Deck 14: Building Long-Term Partnerships

Question 1

Expansion immediately follows the awareness stage of building partnerships.

Answer 1

False

Question 2

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

Answer 2

False

Question 3

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

Answer 3

True

Question 4

When handling customer complaints,it is always better to tell a customer what the solution is rather than offering him/her several solutions to choose from.

Question 5

The only way to resolve a customer complaint is by sending an unsatisfactory product to the factory for a decision.

Question 6

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

Question 7

After a sale,a follow-up should be made by telephone.

Question 8

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

Question 9

Assuming 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.

Question 10

Full-line selling is selling an entire line of associated products.

Question 11

A salesperson owns the responsibility to secure commitment from his or her own company.

Question 12

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

Question 13

Good salespeople show they are happy a grievance has been brought to their attention.

Question 14

During the commitment stage of the development of partnerships,it is still unlikely that a customer will designate a supplier as a preferred supplier or partner.

Question 15

Commitment requires that all employees be empowered to handle the needs of a customer.

Question 16

Getting customers to use a higher quality or newer version of a product is called full-line selling.

Question 17

The absence of complaints means that customers are happy.

Question 18

Activities such as upgrading,full-line selling,cross-selling,and handling complaints cease during the commitment stage of the relationship development process.

Question 19

Most customers who file complaints are aware that their claims are unfair.

Question 20

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

Question 21

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

Question 22

In the _____ stage of developing a partnership,the relationship is defined through the development of expectations for each party.

A) commitment
B) exploration
C) awareness
D) expansion
E) dissolution

Question 23

Which of the following occurs in the expansion stage of developing partnerships?

A) Developing new products jointly
B) Designating the vendor as a preferred supplier
C) Sharing proprietary information with the vendor
D) Securing complete commitment from the client
E) Generating reorders from the customer

Question 24

In sales terms,complacency is assuming that the business is yours and will always be yours.

Question 25

Al,the owner of Mac's Tire Mart has received its first shipment of tires from the NevaFlat Tire Company.Al is now testing how well the tires sell,how well NevaFlat responds when he has a question or problem,and how durable the tires really are.Al and NevaFlat Tire Company are in which of the following stages of partnership development?

A) Recognition
B) Expansion
C) Exploration
D) Commitment
E) Awareness

Question 26

Because salespeople are highly proactive in finding areas for improvement in their partners' organizations,positioning a change may determine who is involved in the decision.

Question 27

Which of the following is most likely to occur in the commitment stage of developing partnerships?

A) Evaluating after-sales services
B) Gathering precall information
C) Managing change
D) Cold calling prospects
E) Getting an initial order

Question 28

Salespeople can motivate champions to participate fully in the decision process by showing how a decision meets their needs as well as the overall needs of the company.

Question 29

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

A) The nature of the follow-up should reflect the needs of the buying center member being contacted.
B) Personal follow-up visits should be avoided because they are expensive and tend to accomplish little.
C) Salespeople should follow-up with only those members of the buying center who are directly involved in the use of the product.
D) Salespeople should ideally follow the 3-by-3 strategy to make all their follow-up calls.
E) Telephone calls are seen as intrusive and must be avoided as a follow-up communication channel.

Question 30

When partnering with companies from other countries,country culture differences as well as corporate culture differences can cause difficulties.

Question 31

After building awareness,the next stage in the development of a partnership is:

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

Question 32

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

Question 33

In which stage of building a long-term partnership is electronic data interchange (EDI)technology most likely to be used first for strengthening the relationship between buyer and seller?

A) Recognition
B) Expansion
C) Exploration
D) Commitment
E) Co-development

Question 34

During the _____ stage of developing a partnership,the buyer tests the seller's product,how the seller responds to requests,and other similar actions after the initial sale is made.

A) exploration
B) commitment
C) awareness
D) expansion
E) dissolution

Question 35

CarlTech knows how important it is to process and deliver orders to clients on time.Recently,the company made some major changes to streamline the process by which its salespeople monitor and process orders.As a part of this initiative,it installed a system which allows the computers of the salespeople and customers to communicate directly.This system allows its customers to place orders across different time zones and geographical locations.CarlTech is using a(n)_____ system in this scenario.

A) database management
B) specialty advertising
C) electronic data interchange
D) sales asset management
E) collateral management

Question 36

During the _____ stage of developing a partnership,a small percentage of the buyer's business is given to minimize the risk in case the vendor cannot perform.

A) exploration
B) commitment
C) awareness
D) expansion
E) dissolution

Question 37

Salespeople should encourage direct communication among similar functional areas.

