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True/False
1. One of the most productive use of a salesperson's time is usually to call on existing
customers, rather than prospects.
Ans: True
Response: See page 112
2. The first stage of the typical purchasing process in organizations is the evaluation of
purchasing options.
Ans: False
Response: See page 113
3. In many consultative type of sales situations, the customer may not be aware that a
need or opportunity exists.
Ans: True
Response: See page 113
4. In the U.S., the first step in organizational purchasing is for the buyer to develop a
personal relationship with the seller.
Ans: False
Response: See page 113
5. The first stage of the typical purchasing process in organizations is to recognize that
a need exists.
Ans: True
Response: See page 113
6. Derived demand refers to the opportunity to sell additional products and services
once a supplier has established a good customer relationship.
Ans: False
Response: See page 113
7. The concept of “derived demand” refers to the close relationship between a supplier’s
sales to a customer and the customer’s sales to their customers.
Ans: True
Response: See page 113
Ans: True
Response: See page 114
Ans: False
Response: See page 114
Ans: True
Response: See page 114
11. Value analysis focuses on the relative costs of providing a necessary function or
service.
Ans: True
Response: See page 115
12. The purchasing practice of utilizing supplier tiers is becoming a less popular
practice.
Ans: False
Response: See page 116
13. The purchasing practice of utilizing supplier tiers is analogous to the marketing
practice of customer segmentation.
Ans: True
Response: See page 116, 117
Ans: False
Response: See page 116
15. It is possible for one person in an organization to occupy the role of both a technical
and an economic buyer.
Ans: True
Response: See page 118- 119
16. Salespeople should be prepared to discuss interest rates and financing terms with
the Economic Buying Influence.
Ans: True
Response: See page 118
Ans: False
Response: See page 118
19. It is possible for one person to function in the roles of being the user, economic, and
technical buyer for a particular purchase.
Ans: True
Response: See page 118
20. It is generally good advice for salespeople to concentrate all their efforts on the
purchasing agent when selling to organizations.
Ans: False
Response: See page 118
21. The term "Buying Center" is used to refer to centralized buying, typically performed
at an organization’s headquarters.
Ans: False
Response: See page 117
22. The "Economic Buying Influence" is identified as the person with the authority to
spend the money necessary to purchase the product or service.
Ans: True
Response: See page 118
23. With a buying center, salespeople can usually ignore either the purchasing agent or
the user of the product, as long as they can influence the economic buyer.
Ans: False
Response: See page 118
24. The Technical Buyer’s role is to act as a gatekeeper, they can say "yes" to a product
purchase decision.
Ans: False
Response: See page 119
25. The person in the User Buyer role generally has a much broader product focus than
does the Economic Buyer.
Ans: False
Response: See page 118
26. The role of the user buyer is to determine the impact of the purchase on the job in
which the product is used.
Ans: True
Response: See page 118
27. A Technical buyer influence’s primary focus in the purchasing process is on product
or service specifications.
Ans: True
Response: See page 119
28. People who are not employees of the buying organization, may be a part of an
organization's buying center.
Ans: True
Response: See page 118-119
29. Most buying organizations assign an "advocate" to new salespeople for the purpose
of educating them about their operations.
Ans: False
Response: See page 119-120
30. Successful salespeople are usually able to identify an “advocate” who will take over
the selling task for the salesperson.
Ans: False
Response: See page 119-120
Ans: False
Response: See page 119-120
32. A excellent way to identify a good sales advocate is to listen for the name of the
person that other people in the buying center frequently mention.
Ans: True
Response: See page 119-120
33. The buyer and seller committing to an exclusive relationship characterize the
expansion stage of a buyer-seller relationship.
Ans: False
Response: See page 121
34. Value to a buyer generally means paying the lowest possible list price for a product
or service.
Ans: False
Response: See page 122
35. Customer value creation in a consultative type customer relationship is usually
greatest during the first stage of the purchasing process, which is the recognition of
needs.
Ans: True
Response: See page 122
36. One danger of using price discounts to close a sale is that the customer may seek
further discounts in the future.
Ans: True
Response: See page 123
37. Studies have shown that veteran salespeople are more likely to accurately identify a
buyer's performance expectations than are new salespeople.
