Deck 2: Building Trust and Sales Ethics

Question 1

Which statement best describes a key difference between traditional sales tactics and today's trust-based relationship selling methods?

A) In trust-based relationship selling, dependability takes on greater importance.
B) Traditional selling tactics focus more on logistical issues to demonstrate trust.
C) In trust-based relationship selling, the concept of trust is based on a larger set of factors.
D) Traditional selling tactics require higher levels of trust to be successful.

Answer 1

C

Question 2

Increased competition has resulted in buyer's markets in most industries. How has that affected personal selling?

A) a renewed emphasis on adversarial, win-lose approaches to selling
B) buyers preferring to spread out purchasing between more sellers
C) a move toward long-term buyer-seller relationships based on trust and mutual achievement of objectives
D) sellers preferring to do more profitable business with fewer buyers

Answer 2

C

Question 3

Helga is a salesperson for a business insurance company. Recently, she told several of her customers about new legislation that may adversely affect their businesses. How is Helga earning trust?

A) Her customers will perceive her to be likeable.
B) Her customers will perceive her to be candid.
C) Her customers will perceive her to be dependable.
D) Her customers will perceive her to be customer-oriented.

Answer 3

D

Question 4

What aspect of trust is addressed by a salesperson who can be relied upon to keep his or her promises?

A) expertise
B) dependability
C) candour
D) compatibility

Question 5

As a salesperson for an electrical parts wholesaler, Imad is very careful not to share information with respect to the operations of one of his customers with another. Which aspect of trust does this illustrate?

A) confidentiality
B) reliability
C) security
D) honesty

Question 6

According to the textbook, what is the challenge associated with the concept of trust in the?context of buyer-seller relationships?

A) The seller defines trust, and it can mean different things to different people.
B) The concept of trust is universally understood.
C) The buyer defines trust, and it can mean different things to different people.
D) The concept of trust is not necessarily a requirement for doing business in today's highly automated markets.

Question 7

Suppose you are a salesperson for a salesforce automation consulting company. After working with a potential customer for several weeks, you determine that a lower-cost and lower-margin solution is best for your customer. Although a more-expensive and higher-margin system will work, by recommending the lower-cost solution, what are you demonstrating?

A) dependability
B) knowledge
C) likeability
D) customer orientation

Question 8

What aspect of trust is addressed by a salesperson who is honest in his or her spoken word and whose presentations are fair and balanced?

A) compatibility
B) dependability
C) candour
D) customer orientation

Question 9

When a salesperson makes an effort so that buyers like doing business with him or her and the company, which of the following aspects of trust is being addressed in a sales context?

A) dependability
B) candour
C) customer orientation
D) compatibility

Question 10

Omar is a new sales rep for an automotive supplier. He is careful to never be late for an appointment and to always follow through immediately on promises he makes to his customers. These behaviours help Omar to build trust with his customers. What do his customers perceive Omar to be?

A) an expert
B) candid
C) dependable
D) competent

Question 11

According to the textbook, what describes the extent of the buyer's confidence that he or she can rely on the salesperson's integrity?

A) trust
B) empathy
C) dependability
D) honesty

Question 12

What aspect of trust is addressed by a salesperson knowing what he or she needs to know, and by his or her company having the ability and resources to get the job done right?

A) expertise
B) dependability
C) candour
D) customer orientation

Question 13

As a successful salesperson for an automotive parts manufacturer, Zach is known by his customers for always following through on any commitments he makes. Which of the following aspects of trust does this illustrate?

A) confidentiality
B) honesty
C) security
D) dependability

Question 14

Hunter is a new salesperson who does not yet possess a great deal of product knowledge. He is often asked questions to which he does not know the answer. By being upfront with his customers about not knowing the answers and then making an effort to find them, how does Hunter build trust?

A) He is perceived as an expert.
B) He is perceived as candid.
C) He is perceived as compatible.
D) He is perceived as competent.

Question 15

The introduction to Chapter 2 focuses on Megan Foley, a vice president of an engineering firm. What does Megan suggest that business owners employ as a secret weapon to boost sales and build more solid client relationships?

A) a code of ethics to guide employee behaviour
B) a security system for client information
C) the power of trust as a competitive differentiator
D) using competitive intelligence to improve a product or service offering

Question 16

Salespeople often adapt their appearance and communication style to that of their customers. How does this help them to build trust?

