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Chapter 17 - Personal Selling and Sales Promotion 1. Identify and discuss the general steps in the personal selling process. Answer: Personal selling process consists of seven steps: prospecting, preapproach, approach, making the presentation, overcoming objections, closing the sale, and following up. Prospecting: Developing a database of potential customers is called prospecting. Salespeople seek names of prospects from company sales records, trade shows, commercial databases, newspaper announcements (of marriages, births, deaths, and so on), public records, telephone directories, trade association directories, and many other sources. Preapproach: Preapproach involves identifying key decision makers, reviewing account histories and problems, contacting other clients for information, assessing credit histories and problems, preparing sales presentations, identifying product needs, and obtaining relevant literature. Approach: The approach—the manner in which a salesperson contacts a potential customer— is a critical step in the sales process. Making the Presentation; During the sales presentation, the salesperson must attract and hold the prospect’s attention, stimulate interest, and spark a desire for the product. Salespeople who carefully monitor the selling situation and adapt their presentations to meet the needs of prospects are associated with effective sales performance. Salespeople should match their influencing tactics, such as information exchange, recommendations, threats, promises, ingratiation, and inspirational appeals, to their prospects. Overcoming Objections: An effective salesperson usually seeks out a prospect’s objections in order to address them. If they are not apparent, the salesperson cannot deal with them, and the prospect may not buy. One of the best ways to overcome objections is to anticipate and counter them before the prospect raises them. However, this approach can be risky, because the salesperson may mention objections that the prospect would not have raised. If possible, the salesperson should handle objections as they arise. Closing: Closing is the stage in the personal selling process when the salesperson asks the prospect to buy the product. During the presentation, the salesperson may use a trial close by asking questions that assume the prospect will buy. Following Up: After a successful closing, the salesperson must follow up the sale. In the follow-up stage, the salesperson determines whether the order was delivered on time and installed properly, if installation was required. He or she should contact the customer to learn if any problems or questions regarding the product have arisen. 2. List the three major types of salespeople and indicate how they differ. Answer: The three major types of salespeople are order getters, order takers and support personnel. Order Getters: To obtain orders, salespeople inform prospects and persuade them to buy the product. The responsibility of order getters is to increase sales by selling to new customers and increasing sales to present customers. This task is sometimes called creative selling. Order Takers: Taking orders is a repetitive task salespeople perform to perpetuate long-lasting, satisfying customer relationships. Order takers primarily seek repeat sales, generating the bulk of many firms’ total sales. One of their major objectives is to be certain that customers have sufficient product quantities where and when needed. Support personnel: Support personnel facilitate selling but usually are not involved solely with making sales. They engage primarily in marketing industrial products, locating prospects, educating customers, building goodwill, and providing service after the sale. 3. Differentiate between team selling and relationship selling. Answer: Team selling involves the salesperson joining with people from the firm’s financial, engineering, and other functional areas. Team selling is advantageous in situations calling for detailed knowledge of new, complex, and dynamic technologies like jet aircraft and medical equipment. It can be difficult, however, for highly competitive salespersons to adapt to a team selling environment. Relationship selling, also known as consultative selling, involves building mutually beneficial long-term associations with a customer through regular communications over prolonged periods of time. Relationship selling involves finding solutions to customers’ needs by listening to them, gaining a detailed understanding of their organizations, understanding and caring about their needs and challenges, and providing support after the sale. 4. What is the rationale for having sales force objectives, and how are they developed? Answer: To manage a sales force effectively, sales managers must develop sales objectives. Sales objectives tell salespeople what they are expected to accomplish during a specified time period. They give the sales force direction and purpose and serve as standards for evaluating and controlling the performance of sales personnel. Sales objectives should be stated in precise, measurable terms; specify the time period and geographic areas involved; and be achievable. Sales objectives are usually developed for both the total sales force and individual salespeople. Objectives for the entire force are normally stated in terms of sales volume, market share, or profit. Volume objectives refer to dollar or unit sales. When sales goals are stated in terms of market share, they usually call for an increase in the proportion of the firm’s sales relative to the total number of products sold by all businesses in that industry. When sales objectives are based on profit, they are generally stated in terms of dollar amounts or return on investment. Sales objectives, or quotas, for individual salespeople are commonly stated in terms of dollar or unit sales volume. Other bases used for individual sales objectives include average order size, average number of calls per time period, and ratio of orders to calls. 5. Explain the major issues to consider when developing a sales training program. Answer: Whether the training program is complex or simple, developers must consider what to teach, whom to train, and how to train them. A sales training program can concentrate on the company, its products, or selling methods. Ordinarily, new sales personnel require comprehensive training, whereas experienced personnel need both refresher courses on established products and training regarding new-product information and technology changes. Sales training may be done in the field, at educational institutions, in company facilities, and/or online using web-based technology. For many companies, online training saves time and money and helps salespeople learn about new products quickly. Sales managers might even choose to use online platforms. The choice of methods and materials for a particular sales training program depends on type and number of trainees, program content and complexity, length and location, size of the training budget, number of trainers, and a trainer’s expertise. 6. Identify the major features of effective sales force compensation plans. Answer: In a straight salary compensation plan, salespeople are paid a specified amount per time period, regardless of selling effort. This sum remains the same until they receive a pay increase or decrease. Although this method is easy to administer and affords salespeople financial security, it provides little incentive for them to boost selling efforts. In a straight commission compensation plan, salespeople’s compensation is determined solely by sales for a given period. A commission may be based on a single percentage of sales or on a sliding scale involving several sales levels and percentage rates. Although this method motivates sales personnel to escalate their selling efforts, it offers them little financial security, and it can be difficult for sales managers to maintain control over the sales force. In a combination compensation plan, salespeople receive a fixed salary plus a commission based on sales volume. Some combination programs require that a salesperson exceed a certain sales level before earning a commission; others offer commissions for any level of sales. 