Deck 9: Expanding Customer Relationships

Question 1

From the salesperson's perspective, what is the primary benefit provided by Internet-based software applications such as Netsuite^TM and Salesforce.com^TM?

A) access to information
B) faster order processing
C) more accurate billing information
D) security

Answer 1

access to information

Question 2

What is the name for proprietary computer networks created by an organization for use by its customers or suppliers and linked to the organization's internal systems, informational databases, and intranet?

A) a customer relationship management (CRM) system
B) an extranet
C) the Internet
D) Skynet

Answer 2

B

Question 3

How does the textbook define the process of improving a product or service for a customer?

A) disintermediation
B) value substitution
C) adding value
D) margin enhancement

Answer 3

C

Question 4

Which of the following aspects of salesperson behaviour has research shown to positively influence levels of customer satisfaction?

A) possessing high levels of energy and drive and commitment
B) demonstrating empathy and focus towards the customer
C) using good questioning skills and have quick answers
D) providing regular, clear, and concise communication about products and services

Question 5

When a salesperson applies relevant understanding and insight to create value-added interactions and generate relationships between the salesperson and buyer, which component of effective follow-up is he or she using?

A) interact
B) connect
C) know
D) relate

Question 6

Which of the following is considered a customer relationship enhancer?

A) focusing on the short term
B) calling sporadically
C) exaggerating and blaming someone else
D) adding value

Question 7

Jill is a salesperson for an industrial machine manufacturer. How can she demonstrate to her customers that she is committed to building mutually satisfying long-term relationships?

A) When they place an order, she must be sure to show her sincere gratitude and assure the customer that she will be back when it is time for them to make another purchase.
B) She should avoid calling on her customers unless she has something she thinks they would be interested in purchasing.
C) She should follow up with her customers on a regular basis and be especially attentive after they have placed an order.
D) She should avoid talking with anybody else in the organization other than the buyer.

Question 8

How does the textbook define the process of converting new customers into lifetime customers by continually adding value to the product?

A) building goodwill
B) customer extraction
C) value substitution
D) customer conversion

Question 9

From the customer's perspective, what is the primary benefit provided by Internet-based software applications such as Netsuite^TM and Salesforce.com^TM?

A) security of information
B) faster order processing
C) more accurate billing information
D) improved communications with suppliers

Question 10

Which of the following are PC-based software applications such as Maximizer^TM, Goldmine^TM, and ACT!^TMexamples of?

A) a marketing intelligence system (MIS)
B) an extranet database
C) a management information system (MIS)
D) a customer relationship management (CRM) system

Question 11

In the opening vignette of Chapter 9, Michael Nelson discusses the need to go beyond traditional product orientation and create value for his customers. What is he referring to?

A) addressing the product, price, promotion, and place with the customer
B) understanding the economic conditions of the customer's situation and create value with the product offering
C) determining the customer value chain and ensuring there is a product fit
D) collaborating with customers on key dimensions of innovation, supply chain, working-capital efficiencies and turnkey marketing programs

Question 12

From the customer's perspective, what is the primary benefit provided by PC-based software applications such as Maximizer^TM, Goldmine^TM, and ACT!^TM?

A) security of information
B) faster order processing
C) more accurate billing information
D) improved communications with suppliers

Question 13

When a salesperson acts to maximize the number of critical encounters with buyers to encourage effective dialogue and involvement, which component of follow-up is he or she using?

A) interact
B) connect
C) know
D) relate

Question 14

Which aspects of salesperson behaviour are demonstrated by returning telephone calls promptly, fulfilling commitments, satisfying customer requests, and being readily available?

A) responsiveness and reliability
B) empathy and focus
C) questioning skills
D) energy and enthusiasm

Question 15

When a salesperson maintains contact with the multiple individuals in the buying organization influencing purchase decisions and manages the various touch points the customer has in the selling organization to ensure consistency in communication, which component of follow-up is he or she using?

A) interact
B) connect
C) know
D) relate

Question 16

What is the name for an organization's dedicated and proprietary computer network that offers password-controlled access to people within and outside the organization (e.g., customers and suppliers)?

A) an intranet
B) an extranet
C) the Internet
D) Skynet

Question 17

Which of the following is considered a customer relationship detractor?

A) showing up only for another order
B) calling regularly
C) keeping communication lines open
D) taking responsibility for problems

Question 18

From the salesperson's perspective, what is the primary benefit provided by PC-based software applications such as Maximizer^TM, Goldmine^TM, and ACT!^TM?

A) access to information
B) faster order processing
C) more accurate billing information
D) security

Question 19

According to the textbook, which of the following aspects of salesperson behaviour has research shown to positively influence levels of customer satisfaction?

