Question 1

Which of the following statements about closing techniques is true?
A) When a major sale is at stake, closing techniques increase the salesperson's odds of success.
B) Salespeople specifically trained in closing techniques close more sales.
C) The most important activity of the salesperson is to answer objections to clear the way to use a closing technique.
D) Closing techniques are especially handy in door-to-door sales of low-priced products.
E) The best closing methods rely on some type of trickery.

Accepted Answer

The answer of Which of the following statements about closing...

Question 2

The terms and conditions of sale include shipping costs. The seller quotes an FOB price. The letters FOB stand for:
A) feedback on business
B) frequency of business
C) function of buyer
D) freight of buyer
E) free on board

Accepted Answer

FOB stands for "free on board", which indicates that the seller will be responsible for the cost of loading the goods onto the shipping vessel. Once the goods are on board, the buyer becomes responsible for any additional shipping costs. This is important to note when considering the total cost of purchase and who will be responsible for transportation expenses.

Question 3

If Monrovia Nursery Company quotes an FOB origin price to a plant retailer, it means that the:
A) retailer will be reimbursed for all plants that died in transit
B) Monrovia will pay all shipping costs
C) the retailer will pay all shipping costs
D) Monrovia and the retailer will split the shipping costs
E) Monrovia will take complete responsibility for the product until it is placed in the retailer's hands

Accepted Answer

FOB origin means that the responsibility and costs of shipping the product from Monrovia Nursery to the retailer's location are the responsibility of the retailer, not Monrovia. Therefore, the retailer will pay for all shipping costs involved.

Question 4

Which of the following is an example of a salesperson who has obtained commitment?
A) Anselmo has decided to call some of Markus's references next week.
B) Obadiah scheduled a co-op advertising program for Margaret at the Vincent Street Drug Store.
C) Hugh agreed to let Yvette return next week to analyze his company's computer network.
D) Mary Ruth gets an order from Hammond's Nursery for two dozen sugar maple trees.
E) All of the above are examples of salespeople who have obtained commitment.

Accepted Answer

The answer of Which of the following is an example...

Question 5

Conor's company has studied competitor's offerings, the value delivered by his company's products, and the cost of providing the product to customers. Therefore, Conor should:
A) never apologize for the price he quotes
B) carefully present price so as to not disturb his prospects
C) consider switching to another company
D) aggressively discount list prices to ensure customer satisfaction
E) adjust prices to avoid overcharging customers

Accepted Answer

The answer of Conor's company has studied competitor's offerings, the...

Question 6

Betty has agreed to purchase a new CT-scan device for her hospital under the terms FOB origin. Betty is expecting:
A) the device will be loaded, shipped, and installed
B) the device will be loaded onto transportation but after that it is her responsibility
C) FOB means freight, origin, buyer
D) Free on board with shipping and installation paid by the seller
E) FOB means friends of Bill and the government will pay for installation.

Accepted Answer

FOB origin means that the seller is responsible for loading the goods onto the transportation, but after that, the buyer is responsible for all other costs and liability associated with the transport and installation of the goods. Therefore, Betty is only responsible for the device after it has been loaded onto the transportation.

Question 7

The owner of Scott's Hardware will receive a discount of 15 percent if she orders 12 or more Mandarin bird feeders from Arundale Products. If fewer than 12 bird feeders are ordered, she will not receive the _____ discount.
A) functional
B) trade
C) quantity
D) promotional
E) cash

Accepted Answer

The discount the owner will receive is based on the quantity of bird feeders ordered, making it a quantity discount.

Question 8

If Perkinston's Pet Store, a retailer of tropical fish and supplies, buys one 200-gallon fish tank from La Mer Aquarium Products, it will be billed $329. If it buys more than six during the upcoming year, it will get a 20 percent discount on each aquarium. This savings is referred to as a:
A) cumulative quantity discount
B) promotional allowance
C) trade discount
D) functional discount
E) cash discount

Accepted Answer

The discount offered by La Mer Aquarium Products is a cumulative quantity discount because it is based on the total quantity of aquariums purchased over a specified period of time.

