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Chapter 11 Smart Selling and Effective Customer Service
1) An appointment with a potential customer to explain or demonstrate your product or service is called a ______.
A) Sales call
B) Prequalification
C) Product demonstration
D) Cold call
E) Survey
Answer: A
Page Ref: 326
Learning Obj.: LO 3
AACSB: Analytical thinking
2) Which of the following is NOT a principle of selling?
A) Make a good personal impression
B) Know your customer
C) Know your field
D) Believe in your product or service
E) Think pessimistically
Answer: E
Page Ref: 325
Learning Obj.: LO 2
AACSB: Reflective thinking
3) When is an entrepreneur done collecting market research for his/her business?
A) Never
B) When the business has been operating for six months
C) When the business has been opened
D) Prior to the first sale
E) After the first sale
Answer: A
Page Ref: 335
Learning Obj.: LO 6
AACSB: Analytical thinking
4) Which of the following is not an example of customer service?
A) Making customers happier by listening to them
B) Suggesting a less expensive product that will meet the customer's need
C) Providing free delivery
D) Cutting resource costs
E) Upgrading production lines
Answer: A
Page Ref: 332
Learning Obj.: LO 5
AACSB: Application of knowledge
5) Once you make a sale, don't forget to fill out a ______.
A) Customer receipt
B) Bill
C) Invoice
D) Note
E) None of the above
Answer: A
Page Ref: 328
Learning Obj.: LO 3
AACSB: Analytical thinking
6) If you decide to pay yourself a commission from your business, you will be earning ______.
A) A percentage of each sale
B) A percentage of your business profit
C) A set salary
D) An hourly wage
E) None of the above
Answer: A
Page Ref: 324
Learning Obj.: LO 2
AACSB: Analytical thinking
7) Telling the truth about any negative aspect of a product or service usually ______.
A) Gains your customer's trust
B) Annoys your customer
C) Means that you are dishonest
D) Is stupid
E) Shows that you are a fool
Answer: A
Page Ref: 334
Learning Obj.: LO 5
AACSB: Analytical thinking
8) When you build your Web site, make sure that you register it with at least ______search engines.
A) Three
B) Ten
C) One
D) Five
E) Four
Answer: A
Page Ref: 335
Learning Obj.: LO 6
AACSB: Analytical thinking
9) Information such as customers' e-mail addresses and purchasing history can be stored in a simple computer ______.
A) Database
B) Web site
C) Program
D) Virus
E) Worm
Answer: A
Page Ref: 338
Learning Obj.: LO 6
AACSB: Analytical thinking
10) Brian Tracy believes that all objections fall into one of six categories. Which of the following is NOT one of the six?
A) Support, warranties, and assurances
B) Price
C) Follow-up service and competition
D) Performance
E) None of the above
Answer: E
Page Ref: 330
Learning Obj.: LO 4
AACSB: Analytical thinking
11) An angry customer can make you angry too. However, it is crucial that ______.
A) You stay calm and ask the customer to explain the situation, not interrupting the customer as they speak
B) You make your points to the customer
C) You ensure that you continue to sell your product or service
D) You win the argument
E) None of the above
Answer: A
Page Ref: 334
Learning Obj.: LO 5
AACSB: Analytical thinking
12) Objectives during a sales call are to make the customer ______.
A) Want to buy your product or service
B) Want to buy the product or service from you
C) Aware of your product or service
D) All of the above
E) None of the above
Answer: D
Page Ref: 326
Learning Obj.: LO 3
AACSB: Analytical thinking
13) Customer service after a sale is an investment of time, money, and energy ______.
A) That can have a very high return on investment
B) That has no return on investment
C) That 250 other people will share
D) That has a low return on investment
E) All of the above
Answer: A
Page Ref: 332
Learning Obj.: LO 5
AACSB: Analytical thinking
14) Using technology to sell ______.
A) Can be useful in helping you communicate your product to the customer and to stay in touch with the customer
B) Is of little value
C) Is not really necessary
D) Can confuse customers
E) None of the above
Answer: A
Page Ref: 330
Learning Obj.: LO 4
AACSB: Analytical thinking
15) Customer complaints should be ______.
A) Acknowledged and responded to politely
B) Politely ignored
C) Carefully listened to, but not responded to
D) Not taken seriously
E) Overlooked
Answer: A
Page Ref: 333
Learning Obj.: LO 5
AACSB: Analytical thinking
16) Losing a customer can hurt by ______.
