MKT 337 Chapter 13 – Flashcards
Unlock all answers in this set
Unlock answersquestion
Negotiation is defined as "working to reach an agreement that is satisfactory to either the buyer or the seller."
answer
False
question
The foundation for win-win negotiations is a relationship with the customer built on trust and rapport.
answer
True
question
Direct denial may be appropriate when a customer's objection is based on misinformation.
answer
True
question
If you believe in your product and understand its unique features, it should not be necessary to prepare for price resistance.
answer
False
question
The direct-denial method of negotiating objections is a very common approach used in the field of selling.
answer
False
question
A growing number of professional buyers have completed training in negotiation.
answer
True
question
Traditional selling principles stressed that the "we versus they" and the "win-win" were similar concepts for negotiating sales resistance.
answer
False
question
You usually get what you deserve, no matter how you negotiate.
answer
False
question
Customers who perceive added value are less likely to choose a competing product simply on the basis of price.
answer
True
question
In some cases the statement, "I don't need your product," is a conditioned response.
answer
True
question
Research shows that a neutral third party's testimony tends to provide a weak argument when answering a customer's concern.
answer
False
question
The"budget limitation tactic" is often used by buyers who have been trained in negotiation.
answer
True
question
The sales staff at the Renaissance Esmeralda Resort and Spa, located in a desert area of California, find it very difficult to work with a prospect who is seeking a "water destination."
answer
False
question
If a customer responds to a sales presentation by saying, "I'm already overstocked," it would be appropriate to ask the prospect to accept a token shipment on a consignment basis.
answer
True
question
When people say, "Your price is too high," they probably mean, "You haven't sold me yet."
answer
True
question
Buyers trained in price negotiation use which of the following tactics? A) product compromise B) sixty-forty C) budget limitation D) cards on the table E) maybe...if
answer
C) budget limitation
question
Which of the following is an acceptable method of negotiating the price objection? A) Make price the focal point of your presentation. B) Explain and demonstrate the difference between price and cost. C) Focus your comments on an individual product feature. D) Apologize for high prices. E) Lower the price if the customer balks.
answer
B) Explain and demonstrate the difference between price and cost.
question
Adding value with a cluster of satisfactions would be an effective way to deal with: A) time and product resistance B) need and product resistance C) price resistance D) time and need resistance E) need resistance
answer
C) price resistance
question
Resistance to the product is usually caused by: A) the salesperson is not familiar to the buyer B) the present product is satisfactory C) friends and acquaintances liked the product D) the product has not been discussed by the competition E) the price is matched with that of competing products
answer
B) the present product is satisfactory
question
When a prospect has finished voicing an objection, it is a good idea for the salesperson to: A) suggest postponing the negotiations B) divert attention to a product feature C) point out the relationship between price and quality D) agree that the objection is true and accurate E) be certain both parties are clear about the true nature of the problem
answer
E) be certain both parties are clear about the true nature of the problem
question
6) The "feel-felt-found" method is used in conjunction with which of the following? A) indirect denial B) direct denial C) trial offer D) superior benefit E) demonstration
answer
A) indirect denial
question
When a customer raises a valid objection that cannot be answered with a denial, the salesperson should consider using which of the following methods? A) questions B) the back-pedal C) a pricing approach D) beginning the presentation again E) compare the product to the competition
answer
A) questions
question
The best way to overcome a sincere need objection by a business prospect is to: A) instruct the prospect in comparison shopping B) make the price the major selling point of the sales presentation C) prove that your product will help ensure company profits D) point out the superior qualities of your product compared to others on the market E) reiterate all the features of your product
answer
C) prove that your product will help ensure company profits
question
One of the most common forms of buyer resistance and one of the most common excuses is: A) lack of recognition of need for the product B) personality conflict with the salesperson C) loyalty to another firm D) resistance to price E) dispute about payment terms
answer
D) resistance to price
question
If you are familiar with your product as well as your competition's product, which method of negotiating buyer resistance is one of the most convincing ways to overcome buyer skepticism? A) defamation B) trial offer C) third-party testimony D) indirect denial E) demonstration
answer
E) demonstration
question
Which of the following is an acceptable way to cope with the loyalty objection? A) Work on recruiting internal champions to build more support for your message. B) Point out, in specific terms, the weak points of the competing product. C) Point out how dependence on just one supplier can be risky. D) Encourage the prospect to quit the present supplier. E) Undermine confidence in the current supplier by intimating that the company is having financial troubles.
