1) The catalog you receive from a large apparel store, displaying their new summer collection, is an example of ________ marketing. A) buzz B) direct C) virtual D) word-of-mouth E) interactive
B
2) A salesperson sends e-mails to persuade prospects to buy the products of his company. This is a type of ________ marketing. A) buzz B) virtual C) word-of-mouth D) direct E) viral
D
3) Market demassification has resulted in ________. A) niche market creation B) product standardization C) mass production practices D) intrinsic marketing channels E) just-in-time production
A
4) Which of the following is an example of a company that serves a niche market? A) a large apparel manufacturing company that produces a wide range of products for different segments B) a software company that creates standardized supply chain applications for manufacturers C) a manufacturer who creates tools such as bolts, latches, door handles etc. for left-handed individuals D) a large multinational manufacturer of consumer products, FMCG products, and consumer electronics E) a company that manufactures denim pants for men and women of all ages
C
5) Which of the following is NOT one of the advantages of direct mail? A) The cost per thousand is lower than for mass media. B) It permits target market selectivity. C) It can be personalized. D) It allows early testing and response measurement. E) It is flexible.
A
6) Greta is attempting to get as many orders as possible. Which direct marketing tool is generally associated with the highest order response rate? A) e-mail to an internal company list B) direct mail to an internal company list C) e-mail to a general list D) direct mail to a general list E) banner advertising on the company's Web site
B
7) Greta is marketing a product that is technologically advanced and requires a great deal of explanation. Which direct response tool should she use? A) direct mail B) e-mail C) infomercial D) inbound telemarketing E) outbound telemarketing
C
8) OrdOnline, a pure click company offering online auctioning, decides to launch a promotional program to increase its sales. The company identifies customers who have made at least three purchases and spent at least $150 in the past six months and offers discount coupons to these customers. Which of the following strategies is used here for targeting customers? A) viral marketing B) objective screening C) internal targeting D) catalog marketing E) RFM formula targeting
E
9) Which of the following is a major advantage of using direct mail? A) Direct mail permits target market selectivity. B) It is the best suited tool for selling complex products. C) Campaign testing is not needed for direct mail. D) Direct mail has very high conversion rates. E) It is the best method to sell industrial products.
A
10) Which of the following is a factor considered when a customer is evaluated based on the RFM formula? A) the amount of time passed after the customer's last visit B) the product categories purchased by the customer C) the mode of payment used by the customer D) the location from which the customer has bought goods E) the type of feedback provided by the customer
A
11) Which of the following is an element of an offer strategy? A) the medium used for delivery B) the number of customers in the locality C) the vision of the company D) the skills required for production E) the details of customer order received
A
12) In 2010, three top B-to-B ________ were Thermo Scientific lab and research supplies ($10.8 billion), Henry Schien dental, medical, and vet supplies ($7.5 billion) and WESCO International electrical and industry maintenance supplies ($5 billion). A) inbound telemarketers B) catalog sellers C) outbound telemarketers D) infomercial marketers E) mobile marketers
B
13) In 2010, the three top B-to-C ________ were Dell ($52 billion), Staples ($9.8 billion), and CDW ($8.8 billion). A) inbound telemarketers B) catalog sellers C) outbound telemarketers D) infomercial marketers E) mobile marketers
B
14) The practice of using call centers, where employees receive calls from customers and provide service by taking orders and answering queries, is called ________. A) customer response marketing B) guerilla marketing C) reactive marketing D) internal marketing E) inbound telemarketing
E
15) In outbound telemarketing, the call center employees ________. A) sell high-involvement products B) initiate calls from a location closer to prospects C) offer huge discounts to customers D) initiate calls to prospects and customers E) answer the queries of consumers who call for information
D
16) The management of Raleigh Bicycles observes that the company's selling costs are affected by the increased number of visits that salespeople make to meet dealers. The company decides to reduce its personal selling costs by making sales calls to dealers via telephone. This marketing strategy used by Raleigh is an example of ________. A) inbound telemarketing B) search marketing C) internal marketing D) outbound telemarketing E) paid-search marketing
D
17) Which of the following is a disadvantage of direct marketing? A) invasion of privacy B) inability to build brand awareness C) low chances of customers avoiding messages D) inability to control marketing communication E) inability to maintain information security
A
18) Catalog marketing and telemarketing are examples of indirect marketing.
FALSE
19) During the 2012 election, much of the $690 million raised online by the Obama campaign resulted from carefully targeted and tested e-mails.
TRUE
20) Direct marketing has not been growing as fast as US retail sales.
