Deck 13: Negotiating Buyer Concerns

Question 1

The negotiation process is influenced by cultural differences.

Answer 1

True

Question 2

In negotiating there are only two outcomes,win-win and lose-lose.

Answer 2

True

Question 3

Sincere need resistance is one of the great challenges that face a salesperson.

Answer 3

True

Question 4

Negotiating always leads to one party winning and the other party losing.

Question 5

An important aspect of the negotiation process is discovering how the customer defines value.

Question 6

Negotiation can happen any time during the sales process.

Question 7

If adequate time is invested at the beginning of the sales process,during need discovery and demonstration of product benefits,then price becomes of lesser concern to the buyer at the closing stage.

Question 8

A win-win situation is when the buyer is in total agreement about everything the salesperson is saying and has no buyer concerns.

Question 9

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

Question 10

It is a good strategy to build value at the front end of the sale,so that price becomes less of an issue later in the sales process.

Question 11

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

Question 12

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

Question 13

Mutual satisfaction to the buyer and seller is the cornerstone of the win-win philosophy.

Question 14

While price is one of the most common buyer concerns,it is also one of the most common excuses customers use when they do not want to buy.

Question 15

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

Question 16

A superior benefit is one that will usually outweigh the buyer's specific concern.

Question 17

Price and cost are the same thing.

Question 18

When your prospect has a concern with price,you should empathize with them and apologize for your price.

Question 19

There are generally five categories of buyer concerns.

Question 20

When the customer says they are satisfied with their present product,an appropriate negotiating method to use would be direct denial.

Question 21

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

A)time and need concerns.
B)source and product concerns.
C)stalls.
D)need and product concerns.
E)time and product concerns.

Question 22

If you are familiar with your product as well as your competitions product,this method of negotiating buyer concern is one of the most convincing ways to overcome buyer skepticism.

A)indirect denial
B)trial offer
C)demonstration
D)third-party testimony
E)competitive product bashing

Question 23

Buyers trained in price negotiation use all of the following tactics except:

A)take it or leave it.
B)product compromise.
C)explaining the difference between price and value.
D)budget limitation.
E)split the difference.

Question 24

One of the most common forms of buyer resistance and one of the most common excuses is:

A)concerns related to price.
B)wanting to wait for the newest model to come out.
C)loyalty to another firm.
D)lack of recognition of need for the product.
E)personality conflict with the salesperson.

Question 25

In the postpone method of negotiating buyer concerns,the strategy is to delay responding to the concern to a later point in the sales presentation.

Question 26

When a customer raises a valid concern that cannot be answered with a denial,the salesperson should consider using which of the following methods?

A)demonstrate the product
B)discuss one or more superior benefits
C)ask questions
D)try a combination approach
E)indirect denial

Question 27

When the customer says that the product is not well established,an appropriate method to over come this concern would be:

A)third-party testimony
B)indirect denial method
C)combination method
D)superior benefit method
E)direct denial method

Question 28

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

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

Question 29

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

A)Point out how dependence on just one supplier can be risky.
B)Work on recruiting internal champions to build more support for your message.
C)Point out,in specific terms,the weak points of the competing product.
D)Tell them your product is better than competitions.
E)Encourage the prospect to quit the present supplier.

Question 30

The best time to deal with price in a sales presentation is after you have reviewed product features and discussed the buyer benefits.

Question 31

The most widely used method for negotiating buyer concerns is the:

A)indirect denial.
B)spin method.
C)superior benefit.
D)trial offer.
E)direct denial.

Question 32

Concerns related to the product are usually caused by all of the following except:

A)the product is not well established.
B)the present product is satisfactory.
C)the customer is brand loyal.
D)the product has been given a low rating by the competition.
E)friends or acquaintances did not like the product.

Question 33

When the customer says their friends or acquaintances did not like the product,an appropriate method to over come this concern would be:

A)direct denial
B)indirect denial
C)question method
D)combination method
E)superior benefit method

Question 34

The postpone method is the same thing as the stall.

Question 35

Which of the following is an acceptable method of negotiating a buyer's price concerns?

A)Make price the focal point of your presentation
B)Offer a lower priced alternative.
C)Focus your comments on an individual product feature.
D)Explain the difference between price and cost.
E)Apologize for the higher price.

Question 36

The effective way to deal with a budget limitation tactic is to use the unbundling strategy to meet buyer's budget.

Question 37

Time based objection is also called a stall.

Question 38

When the customer says they are satisfied with their present product,appropriate method to over come this concern would be:

A)indirect method
B)combination method
C)superior benefit method
D)direct denial
E)postpone method

Question 39

When a prospect has finished voicing a concern,it is a good idea for the salesperson to:

A)point out the relationship between price and quality.
B)agree that the objection is true and accurate.
C)divert attention to a product feature.
D)be sure he or she understands the problem by asking probing questions.
E)quickly point out that the customer is wrong.

