Ch 4

Question 1

This type of relationship is characterized by the selling company spending considerable time understanding the special needs of the customer and marshalling resources inside the supplier’s company to meet those special needs.

Answer 1

• consultative relationship- enterprise relationship(b and c)

Question 2

T/F: One of the most productive uses of a salesperson’s time is usually to call on existing customers, rather than on new prospects.

Answer 2

True

Question 3

In many consultative type of sales situations, the customer may not be aware that a need or opportunity exists.

Answer 3

True

Question 4

T/F: In the U.S., the first step in organizational purchasing (working with the ‘purchasing’ or ‘procurement’ department) is for the buyer to develop a personal relationship with the seller.

Answer 4

False

Question 5

T/F: The concept of “derived demand” refers to the close relationship between a supplier’s sales to a customer (such as a distributer) and that customer’s sales to their own end users.

Answer 5

True

Question 6

T/F: It is possible for one person in an organization to occupy the role of both a technical and an economic buyer.

Answer 6

True

Question 7

T/F: Salespeople should be prepared to discuss interest rates and financing terms with the Economic Buying Influencer.

Answer 7

True

Question 8

T/F: Selling to organizations is somewhat easier than selling to an individual consumer because organizational buying centers are staffed with professionals.

Answer 8

False

Question 9

T/F: It is possible for one person to function in the roles of being the user, economic, and technical buyer for a particular purchase.

Answer 9

True

Question 10

T/F: It is generally good advice for salespeople to concentrate all their efforts on the purchasing agent when selling to organizations.

Answer 10

False

Question 11

T/F: The role of the user-buyer is to determine the impact of the purchase on the job in which the product is used.

Answer 11

True

Question 12

T/F: Most buying organizations assign an “advocate” to new salespeople for the purpose of educating them about their operations.

Answer 12

False

Question 13

T/F: Value to a buyer generally means paying the lowest possible list price for a product or service.

Answer 13

False

Question 14

T/F: One danger of using price discounts to close a sale is that the customer may seek further discounts in the future.

Answer 14

True

Question 15

Your product is priced at $100. It costs $65 to make and to sell it, leaving a variable contribution of $35. Your Prospect asks for a 10% discount in your price. If you grant the discount, by what % will your variable contribution decrease?

Answer 15

28.6%

Question 16

Which of the following is the first step in the typical purchasing process by organizations?

Answer 16

Recognition of needs

Question 17

Which of the following is likely to be associated with a request for proposal (RFP)?

Answer 17

-A set of product specifications-Detailed description of the length and format of the proposal

Question 18

T/F: If the specifications contained in a Request for Proposal are very large in number and are unusually detailed, this could mean that the vendor has ‘wired’ the RFP in favor of another vendor with which it has worked in the past.

Answer 18

True

Question 19

A vendor analysis may examine all of the following performance criteria except:

Answer 19

Gross margin

Question 20

The factor(s) which influence the number of people who are likely to be involved in the decision making process are:

Answer 20

• how many departments use the product-dollar value of the purchase-degree of technical sophistication of the productALL of the above

Question 21

When selling to an economic buying influence such as a chief executive officer, salespeople are likely to do which of the following?

Answer 21

all of the above

Question 22

Which of the following is most likely to be an economic buying influence?

Answer 22

A senior officer (VITO)

Question 23

An economic buying influence is likely to be further up the organizational ladder under what conditions?

Answer 23

The more depressed the firm’s business condition

Question 24

Which of the following buying center people is implementation oriented, takes a tactical view of the decision, and whose daily life is most affected by the seller’s product or service?

Answer 24

User Buyer

Question 25

User buyers are most likely to be concerned with which of the following issues?

Answer 25

The operational advantages of the purchase

Question 26

Technical buyers are most likely to be concerned with which of the following issues?

Answer 26

Screening out suppliers not meeting product specifications

Question 27

Which of the following is true regarding the role the advocate may be expected to play in the complex business-to-business sales situation?

Answer 27

all of the above