Question 1

Satisfactions can come from:

Accepted Answer

A)  the research studies done on the product
B)  the board of directors of the company
C)  the company that makes a competing product
D)  the customer who buys the product
E)  the salesperson who sells the product

Question 2

The stages a product goes through from the time it is first introduced to the market until it is discontinued is called the:

Accepted Answer

A)  natural evolution
B)  amortization
C)  position
D)  product life cycle
E)  specific feature

Question 3

A designer releases her fall line of handbags,including one that retails for $6,000.This bag is a limited edition;only 500 will be produced,and orders will only be accepted from clients who have previously purchased a handbag from the designer.They will be put on a waitlist for the handbag in the order in which they are received.
-A buyer who gathers information on all aspects of the product,from the product development process to production methods to service contracts to experience levels of service providers,and who consults with the salesperson on configuring the product as well as using the product,is most likely to respond to which of the following strategies?

Accepted Answer

A)  lowering the price significantly from list price to undercut competitors
B)  creating rapport with the buyer to create satisfaction with the salesperson and the company
C)  adding value by tailoring the product to the buyer's needs and providing a high level of service
D)  augmenting the product by adding features without charging for them
E)  differentiating on image and appealing to the buyer's sense of style and desire for quality C

Question 4

A front desk clerk at a ReView Hotel receives a call from a ReView Gold Rewards Member guest complaining that the wireless internet in her room is fading in and out.Without internet access,she won't be able to make her deadline for this business trip.
-Why is it especially vital to maintain this guest's satisfaction with the hotel and the front desk clerk?

Accepted Answer

A)  This guest is personal friends with one of the top executives of the ReView Hotel company and will report back to the executive if she is not satisfied.
B)  The guest is already satisfied with the wireless service,so her cluster of satisfactions will be maintained if she is also satisfied with the hotel and the front desk clerk.
C)  The guest,as a member of a company rewards club,was already satisfied,enough to join the rewards program previously,so losing a previously satisfied customer would be a waste of all the previous company and staff effort to earn the customer.
D)  The hotel is priced at a high enough price point to maintain exclusivity,so all guests must be satisfied or else they would not continue to pay the high price for a room at the ReView Hotel properties.
E)  The front desk clerks is,in effect,a salesperson for the ReView Hotel,and is the only employee of the hotel with which the guest will have contact,so the guest needs to be satisfied with the clerk.

Question 5

The first step in establishing a product price is to determine the firm's pricing ________.

Accepted Answer

The answer of The first step in establishing a product...

Question 6

Which of the following is a factor that determines the stage in the life cycle a product is in?

Accepted Answer

A)  the length of time the product sits in the warehouse before shipping
B)  the product's benefits and the importance of the needs it fulfills
C)  the competitors' compensation structure for salespeople
D)  changes in the product's production method
E)  the length of time a product has been around

Question 7

A designer releases her fall line of handbags,including one that retails for $6,000.This bag is a limited edition;only 500 will be produced,and orders will only be accepted from clients who have previously purchased a handbag from the designer.They will be put on a waitlist for the handbag in the order in which they are received.
-How does the waitlist relate to the cluster of satisfactions?

Accepted Answer

A)  For those who are able to purchase the handbag,the waitlist is a challenge they surmount to own the handbag,so the bag feels more valuable to own.
B)  For those who are able to purchase the handbag,the waitlist determines who has the financial resources to pay for the handbag.
C)  For those who are able to purchase the handbag,the waitlist creates a barrier to purchasing that makes them ultimately dissatisfied about owning the handbag.
D)  The waitlist is a psychological barrier that leaves the general public with the desire to purchase the handbag but not the ability.
E)  The waitlist makes those on it feel competitive with each other.

Question 8

The value-added product exists when salespeople meet the customer's expectation.

Accepted Answer

A) True 
 B)False

Question 9

Positioning is the set of benefits and values the company promises to deliver to customers to satisfy their needs.