7. List three major types of sales force compensation methods. What are the advantages and disadvantages of each? Answer: The three major types of sales compensation methods are straight salary compensation plan, straight commission compensation plan, and combination compensation plan. The straight salary compensation plan: There are many advantages of the straight salary compensation plan. It gives salespeople security and sales managers control over salespeople. It is easy to administer and yields more predictable selling expenses. There are also a few disadvantages of the straight salary compensation plan. It provides no incentive, necessitates closer supervision of salespeople, and during sales declines, selling expenses remain constant. The straight commission compensation plan: One of the advantages of the straight commission compensation plan is that it provides maximum amount of incentive. By increasing commission rate, sales managers can encourage salespeople to sell certain items. Another advantage is that selling expenses relate directly to sales resources. There are also a few disadvantages to the straight commission compensation plan. Salespeople have little financial security. Sales managers have minimum control over sales force. It may cause salespeople to give inadequate service to smaller accounts, and selling costs are less predictable. The combination compensation plan: Some of the advantages of combination compensation plan are provision of certain level of financial security, some incentive, and movement of sales force efforts in profitable direction. The disadvantages of combination compensation plan are less predictability of selling expenses and chances of difficulty in administering. 8. Identify and describe several ways to motivate sales personnel. Answer: Effective sales force motivation is achieved through an organized set of activities performed continuously by the company’s sales management. Enjoyable working conditions, power and authority, job security, and opportunity to excel are effective motivators, as are company efforts to make sales jobs more productive and efficient. Sales contests and other incentive programs can also be effective motivators. These can motivate salespeople to increase sales or add new accounts, promote special items, achieve greater volume per sales call, and cover territories more thoroughly. In smaller firms lacking the resources for a formal incentive program, a simple but public “thank you” and the recognition from management at a sales meeting, along with a small-denomination gift card, can be very rewarding. Recognition programs that acknowledge outstanding performance with symbolic awards, such as plaques, can be very effective when carried out in a peer setting. The most common incentive offered by companies is cash, followed by gift cards and travel. Cash rewards are easy to administer, are always appreciated by recipients, and appeal to all demographic groups. In addition, recipients who are allowed to select the merchandise experience a sense of control, and merchandise awards can help build momentum for the sales force. 9. Discuss the major factors to consider when designing sales territories. Answer: When deciding on territories, sales managers must consider size, geographic shape, routing, and scheduling. Several factors enter into the design of a sales territory’s size and geographic shape. First, sales managers must construct territories that allow sales potential to be measured. Sales territories often consist of several geographic units, such as census tracts, cities, counties, or states, for which market data are obtainable. Sales managers usually try to create territories with similar sales potential, or requiring about the same amount of work. If territories have equal sales potential, they will almost always be unequal in geographic size. The geographic size and shape of a sales territory are the most important factors affecting the routing and scheduling of sales calls. Next in importance is the number and distribution of customers within the territory, followed by sales call frequency and duration. Those in charge of routing and scheduling must consider the sequence in which customers are called on, specific roads or transportation schedules to be used, number of calls to be made in a given period, and time of day the calls will occur. 10. Explain how a salesperson's performance can be evaluated. Answer: Salespeople are often judged along several dimensions. Sales managers evaluate many performance indicators, including average number of calls per day, average sales per customer, actual sales relative to sales potential, number of new-customer orders, average cost per call, and average gross profit per customer. To evaluate a salesperson, a sales manager may compare one or more of these dimensions with predetermined performance standards. However, sales managers commonly compare a salesperson’s performance with that of other employees operating under similar selling conditions or the salesperson’s current performance with past performance. Sometimes, management judges factors that have less direct bearing on sales performance, such as personal appearance, product knowledge, and ethical standards. One concern is the tendency to reprimand top sellers less severely than poor performers for engaging in unethical selling practices. 11. How has the expenditure of promotional dollars on advertising, consumer sales promotion methods, and trade sales promotion methods changed in recent years? Answer: The use of sales promotion has increased dramatically over the past 30 years, primarily at the expense of advertising. This shift in how promotional dollars are used has occurred for several reasons. Heightened concerns about value have made customers more responsive to promotional offers, especially price discounts and point-of-purchase displays. Thanks to their size and access to checkout scanner data, retailers have gained considerable power in the supply chain and are demanding greater promotional efforts from manufacturers to boost retail profits. Declines in brand loyalty have produced an environment in which sales promotions aimed at persuading customers to switch brands are more effective. Finally, the stronger emphasis placed on improving short-term performance results calls for greater use of sales promotion methods that yield quick (although perhaps shortlived) sales increases. 12. Identify and discuss some of the key objectives in using sales promotion. Answer: Marketers often use sales promotion to facilitate personal selling, advertising, or both. Sales promotion can increase sales by providing extra purchasing incentives. Many opportunities exist to motivate consumers, resellers, and salespeople to take desired actions. Some kinds of sales promotion are designed specifically to stimulate resellers’ demand and effectiveness, some are directed at increasing consumer demand, and some focus on both consumers and resellers. Regardless of the purpose, marketers must ensure that sales promotion objectives are consistent with the organization’s overall objectives, as well as with its marketing and promotion objectives. When deciding which sales promotion methods to use, marketers must consider several factors, particularly product characteristics (price, size, weight, costs, durability, uses, features, and hazards) and target market characteristics (age, gender, income, location, density, usage rate, and shopping patterns). How products are distributed and the number and types of resellers may determine the type of method used. The competitive and legal environment may also influence the choice. 