SELL, 3rd Edition Thomas N. Ingram | Raymond W. LaForge | Ramon A. Avila | Charles H. Schwepker | Michael R. Williams solutions manual and test bank

SELL, 3rd Edition Thomas N. Ingram | Raymond W. LaForge | Ramon A. Avila | Charles H. Schwepker | Michael R. Williams solutions manual and test bank

Chapter Two — Building Trust and Sales Ethics

Learning Outcomes

1. Explain what trust is.

2. Explain why trust is important.

3. Understand how to earn trust.

4. Know how knowledge bases help build trust and relationships.

5. Understand the importance of sales ethics.

Chapter Outline

I. Introduction

II. What is trust?

III. Why is Trust Important?

IV. How to Earn Trust

A. Expertise

B. Dependability

C. Candor

D. Customer Orientation

E. Compatibility/Likeability

V. Knowledge Bases Help Build Trust and Relationships

A. Industry and Company Knowledge

B. Product Knowledge

C. Service

D. Promotion and Price

E. Market and Customer Knowledge

F. Competitor Knowledge

G. Technology Knowledge

VI. Sales Ethics

A. Image of Salespeople and Sales Executives

B. Deceptive Practices

C. Illegal Activities

D. Non-Customer-Oriented Behavior

E. How Are Companies Dealing with Sales Ethics?

Exercises

Developing Professional Selling Knowledge

1. What is the essence of trust for a salesperson?

Students’ answers will vary. The answers should include some description of the buyer relying on the salesperson’s words or actions in situations where such reliance involves risk to the buyer.

2. If trust means different things to different buyers, how is a salesperson to determine what trust means for each buyer?

The salesperson must determine what trust means for each buyer by asking questions, listening to the responses, and making general observations. This is the only way the salesperson will be able to learn what trust attributes are critical to relationship-building for a specific buyer.

3. Why is trust important to a salesperson?

Today’s customers are more sophisticated, more informed (or at least have access to more information), and more aware of traditional manipulative “sales tactics.” In addition, buying organizations are interested in taking advantage of efficiencies associated with using a smaller number of suppliers. Salespeople who understand these characteristics know that the stereotypical type of selling (e.g., manipulative, pushy, aggressive) is ineffective and that building mutually beneficial relationships with their customers is the only way to compete in the new millennium. Trust is important to a salesperson because it is essential for building these long-term relationships.

4. How might a salesperson go about earning trust?

Students’ answers will vary, but they should include discussion of the basic building blocks of trust, including expertise, dependability, candor, customer orientation, and compatibility/likeability.

5. What does it mean for a salesperson to have a customer orientation?

Customer orientation means the salesperson is as concerned about their customers’ interest as his or her own. It means truly understanding the customer’s situation and then presenting fair and balanced solutions addressing the customers’ needs. In other words, it means looking out for the customer. This requires salespeople to be honest, candid, and fair when dealing with the customer.

6. How would you rank the five trust builders in order of importance?

Students’ answers will vary, but should include each of the five components (expertise, dependability, customer-orientation, candor, compatibility).

7. Explain why expertise is such an important relationship builder.

Expertise is such an important trust builder because it gives the salesperson credibility and is associated with several of the other trust builders. Credibility affords the salesperson a degree of the buyer’s trust prior to the salesperson actually earning it. Expertise may help the salesperson earn the buyer’s trust through the other trust builders. For example, salespeople with greater expertise are more likely to have greater competence and/or make more significant contributions.

8. How do knowledge bases help build trust and relationships?

Knowledge bases help build trust and relationships because they empower the salesperson to use the trust-building variable more effectively. For example, as salespeople gain more product knowledge, they are better able to demonstrate expertise and customer orientation (by more precise matching of solutions to needs) and make a stronger contribution.

9. Do you think certain knowledge bases are more important than others? Why?

Students’ answer will vary but should include appropriate rationale based on the chapter content. Knowledge bases viewed as more important may vary depending up the buyer-seller relationship and the type of selling situation.