A) responsiveness and reliability
B) empathy and focus
C) questioning skills
D) energy and drive

Question 20

When a salesperson coordinates and interprets the information gathered through buyer-seller contact and collaboration to develop insight regarding the buyer's changing situation, needs, and expectations, which component of follow-up is he or she using?

A) interact
B) connect
C) know
D) relate

Question 21

What should the salesperson do next if the complaining customer proposes a viable way to resolve the complaint?

A) allow the customer to vent
B) follow through with what the customer suggests
C) offer the customer an alternative resolution
D) gain the customer's agreement that the action will resolve the complaint

Question 22

According to the textbook, which of the following best summarizes a salesperson's responsibility for customer training?

A) Salespeople should focus on selling and leave the training to the training experts.
B) Salespeople should encourage customers to provide their own training.
C) Salespeople should always use training as a bargaining tool when trying to get the buyer to make a purchase.
D) Salespeople should be involved either directly or indirectly in the training process unless otherwise specified by the customer.

Question 23

When handling customer complaints, why is it important to ask the buyer how he or she would like to have the issue resolved?

A) Asking the buyer enhances commitment and helps the salesperson to avoid proposing a solution that is either insufficient or overcompensates for the problem.
B) The salesperson avoids proposing a solution that will not make the customer happy.
C) It helps the customer feel like his or her complaints are being taken seriously.
D) Making an apology sound sincere is easier if the customer feels that he or she is being listened to.

Question 24

Oscar is a salesperson for a beer and wine distributor. One of his customers has just finished telling him that they are very unhappy because her last order contained several broken bottles. What should Oscar do after expressing empathy and taking responsibility for the problem?

A) offer the customer a discount on her next order
B) reimburse the customer for the broken bottles
C) ask the customer what she would like him to do
D) allow the customer to vent her frustration and listen attentively to get the whole story

Question 25

According to the textbook, although salespeople generally have little control over order processing and installation of the products they sell, which of the following best summarizes a salesperson's responsibility in this area?

A) Most sales managers prefer their salespeople to focus their efforts on selling rather than order processing or installation.
B) It is important for a salesperson to monitor these activities and assist when necessary to demonstrate commitment to the customer and enhance the relationship.
C) Customers expect a salesperson to do these activities as part of their job.
D) Installation rarely presents an opportunity to upsell additional products and services, but a salesperson should be there just in case.

Question 26

Jasmine is a salesperson for an office supply company. One of her customers left a message indicating that they were unhappy about the last order they received. What is the first thing Jasmine should do to resolve the customer's complaint?

A) ask the customer what he would like her do
B) ask the customer to explain the problem and then listen carefully to get the whole story
C) offer the customer a discount on his next order
D) gain agreement on a possible solution to the problem

Question 27

Which of the following is a notable difference between the recommended procedures for handling objections and for handling customer complaints after the sale, as discussed in the textbook?

A) The complaint handling procedure asks the customer how he or she would like to have the issue resolved, whereas the salesperson determines how an objection should be handled.
B) The objection handling procedure involves more negotiation skills than the complaint handling procedure.
C) The salesperson determines how a complaint should be resolved, whereas the objection handling procedure requires more collaboration with the prospect.
D) The complaint handling procedure requires more negotiation skills than the objection handling procedure.

Question 28

Which of the following best summarizes the difference between the traditional sales process and the trust-based relational sales process?

A) Salespeople using the trust-based relational sales process spend more time prospecting for new business than those using the traditional sales process.
B) The traditional sales process focuses on getting the order, while the trust-based relational sales processes focuses on earning commitment after the sale.
C) Customer satisfaction levels tend to be higher for salespeople using the traditional sales process.
D) The trust-based relational sales process focuses on getting the order, while the traditional sales processes focuses on earning commitment after the sale.

Question 29

In general, what is the best method for a salesperson to use to reduce customer complaints?

A) manage customer expectations (e.g., do not overpromise)
B) follow up daily or even hourly with the order fulfillment department
C) offer the customer a discount at the first sign of trouble to compensate for any problems experienced
D) let the trained professionals in the customer service department look after this area

Question 30

What is the most time-consuming and expensive method of providing useful information when following up with customers?

A) a personal visit
B) a telephone call
C) an email
D) a handwritten note

Question 31

When using the recommended complaint handling procedure, once the salesperson and the customer have agreed upon how to resolve a complaint, what should the salesperson do?

A) make sure that the customer has realistic expectations, and then implement the solution
B) allow the customer to vent
C) add value by following through on any promises made
D) make sure to get the agreement in writing

Question 32

According to the textbook, which of the following best summarizes a salesperson's responsibility when a postsale customer complaint arises?

