Deck 14: Retail, business, services, and Nonprofit Selling

Question 1

Which of the following is NOT one of the presentation steps in the retail selling process?

A) agreement of need
B) selling your reputation
C) filling the need
D) trial close
E) all of these choices are correct

Answer 1

E

Question 2

One of your friends is interested in a career in retail and asks you to provide some examples of activities the typical retail worker does on a regular basis.Which of following choices is NOT an example of one of those activities?

A) developing repeat sales from present customers
B) working stock
C) ordering from a supplier
D) personal selling
E) selling to prospects

Answer 2

C

Question 3

Samsung uses microchips to use in its smart phones.The demand for these particular microchips is linked to the demand for Samsung's smart phones; the more smartphones are sold the greater the demand for microchips.What term best describes this particular situation?

A) joint demand
B) economic demand
C) elastic demand
D) inelastic demand
E) derived demand

Answer 3

E

Question 4

Which of the following is not a step normally associated with a request for proposal process?

A) schedule
B) cost
C) supporting information
D) scope
E) joint demand

Question 5

Ms.Jones is the owner of a sawmill in British Columbia producing high end construction grade wood products.To facilitate and speed up the procurement process of raw logs,Ms.Jones decides to use a "blanket purchase order" to help facilitate this process - She is happy with both prices and delivery terms.What type of general business purchase has Ms.Jones most likely undertaken?

A) modified conjoint
B) integrated rebuy
C) modified new task
D) prototype rebuy
E) straight-rebuy

Question 6

Which of the following is an example of a retail transaction?

A) a private school ordering new desks
B) a city manager buying Christmas decorations for the courthouse
C) a restaurant owner purchasing new tablecloths to make her restaurant look more attractive to its clientele
D) a student purchasing a smart phone from a local shop
E) an ad agency paying for broadcast media time

Question 7

A local Credit Union agrees to purchase office supplies at a set price over the next several years from one particular supplier.What term describes this quasi-contractual agreement between the Credit Union and the supplier?

A) blanket purchase order
B) automatic invoice system
C) autonomous supplier system
D) product support agreement
E) simplex purchase agreement

Question 8

Which of the following statements about "business marketing" is NOT true?

A) 50 percent of all manufactured goods are sold in this "business market"
B) approximately 80 percent of all farming output is sold to this market
C) nearly 100 percent of all minerals and forest products are sold to this market
D) the actual size of this market is very small; hence, little public attention is paid to this market
E) None of these choices are correct

Question 9

Matsui is an industrial buyer with responsibility for purchasing the plastic bottles his company uses to package its product.To improve utilization of his firm's warehouse space,he wants to negotiate a different set of delivery terms while continuing to use the same supplier.What kind of major business purchase is Matsui suggesting his company use?

A) modified rebuy purchase
B) straight rebuy purchase
C) flexible rebuy purchase
D) new task purchase
E) blanket purchase order

Question 10

Which of the following best differentiates business products from consumer products?

A) are more technical in nature
B) are often bought on the basis of specifications and bids
C) are more complex in their pricing
D) tend to be standardized
E) all of these choices are correct

Question 11

An organization buys inputs which are converted into final products that are sold directly to end-users for personal use.What would you call this organization?

A) a turn-around company
B) wholesaler
C) indirect business
D) commission
E) retailer

Question 12

Which of the following best describes a characteristic of a straight rebuy purchase?

A) usually requires extensive selling time
B) is a routine purchase of products bought on a regular basis
C) is made when a product is sold on a straight commission basis
D) is not common in industry today
E) requires a great deal of time for buyers to make their purchase decisions

Question 13

Which of the following best describes a retail buyer?

A) final consumer
B) wholesaler
C) another retailer
D) manufacturer
E) distributor

Question 14

To produce kits for Christmas ornaments,the Leisure Arts Company needs felt,sequins,and embroidery floss.What term describes products that are used together to produce a single output?

A) joint demand
B) joined demand
C) cooperative demand
D) triple demand
E) derived demand

Question 15

What is the term used to describe a product for which increases or decreases in prices do not lead to proportional increases or decreases in demand?

A) joint
B) unchanged
C) inelastic
D) elastic
E) derived

Question 16

Why is pricing in the business market often more complex?

