Deck 13: Negotiating Buyer Concerns

Question 1

Negotiation is defined as "working to reach an agreement that is satisfactory to either the buyer or the seller."

Answer 1

False

Question 2

When a prospect has voiced an objection,it is most likely best for the salesperson to:

A) suggest postponing the negotiations
B) divert attention to a product feature
C) illustrate the product's high quality
D) deny the accuracy of the objection
E) clarify the true nature of the problem

Answer 2

E

Question 3

Direct denial may be appropriate when a customer's objection is based on misinformation.

Answer 3

True

Question 4

A stall tends to mean that the customer appreciates the benefits of a product but is unwilling to engage in negotiations.

Question 5

A buyer's resistance to a salesperson's product is usually caused by:

A) the salesperson failing to negotiate well
B) another product satisfying the buyer's needs
C) friends and acquaintances recommending the product
D) the product's advanced stage in the product life cycle
E) the product's price being equal to the buyer's current product

Question 6

If you believe in your product and understand its unique features,then preparing for price resistance is unnecessary.

Question 7

A growing number of professional buyers have completed training in negotiation.

Question 8

Sales resistance is a natural response that tends to provide the salesperson with valuable information about the consumer.

Question 9

Which tactic would most likely be used by buyers trained in price negotiation?

A) product compromise
B) sixty-forty
C) budget limitation
D) cards on the table
E) maybe...if

Question 10

When people say,"Your price is too high," they probably mean,"You haven't sold me yet."

Question 11

The foundation for win-win negotiations is a relationship with the customer built on trust and rapport.

Question 12

Research shows that a neutral third party's testimony tends to provide a weak argument when answering a customer's concern.

Question 13

The "budget limitation tactic" is often used by buyers who have been trained in negotiation.

Question 14

Adding value with a cluster of satisfactions would be an effective way to deal with:

A) time resistance
B) adaptive selling
C) price resistance
D) third-party testimonials
E) decision postponements

Question 15

According to the text,you usually get what you deserve,no matter how you negotiate.

Question 16

Which of the following is an acceptable method of negotiating the price objection?

A) Make price the focal point of your presentation.
B) Clarify the link between price and quality.
C) Focus on an individual product feature.
D) Apologize for the product's high prices.
E) Lower the price if the customer balks.

Question 17

In some cases the statement,"I don't need your product," is a conditioned response.

Question 18

The direct-denial method of negotiating objections is a very common approach used in the field of selling.

Question 19

Traditional selling principles stressed that the "we versus they" and the "win-win" were similar concepts for negotiating sales resistance.

Question 20

Customers who perceive added value are less likely to choose a competing product simply on the basis of price.

Question 21

Cost represents the:

A) relationship between price and amortization
B) initial amount the buyer pays for the product
C) amount the buyer pays for a product as it is used over a period of time
D) true value of the product in non-financial terms
E) buyer's contribution to the negotiations

Question 22

A salesperson should most likely review the benefits of the product before making price concessions to a buyer who engages in ________ tactics.

A) budget limitation
B) take-it-or-leave-it
C) let-us-split-the-difference
D) "if...then"
E) "sell low now, make profits later"

Question 23

If a customer tells a sales representative from Johnson Supply,"I've always purchased my supplies from the Ralston Company," this person is most likely raising an objection to:

A) product
B) time
C) need
D) source
E) price

Question 24

Balance of power is most likely the issue a salesperson must consider when responding to a ________ tactic.

A) budget limitation
B) feel-felt-found
C) let-us-split-the-difference
D) "if...then"
E) "sell low now, make profits later"

Question 25

If a company uses a low-price strategy,the company should most likely consider which of the following when negotiating with transactional buyers?

A) selling at the cost of manufacturing the product to improve economies of scale
B) eliminating features that contribute to a higher selling price
C) increasing the number of features of the product
D) matching competitors' prices
E) changing branding

Question 26

An agreement to keep the same price but reduce prices in the future is often a successful response to which of the following tactics used by buyers?

A) budget limitation tactic
B) take-it-or-leave-it tactic
C) let-us-split-the-difference tactic
D) "if...then" tactic
E) "sell low now, make profits later" tactic

Question 27

Which of the following is an acceptable way to cope with the loyalty objection?

A) Work on recruiting internal champions to build more support for your message.
B) Point out, in specific terms, the weak points of the competing product.
C) Point out how dependence on just one supplier can be risky.
D) Encourage the prospect to quit the present supplier.
E) Undermine confidence in the current supplier by intimating that the company is having financial troubles.