13. Describe consumer sales promotion and trade sales promotion, and then explain how they differ. Answer: Consumer sales promotion methods encourage or stimulate consumers to patronize specific retail stores or try particular products. Consumer sales promotion methods initiated by retailers often aim to attract customers to specific locations, whereas those used by manufacturers generally introduce new products or promote established brands. Some of the consumer sales promotion methods are coupons, cents-off offers, money refunds and rebates, frequent-user incentives, point-of purchase displays, demonstrations, free samples, premiums, consumer contests and games, and consumer sweepstakes. Trade sales promotion methods attempt to persuade wholesalers and retailers to carry a producer’s products and market them more aggressively. Marketers use trade sales methods for many reasons, including countering the effect of lower priced store brands, passing along a discount to a price-sensitive market segment, boosting brand exposure among target consumers, or providing additional incentives to move excess inventory or counteract competitors. These methods include buying allowances, buy-back allowances, scan-back allowances, merchandise allowances, cooperative advertising, dealer listings, free merchandise, dealer loaders, premium or push money, and sales contests. The difference between trade sales and consumer sales promotion methods is that consumer sales promotion methods encourage or stimulate consumers to patronize specific retail stores or try particular products, while trade sales promotion methods attempt to persuade wholesalers and retailers to carry a producer’s products. 14. Discuss the purpose of coupons in sales promotion. Answer: Coupons reduce a product’s price and aim to prompt customers to try new or established products, increase sales volume quickly, attract repeat purchasers, or introduce new package sizes or features. Savings are deducted from the purchase price. Coupons are the most widely used consumer sales promotion technique. Print advertisements with coupons are often more effective at generating brand awareness than print ads without coupons. Coupons reward current product users, win back former users, and encourage purchases in larger quantities. 15. Identify four consumer and four trade sales promotion techniques, and describe each one. Answer: Some of consumer sales promotion methods are coupons, cents-off offers, money refunds and consumer sweepstakes. Coupons: Coupons reduce a product’s price and aim to prompt customers to try new or established products, increase sales volume quickly, attract repeat purchasers, or introduce new package sizes or features. Cents-off offers: With cents-off offers, buyers pay a certain amount less than the regular price shown on the label or package. Money refunds: With money refunds, consumers submit proof of purchase and are mailed a specific amount of money. Usually, manufacturers demand multiple product purchases before consumers qualify for money refunds. Consumer sweepstakes: Entrants in a consumer sweepstakes submit their names for inclusion in a drawing for prizes. Sweepstakes are employed more often than consumer contests and tend to attract a greater number of participants. Some of trade sales promotion methods are buying allowances, buy-back allowances, scan-back allowances, and sales contests. Buying allowances: A buying allowance is a temporary price reduction offered to resellers for purchasing specified quantities of a product. Buy-back allowances: A buy-back allowance is a sum of money that a producer gives to a reseller for each unit the reseller buys after an initial promotional deal is over. Scan-back allowances: A scan back allowance is a manufacturer’s reward to retailers based on the number of pieces moved through the retailers’ scanners during a specific time period. Sales contests: A sales contest is designed to motivate distributors, retailers, and sales personnel by recognizing outstanding achievements. 16. Paid personal communication that attempts to inform and persuade customers to purchase products in an exchange situation is called: A. advertising. B. sales promotion. C. personal selling. D. target marketing. E. public relations. Answer: C 17. A major disadvantage of personal selling is that it: A. is not remembered as well by consumers as advertising messages are. B. cannot easily adjust the message to satisfy a customer's information needs. C. is the most expensive element in the promotional mix. D. does not provide immediate feedback. E. is not compatible with other promotional activities. Answer: C 18. Personal selling is changing in today’s marketplace due to several factors. Which of the following is not a factor that impacts today’s promotion through personal selling? A. The difficulty in keeping customers because they are fickle. B. New technology provides up-to-date information in the field. C. The way in which customers gain information about a company or product. D. Social CRM allows companies to discover and engage customers. E. Electronic sales presentations through social media technology. Answer: A 19. Personal selling goals include finding prospects, convincing prospects to buy, and: A. monitoring new products being developed. B. being aware of competitors' sales activities. C. seeking one-sale customers. D. avoiding repeat transactions. E. keeping customers satisfied. Answer: E 20. The greatest amount of responsibility for providing customer satisfaction falls on the shoulders of: A. chief executive officers. B. salespeople. C. sales managers. D. quality control experts. E. marketing directors. Answer: B 21. Jennifer Clarkson, a sales representative for a publisher of college textbooks, had the southern half of the state as a sales territory. Last year, John Wilmen, director of marketing for the publishing company, told Gloria Shepherd, Jennifer's sales manager, to increase Jennifer's territory to the entire state. Now Jennifer's customers are less satisfied with the company. They are most likely to blame ________ for their reduced level of customer satisfaction. A. the textbook authors B. John Wilmen C. the marketing manager D. Gloria Shepherd E. Jennifer Clarkson Answer: E 22. Sean’s company has launched a new product line, and he is put in charge of sales. He has to find potential customers in the company's sales records. Sean is in which of the following stages of personal selling? A. Prospecting B. Screening C. Researching D. Preapproaching E. Surveying Answer: A 23. The final stage of the selling process is: A. closing. B. trial close. C. presentation. D. follow-up. E. overcoming objections. Answer: D 24. Tara is beginning her week as a sales representative for Logitech Technology. She decides to start the day by developing a list of potential customers, which is called: A. preapproaching. B. surveying. C. scouting. D. prospecting. E. screening. Answer: D 25. Scott Bartello, a salesperson for Lamkin Golf Products, develops a list of potential customers and evaluates them on the basis of their ability, willingness, and authority to purchase copy machines. This process is called: A. customer search. B. preapproach. C. customer evaluation. D. customer pre-approval. E. prospecting. Answer: E 26. Company sales records, commercial databases, newspaper announcements, telephone directories, and public records are all sources used for: A. surveying. B. screening. C. researching. D. preapproaching. E. prospecting. Answer: E 27. Advertisements that encourage customers to send in reply cards for additional information aids salespeople in ________. A. convincing prospects to buy B. finding prospects C. keeping customers satisfied D. making presentations E. following up the sale Answer: B 28. After compiling a list of potential customers, a salesperson must: A. evaluate whether each prospect is able, willing, and authorized to buy the product. B. determine whether or not each prospect is really in his target market. C. find and analyze information about each prospect's specific needs and current brand choices. D. develop a presentation for each of the potential customers on his list. E. contact each of the prospects to get an initial feel for how likely they are to purchase his products. Answer: A 29. Janet will be devoting more effort to ________ in the coming weeks, as she was instructed by her manager to expand her list of potential customers. A. approaching customers B. preapproaching C. closing the sale D. following up E. prospecting Answer: E 30. Tim has just finished compiling a list of potential customers and evaluating their ability, willingness, and authority to buy. He knows his next step in the personal selling process is to: A. approach. B. preapproach. C. make the presentation. D. prospect. E. overcome objections. Answer: B 31. Before contacting prospects, a salesperson for an industrial cleaning equipment company analyzes information about the prospects' product needs, feelings about brands, and personal characteristics. This process