Accepted Answer

A) True 
 B)False  False

Question 10

When is it NOT appropriate to use a low-price strategy?

Accepted Answer

A)  when you have a transaction-focused buyer
B)  when the buyer does not value quality
C)  when the buyer is a high-involvement buyer
D)  when the customer wants an"unbundled" product
E)  when the buyer is a low-involvement buyer

Question 11

Just Candles,a supply house for scented and unscented tapers and other ceremonial candles to houses of worship,restaurants,and other establishments,has experienced a downturn in business in the last two years.Upon investigation,the owner of Just Candles has discovered that the same candles that they sell are available to their customers at a 10% lower price when ordered through the internet.As Just Candles is a supply house that does not provide other services or products but still has to maintain a storefront,they will not be able to survive if the current trend of their customers toward the internet continues.
-Which of the following could Just Candles do to best recapture their previous customers and gain new customers?

Accepted Answer

A)  Just Candles could focus on only one model of candles so their salespeople do not have to muddle their sales message.
B)  Just Candles could make in-person sales calls to all commercial customers to let them know their business is valued.
C)  Just Candles could offer value-added services to establishments such as frequent-buyer discounts and scheduled deliveries,and classes for new retail customers on decorating with candles and making candles to give customers reasons to purchase from Just Candles instead of from online retailers.
D)  Just Candles could begin a customer loyalty program that includes receiving gifts of appreciation from the company every quarter that the customer purchases a minimum order and can prove that they did not order candles from another supplier during that time.
E)  Just Candles could focus exclusively on customers who are not internet-savvy so they don't know that Just Candles is charging higher prices than they could find on the internet.

Question 12

Salespeople have assumed an important and expanding role in differentiating products.

Accepted Answer

A) True 
 B)False

Question 13

CRM systems usually contain information from which of the following sources?

Accepted Answer

A)  notes entered by customers
B)  hard copies of letters sent to companies
C)  bank records from the company
D)  records of the competitors' customers
E)  call notes entered by salespeople

Question 14

What is a potential downfall of using too many technical terms during a sales presentation?

Accepted Answer

A)  The customer might catch the salesperson in a misstatement.
B)  The customer might be too intimidated to purchase.
C)  The customer might know more about the product than the salesperson does.
D)  The customer might want a product with fewer capabilities.
E)  The customer might ask questions the salesperson cannot answer.

Question 15

There are five service-quality dimensions.Three of them include:

Accepted Answer

A)  durability,reliability and responsiveness
B)  standardization,reliability and empathy
C)  durability,reliability and empathy
D)  reliability,responsiveness and empathy
E)  responsiveness,empathy,and durability

Question 16

Value creation investments are the highest in:

Accepted Answer

A)  strategic alliance sales
B)  transactional sales
C)  generic sales
D)  consultative sales
E)  collaborative sales A

Question 17

For a growing number of customers,short-term savings that result from low prices are more important than long-term value.

Accepted Answer

A) True 
 B)False

Question 18

A front desk clerk at a ReView Hotel receives a call from a ReView Gold Rewards Member guest complaining that the wireless internet in her room is fading in and out.Without internet access,she won't be able to make her deadline for this business trip.
-Abco Realty owns several rental apartment buildings in a working class but safe neighborhood that has recently become popular with young professionals because of its proximity to an express commuter train line.Abco has recently invested in the infrastructure of the buildings,adding laundry rooms,safety features to the lobbies,and new insulated windows to all the units.Because of this,Abco cannot afford to match the unit rental prices of other buildings that have not made improvements. How can the sales manager of Abco Realty differentiate Abco's units from units offered in other buildings to attract tenants?

Accepted Answer

A)  The sales manager can convince management to cut expenses on basic maintenance so the apartments can be rented at prices matching other buildings in the area.
B)  The sales manager can promote the neighborhood as a safe place to live with a rich history.
C)  The sales manager can convince the owners of the other buildings in the area to bring their rental prices up to the prices Abco charges.
D)  The sales manager can promote Abco apartments as being worth more money because they are safer and have more services.
E)  The sales manager can promote Abco apartments as being worth more money because the company has spent more money on the apartments in the last year than in previous years.