Question 28

Reducing the price by unbundling some items is an effective technique a salesperson can use with a buyer who uses which of the following tactics?

A) budget limitation tactic
B) take-it-or-leave-it tactic
C) let-us-split-the-difference tactic
D) "if...then" tactic
E) "sell low now, make profits later" tactic

Question 29

When a customer raises a valid objection that cannot be answered with a denial,the salesperson should most likely take which of the following actions?

A) discuss superior benefits
B) engage in back-pedaling
C) begin a pricing approach
D) re-start the presentation
E) criticize the competition

Question 30

Working to reach an agreement that is mutually satisfactory to both buyer and seller is also called:

A) negotiation
B) agreement
C) practice theory
D) tactics
E) strategy

Question 31

Which tactic most likely involves making a price concession to the buyer?

A) budget limitation
B) take-it-or-leave-it
C) let-us-split-the-difference
D) "if...then"
E) "sell low now, make profits later"

Question 32

The best way to overcome a sincere need objection by a business prospect is to:

A) explain how the prospect should engage in comparison shopping
B) make the price the major selling point of the sales presentation
C) prove that the product will improve the prospect's profits
D) compare the product to others on the market
E) reiterate all the features of the product

Question 33

One of the most common buyer concerns in the field of selling is:

A) lack of need recognition for the product
B) personality conflict with the salesperson
C) loyalty to another firm
D) resistance to price
E) customer service

Question 34

The "feel-felt-found" method is used in conjunction with which of the following?

A) indirect denial
B) direct denial
C) trial offer
D) superior benefit
E) demonstration

Question 35

Which of the following is most likely a true statement about price?

A) Transactional buying at a low price involves a strategic relationship with the seller.
B) Features and benefits are not always related to the price of a product.
C) Lower prices are equivalent to lower costs and higher quality.
D) The highest quality can never be obtained at the lowest price.
E) Paying too much is typically worse than paying too little.

Question 36

Which of the following is true with respect to negotiations in foreign cultures?

A) Different cultural expectations can cause miscommunication.
B) It is sometimes advisable to become antagonistic during negotiations.
C) Business rituals are largely the same across cultures.
D) German buyers are unlikely to look you in the eye.
E) In China, negotiations are less straightforward than in Japan.

Question 37

When a customer says,"I would rather not tie up my money in a large order," the resistance most likely falls into which category?

A) time
B) product
C) price
D) source
E) process

Question 38

If you are familiar with your product as well as your competition's product,which method of negotiating buyer resistance is best for overcoming buyer skepticism?

A) defamation
B) feel-felt-found
C) third-party testimony
D) indirect denial
E) demonstration

Question 39

The iceberg metaphor shows that many customers try to negotiate on price because:

A) price is often inflated to attempt to maximize profits for the company
B) price is the most easily quantifiable characteristic of any product
C) they were trained to negotiate on price and price alone
D) they feel that they are not fulfilling their duties as buyers if they do not attempt to get lower prices
E) they do not realize that other factors, such as service and terms, can be more important to long-term satisfaction

Question 40

A professional buyer says,"My final offer is $9,500,take it or leave it." The best way to cope with this type of resistance is to:

A) lower your price, but make sure the sale still results in a profit for your company
B) confidently review the superior benefits of your product and attempt another close
C) make a counteroffer that is about 10 percent under your first price quote
D) review the unique features of the product or service
E) unbundle features of the product

Question 41

A(n)________ is a benefit that will,in most cases,outweigh the customer's specific concern.

Question 42

Professional buyers often learn to use specific tactics in dealing with salespeople.List three tactics that were identified in Homer Smith's book,Selling Through Negotiation.

Question 43

The sales director of a food supply house to restaurants has been analyzing sales for the past two years and has discovered that sales representatives have been losing sales, giving larger discounts than they should, and giving away too many "freebies" to clients.
The sales director could most likely help the sales representatives to understand the firm's financial objectives by clarifying:

A) cold calling methods
B) trial close techniques
C) reservation values
D) logrolling rules
E) unbundling tools

Question 44

In negotiations,the walk-away point that represents the lowest offer a party would be willing to accept is known as the ________.

