Deck 13: Negotiating Buyer Concerns

Question 1

If a customer responds to a sales presentation by saying,"I'm already overstocked," it would be appropriate to ask the prospect to accept a token shipment on a consignment basis.

Answer 1

True

Question 2

Customers who perceive added value are less likely to choose a competing product simply on the basis of price.

Answer 2

True

Question 3

A growing number of professional buyers have completed training in negotiation.

Answer 3

True

Question 4

When a prospect has finished voicing an objection,it is a good idea for the salesperson to:

A)suggest postponing the negotiations
B)divert attention to a product feature
C)point out the relationship between price and quality
D)agree that the objection is true and accurate
E)be certain both parties are clear about the true nature of the problem

Question 5

Traditional selling principles stressed that the "we versus they" and the "win-win" were similar concepts for negotiating sales resistance.

Question 6

Adding value with a cluster of satisfactions would be an effective way to deal with:

A)time and product resistance
B)need and product resistance
C)price resistance
D)time and need resistance
E)need resistance

Question 7

You usually get what you deserve,no matter how you negotiate.

Question 8

When people say,"Your price is too high," they probably mean,"You haven't sold me yet."

Question 9

In some cases the statement,"I don't need your product," is a conditioned response.

Question 10

Direct denial may be appropriate when a customer's objection is based on misinformation.

Question 11

Negotiation is defined as "working to reach an agreement that is satisfactory to either the buyer or the seller."

Question 12

The sales staff at the Renaissance Esmeralda Resort and Spa,located in a desert area of California,find it very difficult to work with a prospect who is seeking a "water destination."

Question 13

Buyers trained in price negotiation use which of the following tactics?

A)product compromise
B)sixty-forty
C)budget limitation
D)cards on the table
E)maybe...if

Question 14

Which of the following is an acceptable method of negotiating the price objection?

A)Make price the focal point of your presentation.
B)Explain and demonstrate the difference between price and cost.
C)Focus your comments on an individual product feature.
D)Apologize for high prices.
E)Lower the price if the customer balks.

Question 15

Resistance to the product is usually caused by:

A)the salesperson is not familiar to the buyer
B)the present product is satisfactory
C)friends and acquaintances liked the product
D)the product has not been discussed by the competition
E)the price is matched with that of competing products

Question 16

The"budget limitation tactic" is often used by buyers who have been trained in negotiation.

Question 17

The direct-denial method of negotiating objections is a very common approach used in the field of selling.

Question 18

Research shows that a neutral third party's testimony tends to provide a weak argument when answering a customer's concern.

Question 19

If you believe in your product and understand its unique features,it should not be necessary to prepare for price resistance.

Question 20

The foundation for win-win negotiations is a relationship with the customer built on trust and rapport.

Question 21

One of the most common forms of buyer resistance and one of the most common excuses is:

A)lack of recognition of need for the product
B)personality conflict with the salesperson
C)loyalty to another firm
D)resistance to price
E)dispute about payment terms

Question 22

Reducing the price by unbundling some items is an effective technique a salesperson can use with a buyer who uses which of the following tactics?

A)budget limitation tactic
B)take-it-or-leave-it tactic
C)let-us-split-the-difference tactic
D)"if...then" tactic
E)"sell low now,make profits later" tactic

Question 23

If a customer says to a sales representative from Johnson Supply,"I've always purchased my supplies from the Ralston Company," this person is raising an objection to:

A)product
B)time
C)need
D)source
E)price

Question 24

Which of the following is true with respect to negotiations in foreign cultures?

A)Different cultural expectations can cause miscommunication.
B)It is sometimes advisable to become antagonistic during negotiations.
C)Business rituals are largely the same across cultures.
D)German buyers are unlikely to look you in the eye.
E)In China,negotiations are less straightforward than in Japan.

Question 25

The "feel-felt-found" method is used in conjunction with which of the following?