10. What are the three areas of unethical behavior? Discuss each.

The three areas of unethical behavior are deceptive practices, illegal activities, and non-customer-oriented behavior. Deceptive practices refer to any attempt by the salesperson to mislead or otherwise deceive the buyer. For example, a salesperson may exaggerate a product’s benefits knowing that the buyer’s decision will be based on (or that the buyer is relying on) those exaggerations. Illegal activities refer to a variety of activities in which the salesperson knowingly breaks the law. For example, a salesperson padding an expense reimbursement report is breaking the law. Non-customer-oriented behavior refers to actions taken by the salesperson that 1) are in conflict with the buyer’s interests, and 2) are done so when other options are available that are more customer-oriented.

Group Activity

Ask students to think about their experiences with salespeople. Have them write down a short list of things salespeople have done that built trust and a short list of things salespeople have done that have damaged trust. Next, divide the class into small groups and have them discuss and combine their lists. Ask each group to present its list.

The purpose of this exercise is help students better understand trust-building and trust-damaging behaviors through shared experiences. Try to get students to share stories and identify how the behaviors described in those stories match one or more of the five components of trust.

Experiential Exercises

Building Relationships after the Sale

Objective: Your students will discover the importance of follow-up activities in building relationships.

Time Required: 10 to 15 minutes, or longer if working in groups.

Teaching Tip: Have students work in small groups to develop answers to the questions. Then let each group present its answers to the rest of the class.

Not many years ago, salespeople often thought that their jobs were complete once the order was signed. Today, for a business to survive, repeat business is critical. A greater emphasis has been placed on the follow-up stage of the selling process. Continued building of the relationship should be your goal well after the sale.

1. Show appreciation after the sale. How might you accomplish this?

Some suggestions include: a thank you card/letter/email, a follow-up phone call, a follow-up visit, or some other small but significant act not only thanking the customer for the business, but reassuring the customer that he/she made the right decision.

2. Monitor delivery and installation. Why is this important?

Answers should include some discussion of the following: First, monitoring delivery and installation demonstrates a customer orientation which helps to build trust. In addition, it gives the salesperson the opportunity to ensure that delivery and implementation are without incident, or the opportunity to quickly address incidents that arise.

3. Learn the names of the switchboard operator, receptionists, office manager, users of the product, etc. How might you accomplish this and why is it important?

A salesperson can learn the names of people in the customer’s organization by asking for names, obtaining business cards, reading nametags, reading nameplates, and then keeping good records to ensure retention of the information. Knowing and using people's names helps the salesperson demonstrate customer orientation, dependability, compatibility and competence, each of which helps to build trust. Trust is essential to initiating, developing, and maintaining successful relationships.

Video Exercise

Building the Trust and Sales Ethics

Scene 1A, Meet the Eager Beaver, run time 2:42 minutes.

Professional salespeople will face a number of situations that will require that they make ethical choices throughout their careers. Sales people will relate with a multitude of people who are competitors and may want to use this relationship to gain information and ethical dilemma that Lisa faces.

Mark – Manager for Player One

Lisa – Sales Rep for Alpha Tech – Security system provider trying to earn the customer away from Goodman

Jim – Sales Rep for Goodman – Current provider of security system

Ask your students:

1. Which area of unethical behavior does Mark want Lisa to engage in?

Mark wants Lisa to share with him information about how much one of his competitors paid for its security system software. If Lisa were to share that information, she would be engaging in non-customer-oriented behavior.

2. Discuss how Lisa’s answer can institute trust in her relationship with Mark as well as avoid her engaging in unethical behavior.

Lisa's avoidance of breaching the confidentiality she shares with her other customer, serves to ensure Mark that she can be trusted with his company’s information. It is important to note that while sharing such information may seem useful in the short run (i.e., help get a sale), it is unlikely that prospective clients would ever truly trust a salesperson who does so. In fact, the buyer could have been testing the salesperson's integrity, and not really concerned about the information.

Chapter 2 Case

Schmidt Business Forms

Background

Congratulations! As a new salesperson for Schmidt Business Forms, you have just completed

training and have been assigned the southwest territory. Schmidt Business Forms designs and manufactures a full line of stock and customized forms for use in all types of business. Operating throughout the United States and Canada, Schmidt is recognized as one of the three leaders in the industry.