FALSE
21) Direct marketing produced $2.05 trillion in sales in 2012, accounting for approximately 8.7 percent of GDP.
TRUE
22) A direct marketer must consider returned merchandise and bad debts when s/he determines the needed break-even response rate for direct mail.
TRUE
23) If a specific campaign does not break even in the short run, it will not be profitable in the long run if we factor in customer lifetime value by calculating the average customer longevity, average customer annual expenditure, and average gross margin, minus the average cost of customer acquisition and maintenance (discounted for the opportunity cost of money).
FALSE
24) One of the shortcomings of direct marketing is that the firm cannot easily measure the response.
FALSE
25) Direct mail permits target market selectivity and allows early testing and response measurement.
TRUE
26) A company's best prospects are customers who have never bought its products.
FALSE
27) Direct marketing has the ability to test different elements of an offer strategy under real marketplace conditions.
TRUE
28) Although it varies with product category, price, and the nature of the offering, in general, average response rates for e-mails is higher than order-response rates for letter-sized direct mail.
FALSE
29) Direct mail can produce prospect leads, strengthen customer relationships, inform and educate customers, remind customers of offers, and reinforce recent customer purchase decisions.
TRUE
30) Points are established for varying RFM levels; the more points, the more attractive the customer.
TRUE
31) The Internet and catalog retailing industry includes 20,000 companies with combined annual revenue of $350 billion.
TRUE
32) Direct marketers use the RFM formula to select customers according to how much time has passed since their last purchase, how many times they have purchased, and how much they have spent since becoming a customer.
TRUE
33) If a company exaggerates the features of its products in its product catalogue, it can be classified as deception.
TRUE
34) Business-to-business telemarketing is increasing.
TRUE
35) Business-to-consumer telemarketing is increasing.
FALSE
51) The Internet provides marketers and consumers with opportunities for much greater interaction and ________ than do other marketing channels. A) control B) data security C) high involvement selling D) order conversion E) individualization
E
52) The offer strategy has five elements: the product, the offer, the medium, the distribution method, and the ________. A) outside envelope B) creative strategy C) sales letter D) circular E) reply form
B
53) The darker side of direct marketing, from a consumer perspective, includes all of the following EXCEPT ________. A) irritation B) unfairness C) deception and fraud D) federal regulation E) invasion of privacy
D
54) Which of the following is NOT conducive to database marketing? A) Rushbury Theater relies on the generosity of donors to keep functioning. B) Kenilworthy retails luxury handbags and leather accessories to a select clientele. C) 2Wheels sells its most profitable products to repeat customers. D) Uncle Jim's sells its range of snacks in stores throughout the country. E) PetZone offers obedience classes, a doggie daycare, and other services for pets in the Manhattan area.
D
55) In which of the following cases is building a database worthwhile for the company? A) Clare's creates personalized sculptures for special occasions. B) Sales of Clarity soap have fallen over the past few months in all regions. C) 2Wheels sells its most profitable products to repeat customers. D) Uncle Jim's sells its range of snacks in stores throughout the country. E) Ready-to-wear clothes brand Zeep targets the teen and tween market throughout the United States.
C
56) In which of the following cases is building a database worthwhile for the company? A) where the product is a once-in-a-lifetime purchase B) where customers show little loyalty to a brand C) where the company has a long relationship with its customers D) where the unit sale is very small E) where the cost of gathering the information is high
C
57) Which of the following is most likely to use database marketing? A) an airline B) a candy bar manufacturer C) a fast-food chain D) a toothpaste manufacturer E) a hairstylist
A
58) Which of the following statements demonstrates behavioral loyalty toward a brand? A) 2Wheels has very customer-friendly return policies for its products. B) I always buy 2Wheels products when I'm looking for bike accessories. C) Most of my friends agree that 2Wheels is the best place for durable biking gear. D) 2Wheels has the friendliest customer service people I've ever met. E) I think that 2Wheels products are the highest-quality products in their price range.
B
59) Which of the following is a positive factor when considering the development of a customer database? A) The product is a once-in-a-lifetime purchase. B) There is no contact between the buyer and seller. C) There is a lot of customer churn. D) The unit sale is very small. E) Customer lifetime value is high.
E
60) Database marketing is ideal when a company does not have direct contact with its customers.