is called: A. following up. B. preapproach. C. approaching the customer. D. sales training. E. sales presentation. Answer: B 32. A salesperson finds and analyzes information about each prospect's specific product needs, current use of and feeling about brands, and personal characteristics during: A. prospecting. B. the approach. C. presentation preparation. D. overcoming objections. E. the preapproach. Answer: E 33. Rick is a sales representative for Lucent Technologies. He has reviewed a prospect's account and credit history, identified product needs, and gathered the appropriate literature he needs. Rick feels he is ready for the ________ step of the personal selling process. A. objections B. presentation C. approach D. preapproach E. sales-planning Answer: C 34. The step of the personal selling process in which a salesperson contacts a potential customer is called: A. making the presentation. B. following up. C. the preapproach. D. the approach. E. prospecting. Answer: D 35. Creating a favorable impression and developing rapport with prospective customers is a critical part of the ________ step of personal selling. A. following up B. making the presentation C. approach D. prospecting E. preapproach Answer: C 36. Stacey's client group has been gradually shrinking and she is looking for new prospective clients. She has decided to spend a couple of days approaching potential customers without any prior consent. Stacey's method of approach is known as: A. referral approach. B. ambulance chasing. C. door-to-door selling. D. cold canvass. E. repeat contact. Answer: D 37. The salesperson must attract and hold the prospect's attention, stimulate interest, and spark a desire for the product during the ________ step. A. closing B. preapproach C. follow up D. approach E. sales presentation Answer: E 38. A salesperson will be better able to determine the prospect's specific needs by: A. listening carefully to questions and comments, and watching reactions during the sales presentation. B. waiting until after the sale to see how the client is enjoying the use of the product. C. doing extensive research before the approach and making the sales presentation without adjustment. D. using trial closings throughout the sales presentation. E. making a very thorough and detailed sales presentation about the products and services being offered. Answer: A 39. At the ________ stage of the personal selling process, a salesperson asks the prospect to buy the product. A. proposal B. closing C. overcoming objections D. approach E. trial Answer: B 40. When a salesperson asks the customer to buy the product several times throughout the sales presentation in an effort to uncover hidden objections, it is called: A. preapproaching. B. new-business selling. C. closing. D. prospecting. E. following up. Answer: C 41. The purpose of the ________ stage in personal selling is to determine customers' problems and questions about using the product. A. prospecting B. approach C. overcoming-objections D. follow-up E. closing Answer: D 42. Cheyenne, a sales person, should call to see if her customer's new hardwood floors were installed correctly: A. during the follow-up step. B. immediately after the closing. C. near the end of the sales presentation. D. the next time she makes a sales call to that customer. E. after she receives cash payment from that customer. Answer: A 43. Creative selling, which requires that salespeople recognize a potential buyer's needs and then provide the prospect with the necessary information, is performed by: A. order takers. B. order getters. C. missionary salespeople. D. trade salespeople. E. technical salespeople. Answer: B 44. Yolanda's job is to find new customers for her company's telecommunication services. She encourages existing customers to add more services and finds customers who are completely new to the company. Yolanda would best be classified as a(n): A. order taker. B. trade salespeople. C. missionary salesperson. D. technical salesperson. E. order getter. Answer: E 45. Order-getting activities are divided into two categories: A. missionary sales and technical sales. B. current-customer sales and new-business sales. C. order takers and trade sales. D. current sales and support sales. E. inside order sales and field order sales. Answer: B 46. Dylan is a sales person for Whole Foods. In his position, he is primarily responsible for seeking repeat sales. Dylan is most likely a(n): A. order getter. B. technical salesperson. C. order taker. D. follow-up salesperson. E. missionary salesperson. Answer: C 47. The two groups of order takers in personal selling are: A. current customer salespeople and new-business salespeople. B. missionary salespeople and trade salespeople. C. inside order takers and field order takers. D. trade salespeople and technical salespeople. E. advisory order takers and support order takers. Answer: C 48. Hannah is a retail salesperson for a furniture store. She is most likely classified as: A. an order getter. B. support personnel. C. trade salespeople. D. an inside order taker. E. a field order taker. Answer: D 49. Michelle works for a company that sells rotisseries for chicken and other foods. She answers phone calls from customers who see infomercials on TV and call to order the product. Michelle is considered a(n): A. order getter. B. inside order taker. C. support person. D. field order taker. E. trade salesperson. Answer: B 50. A sales representative of a soft drink company travels to various restaurants to determine how much syrup the customer needs for the coming period. This sales representative would be classified as a(n): A. order getter. B. inside order taker. C. field order taker. D. missionary salesperson. E. trade salesperson. Answer: C 51. Doug travels around to various established customers to see what new office supplies they need. His customers have come to depend on him to check their supplies. Doug is a(n): A. field order taker. B. current-customer order getter. C. missionary salesperson. D. inside order taker. E. trade salesperson. Answer: A 52. A missionary salesperson is most likely employed by: A. a retailer. B. a wholesaler. C. an order getter. D. a manufacturer. E. an independent intermediary. Answer: D 53. Which of the following is least likely to be directly involved in making sales? A. Order taker B. Current-customer salesperson C. Order getter D. Field order taker E. Support sales personnel Answer: E 54. Assisting the producer's customers in selling to their own customers is the major purpose of a(n) ________. A. trade salesperson B. technical salesperson C. missionary salesperson D. order getter E. order taker Answer: C 55. Jim Zanders, a trained engineer, is a salesperson for a chemical manufacturer. He provides current customers with advice about a product's characteristics and applications. He is a(n): A. missionary salesperson. B. trade salesperson. C. field order taker. D. inside order taker. E. technical salesperson. Answer: A 56. Daphne King of Cleborn Pharmaceuticals tells a sales management class at the state university that her job is to call on doctors and explain the benefits of new prescription drugs that her firm develops. Daphne would call herself a(n): A. technical salesperson. B. missionary salesperson. C. order taker. D. order getter. E. trade salesperson. Answer: B 57. Jana works for Hormel Foods and she frequently sets up special displays and distributes samples of Hormel products to customers in supermarkets. Jana would best be classified as a(n): A. trade salesperson. B. technical salesperson. C. inside order taker. D. field order taker. E. missionary salesperson. Answer: A 58. Maria Martinez works for a cosmetics manufacturer and is responsible for ensuring that retailers have adequate quantities of products when they need them. However, she is directing much of her effort toward helping the retailers promote the products. She would be characterized as belonging to: A. trade salespeople. B. field order takers. C. advisory salespeople. D. technical salespeople. E. order getters. Answer: A 59. Nick is a salesperson for a chemical company. His college degree is in engineering, with a minor in physical science. He was trained to advice customers on the unique characteristics of each product. Nick is most likely a(n): A. trade salesperson. B. missionary