Current Situation

Doctors’ General Hospital was once a major account in your territory. Over this past year, virtually all the hospital’s forms business has been switched from Schmidt to one of your main competitors. Due to the large volume and many types of forms used, Doctors’ has placed the purchasing responsibility for all forms in the hands of Jim Adams in the purchasing department. An experienced professional purchasing agent, Adams has been in this position for several years and has purchased significant volumes of forms from Schmidt in the past. In the course of calling on Adams at his office in the hospital, you have learned that Doctors’ dropping Schmidt as a forms source did not happen overnight. Although the loss of this account was not related to any single problem, you have learned that the switch

to your competitor was basically due to a combination of events that resulted in a loss of trust in Schmidt. Several shipments did not arrive as promised, causing major problems for both billing and admissions. Even though the final proof copies were correct, a newly designed, multipart computer form was found to be short one of its pages. This required emergency room staff to take the time to use a copier (located one floor up) until the forms could

be rerun and delivered two weeks later. The final straw concerned an admissions form that Schmidt had been supplying the hospital for more than three years. For some reason, a new shipment of the admissions forms was the wrong size and would not fit into patient files without being folded. In each event, the prior salesperson worked with Adams to get the problems resolved and the correct forms delivered. Discounts were also given to help offset the inconvenience incurred. Nevertheless, Schmidt has lost the account, the previous salesperson has quit the company, and you have inherited the challenge of winning back Adams and Doctors’ General Hospital.

Discussion Questions:

1. Put yourself in the role of the salesperson for Schmidt Business Forms in the selling situation just described and review the Trust-Building Behaviors presented in this chapter. Using the following worksheet as a guide, discuss and give examples of how you might use each of the Trust-Builders to re-establish a relationship with Jim Adams and win back the Doctors' General Hospital account.

Students’ answers will vary, but each should demonstrate the students’ understanding of how to build trust through the various components. Here’s an example.

Customer Orientation: First, I would make sure Jim understands that my objective is to make sure his needs, and the needs of the hospital in general, are met. Second, I would talk with Jim and the people who use the forms to make sure I understand their needs, including types of forms, sizes, order schedules, and so forth. Third, I would make sure Jim knows that I have identified the reasons for the previous problems and made sure my company has implemented (and tested) the necessary corrective measures. Finally, I would share with Jim his concern about placing another order with Schmidt Business Forms and ask only for the opportunity to place a trial order.

Chapter 2 Role Play

Brisbane Uniform Company

Case Background

Brisbane Uniform Company (BUC) specializes in providing uniforms to hotels and restaurants. BUC is a new company from Australia trying to break into the U.S. market. They have had trouble breaking into larger accounts (Marriott, Hilton, Sheraton) because as a new company, they don’t have the name recognition in the United States.

As the Account exec in the area, you have been working on a new Hilton hotel with over 5,000 rooms and 500 employees. Recently you submitted a proposal and the buyer, Mark Dunn, has told you he is leaning your way with the order. He also told you that this order must come off without a hitch as his hide is on the line if things go wrong. You know there could be a problem down the road as one of your unions has been negotiating a contract that is about to expire. The last time this contract came up, there was a strike and orders were backlogged for weeks. The hotel has many customized uniforms and has to have these for their grand opening in three months. What is your obligation to the hotel having this information? This order will make your year and probably send you on a trip to Rome for exceeding quota.

Role Play Activity

Location—Mark Dunn’s Office; Action—Role play a sales call with Mark Dunn addressing the issue in the case.

Chapter 2 Continuing Case

Because the National Copier Company (NCC) has only been in business for five years, Brenda Smith is concerned that most of her competitors are older than she is. The prospective customers she has been calling on state they know they can count on her competitors because they have a long track record. As NCC expands into new markets some of her prospects are not familiar with her company. One prospective customer, who works for one of the most prestigious and largest medical offices (30 doctors) in the area, told her he has been buying copiers from the same company for over twenty-five years. He also told her his sales representative for the company has been calling on him for over seven years, and he knows when he calls on his copier supplier for advice he can count on him for a solid recommendation. Brenda realizes these are going to be tough accounts to crack.