A) Their customers perceive them as being experts.
B) Their customers perceive them as being customer-oriented.
C) Their customers perceive them as being compatible.
D) Their customers perceive them as being candid.

Question 17

As a salesperson for a construction materials manufacturer, Rachel focuses on providing her customers with any and all information she has available regarding the products she sells and any interactions that take place between buyer and seller. Which aspect of trust does this illustrate?

A) integrity
B) reliability
C) security
D) openness

Question 18

According to the textbook, what will long-term sales success in any industry be built on?

A) repeat business from customers in long-term purchase contracts
B) customer referrals from satisfied customers who trust their salesperson
C) salespersons commitment to the business
D) stability of salesperson representation

Question 19

As an experienced and successful salesperson for a clothing manufacturer, Lise takes care to always follow company policies and procedures when dealing with her customers. Which aspect of trust does this illustrate?

A) confidentiality
B) reliability
C) security
D) honesty

Question 20

What aspect of trust is addressed by a salesperson who truly cares about partnerships with customers, advocating for them in the event of a problem arising?

A) dependability
B) candour
C) customer orientation
D) honesty

Question 21

Ivan has been selling lawn service door-to-door for the past ten years. Recently, he took a new job selling industrial cleaning equipment to large factories and institutions where he was assigned a territory that contained 35 long-term accounts. Ivan is having trouble adjusting to his new role. What is the most likely source of his difficulty?

A) Ivan is having trouble trying to keep busy due to the greater amount of free time available in his new position.
B) Ivan is having difficulty relating to his new customers, who seem to be more concerned with the technical aspects of the industrial equipment than how it will solve their problems.
C) In contrast to his previous job, Ivan now has to develop and maintain long-term relationships based on trust.
D) The customers that Ivan is now calling on are only concerned about price and delivery terms.

Question 22

Why should salespeople have a complete understanding of their companies' pricing policies?

A) because they are often responsible for negotiating price with their customers
B) because they must avoid getting into costly price negotiations with customers
C) because they must prevent being legally obligated to honour a quoted price
D) because they want to be perceived as being more dependable

Question 23

In order to better understand their own product's position in the marketplace, what do salespeople need?

A) a high degree of technical knowledge
B) a high degree of competitor knowledge
C) a high degree of product knowledge
D) a high degree of customer knowledge

Question 24

Technology has provided faster and more efficient ways for salespeople to communicate with their customers. With respect to communicating with customers, which strategies should salespeople follow?

A) Use e-mail because it is quick and can be read/sent any time of the day or night.
B) Use voice mail because most people are familiar with it.
C) Use the telephone because it is inexpensive and allows for two-way interaction.
D) Use whatever communication method the customer prefers.

Question 25

According to the textbook, why should a salesperson have a good knowledge of the company he or she works for and the industry in which it competes?

A) It helps to ensure consistent levels of value-added service to customers.
B) Knowing the company's history provides valuable context for understanding its current strategy.
C) Knowing the industry will provide the salesperson with competitive salary information.
D) Company and industry knowledge are two areas that customers often use to test new salespeople at the beginning of a relationship.

Question 26

According to the textbook, which type of communications technology sometimes backfires on sales organizations by actually frustrating their customers rather than helping them?

A) e-mail
B) facsimile
C) voice mail
D) texting

Question 27

According to the textbook, which of the following most accurately reflects buyers' information needs?

A) Buyers need to know everything about the markets in which they compete.
B) Buyers are not interested in factual knowledge unless it relates to fulfilling their specific needs.
C) Buyers are interested in learning as much factual knowledge as they can.
D) Buyers don't expect salespeople to be able to provide them with valuable information.

Question 28

In order for salespeople to fine-tune a market offer to the specific needs of their customers, what part of their knowledge base must be strong?

A) industry
B) market
C) technology
D) product (including service and price)

Question 29

Pierre is a new salesperson for Ace Computer Co. and is responsible for business-to-business sales. Because he transferred from the engineering staff, Pierre knows better than any other salesperson the technical specifications and performance statistics of the computers he sells. Unfortunately, Pierre is relatively unfamiliar with how businesspeople use the computers on a day-to-day basis. Which type of knowledge does Pierre need to work on?