A) Losing the current sale
B) Losing your reputation and future business
C) Loss of jobs
D) All of the above
E) None of the above
Answer: D
Page Ref: 332
Learning Obj.: LO 5
AACSB: Analytical thinking
17) Entrepreneurs sell constantly to ______.
A) Potential employees
B) Potential investors
C) Customers
D) All of the above
E) None of the above
Answer: D
Page Ref: 323
Learning Obj.: LO 1
AACSB: Analytical thinking
18) What should you do when a customer raises objections during a sales call?
A) Acknowledge objections as they arise and respond to them.
B) Ignore them; the customer will forget about them by the time the call is over.
C) Shorten the sales call; don't waste time on a customer who has objections to your product or service.
D) Pretend that you didn't hear the customer.
E) Convince the customer they are wrong.
Answer: A
Page Ref: 328
Learning Obj.: LO 3
AACSB: Analytical thinking
19) Joe Girard's Law of ______states that just a few unhappy customers can keep a great many other customers away from your business.
A) 250
B) 200
C) Sales
D) 150
E) 50
Answer: A
Page Ref: 326
Learning Obj.: LO 2
AACSB: Analytical thinking
20) People that you think might be receptive to your sales presentation are called ______.
A) Prospects
B) Consumers
C) Customers
D) Suckers
E) Lifers
Answer: A
Page Ref: 327
Learning Obj.: LO 3
AACSB: Analytical thinking
21) Successful businesses are built on ______.
A) Repeat business
B) Big sales
C) Frequent sales
D) Intermittent business
E) Occasional business
Answer: A
Page Ref: 332
Learning Obj.: LO 5
AACSB: Analytical thinking
22) When you sell, you should always listen carefully to customer complaints because ______.
A) They provide invaluable information about how to improve the product or service
B) Customers are happier when you listen to them
C) Customers will get upset
D) It's better to have customers complain to you than to other people
E) All of the above
Answer: A
Page Ref: 333
Learning Obj.: LO 5
AACSB: Analytical thinking
23) Every sales call is an opportunity to ______.
A) Improve your selling skills
B) Talk and talk and talk to the customer
C) Trick customers
D) Lie to sell your product
E) None of the above
Answer: A
Page Ref: 329
Learning Obj.: LO 3
AACSB: Analytical thinking
24) During each sales call you make, focus on this question: ______
A) What does the customer need?
B) How can I convince the customer to ignore his/her objections?
C) How can I make the customer buy from me?
D) How much profit can I make?
E) What should I have for lunch?
Answer: A
Page Ref: 328
Learning Obj.: LO 3
AACSB: Analytical thinking
25) Everything that a business does to keep its customers happy is called ______.
A) Customer service
B) Customer appreciation
C) Postsale service
D) Purchaser service
E) Customer amenity
Answer: A
Page Ref: 332
Learning Obj.: LO 5
AACSB: Analytical thinking
26) The best sales people ______.
A) Learn about a customer's family, hobbies, and interests
B) Keep good records
C) Keep files on their customers with all sorts of information to deepen the relationship and create genuine friendships
D) All of the above
E) None of the above
Answer: D
Page Ref: 328
Learning Obj.: LO 3
AACSB: Analytical thinking
27) Some sales cycles take ______.
A) months
B) years
C) minutes
D) Both A and B
E) A, B, and C
Answer: D
Page Ref: 328
Learning Obj.: LO 3
AACSB: Analytical thinking
28) The most important thing to do during a sales call is ______.
A) Listen, in order to learn what the customer needs
B) Keep talking so the customer doesn't lose interest
C) Ask questions to keep the customer engaged in the sales call
D) Talk to co-workers
E) Lie to make the sale
Answer: A
Page Ref: 328
Learning Obj.: LO 3
AACSB: Analytical thinking
29) Entrepreneurs ______constantly, not just to customers, but to investors, bankers, and people they want to hire.
A) Try to make a good impression
B) Sell
C) Both of the above
Answer: C
Page Ref: 323
Learning Obj.: LO 1
AACSB: Analytical thinking
30) When you are starting out and cannot afford to pay sales representatives full-time salaries, you can offer ______instead.
A) Commissions
B) Marketing plans
C) Bonuses
D) Hourly wages
E) None of the above
Answer: A
Page Ref: 324
Learning Obj.: LO 2
AACSB: Analytical thinking
31) Customer service is everything you do to keep your customers happy, especially after they've bought something.