A) find out who is responsible for the problem and subsequently refer the buyer to him or her
B) reassure the customer that all complaints are taken seriously and handled quickly and efficiently by the service department
C) accept responsibility for the problem regardless of who in the selling organization is at fault and take immediate steps to correct the problem
D) document the problem and send the customer the proper information on how to solve it

Question 33

What is the term for meetings in which the salesperson encourages the buyer to discuss tough issues, especially in areas in which the salesperson's organization is providing less than satisfactory performance?

A) critical encounters
B) touch points
C) service opportunities
D) complaint sessions

Question 34

With respect to building good relationships with customers, what is one of the main challenges in handling customer complaints?

A) getting the whole story without bias
B) gaining agreement on how to solve the problem
C) getting customers to say something when a problem occurs
D) determining who is at fault when a problem occurs

Question 35

What is the name for a system that links buyers and sellers into a rich communication network to establish and reinforce long-term, profitable relationships?

A) a marketing intelligence system (MIS)
B) an extranet database
C) a management information system (MIS)
D) a customer relationship management (CRM) system

Question 36

According to the textbook, one study has indicated that if a company fails to deal with customers and prospects that complain those customers will tell on average of how many people?

A) one
B) two
C) five
D) ten

Question 37

What should the salesperson do next if the complaining customer proposes a nonviable way to resolve the complaint?

A) allow the customer to vent
B) follow through with what the customer suggests anyway
C) thank the customer for the suggestion and then offer the customer an alternative resolution
D) gain the customer's agreement that the action will resolve the complaint

Question 38

What is an inexpensive but less immediate and reliable method of providing useful information when following up with customers?

A) a personal visit
B) a telephone call
C) mail (hard copy or electronic)
D) a handwritten note delivered in person

Question 39

What is the most immediate, convenient, and personal method of providing useful information when following up with customers?

A) a text message
B) a telephone call
C) an email
D) a handwritten note

Question 40

From the salesperson's perspective, what should be the primary motivation for ensuring effective handling of customer complaints?

A) to use as a stepping stone to repeat business and recommendations to others
B) to avoid having to offer discounts or incentives to keep the customer happy
C) to protect his or her reputation
D) to avoid wasting his or her time

Question 41

Which of the following best summarizes the challenge of using outstanding service quality as a competitive differentiator when attempting to acquire and maintain customer relationships?

A) Service quality matters to customers only when something bad happens to them.
B) All organizations claim to offer outstanding service quality.
C) Outstanding service quality is very difficult to achieve.
D) Most customers today have very low expectations for service quality.

Question 42

According to the textbook, which benefit of service enthusiasm is facilitated by all those within the organization who have contact with customers?

A) the reputation of the sales person
B) providing good customer service on the first sale
C) putting the convenience of the customer first
D) an organizational culture focused on providing good service

Question 43

According to the textbook, which benefit of service enthusiasm can take a long time to establish but only one negative event to destroy?

A) the reputation of the salesperson
B) the profit earned by providing good customer service on the first sale
C) putting the convenience of the customer first
D) an organizational culture focused on providing good service

Question 44

Which of the following customer service dimensions refers to a salesperson's ability to maintain a positive attitude regardless of how he or she is treated by customers?

A) communication
B) reliability
C) resilience
D) service motivation

Question 45

What is the term for a plan in which a salesperson identifies his or her business and customers, what the customers want, and what is important to them?

A) a service strategy
B) a business plan
C) a unique selling proposition
D) a marketing strategy

Question 46

Which benefit of service enthusiasm is enabled by efficient operations, cost savings, and doing things correctly?

A) the reputation of the sales person
B) the profit earned by providing good customer service on the first sale
C) putting the convenience of the customer first
D) an organizational culture focused on providing good service

Question 47

Using exaggeration to get an order is a generally accepted practice in professional selling.

Question 48

Which of the following statements regarding customer expectations is most appropriate for salespeople to remember?

A) Many seller-customer relationships fail due to unmet expectations.
B) It is better to keep the customer's expectations realistic so as not to disappoint him or her in the future.
C) Competition will do more to manage your customers' expectations than you will.
D) Customer dissatisfaction is often the result of poor service expectations.

Question 49

Routine follow-up with customers is important to building successful long-term relationships.

Question 50

According to the textbook, which of the following statements regarding managing customer expectations best summarizes what salespeople should strive to achieve?

A) A salesperson should strive to match the customer's expectations to what is provided by his or her most direct competition.
B) The higher the customer's expectations, the better, provided the seller can meet or exceed those expectations.
C) Customer expectations of the selling organization should be set as high as possible to provide for reach in the service quality objective.
D) The lower the customer's expectations, the better, so that the seller can easily and consistently exceed those expectations.

Question 51

Simone is a sales representative for an industrial chemical company. Over the next few months, Simone plans to have some members of her organization's R&D department visit her customers to see how they use the products. Why is Simone doing this?