A) reservation value
B) best alternative
C) peak price point
D) price objection
E) zone of possible agreement

Question 45

Karyn Fleishman is the lead sales representative on a team selling super-powered microscopes to research laboratories and other research institutions. She and her team just made a presentation to the buying team of a large lab, and they are about to enter the negotiation process to work toward closing a deal.
The selling team should most likely be prepared to:

A) deal with buyers that have well-developed negotiation skills
B) give concessions quickly to show good will to the buyers
C) settle most of the points of contention right away
D) revalue the microscope to make the sale
E) stick to the most important consideration: price

Question 46

The sales director of a food supply house to restaurants has been analyzing sales for the past two years and has discovered that sales representatives have been losing sales, giving larger discounts than they should, and giving away too many "freebies" to clients.
A salesperson who goes into a negotiation process without any preparation is likely either to lose the sale or to:

A) make concessions to the buyer too quickly
B) create a win-win solution for both parties
C) sell a product that lacks superior benefits
D) give the prospect too much information
E) promote the competition's product

Question 47

The ________ method of negotiating an objection is popular with customers because they can get fully acquainted with the product without making a major commitment.

Question 48

The sales director of a food supply house to restaurants has been analyzing sales for the past two years and has discovered that sales representatives have been losing sales, giving larger discounts than they should, and giving away too many "freebies" to clients.
As part of negotiation skills training,the sales representatives learn about handling customer objections.A common customer objection regards the quality of produce and meat.How should a sales representative most likely address this objection?

A) Emphasize the firm's commitment to customer service after a sale.
B) Offer a specific delivery time so restaurants know when to expect products.
C) Engage in transactional selling methods to develop a strategic relationship.
D) Offer a discount on the first years' orders to gain the buyer's trust.
E) Deny that a quality problem exists by showing certifications from local farmers.

Question 49

List five common types of buyer concerns.

Question 50

The sales director of a food supply house to restaurants has been analyzing sales for the past two years and has discovered that sales representatives have been losing sales, giving larger discounts than they should, and giving away too many "freebies" to clients.
The negotiation training stresses that sales representatives should avoid making price the focal point of the presentation.This requires the sales representatives to refocus on:

A) positioning the product on quality instead of price
B) using the postponement method when asked about price
C) timing the presentation to mention price last instead of first
D) using the pricing sheet to create tiers of discounts
E) targeting sales to buyers with less money

Question 51

What is the most likely benefit of using indirect denial to handle a prospect's concerns?

A) identifying the main concerns of the prospect
B) showing respect for the prospect's opinion
C) countering inaccurate information
D) resolving the issue conclusively
E) preventing price resistance

Question 52

One way to empathize with the client's objection and turn objections into sales is to use the "feel-felt- ________" strategy.

Question 53

Which of the following best describes a misunderstanding?

A) a failure to ask enough probing questions to identify a problem
B) a failure to agree even when both sides understand each other
C) a failure to accurately understand the other person's point
D) an inability to reach a win-win agreement
E) an inability to negotiate across cultures

Question 54

The ________ method of negotiating buyer resistance is one of the most convincing ways to overcome buyer skepticism.

Question 55

Karyn Fleishman is the lead sales representative on a team selling super-powered microscopes to research laboratories and other research institutions. She and her team just made a presentation to the buying team of a large lab, and they are about to enter the negotiation process to work toward closing a deal.
During the negotiations,it became apparent that the buyer had not understood the delivery schedule correctly.This most likely made the situation:

A) more difficult, as the sales team clearly cannot communicate details effectively
B) more difficult, as the sales team must start the whole negotiating process again
C) more difficult, as the buyer was not capable of agreeing to the complex terms
D) easier, as the buyer gave in to the seller with an apology for misunderstanding
E) easier, as the sales team needed to clarify details instead of renegotiate

Question 56

Logrolling refers to:

A) selling customers new products
B) expanding sales territories and shifting customers
C) asking customers to pay full price in the short term
D) offering an alternate solution to a negotiation problem
E) increasing customer service to reach a win-win solution

Question 57

Karyn Fleishman is the lead sales representative on a team selling super-powered microscopes to research laboratories and other research institutions. She and her team just made a presentation to the buying team of a large lab, and they are about to enter the negotiation process to work toward closing a deal.
Karyn's team has already uncovered the lab's needs during the consultative questioning stage of the presentation.Which of the following is most likely true?

A) The team should practice debating features and benefits before the negotiation.
B) The team should continue to gather as much information on the lab and the lab's buying team as possible before the negotiation.
C) The team has already missed their best window of opportunity for negotiations.
D) The team should be more aggressive about offering discounts to achieve a fast close.
E) The team is more prepared than they need to be for the negotiation process.

Question 58

When a salesperson bends a little and acknowledges that the prospect is at least partially correct,the salesperson is using the ________ method of negotiating an objection.