A) the nontechnical nature of the products
B) the elastic demand characteristic
C) the buyer's naivete
D) competitive bidding
E) the absence of standardized products

Question 17

Which of the following best captures the factors distinguishing the demand for consumer goods from the demand for business products?

A) unofficial, inelastic, and joint
B) joint, derived, and unofficial
C) derived, unofficial, and inelastic
D) inelastic, joint, and derived
E) derived, unofficial, and elastic

Question 18

Elise is purchasing a wood plane molder on behalf of her employer's furniture manufacturing business firm.She is being cautious about her selection because this machine will be the heart of the company's new venture into the manufacturing of custom molding.What is Elise likely doing?

A) straight rebuy purchase
B) joint buying purchase
C) modified rebuy purchase
D) new task purchase
E) conjoint task rebuy

Question 19

Which of the following statements about a new task purchase is NOT true?

A) The larger the quantity being purchased, the more cautious the buyer is likely to be.
B) Salespeople usually close new task purchases quickly.
C) Usually the buyer wants to consider many suppliers when making a new task purchase.
D) The new task purchase is the hardest selling situation for the salesperson.
E) Rarely will a new task purchase involve a blanket purchase order (BPO).

Question 20

When you went to the store to buy potting plants for your terrace garden,you planned to buy only four English ivy plants.When you went to pay for the plants you selected,the clerk pointed out that the store was having a sale on six-packs.You could have six ivy plants for the price of the four you were planning to buy--a substantial savings.The clerk was engaged in:

A) overtalking
B) suggestion selling
C) a minor point close
D) a merchandise approach
E) rapport selling

Question 21

Which of the following is an example of a primary buying motive in the producer market?

A) increasing profits
B) service
C) trade-in allowances
D) helpfulness of the salesperson
E) all of these choices are correct.

Question 22

Products can be placed on a continuum ranging from relatively pure goods to relatively pure services.Where on that continuum would a customer relationship management system fall?

A) relatively pure good
B) service intensive good
C) hybrid
D) goods intensive service
E) relatively pure service

Question 23

Products can be placed on a continuum ranging from relatively pure goods to relatively pure services.John places an order for custom ordered office furniture from Home Depot.Where on that continuum would you place the custom ordered office furniture from Home Depot?

A) relatively pure good
B) service intensive good
C) a pure good
D) goods intensive service
E) relatively pure service

Question 24

Which term describes people who influence where information from salespeople goes and with whom salespeople will be allowed speak with?

A) buyers
B) initiators
C) deciders
D) influencers
E) gatekeepers

Question 25

The textbook offers a classification of goods-services ranging from a relatively pure good to a relatively pure service.Where in that spectrum would you include a visit to your local medical clinic?

A) relatively pure good
B) service intensive good
C) hybrid
D) goods intensive service
E) relatively pure service

Question 26

Georgio is a hospital administrator.When he is not working at the hospital,he tutors elementary school children in reading and math.Georgio charges $10 an hour for tutoring and is considering leaving his hospital job and becoming a full-time tutor.What kind of an activity is Georgio doing when he tutors?

A) engaged in business-to-business marketing
B) engaged in an intrapreneurship activity
C) working for a nonprofit organization
D) performing a service
E) moonlighting as an agent

Question 27

Which of the following would you NOT classify as a selling a service?

A) an insurance agent
B) a financial services officer at a bank
C) a farmer selling apples at a farmers' market
D) a local mechanic repairing transmissions
E) all of these choices are correct

Question 28

Which of the following roles within an organization may have an impact on the buying decision?

A) purchasing agents
B) managers
C) accountants
D) executive assistants
E) all of these choices are correct

Question 29

Anxious Ally doesn't know her requests for the Hamilton Furniture Manufacturer's purchasing agent (PA)to call her are never even getting to the PA.On her last visit to the firm she told her sales assistant that the PA's secretary "did not seen to know what she was doing." Unfortunately,that remark was overheard.Now the PA's secretary is sabotaging Ally's efforts.What role is the PA's secretary playing?

A) gatekeeper
B) moral roadblock
C) influencer
D) decider
E) dispatcher

Question 30

A particular university in Canada decides to purchase a new computer system for its new library.In the process,it engages James Computer Services as a consultant to evaluate and determine the required systems specifications needed by the university's library.What role does James' company play in this scenario?

