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Exam 14: Personal Selling and Customer Service

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Question 51

Multiple Choice

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

A) Selling formula plan
B) Straight salary
C) Combination plan
D) Sales quota
E) Straight commission

F) B) and D)
G) A) and D)

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Question 52

Multiple Choice

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Dow Chemical hires science and engineering graduates to explain the advantages of its products--and how to dispose of them in an environmentally friendly manner--to prospective customers. What type of salesperson is this?

A) Order getter
B) New-account salesperson
C) Order taker
D) Consultative salesperson
E) Technical specialist

F) B) and E)
G) A) and E)

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Question 53

Multiple Choice

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A breakdown in any element of the marketing mix can result in a requirement for

Which of the following statements is true?

Digital self-service lowers costs.

A producer's order taker may explain details, handle complaints, and train the customer's employees.

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

Agent wholesalers--particularly manufacturers' agents and brokers--are often order getters.

The job description should provide clear guidelines concerning (1) who should be selected, (2) how they are trained, (3) how well they are performing, and (4) how they should be paid.

Which of the following statements about personal selling is FALSE?

"Prospecting:"

Missionary selling:

A producer wants to increase the amount of time its sales reps spend on supporting activities. It also wishes to keep its sales reps motivated and aggressive, and also provide some security. Which payment plan should the firm use?

A good order getter tries to sell solutions to the customer's problems--not just physical products.

Allied Corp. has found that an effective salesperson should call on each account about six times a year and spend about two hours per sales call. Every salesperson works a 40-hour week and takes off two weeks for vacation each year. A salesperson must spend half of the time on travel and administration. Approximately how many salespeople does Allied need to service 500 accounts?

The main advantage of the prepared sales presentation approach is that it tends to work equally well with different types of customers.

A sales quota is the specific sales or profit objective a salesperson is expected to achieve.

Personal selling is often a company's largest single operating expense.

A sales manager who wishes to supervise and control his salespeople's activities closely should pay them a straight salary instead of a straight commission.

The __________ involves developing a good understanding of the individual customer's needs before trying to close the sale.