salesperson. C. technical salesperson. D. chemicals order taker. E. field order taker. Answer: C 60. A support salesperson who usually advises customers on product characteristics and application, system design, and installation procedures is a(n): A. trade salesperson. B. inside order taker. C. field order taker. D. missionary salesperson. E. technical salesperson. Answer: E 61. Ryan Scott leads his company's clients through the installation procedure of their new industrial equipment. He also helps answer their questions about product characteristics and system design both before and after their purchases. Ryan is a: A. trade salesperson. B. missionary salesperson. C. technical salesperson. D. systems engineer. E. field order taker. Answer: C 62. Natalie is a sales representative with Nike. In a few days, she will join with people from the firm's financial, engineering, and other functional areas to engage in the personal selling process. Natalie is engaged in: A. trade selling. B. missionary selling. C. relationship selling. D. team selling. E. technical selling. Answer: D 63. Which of the following is particularly appropriate for pricey high-tech business products, such as jet aircraft and medical equipment? A. Team selling B. Relationship selling C. Trade selling D. Technical selling E. Missionary selling Answer: A 64. Which of the following involves building mutually beneficial long-term associations with a customer usually a business customer through regular communications over prolonged periods of time? A. Trade selling B. Missionary selling C. Exclusive selling D. Team selling E. Relationship selling Answer: E 65. All of the following are key areas of sales force management except: A. compensating salespeople. B. coordinating sales promotion efforts. C. recruiting salespeople. D. training sales personnel. E. motivating sales personnel. Answer: B 66. Sales objectives can do all of the following except: A. serving as a deterrent both to salespeople and their clients. B. giving the sales force direction and purpose. C. serving as a standard for evaluating salesperson performance. D. letting the sales force know what is expected of them. E. helping to control the sales force. Answer: A 67. Sales force objectives are generally established for: A. the organization as a whole only. B. the total sales force and each salesperson. C. just each salesperson but not the whole sales force. D. for each department or division of the company. E. long-term but not short-term salespeople. Answer: B 68. Which of the following is the best example of a well-stated sales objective? A. Companywide sales should increase by 25 percent. B. Each salesperson should increase his or her client group by 10 percent. C. Each salesperson should bring in $25,000 in new sales by November 15. D. The sales force should increase the market share in all markets by December 1. E. Each salesperson should increase the number of calls they make by 20 percent. Answer: C 69. Sales objectives for individual salespeople can be stated in several ways. Which of the following would least likely be used for stating an individual salesperson's goal? A. Dollar volume sales B. Unit volume sales C. Average order size D. Ratio of profits relative to number of sales calls E. Average number of calls per time period Answer: D 70. A company may determine how many sales calls per year it needs to serve customers effectively and divide that by the average number of sales calls made by one salesperson in order to: A. recruit appropriate salespeople. B. set sales force calling objectives. C. compensate salespeople fairly. D. train its salespeople. E. determine sales force size. Answer: E 71. When better market conditions prevail or when company growth occurs, a company may suffer if it: A. lowers its sales force objectives. B. recruits additional salespeople. C. decides to use a combination compensation plan. D. provides additional training for its sales force. E. cuts back the size of its sales force. Answer: E 72. Recruiting and selection of salespeople should include enough steps to yield the information needed to make accurate selection decisions. However, the stages of the process should be sequenced so that the more expensive steps are: A. near the beginning. B. completed before anything else. C. near the end. D. paid by the prospects rather than the company. E. never reached. Answer: C 73. The best advice for recruiting and selecting salespeople for one's organization would be to: A. follow a clear set of generally-accepted job characteristics when determining an applicant's qualifications. B. keep the expensive stages near the beginning of the recruiting process. C. find out how long the applicant plans to stay with the company. D. make recruitment a continuous activity aimed at seeking out the best applicants. E. recruit primarily from educational institutions. Answer: D 74. Which of the following best characterizes the function of recruiting and selecting a sales force? A. It should be a continuous, systematic attempt to match applicants' characteristics to the firm's needs. B. It is a process that should incorporate at least two steps, an interview and a written application. C. Sources of applicants should be limited, since the recruitment process is expensive and more applicants mean greater expense. D. After interviewing applicants, the manager should attempt to find a position that can be tailored to fit applicants' qualifications. E. It should not be made from personnel in other departments in the firm, as this would necessitate training two people rather than one. Answer: A 75. Zack Freedman is an experienced salesperson who has worked for the same company for 20 years. When he is informed that he must attend a training seminar the following Tuesday, he believes it will most likely be about: A. the company. B. his customers' companies. C. basic selling methods. D. new-product information. E. prospecting. Answer: D 76. Olivia is the manager of Human Resources for Zappos.com. She is currently reviewing the sales force compensation method used at Zappos.com to determine if there is a better way to manage compensation. Olivia knows that the ________ method is easy to administer, yields more predictable selling expenses, and provides sales managers with a large degree of control over salespeople. A. straight commission B. salary plus bonus C. salary and commission D. straight commission and combination E. straight salary Answer: E 77. Jose Suarez has been hired as sales manager at a new firm and is trying to come up with a sales force compensation method. He would like to have selling expenses relate directly to sales resources, an aggressive sales force, and minimization of nonselling tasks. What compensation method(s) would best fulfil his requirements? A. Combination B. Straight salary C. Straight salary plus generous fringe benefits D. Straight commission E. Salary plus a bonus Answer: D 78. Savanna is a sales person for Aeropostale. Her compensation is based on a set salary plus a commission based on sales. Savanna’s compensation is based on a(n): A. straight salary compensation plan. B. combination compensation plan. C. straight salary plus generous fringe benefits D. straight commission compensation plan. E. salary plus bonus program. Answer: B 79. Effective motivation of a sales force is best achieved through: A. annual retreats at resort locations open to families. B. emphasizing sales force objectives and their connection to compensation. C. an organized set of activities performed continuously. D. motivation meetings when sales have declined. E. daily pep talks before the sales force makes sales calls. Answer: C 80. In designing sales territories, a sales manager considers several major factors. The territories must be constructed so that sales potential can be measured; the shape of the territories should facilitate salespeople's activities to provide the best possible coverage of customers; and: A. territories should be designed to minimize selling costs. B. territories should be of the same size. C. territories should be designed in concentric circles. D. the density of potential customers should be minimized. E. the distribution of customers should be relatively equal. Answer: A 81. If a manager tries to form territories with equal sales potential, the territories