A) industry
B) competitor
C) technical
D) market and customer

Question 30

According to the textbook, what would be the primary objective of a salesperson working to achieve high levels of market, customer, and competitor knowledge?

A) to reduce the length of time spent preparing for sales calls
B) to improve his or her ability to communicate with buyers on their level
C) to determine his or her differential competitive advantage in the marketplace
D) to provide high levels of service differentiation

Question 31

Which trend has helped salespeople the most to improve their knowledge of markets and customers in order to build trust?

A) increased number of companies switching to trust-based relationship selling
B) increased educational requirements for hiring salespeople
C) increased emphasis on privacy and security of information
D) increased access to information via the Internet, smartphones, and e-mail

Question 32

According to the textbook, to thoroughly know the industry and your customers' business, you must know _______________?

A) where to find the information
B) who your competitor is
C) what price was paid for the last order
D) who was the previous salesperson in your territory

Question 33

In order for salespeople to be able to deliver complete comparative product information in sales presentations, what must they possess?

A) customer knowledge
B) adaptability
C) competitor knowledge
D) confidence

Question 34

With respect to developments in communications technology, why did the facsimile machine have a major effect on personal selling?

A) Most facsimile machines can send and receive at the same time.
B) Facsimile machines made possible the electronic transmission of signed purchase orders.
C) Facsimile machines can send one document to multiple locations simultaneously.
D) Using facsimile machines reduced the amount of paper used in the selling process.

Question 35

According to the textbook, how have many companies responded to the increased need for salespeople to have specialized market and customer knowledge?

A) by increasing educational requirements when hiring
B) by segmenting their overall customer base by type
C) by increasing training requirements for new hires
D) by encouraging salespeople to obtain memberships in relevant trade associations

Question 36

Which statement best describes the key difference between compatibility/likability and the other dimensions used by salespeople to build trust?

A) Compatibility/likability should also be established with key gatekeepers within the customer's organization in addition to the customer.
B) The dimension of compatibility/likability is less important than the other dimensions used to build trust, as customers tend to pay more attention to value created than to emotion.
C) Due to sales force turnover, the dimension of compatibility/likability is the least transferable dimension used to build trust.
D) It is difficult to prove that a relationship exists between compatibility/likability and purchase intentions.

Question 37

Which statement best describes the relationship between knowledge and trust in a sales context?

A) The more the salesperson knows, the easier it will be to build trust and gain the confidence of buyers.
B) The more the buyer knows, the easier it will be to build trust and have confidence in sellers.
C) Research has shown that there is no relationship between knowledge and trust in a sales context.
D) Salespeople trying to sell to customers who have high levels of product knowledge often find that conversations end in arguments over technical details of the products.

Question 38

Which statement best characterizes the relationship between product knowledge and sales success?

A) Product knowledge is best shared in moderation to avoid appearing like a know-it-all.
B) Product knowledge helps to establish credibility and trust with customers.
C) Salespeople are not expected to have high levels of product knowledge, as this is what technical support specialists do.
D) To be successful, salespeople only need to know the features of the products that they sell.

Question 39

With respect to developments in communications technology, how have cell phones had both positive and negative effects on personal selling?

A) Intense competition between cell phone service providers has reduced long distance charges but increased equipment surcharges.
B) Cell phones provide for more human interaction than facsimile machines, which is less productive.
C) Buyers, sellers, and managers have immediate access to each other.
D) Using cell phones cuts down on the amount of paper used in the selling process, which can create problems when attempting to trace mistakes in order processing.

Question 40

According to the textbook, what does ethics refer to?

A) correct behaviour for the situation at hand
B) the right and wrong conduct of individuals and the institutions of which they are a part
C) moral conduct as determined by the government and society
D) laws governing orderly behaviour within society

Question 41

What is the relationship between personal selling and ethics?

A) Salespeople are exposed to greater ethical pressures than those in other occupations.
B) Research has shown that highly ethical salespeople are more successful than those who are not.
C) Salespeople have few opportunities to engage in unethical behaviour because of the high visibility of their activities.
D) Enforcing high ethical standards in the sales profession is made easier by the large governing bodies that regulate the industry.

