Question 1

Which of the following is used when selling more of the firm's product or services to existing customers?

Accepted Answer

Market penetration is the strategy used when a firm wants to sell more of its products or services to its existing customers. It involves increasing the market share of the firm in its current markets.

Question 2

In personal selling,_____ means cleaning up the list to remove potential clients that are unable or unlikely to buy a business owner's product.

Accepted Answer

Prequalifying involves evaluating potential clients to determine if they are able and likely to buy the product. This process helps salespeople avoid wasting time and resources on individuals who are unlikely to make a purchase. Therefore, B is the best answer. Prospecting involves seeking out potential new clients, while polarizing refers to creating a division among potential clients by identifying their needs and preferences. Closing is the final step in the sales process, where the salesperson attempts to secure the sale.

Question 3

Which of the following is true of cognitive dissonance?

Accepted Answer

Cognitive dissonance is the uncomfortable feeling that occurs when there is inconsistency between one's beliefs and actions. It is more likely to occur when the purchase involves a high cost or is considered important, rather than with lower-risk purchases.

Question 4

The steps in Blank and Dorf's "Get Customers" funnel are awareness,interest,consideration,and purchase.Here,consideration refers to:

Accepted Answer

Consideration refers to the process of getting into the prospective customer's final list of brands of products or services they may purchase. At this stage, the customer is actively considering your product/service and comparing it with other options available in the market.

Question 5

In personal selling,_____ means finding out about the clients before approaching them.

Accepted Answer

Preparation in personal selling refers to researching and gathering information about potential clients to understand their needs and preferences before approaching them. This enables the salesperson to tailor their approach and presentation to better match the client's needs and increase the chances of making a sale. Prospect is the process of identifying potential clients, evaluation happens during the presentation and assessment of the client's needs and preferences, and closing is the final step of convincing the client to make a purchase.

Question 6

Which of the following is true of personal selling?

Accepted Answer

Personal selling allows the salesperson to adapt their presentation and approach to the specific needs and concerns of the buyer, making it a flexible sales approach. Option A refers to public relations, not personal selling. Option B is incorrect because personal selling is often used to uncover the buyer's concerns and tailor the sales pitch to address those concerns. Option C describes a joint venture, not personal selling.

Question 7

Serial entrepreneurs Steve Blank and Bob Dorf came up with a more inclusive approach than the standard marketing funnel.Which of the following is not one of the major goals of their new approach?

Accepted Answer

Steve Blank and Bob Dorf's approach focuses on customer development and the lifecycle of acquiring, keeping, and growing customers. Identifying customers is a part of the process but not listed as a major goal in their specific methodology, which emphasizes actions and strategies over the identification phase.

Question 8

Closing a sale refers to:

Accepted Answer

Closing a sale involves obtaining a commitment from the customer to make a purchase.

Question 9

_____ is a strategy whose goal is growth,based on selling in areas or to groups previously not served by the business.

Accepted Answer

Market expansion is a strategy that aims to achieve growth by selling to new areas or groups that were not previously served by the business. Market penetration, on the other hand, is a strategy that aims to increase market share by selling more of the existing products in the current market. Product expansion and diversification, on the other hand, refer to strategies aimed at introducing new products or entering new markets, respectively.

Question 10

While closing a sales call,when a sales person says "I'll just need your credit card for payment," he is using the sales closing technique of _____.

Accepted Answer

The sales person is using the assumptive close, where they assume that the customer has agreed to make the purchase and will provide their credit card information for payment.

Question 11

Putting together a list of prospective clients is called _____.

Accepted Answer

Prospect is a term used to describe someone who may become a customer, and prospecting is the process of finding potential clients. Therefore, putting together a list of prospective clients is called prospecting. The other options do not accurately describe this process.

Question 12

Which of the following is true of customer retention?

Accepted Answer

Customer retention focuses on ensuring that customers continue to patronize a business for the long-term. This involves handling problems that may arise after a sale, addressing customer grievances and complaints, and ensuring that they have a positive experience. The CRM aspect of customer retention involves using data and insights to better understand customer behavior and preferences, which can inform marketing and sales efforts to encourage future purchases. Overall, customer retention is about building a strong, ongoing relationship with customers, rather than just making a one-time sale.

Question 13

In which of the following stages of personal selling does an entrepreneur collect background information before selling the actual product or service?

Accepted Answer

In the prospect and evaluate stage, an entrepreneur identifies potential customers and gathers information about their needs and preferences, which is crucial for tailoring the sales approach and product offering.

Question 14

_____ is a strategy whose goal is growth,based on selling more of the firm's product or service to the existing customer base.

Accepted Answer

Market penetration is a strategy that focuses on increasing sales of existing products or services to the company's current customer base. This can be achieved through various methods such as increasing advertising, lowering prices, or introducing loyalty programs. The goal of this strategy is to increase market share and revenue without introducing new products or services.

Question 15

Product expansion is a strategy whose goal is growth,based on:

Accepted Answer

The answer of Product expansion is a strategy whose goal...

Question 16

Doubt that occurs after a purchase has been made is called _____.

Accepted Answer

Cognitive dissonance is the feeling of doubt or discomfort that may arise in a customer after making a purchase. It is the feeling of uncertainty about whether the decision to purchase was the right one.

Question 17

Which of the following is the key to customer relationship management (CRM)?

Accepted Answer

The data on current or prospective customers is the key to customer relationship management (CRM). It allows companies to understand their customers' needs and preferences, and to tailor their marketing and sales efforts accordingly. Options A, B, and D may be important for running a successful business, but they are not specifically related to customer relationship management.

Question 18

Diversification is a strategy whose goal is growth,based on:

Accepted Answer

Diversification refers to adding new products or services to the company's existing collection of offerings. It involves expanding the company's business into new markets or industries, thereby reducing the risks associated with relying on a single product or service. This can lead to growth opportunities and increased profitability for the business. Option A, B, and C refer to strategies of increasing sales to existing customers, entering new markets or customer groups, and introducing new products to existing customers, respectively, but they do not necessarily involve diversification.

Question 19

Which of the following is an advantage of personal selling?

Accepted Answer

Personal selling allows business owners to directly interact with the buyers and find out their main concerns, which can be addressed in real-time. This leads to better relationship building and increased sales. The other options - A, B, and D - are not advantages of personal selling.

Question 20

An inconsistency between experience and belief refers to:

Accepted Answer

Cognitive dissonance is a term used to describe the mental discomfort that arises from holding two conflicting beliefs or attitudes. In this case, there is a discrepancy between a person's experience (what they have encountered) and their belief (what they think is true). This contradiction can lead to feelings of discomfort or even psychological distress.

Quiz 10: Small Business Promotion: Capturing the Eyes of Your Market