Question 38

When the rate and scope of change are lower,the resistance to the change is higher in the organization.

Question 39

Complaints in later stages of a strategic partnership are likely to lead to full-blown conflict if trust is not carefully salvaged.

Question 40

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

Question 41

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

A) follow through with the action he has chosen to solve his customer's problem.
B) listen to the customer without interrupting when the problem is being described the first time.
C) offer a solution and gain agreement that the proposed solution is acceptable.
D) discuss how another member of the selling center is actually at fault.
E) determine whether his firm or the customer's firm is responsible for the problem.

Question 42

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) handle the grievance in a friendly manner.
D) attempt to sell a different product to the customer.
E) do none of the above.

Question 43

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

A) The salesperson set the buyer's expectations too high.
B) The terms of the sales contract were not met by the salesperson.
C) The product required extensive technical expertise to operate.
D) The product was used improperly by the customer.
E) All of the above.

Question 44

To improve the likelihood of reorders,a salesperson can:

A) be present at the time of the purchase.
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 selling firm's name, logo, and Web site.
D) provide the customer with periodic maintenance and repair on his or her purchase.
E) all of the above.

Question 45

When Marion convinced a customer to replace his old Pondmaster 1000 aquarium filter with the new and improved Pondmaster 1500,she was engaging in:

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

Question 46

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 to resell the company and its products.
E) A salesperson who is convinced that a claim is dishonest should take action by filing a case against the customer.

Question 47

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

A) Identifying additional needs
B) Monitoring order processing
C) Ensuring proper use of the product
D) Handling complaints
E) All of the above

Question 48

Which of the following statements about upgrading is true?

A) It is the same as cross-selling.
B) The objective of upgrading is to expand the seller's business by selling to the customer in bulk quantities.
C) To upgrade a customer the salesperson must show that the initial purchase was not exactly what the customer needed.
D) During the needs identification phase of upselling, it is a good idea to emphasize that the initial decision was a good one.
E) All of the above.

Question 49

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 that 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 to resolve a complaint.

Question 50

Full-line selling is the sale of those goods and services which are:

A) required as a part of the initial order a new customer places.
B) purchased by manufacturers and not retailers.
C) designed as a line of associated products.
D) sold as additional products that are not directly associated with the initial products.
E) compulsorily more advanced and more expensive than the initial products.

Question 51

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.Dawn decides to push stock of these additional construction materials to all her existing customers.Dawn is planning to use the _____ strategy.

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

Question 52

_____ selling is defined as selling the entire line of associated products.

A) Full-line
B) Cross
C) Insight
D) Rebate
E) Full-price

Question 53

Which of the following statements about complaints is true?

A) Handling complaints properly is most important during the commitment stage of a partnership.
B) Complaints cannot be eliminated; they can only be reduced in frequency.
C) Complaints should be predominantly attributed to the customer's handling or misuse of the product.
D) Only when complaints are eliminated can a true partnership be formed.
E) All of the above.

Question 54

Sheena,a salesperson for Myra Designer Wear,works closely with a client who retails her products in many major malls and stores.During the expansion phase of the partnering process with this retailer,she should try to maximize her selling opportunities by:

A) generating more reorders.
B) getting acquainted with the client's needs.
C) using the strategy of bulldozing.
D) engaging in full-price selling.
E) all of the above.

Question 55

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

A) data mining strategies.
B) specialty advertising items.
C) gatekeepers.
D) screens.
E) all of the above.

Question 56

Keith Nixon,a salesperson for Paradise Water Gardens,often calls on Olin Wiley,the owner of Lexington Nurseries for sales meetings.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) ensuring good after-sales service.
B) helping service the product.
C) providing expert guidance.
D) following through with action.
E) selling specialty advertising items.

Question 57

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 to resell the company and its products.
E) A customer who doesn't complain is a happy customer.

Question 58

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

A) Seeding
B) Canvassing
C) Positioning
D) Upgrading
E) Feature dumping

Question 59

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

A) offer a satisfactory solution.
B) emphasize that another member of the selling firm is at fault.
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 60

With _____,the emphasis is on helping the buyer realize the synergy of carrying all associated products of the same brand or manufacturer.

A) solo exchange transactions
B) insight selling
C) cross-selling
D) upgrading
E) full-line selling

Question 61

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) Positioning a change is similar to positioning a product in mass marketing.
D) Positioning a change is a reactive way of dealing with an initial turndown by the buying firm.
E) Salespeople have a limited role in the process of positioning a proposed change.