A) the initiator
B) the gatekeeper
C) the buyer
D) the decider
E) an influencer

Question 31

Salespeople have been complaining to management about the lack of flexibility associated with the company's sales tracking system and have asked the company to look for a different system.What role are the salespeople playing?

A) buyer
B) initiator
C) decider
D) influencer
E) gatekeeper

Question 32

Which of the following involve selling services on behalf of someone else?

A) the government
B) a business
C) a charity
D) the military
E) all of these choices are correct.

Question 33

Products can be placed on a continuum ranging from relatively pure goods to relatively pure services.Where on that continuum would professional lawn care and maintenance fall?

A) relatively pure good
B) service intensive good
C) hybrid
D) goods intensive service
E) relatively pure service

Question 34

One of the challenges in selling services is the notion of heterogeneity.Which of the following statements about the notion of heterogeneity is NOT true?

A) Each unit of service sold is most often not identical to other units.
B) It is difficult to judge the quality of the product pre-purchase.
C) Heterogeneity of services means the seller of services can standardize output.
D) Heterogeneity of services creates special opportunities for salespeople.
E) None of these choices are correct.

Question 35

Unlike business firms,nonprofit organizations usually must deal with two major markets in their marketing efforts.What are those two markets?

A) contributors and clients
B) government and private sector
C) local and national
D) profit and nonprofit
E) academic and real-world

Question 36

When a purchase is made on a straight rebuy basis,many of the steps in the business buying process are skipped.Which of the following steps are NOT omitted?

A) selection of supplier
B) analysis of proposal
C) determination of product specifications
D) recognition of a problem or need
E) selection of an order routine

Question 37

Mary is working very hard to get ready for her sales presentation tomorrow.She sells adhesives for furniture and cabinet making.Tomorrow she must persuade the Hamilton Furniture Company's chief executive officer (CEO),who she has learned will make the actual choice,to pick her company to be its only supplier.What role does the CEO play in this sales scenario?

A) initiator
B) decider
C) gatekeeper
D) user
E) influencer

Question 38

Which of the following statements about how the services characteristic of inseparability affects delivery of the service is true?

A) The receiver of the service does not interact with the provider of the service.
B) Customers cannot sample the service before they buy it.
C) A direct channel of distribution must not be used.
D) The service must be created and dispensed simultaneously.
E) The scale of operation of the firm must not be limited.

Question 39

Which of the following are NOT attributes normally associated with an intangible product?

A) customers often cannot taste the product before they buy
B) customers often cannot see the product before they buy it
C) salespeople selling intangible products tend to focus their presentations on the product itself
D) salespeople selling intangible products tend to focus their presentations on the product's benefit(s)
E) none of these choices are correct

Question 40

Which of the following terms can be used to refer to a nonprofit client?

A) museum patron
B) parishioner
C) a United Way donor
D) hospital patient
E) all of these choices are correct.

Question 41

The textbook offers a series of tips that will help a non-profit organization attain its goals.Which of the following is NOT one those tips?

A) Assess the donor's ability to donate
B) Do some research prior to engaging a potential donor
C) Prepare a presentation that addresses the donor's motives
D) Ask for what you want
E) All of these choices are correct

Question 42

Taylor greeted Anthony promptly and pleasantly.She then established a friendly rapport that led into some probing questions while at the same time using positive body language and facial expressions.What was Taylor engaged in?

A) flirting
B) a follow-up visit
C) an effective retail approach
D) cold call canvassing
E) a probing interview

Question 43

A straight rebuy purchase is often associated with a blanket purchase order.

Question 44

Retailing refers to individuals or organizations that sell directly to final consumers for non-business use.

Question 45

Selling life insurance to the head of a household is a retail sales transaction.

Question 46

Business products,like business markets,have characteristics that salespeople must consider when selling to potential buyers.Which of the following are characteristics that tend to distinguish business products from consumer products?

A) usually are more technical
B) purchased based on specifications
C) the pricing is complex
D) products tend to be standardized
E) all of these choices are correct

Question 47

Which of following statements about RFPs is NOT true?

A) most often, the RPF process is a multi-step process
B) timelines included in the RFP document need to be carefully followed
C) it is a bid seeking document provided to potential suppliers of goods and services
D) often, RFP documents include details associated with budgets and timelines
E) none of these choices are correct

Question 48

Unlike other forms of personal selling,there are few nonfinancial rewards in retail selling.