will usually be unequal in geographic size; this will cause the salespeople with larger territories to: A. develop larger income potentials. B. work longer and harder to generate a certain sales volume. C. work about the same amount, since potential is the same. D. have much larger sales than those salespeople with smaller territories. E. be limited to a smaller income potential. Answer: B 82. Customer density and distribution are important factors in: A. prospecting. B. motivating salespeople. C. creating sales territories. D. compensating salespeople. E. establishing sales force objectives. Answer: C 83. Jake is a sales representative for General Mills. Each week he uploads his plans for visiting clients out in the field to a routing and scheduling decisions system. Eric knows that one of the primary goals of routing and scheduling decisions in personal selling is to: A. determine the sequence in which customers will be called on. B. use existing transportation facilities. C. minimize nonselling time. D. determine duration of sales calls. E. provide salespeople with an opportunity to plan their own routes and schedules. Answer: C 84. Jake, a sales representative is returning from a week on the road. One of his activities is to develop ________, which are designed to identify the customers called on and to present detailed information about interaction with those clients. A. sales invoices B. feedback notices C. expense reports D. call reports E. recall files Answer: D 85. The most common sales force evaluation practices are for sales managers to compare a salesperson's performance with other salespeople operating under similar selling conditions, or to compare: A. the size of sales territories. B. selling expenses by various members of the sales force. C. the amount of new business generated. D. current performance with past performance. E. the ratio of costs to profits. Answer: D 86. Nate is preparing to evaluate one of his sales representatives, Julie Hill. His evaluation of her performance for the previous year led to the conclusion that she often lacked key product information at sales presentations. At their upcoming session, he will most likely do which of the following? A. Decrease the size of her territory. B. Increase her sales quotas. C. Terminate her. D. Recommend that she attend a training program. E. Ignore this problem given that her sales results were good. Answer: D 87. In establishing sales promotion objectives, a marketer should always: A. concentrate on activities that will increase consumer demand. B. focus on consumers. C. focus on resellers. D. be defensive in the methods used. E. align these objectives with the organization's overall objectives. Answer: E 88. When deciding on sales promotion methods to employ, marketers take several factors into consideration. Which factor below is unlikely to affect decisions regarding sales promotion methods? A. Type of package B. Product characteristics C. Target market characteristics D. Types of resellers E. Competitive forces in the environment Answer: A 89. Sydney won a hot-air balloon ride and dinner for two for being the top revenue-producing mortgage loan officer at her company for the month of October. This contest exemplifies a company's efforts at: A. motivating salespeople. B. compensating salespeople. C. providing training for the sales force. D. increasing sales territories. E. promoting salespeople. Answer: A 90. In recent years, the proportion of promotional dollars spent on sales promotion has: A. increased relative to advertising. B. remained constant. C. declined slightly, and the proportion spent on advertising has increased. D. declined slightly, and the proportion spent on advertising has declined as well. E. increased, and the proportion spent on advertising has increased as well. Answer: A 91. Which of the following is not a reason why the proportion of promotional dollars spent on sales promotion has increased in recent years? A. Retailers have become more powerful compared to manufacturers and are demanding more trade sales promotion efforts. B. Due to increased focus on value, consumers are more responsive to promotional offers. C. The greater emphasis on improving long-term performance has resulted in an increased use of sales promotion methods. D. Sales promotions aimed at convincing customers to change brands are more effective because of decline in brand loyalty in general. E. Consumers are more responsive to price discounts and point-of-purchase displays. Answer: C 92. Heinz uses various techniques such as coupons, free samples, and consumer contests to encourage consumers to try its products. All of these marketing activities are considered: A. trade sales promotion methods. B. consumer incentives. C. consumer sweepstakes. D. buying allowances. E. consumer sales promotion methods. Answer: E 93. As a famous food products brand tries to decide how to introduce its new line of breakfast bars, it considers all the advantages and disadvantages of the various consumer sales promotion methods. After careful consideration, the brand decides to use ________, which are the most widely used form of consumer sales promotion. A. free samples B. rebates C. point-of-purchase displays D. coupons E. cents-off offers Answer: D 94. Fraudulent usage, inability to attract potentially brand-loyal customers, and use by current customers but not new customers are believed to be disadvantages of: A. sweepstakes. B. money refunds. C. frequent-user incentives. D. coupons. E. premiums. Answer: D 95. As a promotional strategy, using coupons strives to achieve all of the following except: A. show how a product is used. B. increase sales volume quickly. C. introduce new package sizes. D. prompt trial usage of a new product. E. attract repeat users. Answer: A 96. ________ are offers of cash to customers who purchase a specific product, and ________ are offers of cash to customers who purchase a specific quantity of a specific product. A. Rebates; reimbursements B. Cents-off; refunds C. Rebates; premiums D. Buy-back allowances; money refunds E. Rebates; money refunds Answer: E 97. Which of the following is most likely to stimulate customer loyalty? A. Coupons B. Sweepstakes C. Frequent-user incentives D. Samples E. Premiums Answer: C 98. Taste It Juice offers its customers a stamp card that allows them to receive a free smoothie after they have filled an entire card. This is an example of a: A. free sample. B. rebate. C. frequent-user incentive. D. premium. E. consumer contest. Answer: C 99. Signs, counter pieces, racks, and self-service cartons are all forms of: A. rebates. B. demonstrations. C. retail media. D. premiums. E. point-of-purchase displays. Answer: E 100. Although a cosmetics brand would like to use ________ as a consumer sales promotion method, this method has extremely high labor costs that are more affordable for higher-end make-up companies. A. frequent-user incentives B. demonstrations C. coupons D. rebates E. consumer contests Answer: B 101. ________ are the most expensive sales promotion method because production and distribution entail high costs. A. Samples B. Coupons C. Point-of-purchase materials D. Money refunds E. Premiums Answer: A 102. To increase sales of Chex cereals, Ralston Purina offered a free pound of bananas to customers who bought the large-size box. This form of sales promotion is called a: A. premium. B. coupon. C. cents-off offer. D. free sample. E. money refund. Answer: A 103. ________ are items offered free or at minimal cost as a bonus for purchasing a product. A. Rebates B. Premiums C. Samples D. Merchandise allowances E. Coupons Answer: B 104. At one time, Wheaties offered two free golf balls with the purchase of a twin pack of Wheaties cereal featuring Tiger Woods. This is an example of a: A. consumer prize. B. rebate. C. premium. D. free sample. E. coupon. Answer: C 105. On a break between classes, Kelley enters her contact information on the Publishers Clearing House site. She doubts that she will win $10 million, but she never passes up a chance to participate in a: A. premium. B. consumer contest. C. trade sale. D. sales contest. E. sweepstakes. Answer: E 106. Any marketing tactic used to stimulate wholesalers and retailers to carry a producer's products and market those products more aggressively is a: A. trade sales