answer
A) Work on recruiting internal champions to build more support for your message.
question
A professional buyer says, "My final offer is $9,500, take it or leave it." A good way to cope with this type of resistance is to: A) lower your price, but make sure the sale still results in a profit for your company B) confidently review the superior benefits of your product and make another closing attempt C) make a counteroffer that is about 10 percent under your first price quote D) review the benefits of buying from your company E) agree to lower prices for the first year but increase prices for subsequent years
answer
B) confidently review the superior benefits of your product and make another closing attempt
question
When your customer says, "I would rather not tie up my money in a large order," the resistance falls into which category? A) time B) product C) price D) source E) process
answer
C) price
question
If a customer says to a sales representative from Johnson Supply, "I've always purchased my supplies from the Ralston Company," this person is raising an objection to: A) product B) time C) need D) source E) price
answer
D) source
question
Which of the following is true with respect to negotiations in foreign cultures? A) Different cultural expectations can cause miscommunication. B) It is sometimes advisable to become antagonistic during negotiations. C) Business rituals are largely the same across cultures. D) German buyers are unlikely to look you in the eye. E) In China, negotiations are less straightforward than in Japan.
answer
A) Different cultural expectations can cause miscommunication.
question
Working to reach an agreement that is mutually satisfactory to both buyer and seller is also called: A) negotiation B) agreement C) practice theory D) tactics E) strategy
answer
A) negotiation
question
A salesperson should consider reviewing the benefits of the product before making price concessions to a buyer who engages in which of the following tactics? A) budget limitation tactic B) take-it-or-leave-it tactic C) let-us-split-the-difference tactic D) "if...then" tactic E) "sell low now, make profits later" tactic
answer
B) take-it-or-leave-it tactic
question
The salesperson may find which of the following tactics used by a buyer a fair deal? A) budget limitation tactic B) take-it-or-leave-it tactic C) let-us-split-the-difference tactic D) "if...then" tactic E) "sell low now, make profits later" tactic
answer
C) let-us-split-the-difference tactic
question
Balance of power is the issue a salesperson must take into consideration when deciding how to respond to which of the following tactics? A) budget limitation tactic B) take-it-or-leave-it tactic C) let-us-split-the-difference tactic D) "if...then" tactic E) "sell low now, make profits later" tactic
answer
D) "if...then" tactic
question
An agreement to keep the same price but reduce prices in the future is often a successful response to which of the following tactics used by buyers? A) budget limitation tactic B) take-it-or-leave-it tactic C) let-us-split-the-difference tactic D) "if...then" tactic E) "sell low now, make profits later" tactic
answer
E) "sell low now, make profits later" tactic
question
Reducing the price by unbundling some items is an effective technique a salesperson can use with a buyer who uses which of the following tactics? A) budget limitation tactic B) take-it-or-leave-it tactic C) let-us-split-the-difference tactic D) "if...then" tactic E) "sell low now, make profits later" tactic
answer
A) budget limitation tactic
question
If a company uses a low-price strategy, the company may need to consider which of the following to be able to make effective price concessions? A) selling at the cost of manufacturing the product B) eliminating features that contribute to a higher price C) increasing the number of features of the product D) matching competitors' prices E) changing branding
answer
B) eliminating features that contribute to a higher price
question
Cost represents the: A) relationship between price and amortization B) initial amount the buyer pays for the product C) amount the buyer pays for a product as it is used over a period of time D) true value of the product in non-financial terms E) buyer's contribution to the negotiations
answer
C) amount the buyer pays for a product as it is used over a period of time
question
Which of the following is an important consideration that buyers should keep in mind if they are searching for the lowest price on a product? A) Transactional buying does not lead to relationships with the seller. B) Features and benefits are not always related to price. C) Lower prices may also mean lower costs. D) The highest quality can never be obtained at the lowest price. E) Paying too much is worse than paying too little.
