Deck 5: Ethics: the Foundation for Relationships in Selling

Question 1

One of the"half-truths" that has influenced the erosion of character in business is that:"Corporations exist to maximize shareholder value."

Answer 1

True

Question 2

Business ethics:

A)should be variable from company to company
B)can and should be taught by universities and corporations
C)are only important to 90 percent of salespeople
D)are taught during childhood and cannot be changed significantly later on
E)have changed in meaning over the past twenty years

Answer 2

B

Question 3

Which statement best reflects the"Responsibility to Clients" section of NASP's Standards of Professional Conduct?

A)I will serve as a model of good citizenship.
B)I will act with the highest degree of professionalism.
C)I will act in the best interest of my clients.
D)I will disclose potential conflicts of interest.
E)I will provide the lowest price.

Answer 3

C

Question 4

Ethical standards tend to filter down from the top of a business organization.

Question 5

It is almost impossible for management to develop guidelines for sales personnel regarding the giving of gifts to customers.

Question 6

The major outcome of a business agreement based on reciprocity is a mutual exchange of benefits.

Question 7

People employed in the fast-paced business world,which is constantly changing,will adopt or discard values quickly.

Question 8

If you are not breaking the law,then you are acting in an ethical manner.

Question 9

The salesperson should use a standard entertainment activity for all customers to avoid the appearance of favoritism.

Question 10

The role of the salesperson is to diagnose buyer need and determine how to extract value from the situation.

Question 11

Culture is the sum total of beliefs,values,knowledge,ethnic customs,and objects that people use to adapt to their environment.

Question 12

The primary focus of trust in transactional sales is trust in the person who sells the product.

Question 13

Which of the following is most useful in guiding a salesperson in ethical behavior?

A)official company policies on bribes and kickbacks
B)salesperson's actions at previous jobs
C)role model provided by sales manager
D)competitors' actions
E)customer expectations and desires

Question 14

Kickbacks and payoffs may be acceptable practices to the vice president of sales and marketing,yet may be viewed as unethical by members of the sales force,the board of directors,investors,and the general public.

Question 15

Many business organizations,professional associations and certification agencies have established written codes of ethics.

Question 16

A majority of the states have passed legislation establishing a cooling-off period during which the consumer may void a contract to purchase goods and services.

Question 17

Product disparagement constitutes a type of business defamation.

Question 18

Which of the following is a point of view that has eroded character in business?

A)Innovation and aggressive development of markets should be rewarded.
B)Respect must be earned,not mandated.
C)Corporations exist to maximize shareholder value.
D)Integrity may not show immediate results but will eventualy return to you.
E)Teamwork is a core value of successful companies.

Question 19

If a potential client hints that they will give you a sale if you give them a gift,you should:

A)give the potential customer a gift
B)tell your sales manager you are giving the customer a gift in exchange for the sale
C)report this to your sales manager and ask for help turing the customer down
D)report the customer to the Better Business Bureau or other oversight group
E)refer the potential customer to another vendor who will participate in bribery

Question 20

The Uniform Commercial Code is a legal guide to a narrow range of transactions between the seller and the buyer.

Question 21

Which of the following would be most helpful to salespeople in dealing with bribery?

A)a well-established corporate policy on bribing
B)knowing the bribery is sometimes illegal
C)knowing that bribery is often unethical
D)a sales manager who has given bribes in the past
E)college coursework on bribery

Question 22

Yukie,a salesperson for a North American car manufacturer,told one of her prospects that Honda was being investigated in Japan for unfair labor practices.Although she had heard the rumor from someone else,she was confident it was false.Yukie is guilty of:

A)libel
B)product disparagement
C)reciprocity
D)false advertising
E)slander

Question 23

Using the scheduling function of CRM software can help improve a salesperson's:

A)presentation skills
B)accuracy
C)trustworthiness
D)memory
E)grooming

Question 24

This form of business defamation arises when an unfair and untrue oral statement is made about a competitor

A)business libel
B)reciprocity
C)bribery
D)puffery
E)business slander

Question 25

Executives at Mutual of Omaha would consider which of the following a "Value for Success"?

A)focus on profits
B)focus on hierarchy
C)focus on order
D)focus on customers
E)focus on sales

Question 26

Harold Timmons is in a position to close a large sale if he conceals certain information that the customer needs to make an intelligent buying decision.His sales manager encourages him to withhold the information and says,"You will not be breaking any law." In this case,the salesperson must be guided by the following ethical guideline:

A)A salesperson's ethical sense must extend beyond the legal definition of what is right and wrong.
B)Caveat emptor.
C)The code of ethics established by the company should guide all ethical decisions.
D)The organization's moral tone is established primarily by salespeople who have daily customer contact.
E)An action is ethical if a salesperson could defend it successfully to a group of peers.

Question 27

Which of the following is a general guideline that serves as a foundation for a personal code of business ethics?

A)Personal selling is a stepping stone to more legitimate careers.
B)Be honest with yourself and with others.
C)Tasks come first,relationships second.
D)Your values should not be in conflict with those of your employer.
E)Selling is about controlling the interaction adn managing the relationship.

Question 28

Taking time to establish a proper rapport with customers results in:

A)guaranteed sales
B)open communication
C)a faster sales cycle
D)a slower sales cycle
E)lower commissions

Question 29

Which of the following would be the best application of principles regarding gift giving to customers?

A)Give gifts before doing business with a customer.
B)Determine the gift-receiving policy of the customer's company.
C)Once begun,maintain a regular and consistent pattern of gift giving.
D)Clearly explain the conditions you expect of the customer who accepts a gift.
E)Give a gift proportional to the sale you expect to make from the customer.

Question 30

When a customer reveals confidential information about a competitor to a salesperson,the preferred course of action is for the salesperson to

A)preserve the confidentiality of information they receive
B)accurately relate the details to his/her top management
C)inform the competing company about the useful information in exchange for a sale
D)request that the customer not comment further because of the conflict of interest
E)clarify the details to make sure he or she understands correctly

Question 31

Which of the following is a true statement regarding the relationship between attitudes,behavior and values?

A)Attitudes influence behavior,which in turn influences values.
B)Behavior influences attitudes,which in turn influence values.
C)Values influence attitudes,which in turn influence behavior.
D)Attitudes influence values,which in turn influence behavior.
E)Although all three are related,there is no established sequence of influence.

Question 32

The practice of reciprocity:

A)is beneficial to all parties involved
B)is no longer legal in America
C)results in improved competition among sales and marketing firms
D)is illegal when one company pressures another company to join an agreement
E)is another name for slander

Question 33

Teresa Fallon sends a written proposal to a customer.In the proposal,she compares the specifications of her product and a competing product.If the information about the competing product is not true,she is using a form of defamation called

A)business libel
B)business slander
C)product disparagement
D)puffery
E)bribery

Question 34

Withholding information:

A)is another name for reciprocity
B)is legal and therefore ethical
C)is only unethical if it is being done under duress
D)is often the only logical course of action for a salesperson
E)is tantmount to lying

Question 35

It is important to record the facts of an interaction with a customer in CRM software but not your conclusions,because:

A)it is never appropriate to make conclusions from data without consulting the research department
B)recording conclusions is a breach of ethics
C)coworkers could use this information to sabotage your sales
D)this information could become available to the customer in some form at a later date
E)the competition has access to the same databases you do

Question 36

Reciprocity,as a corporate policy,is:

A)always a breach of ethics
B)illegal in the US,but not in other countries
C)only a worry if the heads of the companies know each other personally
D)easier to navigate if the companies are in different industries
E)occasionally a form of corporate blackmail

Question 37

According to the author of Integrity Selling®,which of the following statements about values is true?

A)Our values change frequently throughout life.
B)Most people find it easy to clarify their values.
C)A salesperson's values contribute more to sales success than do techniques.
D)Values have only limited influence on our behavior.
E)Values should be aligned with the culture of the firm.

Question 38

If you view your employer's instructions or influence as improper,then you should

A)report your company to your industry's governing body
B)do what everyone else is doing
C)compromise your values in order to keep your job
D)voice opposition to the practice if it is in conflict with your value system
E)follow the lead of your colleagues

Question 39

Which of the following can be a danger of using the internet?

A)A company can change information about its products or services immediately on the internet.
B)Customers can place repeat orders over the internet.
C)Customers can find information about the company from its web site.
D)Customers can discover information about competitors from their web sites.
E)Salespeople may send inappropriate emails to customers or to each other.

Question 40

Which of the following would be the least important deterrent to unethical behavior by salespeople?

A)Sales managers who model high ethical standards.
B)National laws that curb unethical business practices and impose jail time for violations.
C)Written company policies that spell out standards of"rightness" and"wrongness."
D)Leaders within the company (top management)who model high ethical standards.
E)Official position statements from industry oversight groups.

Question 41

________ are deeply held personal beliefs and preferences.

Question 42

Daniel Santiago has just taken a job as a sales rep with a family-owned company that uses its ethics as part of its marketing campaign with the slogan,"Without integrity,service means nothing." After calling on several clients,however,he discovers that the sales rep who previously had his territory was giving kickbacks to customers in exchange for exclusive contracts with the company.Daniel is fairly certain that his sales manager is not aware of this arrangement.What should Daniel do?

A)Daniel should say nothing and continue the kickback plan his predecessor started because it seems to be the norm in this industry.
B)Daniel should avoid causing waves with his sales manager and go along with the kickbacks for now,but tell his clients that he will not be able to continue them in the future.
C)Daniel should meet with his sales manager immediately to discuss the situation and ask for guidance in how to tell the clients that he cannot continue the kickbacks.
D)Daniel should tell the clients that he cannot continue the kickbacks and say nothing to the sales manager if he loses clients that his predecessor worked to develop.
E)Daniel should leave the company and look for a position in a firm that does not have a mechanism for giving kickbacks.

Question 43

The National Association of Sales Professionals (NASP)has published a list of ten Standards of Professional Conduct.List and explain five.

Question 44

The term ________ can be defined as a mutual exchange of benefits,as when a firm buys products from its own customers.

Question 45

Ron is a sales rep selling internet meeting services.He is in an internet meeting sales call with Priya,a buyer for an enormous account.If she buys for her company,Ron will double his quota for the month.As they're engaging in small talk as they enter the meeting room,Priya mentions that she's a huge fan of the local college football team.Ron's wife works at that college,and can get season tickets for the games.What should Ron do?

A)Ron should ask Priya more about her interest in the football team to discover if she would be interested in the tickets or if she already has her own.
B)Ron should ask his sales manager after the sales meeting if he should offer Priya tickets to the games.
C)Ron should assume that by mentioning the team,Priya is subtly letting him know what her preferences are so that he can give her a gift to win her business.
D)Ron should offer Priya season tickets to the games in hopes that this will influence her to like him and buy from him for her company.
E)Ron should let the comment go and continue with the presentation to win Priya's business on the merits of the service and excellent pricing.

Question 46

A small company in a tightly-contested market discovers that their closest competitor's sales reps have been saying negative and untrue things about the company's products and service to their main customers.Their longest customer calls the company's CEO,concerned about these claims,and the CEO realizes that the company is in danger of losing business from these claims.What should the company do?

A)Take out a full-page ad in the local newspaper disputing the claims with facts and stating that the competitor has been lying to customers.
B)Talk to its customers in person to give them the facts and research that show the truth,and telling them to ask for the competitors' claims in writing before they believe anything
C)The CEO of the company should call the CEO of the other company and divide up the local market so no one has to engage in duplicitous sales tactics anymore.
D)Take the other company to court for slander unless they issue a full public apology.
E)Engage in a counter-information campaign to spread negative information about the other company as a means of evening the playing field.

Question 47

In consultative sales,the customer wants to trust which of the following?

A)a trustworthy product
B)a trustworthy salesperson
C)a trustworthy organization
D)a trustworthy culture
E)a trustworthy industry

Question 48

It is easy to understand that when a salesperson does what she says she will do for the customer,that creates a relationship of trust that can lead to a strong sales relationship.There are some unethical behaviors,however,that actually benefit the customer.How is it possible that a behavior that benefits the customer will ultimately erode trust?

A)It is not.These behaviors,while technically unethical,will not result in a weakened sales relationship.
B)The customer will know that the salesperson is acting unethically and that if the salesperson does it for them,the salesperson is doing it for everyone.That will erode trust and weaken the relationship.
C)The salesperson will tire of performing these unethical behaviors,and when the salesperson attempts to stop,the trust between the salesperson and customer will diminish.
D)The customer will continue to demand greater ethical breeches until the salesperson is unable to make a profit and ends the sales relationship.
E)The salesperson will realize that the behaviors are unethical and will be unable to continue,and may leave the company altogether.

Question 49

In transactional sales,the customer wants to trust which of the following?

A)a trustworthy product
B)a trustworthy salesperson
C)a trustworthy organization
D)a trustworthy culture
E)a trustworthy industry

Question 50

A sales rep is in a foreign country and has spent several days with a buyer for a large chain of convenience stores there.At the end of the week,the sales rep feels confident that the buyer is ready to purchase,so he asks for the close.The buyer responds that he will be happy to place a large order for the chain as soon as the sales rep gives him an appropriately-sized gift.What should the sales rep do?

A)The sales rep should give the buyer the gift.
B)The sales rep should tell the buyer that Americans are not allowed to give gifts in exchange for business.
C)The sales rep should convince the buyer that he will give him the gift after the papers are signed,and then refuse to give a gift after the order has been paid.
D)The sales rep should consult with his sales manager to determine if gift-giving is ethical and acceptable practice within the confines of an international business situation.
E)The sales rep should give the buyer the gift but make this contingent on a longer-term relationships involving repeat orders.

Question 51

Business defamation incurred when an unfair and untrue statement is made about a company in writing is known as ________ ________.

Question 52

In the fields of selling,there are both ________ standards and ________ standards.

Question 53

The major types of business defamation are business slander,business libel and ________ ________.

Question 54

A company that focuses primarily on stock prices,profits,and dividends to shareholders is likely to have which of the following outcomes?

A)It is likely to make large profits and thrive long-term,because the primary function of a corporation is to continue and maximize profits.
B)It is likely to make large profits and thrive long-term,but have high turnover of employees because they will not be comfortable making the unethical decisions necessary to maximize profits.
C)It is likely to make large profits but then lose them as it settles lawsuits brought against it by shareholders for fraud.
D)It is likely to make large profits in the short-term,but fail ultimately because the profit motive will force employees into unethical behavior that will bring the company down eventually.
E)It is likely to fail from the beginning,because a company that focuses on profits at the expense of all else will not be able to gain customers.

Question 55

In general,US ethical codes when doing business in foreign countries tend to be:

A)more accepting of bribery but less accepting of libel
B)more accepting of libel but less accepting of bribery
C)more relaxed than the codes of other countries
D)the same as the codes of other countries
E)stricter than the codes of other countries

Question 56

In transactional sales,unethical behavior tends to be straightforward and immediate,such as discounting,giving kickbacks,or exaggerating quality or features.In consultative and strategic alliance sales,unethical behavior can be more complex and may develop over time.Which of the following would be an example of more complex unethical behavior?

A)Lying about the competition's product performance to cast doubt about the competitor's product.
B)Giving a small client the volume discount even when the volume did not warrant the discount.
C)Asking the customer about the pricing strategies of the competitor.
D)Taking the client out for an expensive dinner in order to close the sale.
E)Giving a smaller client preferential service agreements in exchange for getting the salesperson an "in" with larger accounts.

Question 57

A sales rep gets the latest performance reports on the main product he sells and is not happy.His product performs slightly behind that of his closest competitor,and he is afraid that this will lose some current customers or at least prevent him from winning new ones.The Research and Development team have made some major improvements in the product,but the next performance report is not due out for another six months.What should the sales rep do to prevent losing customers?

A)He should pretend that the recent performance report has not come out and tell his customers that he doesn't know when it will be out.
B)He should change the numbers just slightly on the performance report,not enough to make it perform substantially better than the competition,just enough to make it perform equally.
C)He should avoid direct contact with his customers until the next performance report comes out.
D)He should expose the performance report but explain to his customers that the product has been improved and that those numbers will be out in six months.
E)He should change the numbers for the competitor so it looks as if the two companies' products perform equally.

Question 58

Cultural differences between the US and some foreign countries:

A)are not a factor in product marketing campaigns
B)cannot be deciphered except by those who have lived in both countries for long periods of time
C)make doing business internationaly nearly impossible
D)increase communications-style bias between salespeople in the US
E)cause salespeople to think customers are going to buy when they have no intention of buying

Question 59

In strategic alliance sales,the customer wants to trust which of the following?

A)a trustworthy product
B)a trustworthy salesperson
C)a trustworthy organization
D)a trustworthy culture
E)a trustworthy industry

Question 60

Respond to the following idea:"Ethics are not a matter of law alone.A salesperson's ethical sense must extend beyond the legal definition of what is right or wrong."

Question 61

The term "situational ethics" can apply to international business relationships,in which ethical behavior varies from culture to culture.Which statement expresses the complexity of international ethical situations?

A)A company that is unwilling to engage in unethical behavior should not do business internationally because they will not be able to complete business deals without breaching their ethics.
B)A company should not be concerned about any actions it takes in countries that are not its own,as the local customs should determine what is ethical.
C)A company may be willing to behave in ways that would be unethical in the United States but are ethical in the country in which they are doing business,but may be prevented from doing so by legal regulations.
D)Most situations that seem to be complicated by differences in ethical standards are complicated by misunderstandings and other fallout from differing languages and communication styles.
E)Situational ethics do not exist.Either a company and its employees behave ethically or they do not.

Question 62

A salesperson from Company A discovers that salespeople from Company B have been telling customers that Company A's safety records are falsified.The most ethical action a sales manager from Company A can take to remedy the situation is:

A)have Company A's safety records audited and publish the results of the audit on their website,and ask Company A's salespeople to direct customers to them.
B)tell Company A's salespeople to match the actions of Company B's salespeople by implying that Company B's safety records may be falsified.
C)file an anonymous complaint with the Attorney General in the state in which both companies operate.
D)to pay a visit to the corporate offices of Company B and threaten Company B's sales managers with a pricing war unless Company B's sales reps stop spreading false rumors.
E)create

Question 63

Of the following practices,which of the following is most likely to be viewed by both salesperson and customer as unethical?

A)The salesperson gives the customer a cut glass paperweight with the company's name engraved on it at the end of December.
B)A salesperson gives a potential customer tickets for front-row seats at a sold out concert of the potential customer's favorite singer.
C)The company throws an annual party for its clients at company headquarters that includes a buffet and open bar.
D)At a software convention,a software sales rep takes its top five clients out for dinner at an expensive steakhouse.
E)A railway company gives all of its vendors a 20% discount on passenger rail services.

Question 64

A salesperson's sales manager exerts strong influence on whether the sales rep acts ethically or not.A sales manager may not even be aware of the influence she wields or the effect her words or management techniques have on her employees.Of the following actions by a sales manager,which one could most easily be construed by an employee as a directive to use unethical conduct?

A)A sales manager could offer an incentive or prize to salespeople who meet or exceed their quotas.
B)A sales manager could send an email to the entire department whenever a sales rep closes a sale.
C)A sales manager could attempt to motivate her staff by telling them they need to hit their quotas no matter what it takes.
D)A sales manager could institute a Gold Circle for Excellence designation for sales reps who hit or exceed their quotas four or more quarters in a row.
E)A sales manager could provide backup to her employees by calling on their biggest accounts every few months to let them know the company stands behind its product.

Question 65

Reciprocity is sometimes,but not always,unethical behavior.Which of the following situations is an example of reciprocity which is unethical behavior?

A)An architect refuses to allow any other builders to build her designs because she doesn't trust the quality of the jobs performed by other builders.The builder does not build designs by other architects because other architects cut corners in the designs.
B)A plastics company is willing to develop a special process for coating nonstick cooking equipment.As a thank-you,the cooking equipment company allows employees of the plastics company to use the same employee discount its own employees enjoy for purchases of cooking equipment.
C)A restaurant chef buys all his produce from the local farmers' market.The farmers and workers at the market eat their meals at that restaurant on the days they sell at the market.
D)A garbage hauling service requires that a hotel chain give a discount to employees of the garbage hauling service in exchange for discounted garbage hauling services for the hotels.
E)The merchants in one neighborhood of a large city have decided to engage in a "buy local" campaign and to patronize each other whenever possible,even if they could find slightly lower prices in other areas of the city.

Question 66

An American company has been working on a business deal in a developing nation.This deal will open an entirely new market to the American company,and will increase stability in the local economy and provide jobs to thousands of local workers.When the deal reaches the final phases,the local government asks for a sizable bribe from the American company to move forward with the proper permits to continue with the project.Which of the following is the proper analysis of the situation?

A)The American company may not be able to give the bribe,even if they feel it is an acceptable cost of doing business,and the deal may fall through.
B)The local government must get used to the American way of doing business if it wants to create a stable local economy.
C)The Americans should give the bribe,because the ethics that apply to doing business in the US are suspended in foreign countries.
D)The local government has every reason to expect foreign companies to conform to their way of doing business locally.
E)The American company and the local government should turn to the International Uniform Code of Business to determine whether the bribe is acceptable in this situation.

Question 67

What would be an easy way a company could discourage unethical behaviors by its employees?

A)Having a zero tolerance policy so anyone suspected of unethical behavior would be immediately terminated.
B)Require all potential hires to have completed a privately-conducted ethics course before submitting their applications for employment.
C)Allow employees to unionize so their actions will be dictated by the union.
D)Change the Employee of the Month program to celebrate the employee with the fewest ethical violations.
E)Write up their ethical code,refer to it as a company value in the employee handbook and on the website,and ask management to adhere to it strictly to lead by example.