A)indirect denial
B)direct denial
C)trial offer
D)superior benefit
E)demonstration

Question 26

A salesperson should consider reviewing the benefits of the product before making price concessions to a buyer who engages in which of the following tactics?

A)budget limitation tactic
B)take-it-or-leave-it tactic
C)let-us-split-the-difference tactic
D)"if...then" tactic
E)"sell low now,make profits later" tactic

Question 27

The best way to overcome a sincere need objection by a business prospect is to:

A)instruct the prospect in comparison shopping
B)make the price the major selling point of the sales presentation
C)prove that your product will help ensure company profits
D)point out the superior qualities of your product compared to others on the market
E)reiterate all the features of your product

Question 28

Which of the following is an acceptable way to cope with the loyalty objection?

A)Work on recruiting internal champions to build more support for your message.
B)Point out,in specific terms,the weak points of the competing product.
C)Point out how dependence on just one supplier can be risky.
D)Encourage the prospect to quit the present supplier.
E)Undermine confidence in the current supplier by intimating that the company is having financial troubles.

Question 29

When a customer raises a valid objection that cannot be answered with a denial,the salesperson should consider using which of the following methods?

A)questions
B)the back-pedal
C)a pricing approach
D)beginning the presentation again
E)compare the product to the competition

Question 30

The salesperson may find which of the following tactics used by a buyer a fair deal?

A)budget limitation tactic
B)take-it-or-leave-it tactic
C)let-us-split-the-difference tactic
D)"if...then" tactic
E)"sell low now,make profits later" tactic

Question 31

Balance of power is the issue a salesperson must take into consideration when deciding how to respond to which of the following tactics?

A)budget limitation tactic
B)take-it-or-leave-it tactic
C)let-us-split-the-difference tactic
D)"if...then" tactic
E)"sell low now,make profits later" tactic

Question 32

If a company uses a low-price strategy,the company may need to consider which of the following to be able to make effective price concessions?

A)selling at the cost of manufacturing the product
B)eliminating features that contribute to a higher price
C)increasing the number of features of the product
D)matching competitors' prices
E)changing branding

Question 33

Working to reach an agreement that is mutually satisfactory to both buyer and seller is also called:

A)negotiation
B)agreement
C)practice theory
D)tactics
E)strategy

Question 34

The iceberg metaphor shows that many customers try to negotiate on price because:

A)price is often inflated to attempt to maximize profits for the company
B)price is the most easily quantifiable characteristic of any product
C)they were trained to negotiate on price and price alone
D)they feel that they are not fulfilling their duties as buyers if they do not attempt to get lower prices
E)they do not realize that other factors,such as service and terms,can be more important to satisfaction in the long-haul

Question 35

Which of the following is an important consideration that buyers should keep in mind if they are searching for the lowest price on a product?

A)Transactional buying does not lead to relationships with the seller.
B)Features and benefits are not always related to price.
C)Lower prices may also mean lower costs.
D)The highest quality can never be obtained at the lowest price.
E)Paying too much is worse than paying too little.

Question 36

If you are familiar with your product as well as your competition's product,which method of negotiating buyer resistance is one of the most convincing ways to overcome buyer skepticism?

A)defamation
B)trial offer
C)third-party testimony
D)indirect denial
E)demonstration

Question 37

An agreement to keep the same price but reduce prices in the future is often a successful response to which of the following tactics used by buyers?

A)budget limitation tactic
B)take-it-or-leave-it tactic
C)let-us-split-the-difference tactic
D)"if...then" tactic
E)"sell low now,make profits later" tactic

Question 38

When your customer says,"I would rather not tie up my money in a large order," the resistance falls into which category?

