Deck 7: Product-Selling Strategies That Add Value

Question 1

A value proposition is best defined as a:

A)set of benefits a firm promises to deliver to satisfy customer needs
B)demand-based model for structuring the marketing mix
C)strategy for aligning features and prices
D)firm's international positioning strategy
E)function of long-term production costs

Answer 1

A

Question 2

Product positioning is largely a function of:

A)product expertise
B)pricing strategies
C)industry standards
D)market segmentation
E)product differentiation

Answer 2

E

Question 3

Abco Realty owns several rental apartment buildings in a working class but safe neighborhood that has recently become popular with young professionals because of its proximity to an express commuter train line. Abco has recently invested in the infrastructure of the buildings,adding laundry rooms,safety features to the lobbies,and new insulated windows to all the units. Because of this,Abco cannot afford to match the unit rental prices of other buildings that have not made improvements. How should the sales manager of Abco Realty most likely differentiate Abco's units from units offered in other buildings?

A)The sales manager can convince management to cut expenses on basic maintenance so the apartments can be rented at prices matching other buildings in the area.
B)The sales manager can promote the neighborhood as a safe place to live with a rich history.
C)The sales manager can convince the owners of the other buildings in the area to bring their rental prices up to the prices Abco charges.
D)The sales manager can promote Abco apartments as being worth more money because they are safer and have more services.
E)The sales manager can promote Abco apartments as being worth more money because the company has helped raise home values in the area.

Answer 3

D

Question 4

Positioning is the set of benefits and values the company promises to deliver to customers to satisfy their needs.

Question 5

Which service-quality dimension refers to the knowledge and courtesy of employees?

A)responsiveness
B)empathy
C)reliability
D)tangibles
E)assurance

Question 6

The process of differentiation does which of the following?

A)creates barriers that make it difficult for a competitor to get customers to switch based on price alone
B)lists the benefits and features that you offer to the customer in a concise statement
C)tells customers how you relate to the rest of the market and what is unique about you
D)designs a strategy for understanding the product and knowing which product or configuration to sell to each customer
E)asks customers to commit to your product within the first few minutes of the sales presentation

Question 7

List and describe the three parts of the Product Solutions Selling Model.

Question 8

Which of the following would most likely enable Just Candles to recapture their previous customers and gain new customers?

A)Just Candles could lower their prices on less popular candles to create"loss leaders"that would induce new customers to purchase regularly-priced candles from them.
B)Just Candles could shut down their retail location to cut overhead and move their business to the Internet,where they could charge lower prices and compete with other online candle retailers.
C)Just Candles could send out a mailing to all their customers reminding them that they carry a full line of candles.
D)Just Candles could move their store to a more visible and expensive location in the mall.
E)Just Candles could announce a"candle of the month"program to discount candles that traditionally haven't sold as well as their other candles.

Question 9

The positioning process:

A)must be continually modified to match customer wants and needs
B)is a fixed value-added process conducted by the salesperson
C)involves isolation from the competition
D)is performed by the customer in the buying cycle
E)should be performed every five years

Question 10

The act of creating a product concept in the customer's mind is called positioning.

Question 11

Creating a value proposition is a way of:

A)choosing prices for products
B)scaling prices to different markets
C)positioning your product in the marketplace
D)keeping your product on the same level as others in the market
E)choosing sales objectives that align with the firm's long-term goals

Question 12

________ refers to the act of developing a concept of the product in the customer's mind.

Question 13

Which term refers to the decisions and activities that are intended to create and maintain a certain product concept in the customer's mind?

A)feature dumping
B)product positioning
C)product configuration
D)value clustering
E)strategic marketing

Question 14

Salespeople at the dealer level can play an important role in positioning an automobile for competitive advantage.

Question 15

Which of the following is NOT a service-quality dimension?

A)responsiveness
B)assurance
C)durability
D)reliability
E)empathy

Question 16

What would be the best way to position Green Grain relative to traditional grain?

A)as a higher-priced product that would allow farmers to make greater profits
B)as a higher-priced product that is more socially responsible than traditional grain
C)as an experimental product with which farmers could be the first on the market
D)as a product that exceeds federal standards for cattle feed
E)as a product that stores well throughout the winter

Question 17

Satisfactions can come from:

A)research studies done on the product
B)the board of directors of the company
C)any company that makes a competing product
D)the customer who buys the product
E)the salesperson who sells the product

Question 18

Which of the following would most likely be a value-added strategy that could boost sales for Just Candles?