Brenda does have an advantage due to the high quality of NCC products. In a recent trade publication, NCC’s copiers tied for first in the industry on ratings of copier quality and dependability. NCC was also given a high rating for service. Brenda has had this information for two weeks now and has brought it up in conversations with her prospective customers without much success. To make matters worse, one of her competitors must have started rumors about NCC. In the past month, she has heard the following rumors:

· “NCC is going out of business because of financial troubles.”

· “NCC has missed several delivery deadlines with customers.”

· “NCC’s copiers have a software glitch that cannot be corrected.”

· “NCC has cut its service staff.”

Brenda knows these rumors are not true, but prospects might believe the rumors. At a recent sales meeting, Brenda’s manager suggested that their competitors must be getting nervous about NCC’s success, causing them to start such vicious rumors.

Brenda is sitting at her desk trying to figure out what to do next and she is not exactly sure how to proceed.

Questions

1. What would you recommend Brenda do to handle the challenges she faces?

Students’ answers will vary but should focus on trust-building activities. In particular, Brenda needs to build her knowledge base, including knowledge of her industry, company, products, services, prices, markets, customers, competitors, and technology. Do so will give her confidence and improve her credibility within her territory.

2. Brenda appears to have an advantage with her products and services. Develop a plan for Brenda to build trust in NCC with prospective customers.

Again, students’ answers will vary. However, the plans students develop should include a heavy reliance on activities designed to demonstrate competence, dependability, and customer orientation.

3. What do you recommend Brenda do to compete effectively against competitors that have a long and successful track record?

First, Brenda needs to engage in activities designed to develop a sense of compatibility with her customers. This will help her gain access and build trust. In addition, Brenda needs to become an expert in her industry and market, knowing exactly how her products compare with those of her competitors. Using this information, Brenda needs to look for opportunities arising based on her product’s (and company’s) competitive advantages, and/or her customers’ dissatisfaction with their copier providers.

4. How should Brenda go about handling the rumor mill?

Because the text contains no specific recommendations or guidelines for this sort of situation, students’ answers will vary. However, the recommendations should center on strategies for correcting the misinformation and building trust. Recommendations should not include any behavior that may be considered unethical, like making disparaging statements regarding the competitors.

Chapter 2—Building Trust and Sales Ethics

MULTIPLE CHOICE

1. LaTasha is a purchasing agent for a large construction company. Jeff is a salesperson for a building materials company and has been calling unsuccessfully on LaTasha for several weeks. LaTasha likes Jeff and believes he is selling a good product. Unfortunately, she does not feel she can rely on him if she ever had a problem with one of the orders. Which of the following best reflects the underlying problem?

a.	Jeff has lied to LaTasha.
b.	Jeff's company needs to work on its ability to deliver orders accurately and on time.
c.	LaTasha doesn't trust Jeff.
d.	LaTasha is simply a tough buyer.
e.	All of the above are correct.

ANS: C PTS: 1 DIF: Medium REF: p. 32

OBJ: 1

2. Which of the following best describes trust in a buyer-seller context?

a.	The buyer understands the salesperson
b.	The salesperson is honest with the buyer
c.	The buyer can rely on what the salesperson says or promises to do
d.	The salesperson is able to solve the buyer's needs cost effectively
e.	The salesperson is dependable

ANS: C PTS: 1 DIF: Easy REF: p. 32

OBJ: 1

3. In order for the buyer to be able to rely on what the salesperson says or promises to do, the buyer must:

a.	Trust the salesperson
b.	Like the salesperson
c.	Know the salesperson
d.	Believe the salesperson is customer-oriented
e.	Believe the salesperson is honest

ANS: A PTS: 1 DIF: Easy REF: p. 32

OBJ: 1

4. Which of the following is not recognized as a trust builder?

a.	Power
b.	Expertise
c.	Candor
d.	Customer orientation
e.	Dependability

ANS: A PTS: 1 DIF: Easy REF: p. 32

OBJ: 3

5. Which of the following is not recognized as a trust builder?

a.	Customer orientation
b.	Competence
c.	Dependability
d.	Candor
e.	Each of the above is recognized as a trust builder