A)time
B)product
C)price
D)source
E)process

Question 39

A professional buyer says,"My final offer is $9,500,take it or leave it." A good way to cope with this type of resistance is to:

A)lower your price,but make sure the sale still results in a profit for your company
B)confidently review the superior benefits of your product and make another closing attempt
C)make a counteroffer that is about 10 percent under your first price quote
D)review the benefits of buying from your company
E)agree to lower prices for the first year but increase prices for subsequent years

Question 40

Cost represents the:

A)relationship between price and amortization
B)initial amount the buyer pays for the product
C)amount the buyer pays for a product as it is used over a period of time
D)true value of the product in non-financial terms
E)buyer's contribution to the negotiations

Question 41

When a salesperson bends a little and acknowledges that the prospect is at least partially correct,he/she is using the ________ ________ method of negotiating an objection.

Question 42

The sales director of a food supply house to restaurants has been analyzing sales for the past two years,and has discovered that sales representatives have been losing sales and giving larger discounts than they should,and giving away too many "freebies" to clients.
As part of the training in negotiations the sales representatives are being asked to take as a result of the analysis,the sales representatives learn to make a chart listing possible objections the client may make with how to overcome them.One objection many salespeople have received is about produce and meat quality.What is one way a sales representative could plan to address this objection?

A)Discuss the special fleet of refrigerated trucks the supplier has to keep deliveries fresh.
B)Offer a firm delivery time so receivers at the restaurants do not have to wait for the deliveries.
C)Tell the buyer that if they can't trust each other,they shouldn't do business together.
D)Offer a discount on the first years' orders to gain the buyer's trust.
E)Show the buyers source certifications from the farmers that provide the produce and meat.

Question 43

Karyn Fleishman is the lead sales representative on a team selling super-powered microscopes to research laboratories and other research institutions.She and her team just made a presentation to the buying team of a large lab,and they are about to enter the negotiation process to work toward closing a deal.
Karyn's team has already uncovered the lab's needs during the consultative questioning stage of the presentation.Which of the following is true?

A)The team should practice debating features and benefits before the negotiation.
B)The team should continue to gather as much information on the lab and the lab's buying team as possible before the negotiation.
C)The team has already missed their best window of opportunity for negotiations.
D)The team should be more aggressive about offering discounts to achieve a fast close.
E)The team is more prepared than they need to be for the negotiation process.

Question 44

The ________ ________ method of negotiating an objection is popular with customers because they can get fully acquainted with the product without making a major commitment.

Question 45

The sales director of a food supply house to restaurants has been analyzing sales for the past two years,and has discovered that sales representatives have been losing sales and giving larger discounts than they should,and giving away too many "freebies" to clients.
One thing the negotiation training emphasizes is not to make price the focal point of the presentation.This requires the sales representatives to refocus on:

A)positioning the product on quality instead of price
B)practicing saying "I'll have to get back to you on that" when asked about price
C)timing the presentation to mention price last instead of first
D)the pricing sheet to create tiers of discounts
E)their target market to buyers with less money

Question 46

Indirect denial is often more effective in combatting prospect concerns than direct denial is because:

A)indirect denial is a technique that needs to be practiced
B)indirect denial sounds more positive than direct denial does
C)indirect denial uses transition words such as "but" and "however"
D)direct denial resolves the issue conclusively
E)direct denial provides no out for the customer

Question 47

Determining your BATNA and ZOPA will help you in negotiations because:

A)the process will be delayed and you may be able to wear the buyer down
B)you will have a leg up on buyers,who are restricted from performing these assessments
C)you will only make the sale if your BATNA determination matches your buyer's exactly
D)they determine the best fair price for a product
E)they tell you what you will be willing to accept before you walk away from the negotiation

Question 48

A ________ ________ is a benefit that will,in most cases,outweigh the customer's specific concern.