FALSE
64) The original and oldest form of direct marketing is ________. A) billboards B) banner advertising C) mail campaigns D) outbound telemarketing calls E) field sales calls
E
65) A salesperson performing over-the-counter sales in a medical store can be referred to as a(n) ________. A) order taker B) demand creator C) solution vendor D) phisher E) missionary
A
66) Alduro Chemicals, a manufacturer of detergents, delivers chemicals used for commercial washing to various hoteliers in the United States. Most of the company's revenue comes from routine orders from its existing customers. The company uses unskilled salespeople to collect requirements from its customers. These unskilled customers are known as ________. A) demand creators B) deliverers C) missionaries D) order takers E) solution vendors
D
67) Gordron Inc. manufactures and markets medical equipment. To ensure that its salespeople are knowledgeable enough to answer all product queries, the company hires only those individuals who have a good understanding of both the medical profession and the mechanics of the equipment used. Which of the following is the most accurate classification of Gordron's salesforce? A) technicians B) demand creators C) deliverers D) order takers E) missionaries
A
68) Robert is hired as a sales representative for a company that manufactures fire extinguishers. His job description reads as follows: "The key duty of the sales representative is to unravel the customer's problems using the company's products." Which of the following positions would best describe Robert's profile? A) deliverer B) technical salesperson C) missionary salesperson D) order taker E) solution vendor
E
69) A sales representative whose expertise is in unraveling customers' problem is called a(n) ________. A) order taker B) missionary C) technician D) solution vendor E) demand creator
D
70) A salesperson who relies on creative methods for selling a company's tangible or intangible offerings is called a(n) ________. A) demand creator B) deliverer C) order taker D) missionary E) solution vendor
A
71) Which of the following tasks of the salesforce refers to conducting market research and doing intelligence work? A) servicing B) communicating C) targeting D) prospecting E) information gathering
E
72) US firms spend more on sales forces and sales force materials than on any other promotional method.
TRUE
73) In 2012, more than 20 percent of the total workforce worked full time in sales occupations, both nonprofit and for profit.
FALSE
74) A salesperson calling on supermarkets to take repeat orders is called an order taker.
TRUE
75) To manage costs, most companies are choosing a leveraged sales force that focuses reps on selling the company's more complex and customized products to large accounts and uses inside salespeople and online ordering for low-end selling.
TRUE
76) Demand creators are not permitted to take an order but expected rather to build goodwill or educate the actual or potential user.
FALSE
77) Targeting refers to the process of deciding which customers will get scarce products during product shortages.
FALSE
78) Information gathering refers to the act of conducting market research and doing intelligence work.
TRUE
84) The process of deciding how to allocate company's time among prospects and customers is called ________. A) targeting B) prospecting C) allocating D) dispersing E) delegating
A
85) Which of the following refers to the process of deciding which customers will get scarce products during product shortages? A) delegating B) prospecting C) allocating D) dispersing E) targeting
C
86) A company uses sales representatives for selling the company's more complex and customized products to large accounts, while using inside salespeople and Web ordering for low-end selling. Which of the following describes the company's sales force best? A) demand creators B) direct marketing force C) missionary sellers D) technical salesforce E) leveraged salesforce
E
87) Your company has customer-service representatives who provide you with leads, write up proposals, fulfill orders, and provide post-sales support. Your responsibilities are to concentrate on the larger accounts with more complex and customized needs. Your company most likely has a ________ salesforce. A) distributive B) territory based C) leveraged D) decentralized E) parallel
C
88) A medical "detailer" that represents an ethical pharmaceutical house, who builds goodwill or educates the actual or potential user but is not permitted to take an order, is an example of a ________. A) missionary salesperson B) technician C) demand creator D) solution vendor E) deliverer
A
89) Consulting on problems, rendering technical assistance, arranging financing, and expediting delivery are examples of the ________ task in the selling context. A) information gathering B) targeting C) communicating D) servicing E) allocating
D
90) ________ sales force consists of manufacturers' reps, sales agents, and brokers who earn a commission based on sales. A) Virtual B) Domestic C) Contingent D) Contractual E) Decentralized
D
91) Part-time paid employees who work exclusively for the company are a part of the ________ sales force. A) direct B) virtual C) contractual D) implicit E) brokered
A
92) Fixed compensation receives more emphasis in sales rep jobs with ________. A) a high ratio of selling to nonselling duties B) a high requirement for individual initiatives C) an intensive focus on selling activities D) very little need for teamwork E) technical complexities
E
93) Identify the first step in the workload approach to establish sales force size. A) grouping customers into size classes according to annual sales volume B) establishing desirable call frequencies for each customer class C) determining the total workload for the country in terms of sales calls per year D) determining the average number of calls a sales representative can make per year E) calculating the total number of sales reps needed