answer
D) The highest quality can never be obtained at the lowest price.
question
The iceberg metaphor shows that many customers try to negotiate on price because: A) price is often inflated to attempt to maximize profits for the company B) price is the most easily quantifiable characteristic of any product C) they were trained to negotiate on price and price alone D) they feel that they are not fulfilling their duties as buyers if they do not attempt to get lower prices E) they do not realize that other factors, such as service and terms, can be more important to satisfaction in the long-haul
answer
E) they do not realize that other factors, such as service and terms, can be more important to satisfaction in the long-haul
question
Salespeople can deal with all of the notes they take on sales calls and other negotiations most effectively by: A) entering the notes into a searchable CRM system B) putting the notes into folders, one for each account C) copying the notes and putting them into a three-ring binder D) scanning the notes in to a computer and saving them as PDF files E) giving them to support staff to organize and archive
answer
A) entering the notes into a searchable CRM system
question
Indirect denial is often more effective in combatting prospect concerns than direct denial is because: A) indirect denial is a technique that needs to be practiced B) indirect denial sounds more positive than direct denial does C) indirect denial uses transition words such as "but" and "however" D) direct denial resolves the issue conclusively E) direct denial provides no out for the customer
answer
B) indirect denial sounds more positive than direct denial does
question
The difference between a misunderstanding and a disagreement is that: A) a misunderstanding and a disagreement are essentially the same thing, and any differences are largely semantic B) a misunderstanding is a failure to agree even when both sides understand each other, while a disagreement is a failure to accurately understand the other person's point C) a misunderstanding is a failure to accurately understand the other person's point, while a disagreement is a failure to agree even when both sides understand each other D) a misunderstanding compounds a disagreement by adding another level of complication, such as communication style or language barrier E) a misunderstanding is a less severe form of a disagreement
answer
C) a misunderstanding is a failure to accurately understand the other person's point, while a disagreement is a failure to agree even when both sides understand each other
question
Logrolling refers to: A) selling customers products they have never purchased before from your company B) shifting customers form one salesperson to another to resolve personality conflicts C) asking customers to pay full price for the first year in exchange for lowered prices in future years D) an extremely alternate solution to a negotiation problem E) an increased sales volume on an old product when a newer product is released to the market at a slightly higher price
answer
D) an extremely alternate solution to a negotiation problem
question
Determining your BATNA and ZOPA will help you in negotiations because: A) the process will be delayed and you may be able to wear the buyer down B) you will have a leg up on buyers, who are restricted from performing these assessments C) you will only make the sale if your BATNA determination matches your buyer's exactly D) they determine the best fair price for a product E) they tell you what you will be willing to accept before you walk away from the negotiation
answer
E) they tell you what you will be willing to accept before you walk away from the negotiation
question
A ________ ________ is a benefit that will, in most cases, outweigh the customer's specific concern
answer
Superior Benefit
question
The ________ method of negotiating buyer resistance is one of the most convincing ways to overcome buyer skepticism.
answer
Demonstration
question
The ________ ________ method of negotiating an objection is popular with customers because they can get fully acquainted with the product without making a major commitment.
answer
Trial offer
question
One way to empathize with the client's objection and turn objections into sales is to use the "feel-felt- ________" strategy.
answer
Found
question
When a salesperson bends a little and acknowledges that the prospect is at least partially correct, he/she is using the ________ ________ method of negotiating an objection.
answer
Indirect Denial
question
List five common types of buyer concerns.
answer
1. Concerns related to need for the product. 2. Concerns about the product. 3. Concerns about source. 4. Concerns related to price. 5. Concerns related to time.
question
Professional buyers often learn to use specific tactics in dealing with salespeople. List three tactics that were identified in Homer Smith's book, Selling Through Negotiation.
answer
1. Budget limitation tactic. 2. Take-it-or-leave-it tactic. 3. Let's split the difference tactic.