Question 49

Karyn Fleishman is the lead sales representative on a team selling super-powered microscopes to research laboratories and other research institutions.She and her team just made a presentation to the buying team of a large lab,and they are about to enter the negotiation process to work toward closing a deal.
During the negotiations,it became apparent that the buyer had not understood the delivery schedule correctly.This made it:

A)more difficult,as the sales team clearly cannot communicate details effectively
B)more difficult,as the sales team must start the whole negotiating process again from scratch
C)more difficult,as the buyer was not capable of understanding the terms
D)easier,as the buyer gave in to the seller as an apology for misunderstanding
E)easier,as the sales team needed to clarify,not negotiate,that issue

Question 50

List five common types of buyer concerns.

Question 51

The sales director of a food supply house to restaurants has been analyzing sales for the past two years,and has discovered that sales representatives have been losing sales and giving larger discounts than they should,and giving away too many "freebies" to clients.
A salesperson who goes into a negotiation process without any preparation is likely either to lose the sale or:

A)to give in to the buyer with discounts that are too large
B)to create a solution both buyer and sales representative are happy with
C)to sell a product that doesn't exist
D)to give the prospect too much overwhelming information
E)to promote the competition

Question 52

Professional buyers often learn to use specific tactics in dealing with salespeople.List three tactics that were identified in Homer Smith's book,Selling Through Negotiation.

Question 53

One way to empathize with the client's objection and turn objections into sales is to use the "feel-felt- ________" strategy.

Question 54

The sales director of a food supply house to restaurants has been analyzing sales for the past two years,and has discovered that sales representatives have been losing sales and giving larger discounts than they should,and giving away too many "freebies" to clients.
The sales director requires the sales representatives to undergo further training in:

A)cold calling
B)the pre-approach
C)needs discovery
D)accent reduction
E)servicing the account

Question 55

Salespeople can deal with all of the notes they take on sales calls and other negotiations most effectively by:

A)entering the notes into a searchable CRM system
B)putting the notes into folders,one for each account
C)copying the notes and putting them into a three-ring binder
D)scanning the notes in to a computer and saving them as PDF files
E)giving them to support staff to organize and archive

Question 56

The difference between a misunderstanding and a disagreement is that:

A)a misunderstanding and a disagreement are essentially the same thing,and any differences are largely semantic
B)a misunderstanding is a failure to agree even when both sides understand each other,while a disagreement is a failure to accurately understand the other person's point
C)a misunderstanding is a failure to accurately understand the other person's point,while a disagreement is a failure to agree even when both sides understand each other
D)a misunderstanding compounds a disagreement by adding another level of complication,such as communication style or language barrier
E)a misunderstanding is a less severe form of a disagreement

Question 57

The sales director of a food supply house to restaurants has been analyzing sales for the past two years,and has discovered that sales representatives have been losing sales and giving larger discounts than they should,and giving away too many "freebies" to clients.
What area of the sales process are the sales representatives weak in,according to the results of the sales director's analysis?

A)price calculations
B)negotiation skills
C)presentation skills
D)rapport building
E)showmanship

Question 58

The ________ method of negotiating buyer resistance is one of the most convincing ways to overcome buyer skepticism.

Question 59

Karyn Fleishman is the lead sales representative on a team selling super-powered microscopes to research laboratories and other research institutions.She and her team just made a presentation to the buying team of a large lab,and they are about to enter the negotiation process to work toward closing a deal.
The selling team must be mindful of which of the following in preparing to negotiate with the buyers for the lab?

A)They should be prepared to deal with buyers with well-developed negotiation skills.
B)They should be prepared to give concessions quickly to show good will to the buyers.
C)They should be prepared to settle most of the points of contention right away.
D)They should be prepared to revalue the microscope to make the sale.
E)They should be prepared to stick to the most important consideration: price.

Question 60

Logrolling refers to:

A)selling customers products they have never purchased before from your company
B)shifting customers form one salesperson to another to resolve personality conflicts
C)asking customers to pay full price for the first year in exchange for lowered prices in future years
D)an extremely alternate solution to a negotiation problem
E)an increased sales volume on an old product when a newer product is released to the market at a slightly higher price

Question 61

Karyn Fleishman is the lead sales representative on a team selling super-powered microscopes to research laboratories and other research institutions.She and her team just made a presentation to the buying team of a large lab,and they are about to enter the negotiation process to work toward closing a deal.
Which of the following would be an example of logrolling in this negotiation?