ANS: E PTS: 1 DIF: Easy REF: p. 32

OBJ: 3

6. The question "Do you know what you're talking about?" is addressing which component of trust?

a.	Competence or expertise
b.	Candor
c.	Customer orientation
d.	Dependability
e.	Compatibility

ANS: A PTS: 1 DIF: Medium REF: p. 33

OBJ: 1

7. A buyer asking/thinking the question "Will you recommend what is best for me (buyer) or what is best for you (salesperson)?" is addressing which component of trust?

a.	Competence or expertise
b.	Candor
c.	Customer orientation
d.	Dependability
e.	Compatibility

ANS: C PTS: 1 DIF: Medium REF: p. 33

OBJ: 1

8. The question "Are you being upfront with me" is addressing which component of trust?

a.	Competence or expertise
b.	Candor
c.	Customer orientation
d.	Dependability
e.	Compatibility

ANS: B PTS: 1 DIF: Medium REF: p. 33

OBJ: 1

9. The question "Can you and your company back up your promises?" is addressing which component of trust?

a.	Competence or expertise
b.	Candor
c.	Customer orientation
d.	Dependability
e.	Compatibility

ANS: D PTS: 1 DIF: Medium REF: p. 33

OBJ: 1

10. Which of the following is most accurate regarding successful long-term buyer-seller relationships?

a.	The seller almost always charges the buyer the lowest price possible.
b.	The seller must conceal some cost information from the buyer in order to maintain profitability.
c.	Mutual trust is crucial.
d.	The seller must be honest with the buyer.
e.	All of the above are accurate.

ANS: C PTS: 1 DIF: Hard REF: p. 34

OBJ: 1

11. Which of the following best describes a key difference between traditional sales tactics and trust-based relationship selling methods today?

a.	In trust-based relationship selling there is little concern for making sales.
b.	Traditional selling tactics are always the quickest way to get a sale.
c.	Getting orders is not important in trust-based relationship selling.
d.	Establishing trust is more important to trust-based relationship selling methods.
e.	Traditional sales tactics are more collaborative than trust-based relationship selling methods.

ANS: D PTS: 1 DIF: Hard REF: p. 34

OBJ: 2

12. Bill has been selling vacuum cleaners door-to-door for the past seven years. Recently he took a new job selling industrial cleaning equipment to large factories and institutions. Bill was assigned a territory that contained 35 accounts with which his company has been doing business for several years. Bill is having trouble adjusting from his role as a traditional salesperson to his role as a relational salesperson. Which of the following best reflects one of the key differences between traditional selling and relational selling that may be causing Bill some adjustment trouble.

a.	In his new job, getting orders is not important.
b.	The company he is now working for is not concerned about profits.
c.	With his new job, Bill has to build and maintain long-term relationships.
d.	The customers Bill is now calling on are only concerned about price.
e.	All of the above.

ANS: C PTS: 1 DIF: Hard REF: p. 34

OBJ: 2

13. Building long-term, mutually satisfying relationships with customers requires salespeople to be:

a.	Competent
b.	Likeable
c.	Candid
d.	Dependable
e.	All of the above

ANS: E PTS: 1 DIF: Easy REF: p. 34-38

OBJ: 3

14. Andrew is a new sales rep for an industrial chemical supplier. Andrew makes it a point to never be late for an appointment and to always follow through immediately on promises he makes to his customers. These behaviors help Andrew build trust with his customers because they perceive him as:

a.	An expert
b.	Candid
c.	Dependable
d.	Competent
e.	Helpful

ANS: C PTS: 1 DIF: Medium REF: p. 36

OBJ: 3

15. Salespeople who always do what they say they'll do earn trust because buyers perceive them as being:

a.	Dependable
b.	Customer oriented
c.	Likeable
d.	Candid
e.	Knowledgeable

ANS: A PTS: 1 DIF: Medium REF: p. 36

OBJ: 3

16. Susan is a new sales rep who does not yet possess a great deal of product knowledge. She is often asked questions to which she does not know the answer. By being up-front with her customers about not knowing the answers, Susan builds trust because she is perceived as:

a.	An expert
b.	Candid
c.	Compatible
d.	Competent
e.	Helpful

ANS: B PTS: 1 DIF: Medium REF: p. 36

OBJ: 3

17. Salespeople who place as much emphasis on their customer's interests as their own are perceived as being:

a.	Dependable
b.	Customer oriented
c.	Likeable
d.	Candid
e.	Knowledgeable

ANS: B PTS: 1 DIF: Medium REF: p. 36-37

OBJ: 3

18. Jennifer is a salesperson for a business insurance company. Recently she told several of her customers about new legislation that may adversely affect their businesses. Jennifer is earning trust because her customers will perceive her as ____.

a.	Likeable
b.	Candid
c.	Political
d.	Customer-Oriented
e.	Concerned

ANS: D PTS: 1 DIF: Hard REF: p. 36-37

OBJ: 3

19. Suppose you are salesperson for a sales force automation consulting company. After working with a potential customer for several weeks you determine that a lower-cost and lower margin solution is best for your customer. Although a more expensive and higher margin system will work, by recommending the lower-cost solution you are demonstrating:

a.	Dependability
b.	Knowledge
c.	Likeability
d.	Customer orientation
e.	Expertise

ANS: D PTS: 1 DIF: Hard REF: p. 36-37

OBJ: 3

20. Salespeople often adapt their appearance and communication style to that of their customers. This helps them to build trust because their customers perceive them as being:

a.	Experts
b.	Customer oriented
c.	Compatible
d.	Candid
e.	Knowledgeable

ANS: C PTS: 1 DIF: Hard REF: p. 38

OBJ: 3

21. Which of the following best completes the sentence "It's difficult to ____ someone if I don't ____ them."?

a.	Know, trust
b.	Know, like
c.	Trust, like
d.	Trust, buy from them
e.	None of the above

ANS: C PTS: 1 DIF: Medium REF: p. 38

OBJ: 3

22. Suppose you were just hired as a salesperson and are preparing for training. Which of the following is not one of the more common topics covered during initial sales training programs?

a.	Recruiting
b.	Company history
c.	Selling techniques
d.	Industry history
e.	Enhancing relationships

ANS: A PTS: 1 DIF: Hard REF: p. 40

OBJ: 4

23. Which of the following training topics does not include information that will help salespeople earn trust?

a.	Company policies
b.	Competitive knowledge
c.	Product knowledge
d.	Developing customer relationships
e.	All of the above will help salespeople learn how to earn trust.

ANS: E PTS: 1 DIF: Hard REF: p. 40

OBJ: 4

24. In order for salespeople to fine-tune a market offer to the specific needs of their customers, they must have a strong ____ knowledge base.

a.	Industry
b.	Competition
c.	Technology
d.	Product (including service and price)
e.	Technical

ANS: D PTS: 1 DIF: Medium REF: p. 40

OBJ: 4

25. It is important for salespeople to have a complete understanding of their companies' pricing policies because:

a.	They are often responsible for negotiating price with their customers.
b.	Then they can arbitrarily charge different customers different prices.
c.	They can legally obligate the company to a quoted price.
d.	Then they will be perceived as more dependable.
e.	Both a and c are correct.

ANS: E PTS: 1 DIF: Medium REF: p. 41-42

OBJ: 4

26. Possessing strong product, service, and customer knowledge bases helps salespeople do a better job of:

a.	creating value-added solutions to the specific needs of their customers.
b.	competing on price.
c.	knowing how low they can drop the price and still make a profit.
d.	increasing profitability by controlling selling expenses.
e.	manipulating the customer into buying the most profitable solution.