promotion method. B. point-of-purchase method. C. consumer sales promotion method. D. merchandise allowance. E. dealer loader. Answer: A 107. Which of the following is an example of a trade sales promotion method? A. Frequent-user incentives B. Point-of-purchase displays C. Retailer coupons D. Free merchandise E. Money refunds Answer: D 108. Tyler is a purchasing agent for a popular breakfast cereal manufacturing firm. He is currently negotiating with his suppliers to receive a ________, which is a temporary price reduction to resellers for purchasing specified quantities of a product. A. push money allowance B. merchandise allowance C. buying allowance D. buy-back allowance E. discount Answer: C 109. Retailers are offered temporary price reductions for purchasing specified quantities of a product. These offers are used to provide an incentive to handle a new product, to achieve a temporary price reduction, or to stimulate the purchase of an item in large quantities. This type of sales promotion is called ________. A. push money B. buy-back allowance C. buying allowance D. cents-off offer E. money refund Answer: C 110. If Green Giant wants to provide its resellers with a secondary incentive to stimulate repurchases after an initial consumer coupon campaign for its latest product, it can offer resellers a sum of money for each unit purchased. This type of sales promotion is a: A. buying allowance. B. count-and-recount allowance. C. scan-back allowance. D. buy-back allowance. E. merchandise allowance. Answer: D 111. When a manufacturer rewards retailers based on the number of pieces moved through their scanners, this sales promotion method is known as a: A. merchandise allowance. B. count-and-recount allowance. C. buy-back allowance. D. scan-back allowance. E. scan-count allowance. Answer: D 112. Unicorn, an apparel brand, agrees to pay a department store chain money for providing television advertising and Sunday newspaper sales fliers emphasizing Unicorn jeans. Unicorn is offering: A. premium money. B. cooperative advertising. C. a dealer loader. D. a buying allowance. E. a merchandise allowance. Answer: E 113. An arrangement in which a manufacturer pays a certain amount of a retailer's media costs for advertising that manufacturer's products is: A. a buy-back allowance. B. a merchandise allowance. C. premium money. D. push money. E. cooperative advertising. Answer: E 114. A television advertisement for Miracle-Gro lawn fertilizer indicates that the product is available at Kmart and Walmart. This form of sales promotion is called: A. cooperative advertising. B. a dealer listing. C. push money. D. a dealer loader. E. an advertising allowance. Answer: B 115. Kayla is the owner of a group of women’s clothing stores located throughout Midwestern United States. Recently, she made a large purchase from a leading clothing manufacturer, and was given ________, which is a gift to a retailer who purchases a specified quantity of merchandise. A. a dealer loader B. a premium C. a scan-back allowance D. a merchandise allowance E. a buy-back allowance Answer: A 116. A dealer loader is: A. additional compensation to salespeople from the manufacturer to promote a line of goods. B. an agreement in which a producer offers free merchandise to a retailer. C. an advertisement that promotes a product and identifies retailers who sell the product. D. a gift to a retailer who purchases a specified quantity of merchandise. E. a temporary price reduction to resellers for purchasing a certain quantity of merchandise. Answer: D 117. While sales contests can motivate employees at all levels to participate, a disadvantage of this method of sales promotion is that: A. they are too complicated. B. they are not taken seriously by the employees. C. people often discontinue their positive behavior after the contest is over. D. many point-of-purchase display materials are needed to implement a contest. E. people feel they are not being recognized enough. Answer: C Scenario 17.1 Use the following to answer the questions. Jafrum, Inc. is a wholesale supplier of motorcycle accessories, clothing, and tools to various motorcycle retail stores around the country. Jafrum does not manufacture these items, but sells them to other retailers and also sells its merchandise through its website. Sean Thompson is one of the salespeople for Jafrum, and is responsible for obtaining new customers, increasing sales to current customers, and visiting the retail stores throughout the country. Recently, he has been given the sales objective from Jafrum's management to increase sales dollars by 15% in the coming year by adding new customers. Sean's current compensation is based on a $1,000 per month draw, plus 5% of all sales over $100,000. His salary last year totaled $42,000. Management has given Sean the choice of going to a compensation plan where he will earn 15% of all sales, but no draw. 118. Refer to Scenario 17.1. Sean is developing his list of potential new retail customers by accessing the yellow pages online. Here he finds the contact information for every motorcycle store in the 48 contiguous states, and eliminates those who currently are his customers. Sean is involved in which step of the personal selling process? A. Prospecting and evaluating B. Preapproach C. Overcoming objections D. Closing E. Following up Answer: A 119. Refer to Scenario 17.1. Sean selects several motorcycle stores who are not currently his customers. He then obtains and analyzes information about the current brands of motorcycle accessories they stock, their sales trends, and credit history. Sean is engaged in: A. prospecting. B. preapproach. C. approaching the customer. D. making the presentation. E. overcoming objections. Answer: B 120. Refer to Scenario 17.1. Sean has narrowed his list and is preparing a package of information about Jafrum and its products to send to the prospects. He also includes a letter of introduction and says he will contact them within the next two weeks to set up a sales visit. In this scenario, Sean is all of the following except: A. a trade salesperson. B. a field order taker. C. a missionary salesperson. D. an order getter. E. a new business salesperson. Answer: C 121. Refer to Scenario 17.1. Currently, Sean's compensation is based on the ________ plan, however he is considering changing to the ________ plan. A. straight salary; salary plus commission B. straight commission; straight salary C. salary plus commission; straight commission D. salary plus bonus; straight bonus E. straight bonus; straight commission Answer: C Scenario 17.2 Use the following to answer the questions. The Presto Company manufactures several types of household appliances, including blenders, waffle makers, and home deep fryers. Presto sells its products to retail stores such as Kohl's, Macy's, and J.C. Penney through its own sales force. Kerry Wilson is one of Presto's salespeople, who is responsible for stores headquartered in Region 1 of the U.S. Kerry, has just come from a monthly meeting where she has been informed about the new stovetop grill that will be part of next season's lineup. Presto's marketing department has developed a promotional plan for the new grill and outlined that plan for the sales staff in the meeting. The promotional plan for the next 60 days will include television commercials which demonstrate the new grill, in-store rebates, and a customer contest for the best grilled sandwich recipe. In addition, Kerry and other members of the sales force will be given a free grill for their own home use so they can become more familiar with the product. Presto is also offering a free trip to New York City for their staff salesperson who has the highest dollar in sales to his or her stores. To encourage the retail stores to push this product, Presto will offer the retail store a $5 discount for each grill that the store purchases after the 60-day promotion is over. 122. Refer to Scenario 17.2. Presto appears to be using ________ to educate its sales force. A. formal training B. on-the-job training C. negative motivation D. territorial meetings E. recruiting training Answer: A 123. Refer to Scenario 17.2. Kerry and the other sales force members are best described as a ________ sales force. A. technical B. missionary C. trade D. field E. pioneer Answer: B 124. Refer to Scenario 17.2. Presto's