Question 49

Which of the following statements about the non-profit sector is NOT true?

A) a significant portion of donations tend to be used to cover overhead expenses
B) by-products of an inefficient non-profit organization are economic and social in nature
C) the non-profit sector in Canada is often limited to social and religious causes
D) effective sales programs can increase the probability of a non-profit attaining its goals
E) all of these choices are correct

Question 50

The requirements of retail sales roles in Canada is fairly narrow.In fact,a better term for a retail salesperson would be "an order taker."

Question 51

Which of the following would NOT be a role normally associated with a retail salesperson?

A) interact with customers directly
B) develop pricing strategies
C) identify customers' needs
D) complete transactions
E) follow up with customers

Question 52

Retail salespeople do not engage in prospecting.

Question 53

When a waitress in a restaurant recommends a piece of apple pie to go with a customer's coffee order,the waitress is engaged in STEP selling.

Question 54

Which of the following statements about non-profit organizations is true?

A) Non-profit organizations have as a goal the notion of making profits
B) People in most non-profit organizations do not realize they are running a business.
C) Most non-profit organization sell tangible goods.
D) Like organizations in the business market, nonprofit organizations need to direct their selling efforts toward one major market.
E) Non-profit organizations see contributors exclusively as providers of cash donations.

Question 55

Retail selling and organizational selling are synonymous.

Question 56

Buying goods to make other goods or to sell to other consumers or to conduct an organization's operations are all examples of what goes in which of the following markets?

A) consumer market
B) retail market
C) farmer's market
D) business market
E) common market

Question 57

In Canada,the relative importance of the business market is overrated.In fact,only 10 percent of all manufactured products are sold to the business market.

Question 58

The terms business,industrial,producer and organizational markets are used interchangeably in describing business users.

Question 59

As a general rule,retail salespeople should use a similar approach to engaging customers as a business salespeople.

Question 60

Derived demand for products in the business market means the demand for consumer products is directly caused by the demand for industrial products.

Question 61

A blanket purchase order (BPO)agreement establishes the price and terms of sale for a set period of time.

Question 62

A business product with inelastic demand implies that if companies decrease prices it will increase demand by a greater proportion.Therefore,companies facing this situation should decrease prices as the drop in price will be mitigated by larger percentage increase in demand.

Question 63

A RFP is normally a document draw by vendors to solicit customers' bids for their products or services.

Question 64

How does the services characteristic of intangibility affect how an operator of a daycare centre sells her service?

Question 65

"The helpfulness of the salesperson" is an example of a specific primary buying need or motive.

Question 66

Your friend John has been offered a job in which his pay will be straight commission.What three skills does John need to be financially successful at this job?

Question 67

A salesperson selling to the producer market should be aware that buying cycles tend to be longer versus selling directly to consumers in a retail setting.

Question 68

The relationship building process with a retail client starts at the moment a client walks into a store.Identify and describe six steps a salesperson may take which will increase the chances of a salesperson having an effective interaction with a retail customer?

Question 69

The inseparability characteristic of a service always limits the scale of operation of the firm providing it.

Question 70

Sales people selling services tend to focus their sales presentations on the service itself rather than the benefits associated with using the service.

Question 71

The person proposing to buy or replace a product is referred to as the influencer.

Question 72

Most non-profit organizations tend to sell tangible products.

Question 73

Selling services is one of the easier things to sell.

Question 74

When a product is being bought in conjunction with a job or task not formerly performed by the purchaser,it is a prototype rebuying purchase.

Question 75

Ms.Knowles always provides a $500.00 donation to her local food bank.From the perspective of the food bank,Ms.Knowles is considered a contributor.

Question 76

When Reno,an industrial equipment buyer,chooses to request bids from suppliers,he is legally required to accept the lowest bid received.

Question 77

Three important factors distinguish the demand for business products from the demand for consumer products.List and briefly define all three.

Question 78

Most non-profit organizations are directly involved in two major markets in their marketing activities.One is the non-profit distributors the other is non-profit clients.

Question 79

When Josh,chairman for Alpha Kappa Psi,encourages a new student in his marketing class to join the business fraternity,he is engaged in personal selling.

Question 80

Purchasing agents are generally considered to be emotional buyers.