Question 59

The sales director of a food supply house to restaurants has been analyzing sales for the past two years and has discovered that sales representatives have been losing sales, giving larger discounts than they should, and giving away too many "freebies" to clients.
What area of the sales process are the sales representatives weak in,according to the results of the sales director's analysis?

A) price calculations
B) negotiation skills
C) presentation skills
D) rapport building
E) showmanship

Question 60

Determining your BATNA and ZOPA will help you in negotiations because:

A) the process will be delayed and you may be able to wear the buyer down
B) you will have a leg up on buyers, who are restricted from performing these assessments
C) you will only make the sale if your BATNA determination matches your buyer's exactly
D) they determine the best fair price for a product based on economies of scale in production
E) they tell you what you will be willing to accept before you walk away from the negotiation

Question 61

Karyn Fleishman is the lead sales representative on a team selling super-powered microscopes to research laboratories and other research institutions. She and her team just made a presentation to the buying team of a large lab, and they are about to enter the negotiation process to work toward closing a deal.
Which of the following would be an example of logrolling in this negotiation?

A) The sales team gives the buyer a lower price than in the initial proposal.
B) The sales team creates a whole new proposal with different terms and pricing.
C) The sales team offers the buyer an advantageous payment schedule.
D) The sales team holds firm on the original price.
E) The buyers pit two sellers against each other.

Question 62

Kelly Addison is a designer clothing buyer for a chain of department stores. She has gone through several negotiation certification programs and is considered an expert negotiator by her peers.
Kelly often tells sellers that her budget will not allow her to pay the price they are asking.What is the most effective way a seller could counter that claim?

A) offering to reduce the price through unbundling
B) telling her to request a larger budget from her manager
C) offering her the product for what she says she can spend
D) asking to see proof of the limit of her budget
E) convincing her of the benefits of the product

Question 63

Kelly Addison is a designer clothing buyer for a chain of department stores. She has gone through several negotiation certification programs and is considered an expert negotiator by her peers.
Kelly's bottom line is price,but she has wiggle room if the seller can move on terms such as tiered discounts for subsequent orders.Which of the following would most likely appeal to Kelly?

A) personalized service agreement for the product
B) implementation of the product
C) free training on use of the product
D) a delayed payment plan
E) using a different manufacturer

Question 64

Kelly Addison is a designer clothing buyer for a chain of department stores. She has gone through several negotiation certification programs and is considered an expert negotiator by her peers.
Because Kelly is a tough negotiator,salespeople must be aware of how much flexibility they have in terms of price,specifications,and delivery schedules.Which of the following best helps a salesperson with determining the walk-away point when dealing with Kelly?

A) SWOT
B) ZOPA
C) ROI
D) PLC
E) CRM

Question 65

Kelly Addison is a designer clothing buyer for a chain of department stores. She has gone through several negotiation certification programs and is considered an expert negotiator by her peers.
If Kelly and the seller cannot come to terms on pricing or any other equivalent factors,which of the following is the most likely outcome of the negotiation?

A) The seller will give in and accept the price the buyer wants to pay.
B) The buyer and seller will use a random method to decide whose terms to use.
C) The buyer and seller will walk away from the negotiation without closing a sale.
D) The buyer and seller will take the disagreement to an outside mediator.
E) The buyer will give in and pay the full price asked by the seller.

Question 66

Karyn Fleishman is the lead sales representative on a team selling super-powered microscopes to research laboratories and other research institutions. She and her team just made a presentation to the buying team of a large lab, and they are about to enter the negotiation process to work toward closing a deal.
The negotiations are stalled until Karyn's team discovers that the buyers are concerned about the costs of training laboratory employees to use the new microscope.What response would most likely move the negotiations forward?

A) The sales team offers to demonstrate the microscope to the lab supervisors.
B) The sales team provides testimonials on the efficacy of the microscope.
C) The sales team ignores the concern and offers expedited delivery instead.
D) The sales team offers discounted training from the firm's implementation team.
E) The sales team assures the buyers that the microscope is easy to use.

Question 67

Kelly Addison is a designer clothing buyer for a chain of department stores. She has gone through several negotiation certification programs and is considered an expert negotiator by her peers.
When Kelly sees value in a product but does not want to pay the suggested price,she often offers to split the price difference with the seller.If a salesperson finds Kelly's offer unacceptable,the salesperson should most likely:

A) agree to split the difference
B) make a pricing counteroffer
C) provide a trial demonstration
D) walk away from the negotiations
E) show sourcing documents as proof