Question 9

The owner of store that specializes in birds ordered $200 of Tropican food from Hagen Avicultural Research Institute. On the invoice dated October 18 that Hagen sent to the store owner was written, "3/10, EOM." If the store owner pays the bill in full on November 12, what amount will she have to pay?
A) $147.00
B) $189.00
C) $203.70
D) $200.00
E) $216.30

Accepted Answer

The answer of The owner of store that specializes in...

Question 10

Closing is defined as:
A) a close harmonious relationship founded on mutual trust
B) a specific statement by a seller outlining what the seller will provide and what is expected from the buyer
C) a written proposal summarizing key points of a previous meeting
D) asking a question to take the pulse of the situation
E) asking for the buyer's business

Accepted Answer

Closing is the act of asking for the buyer's business and finalizing the deal. The other options do not accurately describe the concept of closing.

Question 11

The owner of store that specializes in birds ordered $200 of Tropican food from Hagen Avicultural Research Institute. On the invoice dated October 18 that Hagen sent to the store owner was written, "3/10, EOM." If the store owner pays the bill in full on November 2, what amount will she have to pay?
A) $147.00
B) $189.00
C) $191.00
D) $200.00
E) $183.00

Accepted Answer

The term "3/10, EOM" means that the store owner can take a 3% discount if the bill is paid within 10 days of the invoice date, or pay the full amount by the end of the month (EOM) and not receive a discount.

If the store owner pays the bill by October 28 (10 days after October 18), she can take a 3% discount:
$200 x 0.03 = $6 discount
$200 - $6 = $194

However, since the store owner paid the bill in full on November 2 (after the discount period), she will have to pay the full amount of $200. Therefore, the best choice is C.

Question 12

Kendra is the new owner of a catering company. She got an invoice for a new walk-in refrigerator in the mail which contained the phrase "2/10, n/30." How would you explain this to her?
A) It means she can earn a ten percent discount if she pays within two days of receiving the bill; otherwise it is due at the end of the month.
B) It means she can earn a twenty percent discount if she pays within ten days of receiving the bill; otherwise it is due at the end of the month.
C) It means she can earn a two percent discount if she pays within ten days of the invoice date; otherwise the full amount is due in thirty days.
D) It means she can earn a thirty percent discount if she pays within two days of receiving the bill, or a ten percent discount if she pays by the end of the month.
E) It means she can earn a ten percent discount if she pays within two days of receiving the bill; she will pay a ten percent penalty if it is not paid within thirty days.

Accepted Answer

The phrase "2/10, n/30" means that Kendra can earn a discount of 2% if she pays within 10 days of the invoice date. Otherwise, the full amount is due in 30 days.

Question 13

The owner of Molly's Gift Shop ordered a brass sculpture from The Brass Baron, a distributor of garden whimsy, for $225. The invoice she received from The Brass Baron read, "2/15, n/30," and arrived on March 19. How much will she have to pay if she pays the invoice by April 10?
A) $195
B) $220.50
C) $225
D) $229.50
E) $247.50

Accepted Answer

The answer of The owner of Molly's Gift Shop ordered...

Question 14

Most sales take only one call to complete.

Accepted Answer

According to research, only 2% of sales are made on the first contact, meaning that most sales require multiple calls or interactions with a potential customer before they are completed.

Question 15

The owner of Molly's Gift Shop ordered a brass sculpture from The Brass Baron, a distributor of garden whimsy, for $200. The invoice she received from The Brass Baron read, "2/15, n/30," and arrived on March 1. How much will she have to pay if she pays the invoice by March 11?
A) $196
B) $200
C) $190
D) $100
E) $150

Accepted Answer

The answer of The owner of Molly's Gift Shop ordered...

Question 16

If Lab Safety Supply quotes an FOB destination price to a factory buying five hazardous waste disposal units, it means that:
A) Lab Safety Supply will pay all freight charges
B) the buyer will pay all freight charges
C) the buyer will assume complete responsibility for the units once they leave the Lab Safety Supply loading dock
D) Lab Safety Supply and the buyer will split all shipping charges
E) the buyer will pay for any units found defective and returned for a refund

Accepted Answer

FOB destination means that Lab Safety Supply is responsible for paying all freight charges and assuming responsibility for the units until they reach the buyer's destination.