Answer: TRUE
Page Ref: 332
Learning Obj.: LO 5
AACSB: Analytical thinking
32) Personal selling is dealing with potential customers face to face and trying to convince them to make a purchase.
Answer: TRUE
Page Ref: 323
Learning Obj.: LO 1
AACSB: Analytical thinking
33) Knowing your customers' names can assist you in providing great customer service.
Answer: TRUE
Page Ref: 332
Learning Obj.: LO 5
AACSB: Analytical thinking
34) Knowing your customer includes knowing their needs and how your product addresses those needs.
Answer: TRUE
Page Ref: 325
Learning Obj.: LO 2
AACSB: Analytical thinking
35) When closing the sale, it is important to summarize the features of your product.
Answer: FALSE
Page Ref: 328
Learning Obj.: LO 3
AACSB: Analytical thinking
36) The SBA offers advice on the components of customer care that they translate into the nine rules of customer care.
Answer: FALSE
Page Ref: 332
Learning Obj.: LO 5
AACSB: Analytical thinking
37) The loss of customers can be beneficial to your business.
Answer: FALSE
Page Ref: 332
Learning Obj.: LO 5
AACSB: Analytical thinking
38) If a customer is dissatisfied, it is often the accountant who hears the complaint.
Answer: FALSE
Page Ref: 334
Learning Obj.: LO 5
AACSB: Analytical thinking
39) The costs of securing new customers are invariably significantly lower than the costs of a repeat customer.
Answer: FALSE
Page Ref: 332
Learning Obj.: LO 5
AACSB: Analytical thinking
40) Unwanted online ads are referred to as spam.
Answer: TRUE
Page Ref: 327
Learning Obj.: LO 3
AACSB: Application of knowledge
41) Spams are face-to-face discussion groups focused on specific subjects.
Answer: FALSE
Page Ref: 327
Learning Obj.: LO 3
AACSB: Analytical thinking
42) The creative art of selling is teaching the customer how the features are benefits to them.
Answer: TRUE
Page Ref: 324
Learning Obj.: LO 1
AACSB: Analytical thinking
43) CRM is an acronym for "customer relationship management."
Answer: TRUE
Page Ref: 334
Learning Obj.: LO 5
AACSB: Analytical thinking
44) When doing sales pitches, it is unlikely that you can improve your questions over time.
Answer: FALSE
Page Ref: 329
Learning Obj.: LO 3
AACSB: Analytical thinking
45) To "lurk" means to read messages and getting a feel for discussions on a Web site, newsgroup, or the like, by participating in the online conversation.
Answer: FALSE
Page Ref: 327
Learning Obj.: LO 3
AACSB: Analytical thinking
46) Define customer service and give some examples of how a business can offer good customer service.
Answer: Customer service is everything you do to keep your customers happy, especially after they have bought something. Product maintenance is an example. Students should be encouraged to think of experiences where they had received follow up service.
Page Ref: 332
Learning Obj.: LO 5
AACSB: Analytical thinking
47) Outline the principles of selling.
Answer: The chapter identifies eleven principles of selling. These range from preparation (know your product or service, know your field) to managing the interaction (make a good personal impression, treat everyone you sell to like gold).
Page Ref: 326
Learning Obj.: LO 2
AACSB: Analytical thinking
48) Discuss the eight-step sales call.
Answer: The sales call begins with preparation and goes on to greeting, showing the product or service, listening to the customer, dealing with objections, closing the sale, follow-up and asking for references. There are best practices in each of these steps.
Page Ref: 328-329
Learning Obj.: LO 3
AACSB: Analytical thinking
49) Describe three sales call behaviors used by successful salespeople.
Answer: Neil Rackham identified three sales call behaviors used by successful salespeople: let the customer talk more than you do, ask the right questions, and wait to offer products and solutions until later in the call.
Page Ref: 329
Learning Obj.: LO 3
AACSB: Reflective thinking
50) Why have so many successful entrepreneurs started out in sales?
Answer: Salespeople often become successful entrepreneurs because they learn to listen to what the customer needs and wants on a daily and personal basis. That is why great entrepreneurs such as Ray Kroc, King C. Gillette, and Mary Kay Ash started out as salespeople.
Page Ref: 323
Learning Obj.: LO 1
AACSB: Reflective thinking
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