Question 42

According to the textbook, why are salespeople interested in ethical behaviour?

A) Sales ethics are closely related to trust, which forms the basis for a successful selling approach in today's marketing environment.
B) Sales ethics have changed over time as customers have become more accepting of minor ethical transgressions due to increasingly competitive markets.
C) Salespeople have few opportunities to engage in unethical behaviour because of the high visibility of their activities.
D) Salespeople must respond to the ethical standards set by their customers.

Question 43

Which of the following areas of unethical behaviour include a salesperson being pushy and using hard-sell tactics, fast talking, and high pressure?

A) deceptive practices
B) illegal activities
C) noncustomer-oriented behaviour
D) negligence

Question 44

According to the textbook, what is the Canadian Competition Act term for an illegal agreement between sellers to prevent or unduly lessen competition or to unreasonably enhance the price of a product by selling at the same price?

A) price fixing
B) bid rigging
C) price discrimination
D) predatory pricing

Question 45

With respect to sales and ethics, which statement is the most accurate?

A) Ethics are universal, so they are the same in every country.
B) Because ethical standards for a profession are based on society, they may vary from country to country.
C) Ethical standards are, by definition, legal standards and should be enforced consistently.
D) Salespeople are less susceptible to engaging in unethical behaviour because of the high visibility of their activities.

Question 46

According to the textbook, what is the Canadian Competition Act term for an agreement in which competitors agree in advance who will win a contract based on the tenders submitted?

A) price fixing
B) bid rigging
C) price discrimination
D) predatory pricing

Question 47

What is the term for fees or commissions paid on the recruitment of others to make sales rather than on the basis of product sales?

A) pyramid selling
B) express warranty
C) bait and switch selling
D) predatory pricing

Question 48

What is the term for making a false claim about a product or its performance?

A) pyramid selling
B) express warranty
C) misrepresentation
D) negligence

Question 49

As presented in the textbook, both the Sales and Marketing Executives International (SMEI) and Canadian Professional Sales Association (CPSA) publish a professional salesperson's code of ethics. Which statement best characterizes a salesperson's motivation for adhering to these codes?

A) Failure to adhere to the code of ethics results in sanctions against the member and a significant financial penalty.
B) Failure to adhere to the code of ethics results in legal action being taken against the member.
C) Failure to adhere to the code of ethics results in losing membership in the organization and the right to use the respective sales professional designation.
D) Failure to adhere to the code of ethics results in lost sales due to lack of trust and loss of reputation.

Question 50

Which of the following areas of unethical behaviour would include defrauding or conning customers and misusing company assets?

A) deceptive practices
B) illegal activities
C) noncustomer-oriented behaviour
D) negligence

Question 51

A salesperson entering and driving his company car on amateur night at the local drag racing strip would most likely be considered guilty of which of the following areas of unethical behaviour?

A) deceptive practices
B) misrepresentation
C) misuse of company assets
D) negligence

Question 52

What do all provinces in Canada use to attempt to protect consumers from the persuasive influence of salespeople?

A) standards of practice known as the buyer's remorse clause
B) legislation known as a cooling off period
C) industry-specific codes of ethical behaviour
D) legislation restricting negligence in selling behaviour

Question 53

Which of the following areas of unethical behaviour would include being dishonest, exaggerating, hustling or scamming customers, and withholding information?

A) deceptive practices
B) illegal activities
C) noncustomer-oriented behaviour
D) negligence

Question 54

What is the term for a salesperson making a claim about a product or its performance without exercising reasonable care to make sure that the claim is accurate?

A) pyramid selling
B) express warranty
C) misrepresentation
D) negligence

Question 55

According to the textbook, in addition to personal ethics, which of the following provides a basis for deciding what is right and wrong in a given situation?

A) laws governing orderly behaviour within society
B) group norms of behaviour
C) cultural values
D) formal codes of conduct

Question 56

What is being practised by firms or individuals that advertise products at bargain prices that are not available in reasonable quantities, with the intent to try to sell more expensive products instead?

A) bait and switch selling
B) predatory pricing
C) price discrimination
D) price fixing

Question 57

According to the textbook, why do many people hold negative stereotypes of salespeople?