A)eliminating most candle sizes to focus on only tapers
B)visiting commercial customers to give them product brochures
C)offering classes for new customers on decorating with candles
D)lowering prices on all taper candles to compete with e-retailers
E)selling to customers in the local area using a mass marketing campaign

Question 19

Customer satisfaction most likely arises from:

A)product price
B)the product itself
C)the company that makes or distributes the product
D)the salesperson who sells and services the product
E)a combination of the product,company,and salesperson

Question 20

Your ability to separate yourself and your product from that of your competitors is referred to as:

A)positioning
B)differentiation
C)value processing
D)product placement
E)marketing alliance

Question 21

How could Phil BEST respond to a"fax attack"and differentiate McCall Automotive positively from other dealerships?

A)Phil could respond to the fax with brief answers to all of the customer's questions.
B)Phil could develop value-added solutions for the customer by building a relationship.
C)Phil could refer the customer to other dealerships that typically have lower car prices.
D)Phil could steer the customer to more expensive cars that have better safety records.
E)Phil could refuse to match the fax attack price because quality cars demand high prices.

Question 22

Which of the following would most likely help a salesperson to position and differentiate a product as better than other products in the market?

A)a cost-benefit analysis worksheet
B)an ROI calculator
C)a competitive analysis worksheet
D)an analysis regression
E)a statistical model

Question 23

McCall Automotive sells a large number of well-established minivans,such as the Dodge Caravan and Honda Odyssey. Now,the dealership has a new type of vehicle that it must position-a hybrid minivan. What will be the best strategy for positioning the new hybrid minivan?

A)hiring a new sales team to sell the hybrid minivan
B)focusing on key features of the hybrid minivan
C)highlighting the service provided by the dealership
D)creating a need and desire for a hybrid minivan
E)sustaining the dealership's current minivan market share

Question 24

What could the desk clerk do to maintain the guest's cluster of satisfactions?

A)The desk clerk cannot do anything,as the desk clerk does not have the technical skills to fix the wireless connection.
B)The desk clerk should not do anything,as the desk clerk is not a salesperson and therefore does not have responsibility for creating the cluster of satisfactions.
C)The desk clerk should offer to put the guest in an empty room as close to the original room as possible,to avoid inconveniencing the guest further.
D)The desk clerk should offer the guest the use of the lobby wireless,which the clerk knows to be problem-free,along with a discount off the charge for the room.
E)The desk clerk should refund the guest's full payment for the hotel room and find the guest a room at another hotel that can guarantee that its wireless service is problem-free.

Question 25

Why is it most likely important to maintain this guest's satisfaction with the hotel and the front desk clerk?

A)The guest is visiting the ReView Hotel during the off season and is paying a below average rate for the room.
B)The guest is already satisfied with the wireless service,so her cluster of satisfactions will be maintained if she is also satisfied with the hotel and the front desk clerk.
C)The guest's membership in the hotel's rewards club indicates a previous level of satisfaction that should be maintained by the front desk clerk to ensure customer loyalty.
D)The hotel maintains exclusivity through various pricing levels and room features.
E)The clerk is the only employee of the hotel with whom the guest will have contact.

Question 26

The goal of selling strategies for new and emerging products is to:

A)encourage current customers to rebuy
B)build desire for the product
C)create customer relationships
D)sell more units at a lower price
E)maintain consumer buying habits

Question 27

Becoming familiar with a customer's satisfactions is necessary for a salesperson to move from:

A)transactional selling to product selling
B)solution selling to value-added selling
C)new buy selling to constructive selling
D)product selling to complimentary selling
E)product selling to solution selling

Question 28

Which of the following is a factor that determines a product's life cycle stage?

A)the length of time the product sits in the warehouse before shipping
B)the product's benefits and the importance of the needs it fulfills
C)the competitors' compensation structure for salespeople
D)changes in the product's production method
E)the length of time a product has been around

Question 29

Which product-selling strategy would most likely be LEAST effective for selling Green Grain?

A)focusing on creating new markets
B)developing new expectation levels
C)establishing new standards
D)stressing brand superiority
E)changing habits

Question 30

The goal of selling strategies for mature and well-established products is to:

A)change buying habits
B)build desire for the product
C)maintain customer relationships
D)sell more units at a lower price
E)keep sales on an even level

Question 31

A good way to determine a customer's satisfactions is to:

A)ask the customer questions about their needs
B)find out what competitors are doing
C)utilize a research database
D)run statistical modeling
E)conduct training sessions

Question 32

Today's better educated and more demanding customers are seeking a(n)________ of satisfactions.