A
94) Which of the following sales positions is most likely to have fixed compensation? A) an FMCG salesperson selling to supermarkets B) a salesperson who handles the industrial customers C) an insurance agent who works part time D) a service representative in charge of handling incoming customer queries E) a telemarketer calling up existing customers to bring in additional sales
B
95) Which of the following is NOT a main part of managing the sales force? A) recruiting and selecting sales representatives B) identifying prospects for sales representatives C) training sales representatives D) motivating sales representatives E) evaluating sales representatives
B
96) ________ helps sales representatives understand how they spend their time and how they might increase their productivity. A) Time-and-duty analysis B) A sales quota C) A feed-forward approach D) An expense allowance E) A norm for prospect calls
A
97) Kate is coaching members of her field sales team to help them understand how they spend their time and how they might increase their productivity. She is using ________ to provide them with feedback. A) time-and-duty analysis B) a sales quota C) a feed-forward approach D) an expense allowance E) a norm for prospect calls
A
98) Key indicators of sales performance include all of the following EXCEPT ________. A) average number of sales calls per salesperson per day B) average revenue per sales call C) advanced marketing cost per sales call D) average cost per sales call E) entertainment cost per sales call
C
99) Which of the following is NOT one of the advantages of inside selling? A) Inside selling is less expensive than in-person selling. B) Inside salespeople spend more time checking inventory. C) Inside salespeople spend more time following up orders. D) Inside salespeople spend more time phoning smaller accounts. E) All of the above are advantages.
E
100) Which of the following statements about technology support for salespeople is NOT true? A) Computer-based decision support systems have been created for sales manager and sales representatives. B) A Web site can help define a firm's relationships with individual accounts and identify those whose business warrants a personal sales call. C) Social media is useful in front-end prospecting and lead qualification. D) Social media is useful in back-end relationship building and management. E) All of the above are true.
E
101) Compensation plans may need to vary depending on the type of salespersons. Which type of salesperson benefits from no ceiling or caps on commissions, overachievement commissions for exceeding quotas, and prize structures that allow multiple winners? A) stars B) core performers C) dogs D) cash cows E) laggards
A
102) Randi is most motivated when there is no ceiling or caps on her commissions, she can earn overachievement commissions for exceeding quotas, and benefits from prize structures that allow multiple winners. She is probably a ________. A) star B) core performer C) dog D) cash cow E) laggard
A
103) Compensation plans may need to vary depending on the type of salespersons. Which type of salesperson benefits from multi-tier targets that serve as stepping stones for achievement and sales contests with prizes that vary in nature and value? A) stars B) core performers C) dogs D) cash cows E) laggards
B
104) Compensation plans may need to vary depending on the type of salespersons. Which type of salesperson benefits from consistent quarterly bonuses and social pressure? A) stars B) core performers C) dogs D) cash cows E) laggards
E
105) Company call center executives provide procedural information to clients who call in about the specifications and operation of the product. These call center employees can be called ________. A) technical support people B) sales assistants C) telemarketers D) deliverers E) consultants
A
106) A contractual sales force consists of part-time employees who work exclusively for the company.
FALSE
107) A company that sells one product line to one end-using industry with customers in many locations would use product or market structure for its salesforce.
FALSE
108) The first step in the workload approach for designing salesforce size is to establish desirable call frequencies for each customer class.
TRUE
109) The fixed amount in a salesperson's salary is primarily designed to stimulate and reward efforts from salespeople.
FALSE
110) Variable compensation is common in jobs where the selling task is technically complex and requires teamwork.
FALSE
113) Today's customers expect a salesperson to have extensive product knowledge, to be efficient and reliable, and to provide ideas to improve the customer's operations. These demands are forcing companies to make higher investments in ________. A) sales training B) internal selling C) management controls D) advertising E) sales promotions
A
114) ________ questions ask about the consequences of the buyer's problems. A) Situation B) Problem C) Implication D) Need-payoff E) Solution
C
115) Jackson, the sales representative of a European manufacturer of commercial heavy duty washing machines, calls on the hotels in California. During a sales call, he asks the housekeeping manager of a hotel "How many bed sheets do you wash in a day, on average?" This question can be classified as a(n) ________ question. A) situation B) problem C) implication D) need-payoff E) consequence
A
116) Which of the following is an example of a problem question? A) What system are you using to invoice your customers? B) How does this problem affect your people's productivity? C) What parts of the system create errors? D) How much would you save if our company could help reduce errors by 80 percent? E) Which operating system have you installed in your personal computer?