A) In the past, media such as the press and popular entertainment have fostered the negative image of salespeople.
B) People who interact with salespeople on a frequent basis perpetuate negative stereotypes of salespeople.
C) The development of professional codes of ethics by companies has drawn attention to the problems of the profession.
D) Concern regarding corporate governance due to recent scandals such as Enron has focused attention on unethical behaviour by salespeople in many industries.

Question 58

According to the textbook, what is a salesperson doing when knowingly and systematically selling the same goods or services at different prices to different buyers?

A) price fixing
B) bid rigging
C) price discrimination
D) predatory pricing

Question 59

Sometimes a firm or an individual deliberately sets prices to incur losses for a long time, either to eliminate a competitor, or to inhibit competition in the expectation that the firm or individual will be able to recoup its losses later by charging prices above competitive levels. According to the textbook, what is the term for this?

A) price fixing
B) bid rigging
C) price discrimination
D) predatory pricing

Question 60

What is the term for a salesperson providing a warranty or guarantee that obligates the selling company even if the salesperson does not intend to honour the warranty?

A) pyramid selling
B) express warranty
C) misrepresentation
D) negligence

Question 61

A salesperson working on developing a customer orientation will place as much emphasis on the short-term needs of the customer as on his or her own needs.

Question 62

The dependability of a salesperson's actions is known as predictability.

Question 63

Keeping promises made to customers is important for a salesperson to build candour.

Question 64

After making a number of sales calls on a new customer, Frank was relieved and excited to receive a large order from this customer via cell phone while driving home from his sales territory. From an ethical perspective, what should Frank do?

A) As an order given verbally is an enforceable contract, Frank does not need to do anything more at the present time.
B) Frank should immediately confirm the details of the sale in writing to the customer to minimize any risk of disagreement due to misunderstanding.
C) As an order given verbally is not an enforceable contract, Frank needs to get a signed sales order sent by facsimile or e-mail for it to be legally binding.
D) To avoid misrepresentation, Frank needs to offer the customer the benefit of a thirty day cooling off period for orders given verbally.

Question 65

Expertise is important to building trust in a sales context because buyers want to deal with salespeople who know how to help them achieve their bottom-line objectives.

Question 66

Trust is composed of a variety of components, including honesty, candour, competence, and customer orientation.

Question 67

To be successful, long-term buyer-seller relationships need to be based on mutual trust and value-added benefits.

Question 68

Due to its universal nature, trust in a transaction-oriented sales interaction and in relationship selling is essentially the same.

Question 69

In today's highly competitive markets, building rapport with professional buyers is considered unnecessary to the selling process.

Question 70

Salespeople who cover both the pros and cons of their market offer while making sales presentations are more likely to be perceived as customer-oriented than those who do not.

Question 71

Reliability and integrity are important components of trust.

Question 72

Trust in a selling relationship can mean different things to different people.

Question 73

Salespeople who are trusted and perceived as customer-oriented may be considered by their customers as advisers rather than salespeople.

Question 74

Research has shown that knowledge is of little importance when it comes to building trust with customers.

Question 75

Lina has been selling automobile manufacturing equipment for the past five years and lately has been under considerable pressure to achieve her sales objectives due to poor economic trends in her area. In a recent sales presentation, Lina exaggerated the performance capabilities of the proposed equipment and later received a substantial order from the customer. From an ethical perspective, which of the following statements best describes her situation?

A) As long as her exaggerations were made verbally, she cannot be held liable for any shortcomings in performance of the equipment sold.
B) Lina knows that she can rely on the concept of implied warranty to relieve the company of any liability for performance problems with the equipment sold.
C) Salespeople exaggerating the performance capabilities of their products are an expected part of business and customers know to discount such claims when making a decision.
D) Due to the concept of the basis of the bargain, Lina is guilty of misrepresentation, and her company may be held liable for any shortcomings in performance of the equipment.

Question 76

In a selling context, trust and honesty mean the same thing.

Question 77

Likeability and compatibility are necessary for trust building with customers.

Question 78

In a selling relationship, the seller defines the meaning of trust.

Question 79

Stretching the truth to secure an order from a customer is the easiest way for a salesperson to build candour, an important component of trust.

Question 80

Developing expertise is not enough to build trust; a salesperson must translate this expertise to make contributions for the buyer.