Question 33

The stages a product goes through from the time it is first introduced to the market until it is discontinued is called the:

A)natural evolution
B)amortization
C)position
D)product life cycle
E)specific feature

Question 34

How is this handbag being positioned and differentiated from other handbags similar in manufacturing and look?

A)The handbag is being positioned on price.
B)The handbag is being positioned on exclusivity.
C)The handbag is being positioned on convenience.
D)The handbag is being positioned on design.
E)The handbag is being positioned on versatility.

Question 35

What is the most likely drawback of using too many technical terms during a sales presentation?

A)a salesperson making a misstatement
B)the customer being too intimidated to purchase
C)the customer knowing more about the product than the salesperson
D)the customer wanting a product with fewer capabilities and benefits
E)the customer asking the salesperson difficult questions that cannot be answered

Question 36

When setting professional fees,which of the following should LEAST likely be considered?

A)professional experience
B)exclusivity of skills
C)number of channels
D)value to clients
E)target market

Question 37

Phil has observed that today's car buyers are more knowledgeable than car buyers in the past,primarily due to the Internet. Such car buyers gather information on all aspects of a car,from the manufacturing process to service contracts,and they respond best to a value-added selling strategy. What advice should Phil most likely give to his sales team when they are faced with such knowledgeable buyers?

A)Drop the price significantly under the list price.
B)Create rapport with the buyer to build instant customer loyalty.
C)Tailor the product to the buyer's needs and provide superior service.
D)Augment the product by adding extra features for only a minimal fee.
E)Appeal to the buyer's sense of style and luxury through differentiation.

Question 38

If the salesperson does not create a good buying experience for the customer,it could affect the customer's satisfaction with the product.

Question 39

The handbag is finally available to customers on the waitlist. Tanya,who has been on the list for three weeks,picks up the handbag at the designer's store. When she opens the handbag,she finds that a wallet and a belt are included with the handbag,which both surprises and delights Tanya. The designer most likely maximized Tanya's satisfaction by:

A)using a value-pricing strategy
B)meeting customer requirements
C)selling a value-added product
D)creating a potential product
E)providing the expected product

Question 40

People buy products if the products fulfill a problem-solving need.

Question 41

A potential consequence of using low-price tactics is lower profits.

Question 42

Explain how pricing strategy can reflect the product's place in the product life cycle.

Question 43

For a growing number of customers,short-term savings that result from low prices are more important than long-term value.

Question 44

Mature and well-established products are usually characterized by intense competition as new brands enter the market.

Question 45

Which type of price discount would most likely be offered by a ski lodge during the summer months?

A)quality discount
B)seasonal discount
C)promotional allowance
D)associate allowance
E)functional discount

Question 46

Advertising directed toward a mass market is usually a good way to position a complex product.

Question 47

Green Grain marketers have established a positioning plan that stresses low price. Salespeople are expected to use transactional selling tactics and offer discounts and allowances to farmers as needed. Which type of discount would most likely be given to a farmer who agrees to put the Green Grain logo on the side of his barn and Green Grain signs along the road near his farm?

A)dealer allowance
B)trade discount
C)seasonal discount
D)promotional allowance
E)functional discount

Question 48

Low-involvement buyers care mostly about:

A)specifications
B)durability
C)loyalty
D)brand
E)price

Question 49

Phil believes that the dealership should lower car prices to capture a higher share of the market. Competing on price will most likely work with which of the following car buyers?

A)a high-involvement buyer who values quality and durability
B)a high-involvement buyer who is willing to research features and performance extensively
C)a low-involvement buyer who ranks budget as a primary concern
D)a low-involvement buyer who is unwilling to purchase online
E)a low-involvement buyer who asks an employee to make the buying decision

Question 50

The first step in establishing a product price is to determine the firm's ________ objectives.

Question 51

The authors of The Discipline of Market Leaders encourage business firms to pick one of the disciplines-best price,best product,or best ________ to distinguish their offering in the marketplace.

Question 52

Which of the following statements about pricing policies is most likely true?