C
117) Which of the following types of questions directly enquires about the value or usefulness of a proposed solution? A) situation questions B) problem questions C) implication questions D) consequence questions E) need-payoff questions
E
118) Which of the following is the first step in the process of personal selling? A) prospecting and qualifying B) sales preapproach C) sales presentation D) unearthing objections E) demonstrating advantages
A
119) A salesperson who is contacting possible buyers by mail or phone to assess their level of interest and financial capacity is in the ________ step of the selling process. A) preapproach B) prospecting C) qualifying D) following up E) objection handling
B
120) "How does this problem affect your people's productivity?" is an example of a(n) ________ question. A) situation B) implication C) problem D) need-payoff E) challenge
B
121) In which of the following stages of personal selling does a salesperson tell the product story to the buyer? A) preapproach B) prospecting C) presentation D) closing E) objection handling
C
122) Representatives who are taught the SPIN method to build long-term relationships may ask each of the following types of questions EXCEPT ________. A) situation B) speculation C) problem D) need-payoff E) implication
B
123) When Saul asks his client, "What system are you using to invoice your customers?" he is asking a ________ question. A) situation B) speculation C) problem D) need-payoff E) implication
A
124) When Shen asks his client, "How much would you save if our company could help you reduce errors by 80 percent?" he is asking a ________ question. A) situation B) speculation C) problem D) need-payoff E) implication
D
125) IBM uses the BANT acronym during which stage of the sales process? A) prospecting and qualifying B) sales preapproach C) sales presentation D) unearthing objections E) demonstrating advantages
A
126) In IBM's BANT acronym, B stands for ________. A) budget B) background C) baseline D) benchmark E) basic
A
127) In IBM's BANT acronym, A stands for ________. A) action B) authority C) activate D) austerity E) autonomy
B
128) In IBM's BANT acronym, N stands for ________. A) noticeable B) necessary C) need D) necessity E) notify
C
129) In IBM's BANT acronym, T stands for ________. A) touch B) tempt C) team D) timeline E) turn over
D
130) Which company uses 150 different signals — including dozens of online data feeds — to rate customer leads? A) IBM B) Avon C) SAS D) FABV E) Infer
E
131) Which of the following questions is LEAST relevant during the preapproach stage of the sales process? A) How is the purchasing process conducted at the company? B) How is the purchasing department structured? C) How can I overcome psychological resistance? D) Is purchasing centralized? E) What is the best contact approach?
C
132) In the FABV approach, ________ describe the economic, technical, service, and social pluses delivered. A) features B) advantages C) benefits D) value E) macroenvironment
C
133) If Jose is describing chip processing speeds and memory capacity, he is describing the ________ of his firm's offering in the FABV approach. A) features B) advantages C) benefits D) value E) macroenvironment
A
134) In the FABV approach, if the salesperson is discussing the monetary terms associated with the offering, s/he is talking about ________. A) features B) advantages C) benefits D) value E) macroenvironment
D
135) ________ includes resistance to interference and a neurotic attitude toward money. A) Psychological resistance B) Logical resistance C) Price sensitivity D) Relationship inertia E) Reactance
A
136) If a prospective client does not want to buy from you because he has a preference for an established supply source, you are facing an objection due to ________. A) psychological resistance B) logical resistance C) price sensitivity D) relationship inertia E) reactance
A
137) ________ includes objections due to proposed contract completion time, quality of goods and services offered, purchase volume, product safety, and responsibility for financing, risk taking, promotion, and title. A) Psychological resistance B) Logical resistance C) Price sensitivity D) Relationship inertia E) Reactance
B
138) If a prospective client does not want to buy from you because she feels the price is too high, you are facing an objection due to ________. A) psychological resistance B) logical resistance C) apathy D) relationship inertia E) reactance
B
139) Sales representatives who are paid mostly in commissions require more supervision than other salespeople.
FALSE
140) An employee who provides clerical backup for outside salespersons, runs credit checks, follows up on deliveries, and answers customers' business-related questions is called a sales assistant.
TRUE
141) A manager is using feed-forward sales supervision when he communicates what the sales reps should be doing and motivates them to do it.
TRUE
142) Implication questions ask about the consequences of a buyer's problems, difficulties, or dissatisfactions.
TRUE
143) Situation questions focus on the problems, difficulties, and dissatisfaction a buyer might be experiencing with the existing situation.
FALSE
144) Closing signs from the buyer include physical actions, statements or comments, and questions.
TRUE