Question 40

A professional buyer says,"My final offer is $9500,take it or leave it." A good way to cope with this type of resistance is to:

A)walk away from the table,but call again in about a week with the same offer.
B)lower your price,but make sure the sale still results in a profit for your company.
C)make a counteroffer that is about 10 percent under your first price quote.
D)review the benefits of buying from your company.
E)confidently review the superior benefits of your product and make another closing attempt.

Question 41

An appropriate negotiation strategy when the customer is using the stall is:

A)question
B)indirect denial
C)direct denial
D)demonstration
E)postpone method

Question 42

Jocelyn is selling kitchen ranges with lift tops,which provide easier cleaning.The Mugsy brand comes with a two year warranty.Melanie,her customer,insists that the range has a five year warranty.Jocelyn decides to show her a warranty card.Jocelyn has used:

A)one-upmanship method.
B)indirect denial method.
C)question method.
D)direct denial method.
E)demonstration method.

Question 43

If a customer is reluctant to buy because the product is not well established,a good strategy to overcome this concern is to:

A)demonstrate the product.
B)use testimonials of satisfied customers.
C)use direct denial.
D)use indirect denial.
E)reduce the price.

Question 44

Ivana has been hired by the Zenith Company as a professional buyer because of her many negotiation tactics.When she says,"We like your proposal,but our budget is only $7 500," this is an example of a:

A)let's split the difference tactic.
B)a challenge tactic.
C)take it or leave it tactic.
D)budget limitation tactic.
E)a direct tactic.

Question 45

One of the objectives of negotiation is:

A)to make the customers happy by letting them win in negotiation.
B)to get more sales commissions.
C)to get the lowest price for the customers.
D)to build long-term relationship with the customers.
E)to get the sale no matter how hard the customers are negotiating.

Question 46

________ represents the amount the buyer pays for a product as it is used over a period of time.

A)Opportunity cost
B)Price
C)Quantity
D)Amount
E)Cost

Question 47

Which of the following would be appropriate as part of strategically planning for the negotiation of buyer concerns?

A)offer a low price.
B)prepare to bargain aggressively with the customers.
C)anticipate buyer concerns.
D)prepare a presentation which has negative comments about the competition.
E)plan to make concessions to secure the sale.

Question 48

When Natalie uses the statement,"You want $2 000 for this computer and I only wanted to spend $1 000; how about $1 500?" This is an example of a:

A)let's split the difference tactic.
B)take it or leave it tactic.
C)budget limitation tactic.
D)challenge tactic.
E)direct tactic.

Question 49

Shane realizes that price should not be the focal point in a sale.He feels the best time to bring up the issue of price is:

A)after the customer has initiated it.
B)after the customer has raised some objections.
C)after discussing buyer benefits.
D)after you have discussed competitors products.
E)as early as possible to get it off the table.

Question 50

Studies indicate that ________ can be an effective method of responding to buyer concerns.Neutral parties must be used.

A)third-party testimonials
B)hat-in-the-hand closing
C)demonstration
D)questions
E)trial offers

Question 51

A risk free method of negotiating buying concern is:

A)third-party testimony.
B)the superior benefit.
C)direct denial.
D)the demonstration method.
E)the trial offer.

Question 52

When Ivan uses the statement,"My final offer is $3 300.If you're not happy with that,I'll have to buy from someone else." This is an example of a:

A)let's split the difference tactic.
B)budget limitation tactic.
C)take it or leave it tactic.
D)direct tactic.
E)challenge tactic.

Question 53

In the iceberg analogy,if price is the tip of the iceberg,what's below the surface?

A)quick delivery
B)the manufacturer's cost
C)customer demand
D)customer price-sensitivity
E)competitor prices

Question 54

Webster,a successful salesperson has learned to ________ in order to save time and prevent problems.

A)pre-order likely sales
B)anticipate buyer resistance
C)anticipate rejection
D)expect success
E)talk negatively about competition

Question 55

Resistance related to time is also known as the ________ tactic.

A)immovable
B)indecisive
C)avoidance
D)uncertainty
E)stall

Question 56

The price-cost comparison is most appropriate for:

A)inferior quality products.
B)products with short usage or service life.
C)products with long usage or service life.
D)transactional buying situations.
E)inexpensive purchases.

Question 57

Bob expresses his preference for a product but is concerned that the price is too high.The salesperson should:

A)give him a discount to make him a loyal customer.
B)make a "take-it or leave-it" offer at the stated price.
C)apologize for the price.
D)point out the relationship between price and quality.
E)offer him a cheaper product.