A)Very few companies maintain a pricing strategy that focuses on meeting competition.
B)Pricing strategies often reflect the opinion of the research department on correct pricing.
C)The ability to offer the lowest price is the most critical factor in the sale of products.
D)Price discounting is a competitive tool available to large numbers of salespeople.
E)Transactional sales rely primarily on personality alignment between buyers and sellers.

Question 53

Which of the following selling techniques is appropriate for products with low prices?

A)partnering
B)solution selling
C)transactional selling
D)persuasion
E)price strategy

Question 54

Which of the following most likely covers transportation costs incurred by channel intermediaries?

A)seasonal discount
B)associate allowance
C)trade discount
D)promotional allowance
E)quantity discount

Question 55

In most cases,the same sales strategy is used to sell a new and an emerging product as is used to sell a mature,well-established product.

Question 56

Salespeople have assumed an important and expanding role in differentiating products.

Question 57

Products are born,and then they grow up and become mature. In marketing,this process is known as the ________.

Question 58

What is a potential pitfall for Phil of competing on price instead of developing a partnering relationship with car buyers?

A)A customer who buys only because the car is cheap will switch to another dealer with lower prices for the next purchase.
B)A customer who wants a car that Phil doesn't have in stock will wait for Phil to order it if the price is correct.
C)Phil will have to spend less time selling to a customer who buys on price alone.
D)Phil may not be able to move older models if the prices on those cars have already been discounted.
E)Phil will have to use a transactional sales technique to sell to customers based on low price.

Question 59

Pricing decisions generally are made primarily during the introductory stage of the product life cycle and rarely change.

Question 60

Phil believes that the dealership should lower car prices to capture a higher share of the market. Which statement best supports Phil's argument?

A)Short-term profits will not be affected by lower prices if a firm is an e-retailer.
B)Competitors will lower prices to gain market share,and a price war will ensue.
C)Firms with large market shares are publicly owned but less strictly monitored.
D)A temporary reduction in profits could lead to long-term future profits because of greater market share.
E)A company with the largest share of the market can cut costs and raise prices without the public noticing or switching to competitors.

Question 61

The ________ product refers to what may remain to be done or what is possible.

Question 62

Value creation investments are the highest in:

A)strategic alliance sales
B)transactional sales
C)generic sales
D)consultative sales
E)collaborative sales

Question 63

The generic product is the basic,substantive product you are selling.

Question 64

Money that a bank has available for customer loans would be an example of a(n):

A)value-added product
B)expected product
C)generic product
D)potential product
E)customer product

Question 65

As the level of competition increases,especially in the case of a mature product,salespeople should most likely consider future possibilities,known as the ________ product.

A)expected
B)potential
C)generic
D)value-added
E)well-established

Question 66

Today,the primary goal of the value-added strategy is to add value by lowering the price of the product.

Question 67

Salespeople can benefit from viewing every product as being four-dimensional. List the four"possible"products.

Question 68

A salesperson would most likely use a CRM system to:

A)categorize commission rates
B)qualify potential sales leads
C)file corporate bank records
D)monitor competitors' customers
E)send product information to customers

Question 69

In order to bring the Walker Hotel and Convention Center up to industry standards,each guest room was redecorated with new wallpaper,drapes,carpeting,mattresses,and sofas. Melanie Simms,sales manager for the Center,has recommended that guest rooms be upgraded with the addition of wide desks,free wi-fi,and 24-hour room service. From the viewpoint of most business travelers,these changes would result in the creation of a(n):

A)potential product
B)generic product
C)expected product
D)mature product
E)value-added product

Question 70

The value-added product exists when salespeople meet the customer's expectation.

Question 71

Potential products are more likely to be developed by salespeople who regularly interact with customers.

Question 72

Value creation during the transactional sale is considerable.

Question 73

Research reported in the Harvard Business Review indicates that it is very difficult to build customer loyalty if a firm is selling only the ________ product.

A)generic
B)expected
C)potential
D)value-added
E)sales

Question 74

Yellow Freight Systems must provide clean,well-maintained trucks and well-trained drivers. This is most likely an example of a(n):

A)value-added product
B)generic product
C)potential product
D)expected product
E)customer product

Question 75

In what situation would a salesperson sell the potential product to a customer?

A)when the customer has not identified what they need from the product
B)when the salesperson is focusing on benefits,not features
C)when the salesperson needs to close more sales to hit a quota
D)when the sale will turn into a long-term partnership
E)when the sale is based primarily on the customer's self-identified needs