use of free trip to New York is an example of ________, while the $5 discount to its retail stores is an example of ________. A. a trade allowance; a buy-back allowance B. a buying allowance; a dealer loader C. a dealer loader; a buy-back allowance D. a sales contest; a buy-back allowance E. a sales contest; a buying allowance Answer: D 125. Refer to Scenario 17.2. Which of the following consumer sales promotion methods is Presto using for the new stovetop grill? A. Television commercials and the customer contest B. Television commercials and the in-store rebate C. The customer contest and the in-store rebate D. The sales force contest the in-store rebate E. The sales force contest and the customer contest Answer: C 126. Personal selling is generally the most expensive element in the promotion mix. A. True B. False Answer: True 127. The primary goals of personal selling are finding prospects, convincing prospects to buy, and keeping customers satisfied. A. True B. False Answer: True 128. Most marketers depend on one-sale customers for long-run survival. A. True B. False Answer: False 129. Developing a list of potential customers is called prospecting. A. True B. False Answer: True 130. The preapproach is the first step in the personal selling process. A. True B. False Answer: False 131. Even though salespeople do not use the exact same sales methods, they do go through the same general selling process. A. True B. False Answer: True 132. In the cold canvass technique, the salesperson calls on potential customers without their prior consent. A. True B. False Answer: True 133. Using referrals falls under the approach step in the personal selling process. A. True B. False Answer: False 134. The approach step is an important step for gathering information about a buyer's needs and objectives. A. True B. False Answer: True 135. Listening is an important skill for a salesperson while making a presentation. A. True B. False Answer: True 136. One of the best ways to overcome a prospect's objections is to anticipate them and to deal with them before the prospect has an opportunity to mention them. A. True B. False Answer: True 137. A salesperson should not attempt to close a transaction until he or she has finished the entire presentation. A. True B. False Answer: False 138. It is never good to ask customers questions while giving the sales presentation, as the customer may raise objections that the salesperson cannot overcome. A. True B. False Answer: False 139. If possible, the salesperson should handle objections only when they arise. A. True B. False Answer: True 140. Following up involves listening to a customer's response after finishing the presentation and overcoming those objections. A. True B. False Answer: False 141. A single salesperson may perform the functions of order getting, order taking, and support. A. True B. False Answer: True 142. Current customers are sources of leads for finding prospective customers. A. True B. False Answer: True 143. Locating prospects, educating customers, and building goodwill are functions performed by support personnel. A. True B. False Answer: True 144. The missionary salesperson's primary purpose is to sell to the producer's customers. A. True B. False Answer: False 145. Some support personnel, such as trade salespeople, may perform order-taking functions in addition to support functions. A. True B. False Answer: True 146. The focus of personal selling is shifting from selling a specific product to building long-term relationships with customers by finding solutions to their needs, problems, and challenges. A. True B. False Answer: True 147. Team selling involves building mutually beneficial long-term associations with a customer through regular communications over prolonged periods of time. A. True B. False Answer: False 148. Relationship selling is used especially in consumer marketing. A. True B. False Answer: False 149. Selection of the right type and proportion of salespeople is important because it is a one-time decision that affects the company's ability to generate sales and profits. A. True B. False Answer: False 150. Among others, management recruits from within the firm or from recommendations of individuals by current employees. A. True B. False Answer: True 151. Sporadic recruiting is more desirable than continuous recruiting because of the expense involved in the process. A. True B. False Answer: False 152. Regardless of one's experience, firms always put new employees through a training program geared for their specific firm. A. True B. False Answer: False 153. Training programs designed for experienced company salespeople generally are oriented toward product information. A. True B. False Answer: True 154. A straight commission compensation program ensures that selling costs will be predictable. A. True B. False Answer: False 155. Effective sales force motivation is achieved through an organized set of activities performed continuously by the company's sales management. A. True B. False Answer: True 156. The aim of a motivational program is to create a working environment in which sales personnel can achieve their goals. A. True B. False Answer: True 157. To equalize the workload, a sales manager divides a geographic market into sales territories of equal size according to land area. A. True B. False Answer: False 158. Maximization of selling time and minimization of nonselling time are the major goals of routing and scheduling decisions. A. True B. False Answer: True 159. Salespeople should know the sales objectives of the firm in order to know what they are expected to accomplish. A. True B. False Answer: True 160. Generally, a salesperson's performance is judged by comparing it with predetermined standards rather than by comparing it with the performance of other salespeople. A. True B. False Answer: False 161. The factors used to evaluate a salesperson's performance are based on the sales objectives set by the sales manager for that salesperson. A. True B. False Answer: True 162. A salesperson's performance is often compared with the performance of other salespeople operating under similar conditions. A. True B. False Answer: True 163. Sales promotion activities include personal selling and advertising. A. True B. False Answer: False 164. Decisions regarding sales promotion do not affect advertising decisions. A. True B. False Answer: False 165. Generally, sales promotion attempts to influence consumers to purchase products but is not normally aimed at resellers. A. True B. False Answer: False 166. Sales promotion may facilitate personal selling. A. True B. False Answer: True 167. Sales promotion activities are generally used in conjunction with other promotional efforts. A. True B. False Answer: True 168. Sales promotion objectives should be consistent with the organization's overall objectives and its marketing objectives. A. True B. False Answer: True 169. A marketer's selection of sales promotion techniques is influenced by the state of the competitive environment. A. True B. False Answer: True 170. One objective of consumer sales promotion techniques is to encourage patronage for a specific retail store. A. True B. False Answer: True 171. Many consumers redeem coupons only for products they normally buy. A. True B. False Answer: True 172. Demonstrations in retail stores are not used widely because they are expensive. A. True B. False Answer: True 173. The use of sampling is declining. A. True B. False Answer: False 174. Consumer contests and sweepstakes are used to promote established products and tend to generate similar levels of consumer response. A. True B. False Answer: False 175. Generally, consumer sweepstakes are more popular than consumer contests. A. True B. False Answer: True 176. Buying allowances are effective promotional techniques because they result in profits for resellers. A. True B. False Answer: True 177. Merchandise allowances are generally used in conjunction with high-volume, low-profit items. A. True B. False Answer: False 178. Cooperative advertising refers to advertisements promoting a product and identifying participating retailers that sell the product. A. True B. False Answer: False Test Bank for Foundations of Marketing William M. Pride, O. C. Ferrell 9781285429779, 9781439039441

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