

build an extension on its loading dock. The salesperson selling the laminating machine must realize that buyers should look at all _____ before making any major investments.   A.  sunk costsB. net present valuesC. opportunity costsD. gross revenuesE. net revenues

 

81. Tonya is manager of a retail clothing store. A sales rep calling on her offers overnight delivery on all re-orders at no extra shipping cost. This will allow Tonya carry fewer items in the store and save money by increasing her:   A.  collateral cost-benefit ratio.B. value analysis.C. portfolio rate of return.D.  inventory turnover rate.E. multiple outlet profit performance.

 82. Ramiro decides to keep relatively high levels of inventory even though it costs him more. Most likely

Ramiro thinks the cost of _______________ are greater than the benefits of increasing his turnover rate.   A.  collateralB. portfoliosC.  stockoutsD.  revenue enhancementsE. handouts

 83. Emily is trying to convince her customer that she can help him improve his inventory turnover rate. She

will likely describe her company's __________ system.   A. ECRB. QRC. ARD.  JITE. any of the above

 84. ECR, QR, AR, and JIT systems help retailers:   

A.  increase sales through avoiding stockouts.B.  save money through reduced inventories.C.  increase revenue through enhance advertising effectiveness.D.  save money through reduced digital collateral management.E. all of the above

 85. Fiona, a manager of a retail store, wants to know whether she is maximizing her return on space. She will

likely calculate the ____________ for each area of the store.   A.  sales per square footB.  cost-benefitC.  return on investmentD. QR correlation coefficientE.  sales per employee

 86. Which of the following is recommended as a good way to deal with jitters when making a sales

presentation?   A. Realize that professional salespeople do not get nervous.B. Pretend you are a dramatic actor who is playing a role in a play.C. Avoid visuals because they will just complicate the presentation process.D. 

Avoid using any stress management techniques before the presentation because it will alert the prospect to your nervousness.

E. None of the above is recommended as a good way to deal with sales presentation jitters. 87. What is the simplest nonverbal communication a salesperson can use to create a sense of product value?

   

 

 

 

 

88. What are the benefits of using visual aids in a sales presentation?   

 

 

 

 89. Bart knows most buyers remember best through what they see. How can he improve his verbal

communication to help people see the benefits of his product?   

 

 

 

 90. Colleen is preparing a presentation to a potential major donor to the new building to be constructed at

her university. She is considering using visual aids in her presentation. What options does she have and which would likely be most appropriate for this audience?   

 

 

 

 91. What determines the effectiveness of testimonials?   

 

 

 

 92. Tarik is preparing a presentation for a hospital about his company's new linear accelerator cancer

treatment machine. Since the machine is way too big and expensive to bring in and demonstrate, he is deciding which media to use in his presentation. What are his choices and which would likely be most appropriate?   

 

 

 

 

93. At the infamous computer convention where Bill Gates' computer failed, what could have been done to reduce the chances that a demonstration would not work?   

 

 

 

 94. Other than reducing the chance that a product demonstration will fail what other considerations should a

salesperson take into account when developing a demonstration?   

 

 

 

 95. List the three parts of a written proposal.   

 

 

 

 96. How could the owner of a movie theater calculate the profitability of buying a new self-buttering popcorn

machine today rather than postponing the purchase?   

 

 

 

 97. In the example described in the text, on September 11, 2001 Wal-Mart recognized it had sold out of

American flags and quickly re-ordered them. What technologies allowed Wal-Mart to re-order ahead of Target?   

 

 

 

 98. In the opening profile what does Andrew Gaffke stress as critical to capitalizing on a selling opportunity?

   

 

 

 

 

99. Why would a salesperson for a wholesale flower distributor give the prospective client a bouquet of fragrant lilacs to smell and admire during the sales presentation?   

 

 

 

 100.When making a sales presentation, why should a salesperson handle their product carefully?   

 

 

 

 101.Why should a salesperson go to the expense of customizing the charts he or she uses in the sales

presentation?   

 

 

 

 102.How can testimonials be used to improve a salesperson's credibility?   

 

 

 

 103.What are the benefits of using Flash in a sales presentation?   

 

 

 

 104.What is a simple definition for a salesperson's portfolio?   

 

 

 

 

105.What is one of the most effective methods of appealing to a buyer's senses?   

 

 

 

 106.Lew wants to make sure that his customers remember all the benefits of using his company's water

reclamation system long after the meeting is over. What type of visual aid should he use?   

 

 

 

 107.When are requests for proposals (RFPs) used?   

 

 

 

 108.In developing a written sales proposal, one of the tasks of the salesperson is to provide a description of

the current situation in relation to the proposed solution. What is the simplest method for quantifying this solution?   

 

 

 

 109.AirPac packaging systems are used to create airtight packages for meat and cheese products. The AirPac

system is more expensive to use but guarantee to cut packaging reject costs in half. The cost for the AirPac system is $15,300. The purchasing company experienced a net savings of $5,100 during its first year of usage. Calculate the return on investment (ROI).   

 

 

 

 

110.To solve a problem with a leaking refrigeration valve, a convenience store owner can either replace the valve or continue to add more refrigerant to the system as needed. If he chooses to replace the valve, then how would you classify the money he was going to invest in more refrigerant?   

 

 

 

 111.Lisa divides the net profit from sales by total amount of sales. What is Lisa calculating?   

 

 

 

 112.What are ECR, QR, AR, and JIT systems designed to do?   