Question 17

Arnette's nonverbal behavior suggests she is about ready to accept the offer to do business with Monrovia Nursery Company. These nonverbal cues can also be called:
A) closing flags
B) buying signals
C) closing links
D) commitment gatekeepers
E) purchase influencers

Accepted Answer

Nonverbal cues that suggest a person is ready to make a purchase or move forward with a business deal are often referred to as buying signals.

Question 18

Part of being honest as a salesperson is being willing to show the disappointment you feel if a prospect does not commit to do business with you.

Accepted Answer

While it is important to be honest with the prospect, showing disappointment if they do not commit can come off as manipulative or pushy. It is better to maintain a positive attitude and express gratitude for the opportunity to present your product or service, even if the prospect decides not to move forward at this time.

Question 19

Why is it important for salespeople to become skilled in obtaining prospect commitment?
A) It helps in need discovery.
B) It helps in handling objections.
C) It is intrinsically and extrinsically rewarding.
D) It increases their need to take part in sales training.
E) Skill in obtaining prospect commitment is important for all of the above reasons.

Accepted Answer

The answer of Why is it important for salespeople to...

Question 20

David has done his job well, presenting the product, showing how it meets the needs of his customer, and handling all questions and objections. David:
A) needs to pressure the customer into making the commitment
B) should relax and let nature take its course
C) deserves the sale
D) ask the buyer to do him a favor and buy his product
E) should do or expect all of the above

Accepted Answer

David deserves the sale because he has done his job well and demonstrated how the product meets the needs of the customer. Pressuring the customer or asking for a favor may come across as pushy and may damage the relationship. Relaxing and doing nothing may result in the customer not making a decision. Therefore, the best choice is for David to wait for the customer to make a commitment on their own.

Quiz 12: Obtaining Commitment

Which of the following statements about closing techniques is true?

The terms and conditions of sale include shipping costs. The seller quotes an FOB price. The letters FOB stand for:

If Monrovia Nursery Company quotes an FOB origin price to a plant retailer, it means that the:

Which of the following is an example of a salesperson who has obtained commitment?

Conor's company has studied competitor's offerings, the value delivered by his company's products, and the cost of providing the product to customers. Therefore, Conor should:

Betty has agreed to purchase a new CT-scan device for her hospital under the terms FOB origin. Betty is expecting:

The owner of Scott's Hardware will receive a discount of 15 percent if she orders 12 or more Mandarin bird feeders from Arundale Products. If fewer than 12 bird feeders are ordered, she will not receive the _____ discount.

If Perkinston's Pet Store, a retailer of tropical fish and supplies, buys one 200-gallon fish tank from La Mer Aquarium Products, it will be billed $329. If it buys more than six during the upcoming year, it will get a 20 percent discount on each aquarium. This savings is referred to as a:

Closing is defined as:

Kendra is the new owner of a catering company. She got an invoice for a new walk-in refrigerator in the mail which contained the phrase "2/10, n/30." How would you explain this to her?

The owner of Molly's Gift Shop ordered a brass sculpture from The Brass Baron, a distributor of garden whimsy, for $225. The invoice she received from The Brass Baron read, "2/15, n/30," and arrived on March 19. How much will she have to pay if she pays the invoice by April 10?

Most sales take only one call to complete.

The owner of Molly's Gift Shop ordered a brass sculpture from The Brass Baron, a distributor of garden whimsy, for $200. The invoice she received from The Brass Baron read, "2/15, n/30," and arrived on March 1. How much will she have to pay if she pays the invoice by March 11?

If Lab Safety Supply quotes an FOB destination price to a factory buying five hazardous waste disposal units, it means that:

Arnette's nonverbal behavior suggests she is about ready to accept the offer to do business with Monrovia Nursery Company. These nonverbal cues can also be called:

Part of being honest as a salesperson is being willing to show the disappointment you feel if a prospect does not commit to do business with you.

Why is it important for salespeople to become skilled in obtaining prospect commitment?

David has done his job well, presenting the product, showing how it meets the needs of his customer, and handling all questions and objections. David: