Deck 14: Building Long-Term Partnerships

Question 1

Getting customers to use a higher quality or newer version of a product is called upper crusting.

Answer 1

False

Question 2

Studies continually show buyers are displeased with most salespeople's after-sale activities.

Answer 2

True

Question 3

Assuming the proper expectations were set, customers can be disappointed when the product performs poorly, is used improperly, or the terms of the contract are not met.

Answer 3

True

Question 4

To achieve increasing revenue in an account over time, the salesperson acts as a change agent.

Question 5

Like any type of salesperson, an advertising salesperson should disagree with her customer whenever the customer is wrong while handling his complaint.

Question 6

The best way to establish a sales relationship is to be aware of what the customer expects.

Question 7

The majority of customers do not openly discuss their concerns when they are dissatisfied.

Question 8

The exploration stage is defined by the development of buyer and seller expectations.

Question 9

One of the things that makes cross-selling easier than getting an initial sale is that trust already exists between the two parties.

Question 10

When the buyer-seller relationship has reached the commitment stage, it is essential that the relationship be formalized through a contract.

Question 11

In "Roll on! Great Service in Fleet Management is a Must," Steve Hinsch comments "Cold calls tell me that the salesperson wants to see me at all costs, but not necessarily on my timetable."

Question 12

Stephanie Meagher often immediately determines after meeting with a prospect if she will make it a long-term or short-term relationship depending on the value of the relationship and if it will be beneficial.

Question 13

To a large degree, customers base their initial expectations on sales presentations.

Question 14

Upgrading, full-line selling and cross-selling are sales strategies that work best with existing customers.

Question 15

It is up to the salesperson to change his or her company's corporate culture to secure a partnership with an important client firm.

Question 16

To have the greatest impact, salespeople should wait until the user has trouble with the product before pointing out remedies.

Question 17

The first follow-up should be either made by telephone or mail; nothing of importance can be accomplished by an expensive personal visit.

Question 18

The first thing a salesperson should do when a customer complains is to encourage the customer to tell their story.

Question 19

In the opening profile Stephanie Meagher states she quickly realized that her client relationships were the most important factor in determining her success.

Question 20

A good way for NevaFlat Tire Company to impress the purchasing executives at GM's Saturn plant with their ability as a dependable supplier is to deliver the 10,000 tires GM ordered two weeks early.

Question 21

Assuming that the business is yours and will always be yours is sales complacency.

Question 22

Which of the following statements about complaints is true?

A)Handling complaints properly is most important during the commitment stage of a partnership.
B)Salespeople can cause complaints about products that are performing exactly as they were intended to perform.
C)The buying company should view a complaint as an opportunity to prove it is a reliable firm with which to do business.
D)Only when complaints are eliminated can a true partnership be formed.
E)All of the above statements about complaints are true.

Question 23

Which of the following statements about the order processing is FALSE?

A)If something goes wrong, the customer will probably blame the salesperson.
B)Computers have made the salesperson's job more difficult.
C)Shipping delays often occur when the customer uses outdated information to place an order.
D)Monitoring order processing and other after-sale activities is critical to developing a partnership.
E)Salespeople can prevent order processing delays by reviewing all orders for accuracy and completeness.

Question 24

Clark, a fellow salesperson, has become very frustrated by his inability to handle customer complaints. "Frankly, I don't know what to do when a customer starts telling me about a problem," he says. You should advise Clark to:

A)adopt an antagonistic attitude
B)assume the problem is the customer's fault
C)show he is happy that the customer has told him about the problem
D)take control of the conversation and offer a fair solution as soon as he has an idea what the difficulty is
E)do none of the above

Question 25

Jason knows his customer has a complaint but does not know what the complaint is. Based on past experience, Jason could anticipate that source of the complaint is any of the following EXCEPT:

A)the product performs poorly
B)the product is being used improperly
C)the product does not contain all the requisite parts
D)the product is too easy to operate
E)the terms of the sales contract were not met

Question 26

Which of the following is a likely reason for a customer complaint?

A)salesperson caused buyer's expectations to be too high
B)terms of the sales contract were not met
C)product performs poorly
D)product is being used improperly by the customer
E)all of the above

Question 27

To avoid trust-destroying conflicts, start with a clear product description.

Question 28

Which of the following statements is NOT a guideline to use when determining the facts about a customer complaint?

A)It is easy to be influenced by a customer who is honestly and sincerely making a claim for an adjustment.
B)An inexperienced salesperson might forget that many customers make their case for a claim as strong as possible.
C)Whenever possible, the salesperson should examine, in the presence of the customer, the article or product claimed to be defective.
D)Experienced salespeople soon learn products may appear defective when actually nothing is wrong with them.
E)Starting an inquiry into the nature of a complaint is an effective way to postpone action until the client has gotten the complaint off his or her chest.

Question 29

In general the faster and broader the change, the more likely it will meet with resistance.

Question 30

Once a customer has committed to a partnership, less work is needed to maintain the relationship.

Question 31

A customer complained that the filtration system on the recirculating parts washer she purchased for petroleum-solvent cleaning is not working. What can the salesperson who sold the washer do to handle the complaint?

A)Replace the washer without cost to the customer.
B)Instruct the customer how to proceed with the claim against the manufacturer of the filtration system which is installed by the washer manufacturer.
C)Send the washer to the factory to determine if there is a manufacturing problem with the filtration system or how it was installed.
D)Agree to replace the washer if the customer will share replacement and shipping costs.
E)The salesperson can choose the option above that seems most appropriate given the seller's understanding of the complaint.

Question 32

Mac's Tire Mart has received its first shipment of tires from the NevaFlat Tire Company. Mac is now testing how well the tires sell, how well NevaFlat responds when he has a question or problem, and how durable the tires are. In what stage of partnership development are Mac and NevaFlat?

A)recognition
B)expansion
C)exploration
D)commitment
E)instigation

Question 33

The first thing a salesperson should do in dealing with a customer's complaint is:

A)offer a satisfactory solution
B)determine the facts
C)determine whether the buying or selling firm is at fault
D)represent the customer's position to the selling firm's personnel
E)encourage the customer to tell his or her whole story

Question 34

In which stage of the building of a long-term partnership does electronic data interchange (EDI) technology first appear as a useful tool for strengthening the relationship between buyer and seller?

A)recognition
B)expansion
C)exploration
D)commitment
E)instigation

Question 35

When customers make the effort to complain to a salesperson, they want all of the following EXCEPT:

A)their grievances handled in a friendly manner.
B)a sympathetic reaction to their problems.
C)their feelings acknowledged.
D)the salesperson to become antagonistic with them.
E)a chance to tell their story.

Question 36

What can Suzie do to help ensure her company, Resource Conservation Technology, and her new client, Paradise Water Gardens, move successfully through the exploration stage of building a relationship?

A)Generate reorders on pond filtration systems.
B)Investigate the possibilities of selling aquatic plants to Paradise as well as pond filtration systems.
C)Be sure that Paradise's people learn to use her company's products properly.
D)Make sure that every employee at her company is committed to the success of Paradise.
E)do all of the above

Question 37

Which of the following statements about the follow-up a salesperson does after a sale is true?

A)The nature of the follow-up should reflect the needs of the buying center member being contacted.
B)If at all possible, personal visits should be avoided because they are so expensive and tend to accomplish little.
C)Salespeople should write personal notes regularly to all clients and never send form letters.
D)A salesperson can make use of the company's telemarketing facilities to make all follow up calls.
E)Telephone calls are seen as intrusive and should never be used as a follow-up communication channel.

Question 38

Anton has determined the facts in his customer's complaint. His next step should be to:

A)follow through with action.
B)listen to the customer without interrupting.
C)offer a solution.
D)be sympathetic.
E)determine whether his firm or the customer's is responsible for the difficulty.

Question 39

After building awareness, the next stage of partnership building is:

A)recognition.
B)expansion.
C)exploration.
D)commitment.
E)insight.

Question 40

Champions are internal experts who provide testimonials to influence purchase decisions within organizations.

Question 41

Which of the following is NOT one of the tips for management to encourage effective cross-selling?

A)avoid setting cross-selling goals
B)cross-selling often involves additional training
C)know all of your company's products
D)provide incentives for cross-selling
E)track results of cross-selling efforts

Question 42

Which of the following actions is still necessary after the partnering process reaches the expansion stage?

A)setting the right expectations
B)monitoring order processing
C)ensuring proper use of the product
D)handling complaints
E)all of the above

Question 43

Ned is a customer service representative at Landmark State Bank. When a person comes in to get assistance with his or her checking account or open a new account, Ned also suggests the client rent one of the bank's safe deposit boxes to store valuables. Ned is engaging in:

A)trading up.
B)total customer service.
C)upgrading.
D)total customer management.
E)none of the above

Question 44

As the lingerie salesperson works with a retail client during the expansion phase of the partnering process, she should try to maximize her selling opportunities by:

A)generating reorders.
B)insisting on a tying agreement.
C)bulldozing.
D)full-price selling.
E)all of the above

Question 45

To improve the likelihood of reorders, a salesperson can:

A)be present at buying time.
B)make sure the customer has access to his or her company's catalogs.
C)provide the customer with various specialty advertising items which contain the seller's company's name, logo, and Web site.
D)provide the customer with periodic maintenance and repair on his or her purchase.
E)do all of the above.

Question 46

If the salesperson is convinced the customer is making a dishonest claim about a product problem, the text states the salesperson has two options, he or she can either unmask the fraudulent claim and appeal to the customer's sense of fair play or:

A)or give the buyer a chance to save face by suggesting a third party may be to blame.
B)refer the complaint to his or her manager for resolution.
C)pretend to be conducting an inquiry into the problem for so long the customer abandons the claim.
D)contact his or her company's legal department.
E)call local law enforcement officials to the client's place of business.

Question 47

When Marion got the customer to put the Pondmaster 1000 aquarium filter back on the shelf and buy the Pondmaster 1500, a more powerful filter, he was engaging in:

A)cross-selling.
B)upgrading.
C)repositioning.
D)full-line selling.
E)incremental selling.

Question 48

To improve the likelihood of reorders, a salesperson can:

A)avoid the expense of specialty advertising items.
B)keep his or her company's catalogs from cluttering the customer's office.
C)establish a good relationship with the customer's service personnel.
D)force the customer to schedule regular buying cycles in order to continue doing business with his or her company.
E)do all of the above.

Question 49

An excellent way to generate repeat orders is to be present at buying time, but since not all buyers purchase at predictable times the text suggests the salesperson try to be present in the buyer's mind at buying time by using catalogs and:

A)honesty.
B)specialty advertising items.
C)telemarketing.
D)direct mail.
E)all of the above.

Question 50

_____ is convincing the customer to use a higher-quality product or a newer product.

A)Upgrading
B)Cross-selling
C)Positioning
D)Incremental customer satisfaction
E)Full-line selling

Question 51

Which of the following statements about complaints is true?

A)It is wise to assume that all complaints are unjustified.
B)It is not the job of the salesperson to forestall future complaints.
C)Firms do not set up procedures for dealing with claims over $200 because claims this large may require legal advice.
D)A fair settlement made in the customer's favor helps resell the company and its products.
E)A customer who doesn't complain is a happy customer.

Question 52

According to the text, a number of questions often affect the action to be taken on a customer complaint. Which of the following questions would likely have the largest affect how a customer complaint is settled?

A)What action or actions led to the lodging of the complaint?
B)How will the action taken affect other customers?
C)Are members of the complaining firm's industry lodging similar complaints?
D)Is the customer being fair?
E)All of the above questions can be used to determine how a customer complaint is settled.

Question 53

_____ occurs when the Claycraft salesperson attempts to sell fiberglass planters to a buyer of bird baths.

A)Cross-selling
B)Reactive change
C)Trade selling
D)Upgrading
E)Positioning

Question 54

_____ selling is selling the entire line of associated products.

A)Full-line
B)Integrated product
C)One hundred percent
D)Full-package
E)Total commitment

Question 55

When Keith Nixon, a salesperson for Paradise Water Gardens, calls on Olin Wiley, the owner of Lexington Nurseries, he often helps Wiley plan newspaper ads to take full advantage of the co-op advertising allowance that Lexington earns from Paradise. In this example, Nixon is maximizing his sales opportunity with Lexington by:

A)cross-selling.
B)helping service the product.
C)providing expert guidance.
D)following through with action.
E)generating repeat orders.

Question 56

Which of the following statements about upgrading is true?

A)It is also called suggestion selling.
B)The objective of upgrading is to expand the seller's business by selling to the customer in ever larger quantities.
C)To upgrade a customer the salesperson must usually show that the initial purchase was not exactly what the customer needed.
D)Upgrading is crucial to sellers, because without it their customers might turn to other suppliers when they need new equipment.
E)All of the above statements about upgrading are true.

Question 57

With ____, the emphasis is on helping the buyer realize the synergy of carrying all of the products in a product line.

A)reactive change
B)functional selling relationships
C)proactive change
D)upgrading
E)full-line selling

Question 58

Which of the following statements about complaints is FALSE?

A)The customer must perceive the settlement of the complaint as being fair.
B)The settlement that will be provided must be clearly communicated.
C)A salesperson settling a claim should educate the customer to forestall future claims.
D)A fair settlement made in the customer's favor helps resell the company and its products.
E)A customer who doesn't complain is a happy customer.

Question 59

Dawn sells building materials to contractors. She sells lumber to almost all of her accounts but does not get many orders for nails, roofing or other building materials and supplies. Dawn decides she will attempt to sell more of the other products builders regularly need. Dawn is attempting:

A)cross-selling.
B)upgrading.
C)full-line selling.
D)saturation selling.
E)prospecting.

Question 60

Cross-selling has a great many similarities to:

A)positioning.
B)upgrading.
C)downsizing.
D)full-line selling.
E)none of the above

Question 61

In El Salvador, a manufacturer of household insecticide told ExxonMobil Chemical salesperson Nelson Viquez that the company wanted a substitute for the kerosene it had always used in making aerosol household insecticide. Viquez worked extensively with the manufacturer to create a pilot plant and test its pesticides with the addition of ExxonMobil's Exxsol D 40 as a substitute for kerosene. ExxonMobil and the manufacturer spent a year and a half running laboratory and field tests on the new product, which has been extremely successful in Central America. Viquez acted as a(n):

A)change agent.
B)alteration initiator.
C)adjustment moderator.
D)alteration agitator.
E)idea champion.

Question 62

Martin was trying to sell pumps for circulating water in goldfish ponds when he realized the reason he was not having much luck was due to the weight of the model he was trying to sell. He approached the firm with the idea to convert every possible part on a pump from metal to a hard plastic. That way the pump would be lighter weight and better meet customers' requirements. As the ____, Martin saw the project from its conception all the way through to the development of a lighter model pump.

A)change agent
B)alteration initiator
C)adjustment moderator
D)alteration agitator
E)idea champion

Question 63

Which of the following statements about positioning a change is true?

A)Positioning a change is not at all similar to positioning a product in the mass market.
B)Since the salesperson is acting as the change agent, any positioning of a change should take place in the purchasing department.
C)A change in positioning may alter the composition of the buying center.
D)Positioning a change is a reactive way of dealing with an initial turn-down at the buying firm.
E)The fewer constituencies involved in the positioning of a change, the more likely the change will be successful.

Question 64

Angela is a salesperson for KSU exercise equipment. She would like to sell her deluxe exercise stations to Silver's Workout Centers. Hans is assistant regional director of the Silver Centers in the greater Chicago area, and is acting as a champion for Angela's product. We should expect all of the following EXCEPT:

A)Angela will pay Hans a portion of her commission if the sale is completed.
B)Hans will sell Angela's proposal at times when she could not.
C)Angela will provide Hans with a lot of information about her proposal and equipment.
D)Hans will be advocating Angela's equipment to people Angela would find it difficult to reach.
E)Angela will motivate Hans by showing him how her equipment meets Silver's needs as well as his own.

Question 65

In general _____ status means the supplier is assured a large percentage of the buyer's business and will get the opportunity to earn new business.

A)prime provider
B)superior supplier
C)designated provider
D)preferred supplier
E)premier provider

Question 66

Describe the four stages of buyer-seller partnerships.

Question 67

When the buyer-seller relationship has reached the _____ stage, there is a stated or implied pledge to continue the relationship.

A)culmination
B)pinnacle
C)commitment
D)expansion
E)covenant

Question 68

Corporate culture:

A)shapes the attitudes of employees.
B)reflects the values and beliefs held by senior management.
C)influences the development of programs and policies.
D)determines how employees act.
E)is accurately described by all of the above

Question 69

Which of the following statements about positioning a change is FALSE?

A)Positioning a change is similar to positioning a product in the mass market.
B)How a change is positioned may affect the salesperson's chance of success.
C)Changing the position of a change may also change the buying center.
D)Positioning a change is a reactive way of dealing with an initial turn-down at the buying firm.
E)Positioning a change will require the salesperson study the various constituencies at the buying firm.

Question 70

In El Salvador, an adhesive manufacturer asked Miriam Avendano, its ExxonMobil Chemical salesperson if there were a way to create an adhesive that was safer to use? Because Avendano and the manufacturer are in the commitment stage of the development of a long-term partnership, which of the following most likely happened?

A)Avendano tried to sell the manufacturer a full line of chemicals made by ExxonMobil's Fenix plant in Central America.
B)Avendano set ExxonMobil's chemists to developing an additive that would greatly increase the flash point for the adhesive (raise the temperature at which it caught fire).
C)Avendano took the request as a complaint and acted accordingly.
D)Avendano took it upon herself to monitor the processing for all orders made by the adhesive manufacturer.
E)Avendano decided the adhesive manufacturer was taking their relationship for granted and dissolved the partnership.

Question 71

Fiona is concerned about complacency among her sales team. She asks each sales rep to answer a series of questions. Which of the following questions is she LEAST likely ask her sales team to answer?

A)Do you understand each customer's personal characteristics?
B)Do you maintain a record of promises made to each customer?
C)Do you know when competitors are making deliveries?
D)Do you follow up on every customer request promptly?
E)Have you recently found something you can do better than our competitors?

Question 72

Jack has just received a complaint from one of his long-time customers about a problem with the ignition system on some roto-tillers that were delivered last month. Should Jack assume the product is fine, and the user is at fault?

Question 73

Hurricane Mitch was the most devastating storm to ever hit Central America. Roger Conrado, a salesperson for ExxonMobil Chemical in that area, knew that the large paint manufacturer that was his key client in Honduras would want to get up and running as soon possible to help with the rebuilding effort. To keep the customer supplied with the chemicals it needed, Conrado proactively found trucks and the truck drivers willing to drive the 100 extra miles and ford streams to get ExxonMobil Chemical products to the manufacturer as soon as possible. What stage of the building of the long-term partnership does this example describe?

A)culmination
B)pinnacle
C)commitment
D)expansion
E)covenant

Question 74

A champion is also known as a(n):

A)idea buffer.
B)internal entrepreneur.
C)trail blazer.
D)internal salesperson.
E)cheer leader.

Question 75

Ralph recognizes that most of the people he established a business partnership are no longer in their organizations. He does not know what his customers are planning next or what his competitors are doing. Ralph is most likely in the ____________ stage of business partnerships.

A)synergy
B)dissolution
C)exploration
D)acquiescence
E)commitment

Question 76

Gail is the Westinghouse salesperson on the Deep South Electric account (a major public utility company). Westinghouse and Deep South have developed a partnering relationship in which Deep South buys all of its pole mounted transformers from Westinghouse. Gail worked hard for several years to establish this partnership, and now she is much more relaxed. Her only client is Deep South and she knows the two firms are committed to the relationship. Her success has allowed her to begin using two or three afternoons during the week to work in her garden or play golf with some old college pals. The text would say Gail's _____ is putting her account partnership in jeopardy.

A)synergy
B)complacency
C)acceptability
D)acquiescence
E)slothfulness

Question 77

The term _____ refers to the degree to which a change affects an organization.

A)scope of change
B)change ratio
C)rate of change
D)change quotient
E)change agent

Question 78

Which of the following statements about the commitment stage of long-term partnering is FALSE?

A)Commitment to the relationship must permeate both the buying and the selling organizations.
B)The seller must take a proactive communication stance.
C)The corporate cultures of the two organizations must be compatible.
D)Salespeople must discourage direct communication between the personnel in the various function areas of the two firms.
E)There will be the implied or stated pledge to continue the relationship.

Question 79

Assuming proper expectations have been set, what are the three major sources of customer complaints?

Question 80

General Mills and Nestle of Switzerland created Cereal Partners Worldwide for the purpose of fine-tuning Nestlé's European cereal marketing and distributing General Mills cereal worldwide. One reason for General Mills' participation in this alliance was to make sure that it has a similar _____ to distributors in Europe.

A)political medley
B)stockholder's investment approach
C)primary internal partnership
D)main focus group
E)corporate culture