Ans: False
Response: See page 124
Multiple Choice
38. Which of the following is the first step in the typical purchasing process by
organizations?
a. a vendor analysis
b. a Request for Proposal (RFP)
c. recognitions of needs
d. evaluation of alternatives
e. none of the above
Ans: c
Response: See page 112
Ans: a
Response: See page 113
40. Which of the following is likely to be associated with a request for proposal (RFP)?
Ans: a
Response: See page 114
a. total
b. direct
c. indirect
d. variable
e. fixed
Ans: a
Response: See page 115
42. Which of the following questions is not likely to be asked during a value analysis?
Ans: a
Response: See page 115
43. A vendor analysis may examine all of the following performance criteria except:
a. delivery reliability.
b. price.
c. gross margin.
d. after sales service.
e. none of the above.
Ans: c
Response: See page 116
44. When a customer views the supplier as a critical to the customer’s competitive
position, then the supplier would most likely be considered a ___________ supplier?
a. In
b. Preferred
c. Partner
d. Extended
e. Either c or d above
Ans: c
Response: See page 116
45. Which of the following would be typical of the buyer-seller relationship of a Preferred
Supplier?
Ans: c
Response: See page 116
46. According to the at least one senior manager which stage of the purchasing process
do customers feel is the “Achilles heel” for most suppliers
Ans: d
Response: See page 115
47. The factor(s) which influence the number of people who are likely to be involved in
the decision making process are:
Ans: e
Response: See page 116
48. When selling to an economic buying influence such as a chief executive officer,
salespeople are likely to do which of the following?
Ans: e
Response: See page 117
a. an engineer
b. a senior officer
c. a purchasing agent
d. a production supervisor
e. a financial analyst
Ans: b
Response: See page 118
Ans: d
Response: See page 118-119
Ans: a
Response: See page 117
52. Which of the following buying center people is implementation oriented, takes a
tactical view to the decision, and whose daily life is most affected by the seller’s product
or service?
a. Economic Buyer
b. User Buyer
c. Technical Buying Influence
d. Outside Expert Buying Influence
e. The Advocate
Ans: b
Response: See page 118-119
53. User buyers are most likely to be concerned with which of the following issues?
Ans: a
Response: See page 118
54. Technical buyers are most likely to be concerned with which of the following issues?
Ans: c
Response: See page 119
55. Which of the following buying center people is concerned with the product’s specs,
is focused on the present, is most likely to ask what a product does?”
a. Economic Buyer
b. User Buyer
c. Technical Buying Influence
d. Outside Expert Buying Influence
e. The Advocate
Ans: c
Response: See page 119
56. Which of the following is true regarding the role the advocate may be expected to
play in the complex business-to-business sales situation?
a. Provides key information.
b. Sell for you when you cannot be there.
c. Recommend selling strategies.
d. Help you gain access to key decision makers.
e. All of the above are roles the advocate may be expected to play.
Ans: e
Response: See page 119
57. The most likely sequence of stages in a fully developed buyer-seller relationship is:
Ans: e
Response: See page 121
58. Which of the following stages of the buyer-seller relationship focuses on a trial
relationship?
a. awareness
b. commitment
c. expansion
d. all of the above
e. none of the above
Ans: e
Response: See page 121
59. Which of the following selling objectives is likely to be associated with the
awareness stage of the supplier-customer relationship?
Ans: b
Response: See page 121
60. Which of the following encourages parties to progress into a fully committed buyer-
seller relationship?
Ans: e
Response: See page 121-122
61. Attempting to create the highest level of customer value during the evaluation of
alternatives stage of the purchasing process is typical of which type of customer
relationship?
Ans: c
Response: See page 122
62. In a transactional type of relationship, the sales force provides the greatest
customer value during which stage(s) of the purchasing process?
a. recognition of needs
b. evaluation of alternatives
c. purchase decisions
d. both a and b above
e. both a and c above
Ans: c
Response: See page 122
63. According to buyer survey results which of the following personal attributes
generally has the least effect on perceptions of a salesperson's trustworthiness?
a. dependability
b. competency
c. intelligence
d. honesty
e. all of the above are equally important
Ans: e
Response: See page 124