Deck 14: Retail, Business Services, and Nonprofit Selling

Question 1

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

Answer 1

True

Question 2

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

Answer 2

True

Question 3

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

Answer 3

False

Question 4

Retail salespeople do not engage in prospecting.

Question 5

Salary based salespeople can earn more money by getting orders.

Question 6

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 7

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 8

Any salesperson can easily create their own social media account to connect to their clients regardless of whether their company has its own presence on social media.

Question 9

Retail selling and business-to-business selling are synonymous.

Question 10

The requirements of retail sales roles in Canada are fairly narrow.

Question 11

There are approximately 10 million people working in retail in Canada.

Question 12

North American retailers that are operating outside of their countries and in other countries such as Eastern European nations can expect customers to negotiate with different methods than their home countries.

Question 13

A modified-rebuy purchase is often associated with a blanket purchase order.

Question 14

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

Question 15

Retail jobs in the nonprofit sector are expected to increase in Canada within the next few years.

Question 16

Salespeople who earn commission can earn more money by focusing on obtaining referrals.

Question 17

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 18

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

Question 19

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

Question 20

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

Question 21

In a new-task or modified-buy situation, if no firm has an advantage over another, the bid is often awarded to the salesperson who spends the right amount of time with the right person.

Question 22

According to Statistics Canada, retail sales in Canada for 2018 were approximately:

A)$105 million
B)$505 million
C)$1.5 billion
D)$255 billion
E)$605 billion

Question 23

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

Question 24

The person working in the company's research and development department would most likely be referred to as the decider.

Question 25

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 client.

Question 26

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 27

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

Question 28

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 29

Purchasing agents are generally considered to be emotional buyers.

Question 30

Which of the following best describes a retail buyer?

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

Question 31

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

Question 32

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

Question 33

Selling services is one of the easier things to sell.

Question 34

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

Question 35

"Highest price" is an example of a specific primary buying need or motive for producers.

Question 36

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

Question 37

Most non-profit organizations tend to sell tangible products.

Question 38

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 39

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

Question 40

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)providing service
B)working stock
C)ordering from a supplier
D)personal selling
E)completing transactions

Question 41

Which of the following is the correct way to handle a customer's change as described in the textbook?

A)If change is required, count it accurately, and do not place the money received from the customer in the cash drawer until you have made change and the customer has accepted it
B)If change is required, count it accurately, and place the money received from the customer in the cash drawer and then make change for the customer
C)If change is required, don't count it, and place the money received from the customer in the cash drawer and then make change for the customer
D)If change is required, don't count it, and do not place the money received from the customer in the cash drawer until you have made change and the customer has accepted it
E)If change is required, count it accurately, and place the money received from the customer in the cash drawer and make a change after add-ons have been sold so the difference can be adjusted

Question 42

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)economic demand
C)inelastic demand
D)elastic demand
E)derived demand

Question 43

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 44

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 45

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 46

According to the textbook, If the company permits their retail sales team to have their own social media accounts to connect to the clients, then the salespeople can engage in all of the following activities except:

A)Selling your own company's products alongside with your own personal business products
B)Connecting with personal contact to notify them of what the salesperson sells and where they sell it
C)Providing support to customers who are seeking help with product usage
D)Announcing upcoming promotions and sales
E)Sharing other relevant news and information to build a following

Question 47

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)economic
C)inelastic
D)elastic
E)derived

Question 48

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)this market is largely unknown to an average consumer

Question 49

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)new-task purchase
B)modified-rebuy purchase
C)modified new-task purchase
D)prototype rebuy purchase
E)straight-rebuy purchase

Question 50

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)removes fears, uncertainties, doubts
D)trial close
E)stressing benefits using urgency close

Question 51

Portable and light factory equipment and tools such as lift trucks and hand tools would be classified as:

A)Supplies listed under Foundation goods
B)Supplies listed under Facilitating goods
C)Accessory equipment listed under Foundation goods
D)Accessory equipment listed under Facilitating goods
E)Manufactured materials and parts listed under Entering goods

Question 52

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

A)schedule
B)cost
C)proposed budgets
D)products or services
E)joint demand

Question 53

Classification of goods and services in the business market is broken down into:

A)Market goods, Foundation goods, Facilitating goods
B)Entering goods, Foundation goods, Export goods
C)Entering goods, Business goods, Resale goods
D)Entering goods, Foundation goods, Facilitating goods
E)Market goods, Business goods, Facilitating goods

Question 54

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 55

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

Question 56

Call books consist of all the of the following items related to customer information except:

A)Names of family members
B)Sizes preferences
C)Employment
D)Competitive product purchases
E)Colour preferences

Question 57

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)building relationship
B)suggestion selling
C)SELL sequence closing
D)a merchandise approach
E)closing

Question 58

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 59

Which of the following is NOT an example of a non-financial reward?

A)Travel tickets
B)Recognition at work
C)Commission pay
D)Training programs
E)Increase in responsibility

Question 60

The first minute of meeting your client at the retail store is critical for developing a relationship.Which of the following is an important attribute to have for the salesperson within that first minute?

A)Judgement to see whether the client is at the store to spend money or to look around
B)Facial expression is an important part of the sale, so make sure to make proper eye contact and smile
C)Pre-plan an exit strategy if the client is taking too long
D)Focus on what you can sell to the buyer rather than what the buyer needs
E)Take 5 minutes to greet a customer, so that he/she has looked around properly

Question 61

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)a business consultant streamlining business operations

Question 62

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 63

When selling in a producer market, a salesperson can increase his/her chances of the sales by presenting the benefits to the buyer using:

A)SELL sequence
B)Value analysis
C)FAB approach
D)Benefit selling
E)Negotiation close

Question 64

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)purchaser
B)initiator
C)decider
D)influencer
E)user

Question 65

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 66

Which of the following does NOT differentiate business products from consumer products?

A)business products are often more technical in nature
B)business products are often bought on the basis of specifications and bids
C)business products are more complex in their pricing
D)business products tend to be standardized
E)business products have simple marketing promotions

Question 67

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 68

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 69

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)joint buying purchase
D)new task purchase
E)modified new-task purchase

Question 70

Salespeople focus on the benefits when selling services because the buyer cannot sample services prior to making a purchase.Which characteristic of service is highlighted here?

A)Inseparability
B)Heterogeneity
C)Perishability
D)Intangibility
E)Changing demand

Question 71

Which of the following is NOT an example of a primary buying motive in the producer market?

A)increasing profits
B)delivery service
C)increasing sales
D)payment terms
E)highest price

Question 72

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 73

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 user
C)the purchaser
D)the decider
E)an influencer

Question 74

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)user
C)influencer
D)decider
E)initiator

Question 75

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 76

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 77

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

A)the government
B)a school
C)a charity
D)the military
E)pharmaceutical company

Question 78

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 79

In the producer market, salespeople usually deal with well-trained, knowledgeable and rational buyers known as:

A)Buyers
B)Decision makers
C)Customers
D)Purchasing agents
E)Influencers

Question 80

Which of the following is NOT one of the steps involved in purchasing business products?

A)Selection of reseller
B)Recognition of the problem or need
C)Determination of product specifications
D)Search for and qualification of potential sources
E)Establishment of an order routine