A)The sales team gives the buyer a lower price than in the initial proposal.
B)The sales team creates a whole new proposal with different terms and pricing.
C)The sales team offers the buyer an advantageous payment schedule.
D)The sales team holds firm on the original price.
E)The buyers pit two sellers against each other.

Question 62

Kelly Addison is a designer clothing buyer for a chain of department stores.She has gone through several negotiation certification programs and is considered an expert negotiator by her peers.
When Kelly sees value in a product but does not want to pay the offered price,she often offers to split the difference between what she wants to pay and what the seller wants.Which of the following would be most likely to stall the negotiations with Kelly?

A)accepting the offer to split the difference
B)making another pricing counteroffer
C)offering better delivery and payment terms if she matches the asked price
D)standing firm on price but offering a discount for the second order

Question 63

Kelly Addison is a designer clothing buyer for a chain of department stores.She has gone through several negotiation certification programs and is considered an expert negotiator by her peers.
Kelly has learned not to threaten to go with another supplier unless she is happy to do so.A seller who does not know this is in danger of:

A)offering Kelly advantageous terms the other supplier can't match
B)losing the deal by attempting to call Kelly's bluff
C)matching her price and closing the deal
D)lowering the price too much and losing the deal
E)undercutting the other supplier and winning the deal

Question 64

Kelly Addison is a designer clothing buyer for a chain of department stores.She has gone through several negotiation certification programs and is considered an expert negotiator by her peers.
Kelly often tells sellers that her budget will not allow her to pay the price they are asking.What is the most effective way a seller could counter that claim?

A)by offering to sell components of the initial offering for the amount of money she can spend
B)by telling her to ask her manager for a larger budget
C)by offering her the product for what she says she can spend
D)by asking to see proof of the limit of her budget
E)by convincing her of the benefits of the product

Question 65

Kelly Addison is a designer clothing buyer for a chain of department stores.She has gone through several negotiation certification programs and is considered an expert negotiator by her peers.
Kelly's bottom line is price,but she has wiggle room if the seller can move on terms such as tiered discounts for subsequent orders.Which of the following would be most likely to be meaningful to Kelly?

A)personalized service agreement for the product
B)implementation of the product
C)free training on use of the product
D)a delayed payment plan
E)using a different manufacturer

Question 66

Kelly Addison is a designer clothing buyer for a chain of department stores.She has gone through several negotiation certification programs and is considered an expert negotiator by her peers.
If Kelly and the seller cannot come to terms on pricing or any other equivalent factors,which of the following is the most likely outcome of the negotiation?

A)The seller will give in and accept the price the buyer wants to pay.
B)The buyer and seller will flip a coin or use another random method to decide whose terms to use.
C)The buyer and seller will walk away from the negotiation without closing a sale.
D)The buyer and seller will take the disagreement to an outside mediator.
E)The buyer will give in and pay the full price asked by the seller.

Question 67

Karyn Fleishman is the lead sales representative on a team selling super-powered microscopes to research laboratories and other research institutions.She and her team just made a presentation to the buying team of a large lab,and they are about to enter the negotiation process to work toward closing a deal.
The negotiations are stalled until Karyn's team discovers that the buyers are concerned about the costs of training laboratory employees to use the new microscope.What response could move the negotiations forward most easily?

A)The sales team could offer to demonstrate the microscope to the lab supervisors.
B)The sales team could show the buyers testimonials on the efficacy of the microscope.
C)The sales team could ignore this and offer expedited delivery.
D)The sales team could offer discounted training delivered by the microscope company implementation team.
E)The sales team could assure the buyers that the microscope is easy to use.