 

 

 

 

ch09 Key  1. (p. 234) TRUE 2. (p. 234) FALSE 3. (p. 234) TRUE 4. (p. 235) FALSE 5. (p. 236) FALSE 6. (p. 239) FALSE 7. (p. 239) FALSE 8. (p. 240) TRUE 9. (p. 241) TRUE 10. (p. 244) TRUE 11. (p. 244) TRUE 12. (p. 247) TRUE 13. (p. 247) FALSE 14. (p. 247) FALSE 15. (p. 248) FALSE 16. (p. 249) TRUE 17. (p. 249) TRUE 18. (p. 250) TRUE 19. (p. 250) FALSE 20. (p. 251) TRUE 21. (p. 252) FALSE 22. (p. 252) FALSE 23. (p. 253) FALSE 24. (p. 233) D 25. (p. 234) C 26. (p. 234) A 27. (p. 234) C 28. (p. 2534) E 29. (p. 235) D 30. (p. 237) E 31. (p. 237) D 32. (p. 237) C 33. (p. 238) B 34. (p. 238) E 35. (p. 238-239) E 36. (p. 238-239) E 

37. (p. 239) B 38. (p. 239) C 39. (p. 239) C 40. (p. 239) B 41. (p. 239) E 42. (p. 240) B 43. (p. 241) E 44. (p. 241) E 45. (p. 241) C 46. (p. 241) A 47. (p. 241) B 48. (p. 242) E 49. (p. 242) A 50. (p. 242) A 51. (p. 243) C 52. (p. 244) B 53. (p. 244) E 54. (p. 244) D 55. (p. 245) C 56. (p. 245) B 57. (p. 246) A 58. (p. 246) A 59. (p. 247) D 60. (p. 247) A 61. (p. 247) C 62. (p. 248) A 63. (p. 248) B 64. (p. 249) D 65. (p. 248-249) E 66. (p. 249) A 67. (p. 249) B 68. (p. 249) B 69. (p. 249) D 70. (p. 249) C 71. (p. 249) E 72. (p. 250) A 73. (p. 250) D 74. (p. 250) A 

75. (p. 250) C 76. (p. 251) C 77. (p. 251) D 78. (p. 251) C 79. (p. 251) C 80. (p. 251) C 81. (p. 252) D 82. (p. 252) C 83. (p. 252) E 84. (p. 252) B 85. (p. 252) A 86. (p. 253) E 87. (p. 236) How he or she handles the product indicates value. Careful handling implies the product has value. Careless handling indicates a lack of appreciation of the product's value. 88. (p. 243) Visual aids help keep the buyer's attention, improve their understanding, remember what was said, offer proof of the salesperson's assertions, and can help create a sense of value. 89. (p. 237) Word pictures, stories, and humor can all be used to create images in buyer's minds that will help them envision and recall the salesperson's presentation. 90. (p. 237-239) She has many choices including charts, models, samples, gifts, catalogs, brochures, pictures, advertisements, maps, illustrations, testimonials, and test results. Students' answers will vary, but since she is trying to "sell" donations for a new building, models, architect's drawings, and a map are probably the most logical visual aids to use. 91. (p. 241) The effectiveness of a testimonial hinges on the skill with which it is used and a careful matching of satisfied user and prospect. 92. (p. 238-239) His choices include traditional media including portfolios, overhead projectors, slides, VCRs, computers, and visual projectors. Students' answers will vary, but given his product is "high-tech", his presentation should probably use technology, possibly a computer-driven simulation with accompanying technical specifications. · Check the equipment again· Be prepared93. (p. 244-245) When developing demonstrations:

 · Probe during and after the demonstration· Find out whether buyers present have used your product before· Find out whether the prospect has seen a competitor's demonstration· Plan what you will do in the dead time· Keep the demonstration simple· Make the demonstration an integral part of the overall presentation· Always relate product features to the buyer's unique needs· Get the prospect involved in a meaningful waySecure a proper place for the demonstration94. (p. 244-245) The salesperson should:

 95. (p. 246) The three parts of a written proposal are the executive summary, a description of the current situation in relation to the proposed solution, and a budget, which details costs. 96. (p. 251) He or she could calculate net present value which is the net value today of future cash inflows (discounted back to the present value today at the firm's cost of capital) minus the start-up investment. 

97. (p. 252) Wal-Mart has a QR (quick response) system that updates sales every five minutes. Target's system updated sales each evening. Wal-Mart also used an EDI transmit this information to vendors and automatically re-order products to replace those sold. 98. (p. 233) a well-crafted value proposition 99. (p. 234) A multiple-sense appeal works better than one that simply requires listening. 100. (p. 235) It creates a sense of value 101. (p. 238) to give the impression that the presentation is fresh and tailor-made for the client 102. (p. 241) The testimonial should be from someone beyond reproach and match a satisfied user with a prospect who knows the user. 103. (p. 242) It is interactive and interesting to use. Some sales managers suggest Flash modules are more frequently passed along prospective customers. 104. (p. 243) a paper-based collection of visual aids 105. (p. 244) through a demonstration 106. (p. 245) a handout 107. (p. 246) The RFP is used when the customer has a firm idea of the product needed. 108. (p. 249) using a simple cost-benefit analysis 109. (p. 249) ROI = (net savings/investment) 100ROI = 5,100/15,300 = 33 percent 110. (p. 251) as an opportunity cost 111. (p. 252) profit margin 112. (p. 252) Improve profits through reducing inventory and transportation costs. 

ch09 Summary  Category # of Question

s

Castleberry - Chapter 09 112

Difficulty: Easy 32

Difficulty: Hard 22

Difficulty: Medium 58