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Exam 14: Personal Selling and Customer Service

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Question 101

Multiple Choice

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"Technical specialists":

A) are usually paid a straight commission on sales.
B) help explain technical details as needed.
C) usually work with business purchasing agents.
D) usually install emergency products.
E) are technical order getters.

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Question 102

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The _________ compensation plan increases the amount of sales supervision needed.

A) Straight salary
B) Commission pay
C) Bonus plan
D) Combination plan
E) Profit-sharing plan

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Question 103

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The selling formula approach starts with a prepared presentation outline.

Which of the following alternatives about telephone selling by an inside sales group is FALSE?

A sales manager's CONTROL over his salespeople:

Edward Seaton owns a firm that manufactures custom-made carpets. He has a regular sales force to call on smaller customers and an elite force to call on larger accounts. The elite sales force is called:

Which of the following is likely to have the lowest total personal selling expenses?

While face-to-face with prospects, a salesperson can adjust what he or she says or does to take into consideration culture and other behavioral influences.

Each sales manager and salesperson needs to think about the AIDA sequence in deciding what sales approach to use and in evaluating a possible presentation.

A salesperson who earns the same gross pay each month is in what type of compensation program?

Providing effective customer service is relatively simple-because it is usually clearer how to repair a negative experience than it is to provide an initial purchase experience that is satisfying to the customer.

A good job description for a salesperson:

A job description for a sales position

A lawn care firm selling by phone to people listed in the telephone directory should use which of the following sales presentations?

Liz Edwards is a sales associate for a major retailer of high-quality cooking supplies, housewares, and furniture. She is paid an hourly wage, plus she gets an additional sum of money that is a percentage of the dollar sales of all the sales associates combined during the hours that she works. Liz is working under a(n) ________________________ compensation plan.

For many firms, the largest single operating expense is:

The sales manager for a producer of consumer convenience products should recognize that the company may need:

Salespeople may represent their company to customers and, in turn, represent their customers within the company.

Use this information for question that refer to the "Salespeople" case. Wilson Alvaro graduated with a marketing degree almost a year ago. Like many of his friends, he took a job in sales and really enjoys it. A description of Wilson's job and those of some of his friends are noted below. Wilson Alvaro loves biking and has his dream job. He works for a wholesale company that sells mountain bikes for a manufacturer. He works with a small group of people who call on the buying offices for two large retail chains, Wal-Mart and Toys R Us. The group includes a finance person and a production person, and they all work together to meet the specific needs of these two big accounts; for example, sometimes they recommend a model of bike that will be available from only that retailer's stores. However, Wilson's main job focuses on building relationships and solving customer problems. Only occasionally is he expected to try to persuade the retailers to buy more bikes. Amy Bowden sells life insurance. She calls on new parents and persuades them to buy insurance products. It is difficult for a manager to control Amy's work, but she has incentive to work hard because her job security and income depend on getting sales. She is a confident self-starter, so she likes it that way. Ben Peterson works for a fashionable men's clothing store. He enjoys spending time with customers who come in, learning about their fashion needs, and helping them pick clothes that really work for them. While the store manager can easily observe and direct Ben's activities, the manager wants Ben to have the incentive to increase customer purchases and satisfaction. Emily Winters handles inside sales for a major industrial distributor. She deals with a regular set of established customers, most of whom know what they want. Emily talks to them on the phone and answers questions about products, delivery time, and pricing. She sometimes works with outside sales reps who visit customers and help introduce new products. Emily is the first person her customers call when there's a problem with a purchase, so she spends a lot of time dealing with customer problems. As an inside salesperson, Emily's work is easily supervised by a sales manager - and she has little influence on how much her customers buy. Melissa Tran works for a company that sells paper products (like napkins, paper towels, and paper plates) primarily through small independent grocers. Most of the grocers are regular customers, but sometimes she makes cold calls to new grocery stores. Melissa's job is to develop goodwill and try to increase sales. For example, she often sets up special promotional displays in stores. Her compensation plan gives her income security, but she also can receive a bonus for sales growth in her territory. Charlie Riggs is a telemarketer for an Internet service provider. He calls people on a list provided by his firm and tries to sign them up for Internet service. Charlie relies heavily on a presentation he learned during his training. Charlie is very good at what he does and loves that the more success he has the more he earns. Wilson Alvaro's sales position involves:

Allied Corp. has found that an effective salesperson should call on each account about six times a year and spend about two hours per sales call. Every salesperson works a 40-hour week and takes off two weeks for vacation each year. A salesperson must spend half of the time on travel and administration. Approximately how many salespeople does Allied need to service 1000 accounts?