A) She wants the people from the R&D department to handle any technical complaints that come up.
B) She is making an effort to expand collaborative involvement between her company and her key accounts.
C) She is trying to impress her customers by showing her organization's expertise in research and development.
D) She is trying to build goodwill with her customers by showing that her organization cares.

Question 52

Which of the following customer service dimensions refers to a salesperson's ability to provide service accurately, consistently, and dependably?

A) communication
B) reliability
C) resilience
D) service motivation

Question 53

Focusing on the long term and taking responsibility for problems are known relationship detractors.

Question 54

Which of the following is the last step in the recommended procedure for resolving customer complaints?

A) listen carefully and get the whole story
B) gain agreement on a solution
C) take action; educate the customer to ensure realistic expectations
D) follow through on all promises; add value

Question 55

What is the purpose of a salesperson developing a service strategy?

A) to achieve cost savings by providing high levels of customer service
B) to develop superior levels of customer service that result in high rates of customer retention
C) to incorporate customer service into the unique selling proposition offered by the organization
D) to achieve effective implementation of the organization's marketing strategy

Question 56

Which of the following customer service dimensions refers to a salesperson's desire to work with and properly service customers on a daily basis?

A) communication
B) reliability
C) resilience
D) service motivation

Question 57

Anthony is a purchasing agent for a hospital. One day the hospital receives a shipment from a supplier with several items missing. Anthony calls the supplier and talks to a customer service representative, who is very friendly and helpful. Anthony calls the supplier again the next day but talks to a different customer service representative, who is not as friendly and not as helpful. What type of problem does the supplier have involving its customer service?

A) Customer service people are hard to train.
B) The quality of the service provided is inconsistent across customer service agents.
C) The first customer service agent set an unrealistic expectation.
D) The second customer service agent needs more training.

Question 58

Why does an organization host seminars, training sessions, and social engagements with customers?

A) to look for additional selling opportunities
B) to create positive feelings toward the selling organization
C) to expand collaborative involvement between organizations
D) to improve the efficiency of the training budget

Question 59

According to the textbook, which benefit of service enthusiasm is provided by open communication, readily accessible sales personnel, and user-friendly feedback systems?

A) the reputation of the sales person
B) providing good customer service on the first sale
C) putting the convenience of the customer first
D) an organizational culture focused on providing good service

Question 60

For many salespeople, the core products they are selling provide the same features and benefits as those of their competitors, which make building long-term relationships more difficult. Which of the following statements is true regarding dealing with this type of competitive environment?

A) The best way to build long-term relationships is to offer the lowest price.
B) Competing on the basis of value provided tends to generate the least loyal customers.
C) The best way to build long-term relationships is to offer superior service quality.
D) Good salespeople are the only long-term source of competitive differentiation that produces loyal customers.

Question 61

In order to avoid damage to the buyer-seller relationship, the salesperson should blame other members of the selling organization for any problems that lead to a customer complaint.

Question 62

The salesperson's coordinating and interpreting the information gathered through buyer-seller contact and collaboration to develop insight regarding the buyer's changing situation, needs, and expectations takes place in the relate component of effective follow-up.

Question 63

For the relational salesperson, it is safe to say that the real work does not begin until after the order is signed.

Question 64

Salespeople should not be involved in customer training because it just confuses the customer as to what their role and responsibilities should be.

Question 65

One advantage of computer technology is that salespeople can now track their orders in real time and, subsequently, relate the appropriate information to their customers.

Question 66

A customer's problems not being taken seriously by the selling organization is a typical customer complaint.

Question 67

Traditional selling and relational selling are pretty much the same with respect to postsale follow-up activities.

Question 68

The most personal method for a salesperson to provide useful information when following up is the telephone call.

Question 69

The use of salesforce automation tools such as CRM programs adds value at the third component of effective follow-up, which is know.

Question 70

The process of improving a product or service for the customer is known as building goodwill.

Question 71

Complaints will never be completely eliminated by any company.

Question 72

The first sequential component of effective follow-up is connecting with customers.

Question 73

It is not uncommon for buyers to feel neglected by the salesperson once they have placed an order.

Question 74

With respect to relational selling, it is the salesperson's job to follow up with the customer after a sale has been made in order to ensure customer satisfaction.

Question 75

Regardless of fault, a salesperson should take responsibility for problems anyone in the selling organization has caused the buyer.

Question 76

A salesperson focusing on the short term and overpromising and underdelivering is likely to have difficulty building strong customer relationships.

Question 77

Salespeople should always encourage their customers to express their complaints.

Question 78

Typically installers do not have the same relationship with customers.

Question 79

A salesperson should actively seek and manage information gathered through buyer-seller contact and collaboration to develop insight regarding the buyer's changing situation, needs, and expectations.

Question 80

Email is a good way for a salesperson to stay in touch with the customer because it guarantees the customer will get the message.