Question 19

Just Candles,a supply house for scented and unscented tapers and other ceremonial candles to houses of worship,restaurants,and other establishments,has experienced a downturn in business in the last two years.Upon investigation,the owner of Just Candles has discovered that the same candles that they sell are available to their customers at a 10% lower price when ordered through the internet.As Just Candles is a supply house that does not provide other services or products but still has to maintain a storefront,they will not be able to survive if the current trend of their customers toward the internet continues.
-Which of the following could Just Candles do to best recapture their previous customers and gain new customers?

Accepted Answer

A)  Just Candles could lower their prices on less popular candles to create "loss leaders" that would induce new customers to purchase regularly-priced candles from them.
B)  Just Candles could shut down their retail location to cut overhead and move their business to the internet,where they could charge lower prices and compete with other internet candle retailers.
C)  Just Candles could send out a mailing to all their customers reminding them that they carry a full line of candles.
D)  Just Candles could move their store to a more expensive location in the mall.
E)  Just Candles could announce a "candle of the month" program to discount candles that traditionally haven't sold as well as their other candles.

Question 20

Pricing decisions are made primarily during the introductory stage of the product life cycle.

Accepted Answer

A) True 
 B)False

Exam 7: Product-Selling Strategies That Add Value

Satisfactions can come from:

Correct Answer
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The stages a product goes through from the time it is first introduced to the market until it is discontinued is called the:

Correct Answer
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Correct Answer
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C

Correct Answer
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The first step in establishing a product price is to determine the firm's pricing ________.

Correct Answer
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Which of the following is a factor that determines the stage in the life cycle a product is in?

Correct Answer
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Correct Answer
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The value-added product exists when salespeople meet the customer's expectation.

Correct Answer
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Positioning is the set of benefits and values the company promises to deliver to customers to satisfy their needs.

Correct Answer
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False

When is it NOT appropriate to use a low-price strategy?

Correct Answer
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Correct Answer
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Salespeople have assumed an important and expanding role in differentiating products.

Correct Answer
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CRM systems usually contain information from which of the following sources?

Correct Answer
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What is a potential downfall of using too many technical terms during a sales presentation?

Correct Answer
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There are five service-quality dimensions.Three of them include:

Correct Answer
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Value creation investments are the highest in:

Correct Answer
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A

For a growing number of customers,short-term savings that result from low prices are more important than long-term value.

Correct Answer
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Correct Answer
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Correct Answer
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Pricing decisions are made primarily during the introductory stage of the product life cycle.

Correct Answer
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Exam 7: Product-Selling Strategies That Add Value

Satisfactions can come from:

Correct AnswerverifiedShow Answer

The stages a product goes through from the time it is first introduced to the market until it is discontinued is called the:

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Correct AnswerverifiedC

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The first step in establishing a product price is to determine the firm's pricing ________.

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Which of the following is a factor that determines the stage in the life cycle a product is in?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The value-added product exists when salespeople meet the customer's expectation.

Correct AnswerverifiedShow Answer

Positioning is the set of benefits and values the company promises to deliver to customers to satisfy their needs.

Correct AnswerverifiedFalse

When is it NOT appropriate to use a low-price strategy?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Salespeople have assumed an important and expanding role in differentiating products.

Correct AnswerverifiedShow Answer

CRM systems usually contain information from which of the following sources?

Correct AnswerverifiedShow Answer

What is a potential downfall of using too many technical terms during a sales presentation?

Correct AnswerverifiedShow Answer

There are five service-quality dimensions.Three of them include:

Correct AnswerverifiedShow Answer

Value creation investments are the highest in:

Correct AnswerverifiedA

For a growing number of customers,short-term savings that result from low prices are more important than long-term value.

Correct AnswerverifiedShow Answer

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Pricing decisions are made primarily during the introductory stage of the product life cycle.

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C

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False

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A

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