Question 62

In El Salvador,a manufacturer of household insecticide told Dempko Chemical Co.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 Dempko Chemical's Demosol D-a substitute for kerosene.Dempko Chemical 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) influential adversary.
C) spotter.
D) gatekeeper.
E) idea champion.

Question 63

To avoid _____,salespeople should regularly audit their own customer service.

A) expansion
B) synergy
C) complacency
D) dependability
E) resistance to change

Question 64

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

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

Question 65

Which of the following statements is true of the tendency of salespeople to not monitor competitor actions?

A) When the selling firm is in an invulnerable position, there is no need to study competitor actions.
B) Studying competitor actions involves locating data that is not easily accessible to everyone.
C) The selling firm is especially vulnerable during a personnel, technological, and directional change.
D) Competitor's actions rarely help a company position its products and services better.
E) The 3-by-3 strategy is designed specifically to help salespeople understand a competitor's actions.

Question 66

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

A) reseller
B) retailer
C) service provider
D) preferred supplier
E) relationship manager

Question 67

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 take two or three afternoons off from work in order to work on her garden or play golf with some old college pals.Gail's attitude toward her clients and sales targets is now characterized by _____.

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

Question 68

Which of the following statements is true of the different categories of relationships with suppliers?

A) The first stage involves the formation of selective or strategic partnerships.
B) An annual contract is an example of a coordinative relationship with a supplier.
C) Selective and strategic partnerships are examples of market exchanges.
D) Functional partnerships essentially involve an integration of departments across the two companies.
E) Strategic partnerships represent the most commonly seen buyer-supplier relationship.

Question 69

Which of the following is the first step toward reducing the probability of a trust-destroying conflict?

A) Give a clear product description
B) Define who has the authority to do what within the selling and buying organizations
C) Document any changes made to the contract
D) Ignore complaints from the buying center
E) Dissolve the relationship

Question 70

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 71

Martin was trying to sell pumps for circulating water in goldfish ponds when he realized that the reason he was not able to sell many pumps was the weight of the model he was trying to sell.He approached the firm with the idea to replace every possible metal part of the pump with a hard plastic substitute.After working on his feedback,the pumps became lightweight and were able to meet customers' requirements better.As the _____,Martin saw the project from its conception to the development of a lighter model pump.

A) change agent
B) gatekeeper
C) driver
D) spotter
E) champion

Question 72

Ralph realizes that most of the people he established a business partnership with 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) expansion
E) commitment

Question 73

Which of the following represents a way by which a salesperson can ensure having a good number of personal contacts in the customer's firms?

A) By using the electronic data interchange system to control communication with the customer
B) By using specialty advertising items to make the selling firm's presence felt in the customer's firm
C) By cultivating three relationships each at three organizational levels of the customer's firm
D) By minimizing the use of strategies like cross-selling, full-line selling, and upselling with the customer's firm
E) By avoiding action on any trust-destroying conflict that the customer may have

Question 74

Hurricane Mitch was the most devastating storm to ever hit Central America.Roger Conrado,a salesperson for Dempko Chemical in that area,knew that a major client in the hurricane-affected area would suffer huge losses unless it restarted its operations soon.To keep the customer supplied with the chemicals it needed,Conrado proactively arranged transportation facilities to deliver the chemicals to the manufacturer's factory.Which of the following stages of partnership development does this example describe?

A) Culmination
B) Dissolution
C) Commitment
D) Awareness
E) Covenant

Question 75

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 76

Which of the following is a feature of the dissolution stage of partnership development?

A) Keen awareness of the potential plans of the partnering firm
B) Insight into the competitor actions
C) Extensive network of personal and professional contacts in the partnering firm
D) Failure to update oneself about the changes occurring in the industry
E) High degree of competence even at the latter stages of a partnering relationship

Question 77

Which of the following statements about the commitment stage of partnership development 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 among similar functional areas of the two firms.
E) There is an implied or stated pledge to continue the relationship.

Question 78

Angela is a salesperson for KSU exercise equipment.She wants to sell deluxe exercise stations to Silver Workout Centers.Hans is the assistant regional director of Silver Workout 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) Hans will prevent Angela from meeting the members of the buying center at the home office.
B) Hans will sell Angela's proposal at the home office in her absence.
C) Angela will provide Hans with a lot of information about her proposal and equipment.
D) Hans will be promoting the exercise equipment to other members of the buying center.
E) Angela will motivate Hans by showing him how the equipment meets Silver's needs as well as his own.

Question 79

A champion is also known as a(n):

A) influential adversary.
B) gatekeeper.
C) spotter.
D) internal salesperson.
E) driver.

Question 80

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) all of the above.