Question 58

Zachary often gives a prospect an opportunity to try the product without making a purchase commitment.This is known as a:

A)demonstration.
B)Ferris wheel close.
C)trial offer.
D)superior benefit.
E)free use.

Question 59

Margo is selling Mr.Green a personal computer.He states,"I don't think I will ever learn how to operate this thing." Margo responds,"I understand how you feel,Mr.Green; many customers have felt this way; but they found they were able to master the PC." Margo used the ________ tactic.

A)indirect denial
B)direct denial
C)empathy
D)questions
E)soft side

Question 60

Jennifer has just looked at some cars but she is not willing to pay more than $ 20,000 for the car with those particular features.The salesperson should:

A)remove some features and offer the car to meet Jennifer's budget.
B)reduce the price of the car.
C)tell Jennifer to look elsewhere.
D)tell Jennifer about a competitor's car which will meet his budget.
E)walk away from the sale.

Question 61

The best strategy to overcome resistance arising from product concerns is:

A)focusing on superior benefits of your product.
B)giving a price discount.
C)explain how your price is lower than competitors price.
D)establish your credibility through referrals.
E)explain the advantages of making a purchase decision now.

Question 62

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

Question 63

An appropriate response to a "sell low now,make profit later" tactic is to:

A)walk away from the negotiations
B)maintain the price for the present order but agree to discount future orders.
C)unbundle the product features to reduce the price.
D)discount the present order hoping the customer will give future orders.
E)agree to split the difference in price.

Question 64

The riskiest method of negotiating buyer concern is:

A)the trial offer approach.
B)the split-the-difference approach.
C)the direct denial approach.
D)the demonstration approach.
E)the testimonials approach.

Question 65

An effective strategy to overcome the price objection is to use the __________ approach.

A)question
B)feel-felt-found
C)direct denial
D)indirect denial
E)stall

Question 66

A _______ is a benefit that will,in most cases,outweigh the customer's specific concern.

Question 67

The trial-offer strategy is quite effective to overcome the __________ objection.

A)product
B)time
C)place
D)source
E)stall

Question 68

When a salesperson bends a little and acknowledges that the prospect is at least partially correct,he/she is using the _______ method of negotiating buyer concerns.

Question 69

The third-party testimony can be effective at overcoming the _________ objection.

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

Question 70

In strategic alliance or partnership type of business relationships the negotiation stage:

A)can extend over weeks,months or even years.
B)can become very awkward for the seller.
C)is very short,that is,resolved in a day or two.
D)does not arise because the buyer and seller are always on the same page.
E)needs third-party mediators to handle this delicate process so that neither party is offended.

Question 71

James is not sure if a product will meet his requirements.Chin offers to give him the name of one of his customers who recently purchased the same product and is very satisfied with it.Chin is using the:

A)superior benefit method.
B)felt-felt-found method.
C)third-party testimonial approach.
D)recommendation approach.
E)question approach.

Question 72

The quality required for successful negotiations is:

A)being very competitive.
B)being very calm.
C)being driven by winning.
D)being well prepared for the negotiations.
E)being very aggressive.

Question 73

One way to empathize with the client's concerns and turn resistance into sales is to use the _______ strategy.

Question 74

A challenge that comes about when negotiations are conducted by a buying team is:

A)internal conflicts can arise in the team due to conflicting agendas.
B)encountering a phenomenon called group think.
C)dealing with various communication styles in the team.
D)the balance of power shifts to the team with the most number of people in it.
E)some people in the team may not be very well informed about the product.

Question 75

When a customer raises concerns that you would prefer to respond to later in the presentation,an appropriate method would be:

A)stall method
B)question method
C)combination method
D)trial offer method
E)postpone method

Question 76

The walk-away point,the lowest offer a party is willing to accept is also referred to as the:

A)agreement value.
B)negotiations zone.
C)reservation zone.
D)agreement zone.
E)reservation value.

Question 77

The best strategy to overcome need resistance is to:

A)explain the advantages of making a decision now.
B)explain how your product is superior to competitor's products.
C)show how your product is a good investment.
D)give a price discount.
E)establish credibility through referrals.

Question 78

In the negotiations process,offering an alternative solution to a buyer's concern is also referred to as:

A)reinforcing.
B)logging.
C)logrolling.
D)logjamming.
E)rebarring.

Question 79

Two concepts that are helpful to know at the negotiations phase are:

A)DBM and FBR
B)BANTU and ZOLA
C)FBR and BATNA
D)BATNA and ZOPA
E)FBR and ZOPA

Question 80

The _______ method of negotiating buyer concerns is one of the most convincing ways to overcome buyer skepticism.