Ch 13

Question 1

The definition of negotiation is​ ________.

Answer 1

working to reach an agreement that is mutually satisfactory to both buyer and seller

Question 2

Negotiations can happen at any stage of the sales​ process, but in most cases the most important negotiations will take place during the​ ________ stage of the buying process.

Answer 2

resolution of problems

Question 3

The concept of finding​ “what alternative(s) will be acceptable to you if your negotiation does not​ succeed” is called​ ________.

Answer 3

best alternative to negotiated agreement or BATNA

Question 4

A second important negotiation planning​ tool, ________, is defined as the space between the​ seller’s walk-away point and the​ buyer’s highest willingness to pay.

Answer 4

zone of possible agreement or ZOPA

Question 5

​”Do unto others as they want to be done​ unto” is an application of the​ _____ rule of negotiating.

Answer 5

platinum

Question 6

The great majority of buyer concerns fall into five categories. Those categories are​ ________.

Answer 6

​need, product,​ source, time, and price

Question 7

If you are calling on business​ prospects, the way to overcome need resistance is to prove your product​ ________.

Answer 7

is a good investment

Question 8

Concerns about the product or service often become the focal point of buyer resistance. Two common factors influencing the​ buyer’s attitude are that the product or service​ ________.

Answer 8

is not well established or the current product or service is satisfactory

Question 9

Resistance to time is often referred to as stalling. A stall usually means the customer​ ________.

Answer 9

does not yet perceive the benefits of buying now

Question 10

In the eyes of most​ customers, value is more important than price. Always try to position your product with​ ________.

Answer 10

a convincing value proposition

Question 11

​_____ is one of the biggest obstacles sales people have to conquer.

Answer 11

Price objection

Question 12

In analyzing each buyer​ concern, the salesperson should try to determine which method can be most effective. In most​ cases, the salesperson can use​ ________.

Answer 12

a combination of methods

Question 13

Studies indicate that the favorable testimony of​ ________ can be an effective method of responding to buyer resistance.

Answer 13

a neutral third party

Question 14

​Today’s customers are well informed and might want to​ ________ early in the sales process.

Answer 14

engage in negotiations

Question 15

A salesperson might attempt to turn the objection into​ a(n) ________ by concluding the sale without prejudicing the opportunity to continue the selling process with the buyer should he or she refuse to commit.

Answer 15

trial close

Question 16

The challenge a salesperson faces in almost every negotiation is to sell products and services based on​ ________, not on price.

Answer 16

fair and unique value propositions

Question 17

One way to clarify price concerns is​ ________.

Answer 17

by asking questions to determine what the customer is thinking

Question 18

To help overcome price​ concerns, salespersons need to direct the​ customer’s attention​ to________.

Answer 18

the​ value-added features of your product or service

Question 19

The best time to deal with price is​ ________.

Answer 19

after you have reviewed product features and buyer benefits

Question 20

Many​ ________ buyers are primarily interested in price and convenience during​ negotiations, so consider eliminating features that contribute to a higher selling price.

Answer 20

transactional

Question 21

One strategy to use with buyers who use the​ “budget limitation​ tactic” is to​ ________.

Answer 21

use unbundling by eliminating some items to reduce the price

Question 22

Buyers sometimes use the​ “take-it-or-leave-it” tactic. An alternative strategy to counter this tactic is to​ ________.

Answer 22

confidently review the superior benefits of your product and make another closing attempt

Question 23

Buyers will also use the​ “let-us-split-the-difference” tactic. If the​ buyer’s suggestion is not​ acceptable, then you might​ ________.

Answer 23

make a counteroffer

Question 24

The consequence of the use of the​ “if . . .​ then” tactic could be serious. If the buyer does have a number of options that offer the same benefits as​ yours, then the salesperson​ ________.

Answer 24

might have to concede

Question 25

The​ “sell low​ now, make profits​ later” approach​ ________.

Answer 25

can create value for both you and your customer because it might be a way of gaining a foothold in your​ buyer’s business