ANS: A PTS: 1 DIF: Medium REF: p. 40-42

OBJ: 4

27. Steve is a new salesperson for XYZ Computer Co. and is responsible for business-to-business sales. Transferring from the engineering staff, Steve knows better than any other salesperson the technical specifications and performance statistics of the computers he sells. Unfortunately, Steve is relatively unfamiliar with how businesspeople use the computers on a day-to-day basis. Steve needs to work on his ____ knowledge.

a.	Product
b.	Competitor
c.	Technical
d.	Market and Customer
e.	Company

ANS: D PTS: 1 DIF: Hard REF: p. 42-43

OBJ: 4

28. Which of the following are potential resources salespeople may use to increase their market and customer knowledge base?

a.	Newspapers
b.	World Wide Web
c.	Trade magazines
d.	Trade associations
e.	All of the above are potential resources

ANS: E PTS: 1 DIF: Easy REF: p. 42-43

OBJ: 4

29. Which of the following most accurately reflects buyers’ information needs?

a.	Generally speaking, buyers know everything they need to know about the markets in which they compete.
b.	Buyers are not interested in factual knowledge unless it relates to fulfilling their specific needs.
c.	Buyers are interested in learning as much factual knowledge as they can.
d.	Buyers really don’t expect salespeople to be able to provide them with valuable information.
e.	None of the above.

ANS: B PTS: 1 DIF: Hard REF: p. 42

OBJ: 4

30. In order to better understand their own product's position in the market place, salespeople need:

a.	To be customer oriented.
b.	A high degree of competitor knowledge.
c.	To be candid.
d.	A high degree of customer knowledge.
e.	Both a and c are correct.

ANS: B PTS: 1 DIF: Medium REF: p. 43

OBJ: 4

31. In order for salespeople to be able to deliver complete comparative product information in sales presentations they must possess:

a.	assertiveness
b.	adaptability
c.	competitor knowledge
d.	trust
e.	customer knowledge

ANS: C PTS: 1 DIF: Medium REF: p. 43

OBJ: 4

32. Which of the following types of knowledge is probably least likely to contribute to a salesperson's expertise?

a.	Product knowledge
b.	Competitor knowledge
c.	Customer knowledge
d.	Service knowledge
e.	General historical knowledge

ANS: E PTS: 1 DIF: Medium REF: pgs. 38-43

OBJ: 4

33. Technology is providing faster and more efficient ways for salespeople to communicate with their customers. With respect to communication with their customers, whenever possible, salespeople should:

a.	Use e-mail because it is quick and can be read/sent anytime of the day or night.
b.	Use voice mail because most people are familiar with it.
c.	Use the web/internet because it provides 24 hour access.
d.	Use whatever communication method the customer prefers.
e.	Use the telephone because it is inexpensive and allows for two-way interaction.

ANS: D PTS: 1 DIF: Medium REF: p. 43

OBJ: 4

34. Which of the following types of communications technology sometimes backfires on sales organizations by actually frustrating their customers?

a.	e-mail
b.	Web/internet
c.	Voice mail
d.	Pagers
e.	Fax

ANS: C PTS: 1 DIF: Medium REF: p. 43-44

OBJ: 4

35. Ethics refers to:

a.	Correct behavior.
b.	Right and wrong conduct of individuals and institutions of which they are a part.
c.	Moral conduct as determined by the government and society.
d.	Laws governing society.
e.	All of the above are correct.

ANS: B PTS: 1 DIF: Medium REF: p. 44

OBJ: 5

36. Which of the following statements is most accurate with respect to sales and ethics?

a.	Ethics are universal; they’re the same in every country.
b.	Ethical standards for sales professionals are likely based on societies standards
c.	Ethical standards are, by definition, legal standards.
d.	It’s OK for salespeople to engage in unethical behavior because buyers do all the time.
e.	None of the above are accurate.

ANS: B PTS: 1 DIF: Hard REF: p. 44

OBJ: 5

37. What does the acronym SMEI stand for?

a.	Sales and Marketing Executives International
b.	Senior Marketing Executives International
c.	Self-Made Entrepreneurs International
d.	Sales and Marketing Era Industry
e.	None of the above

ANS: A PTS: 1 DIF: Hard REF: p.44

OBJ: 5

38. Which of the following is not one of the most common areas of unethical behavior associated with salespeople?

a.	Deceptive practices
b.	Illegal activities
c.	Non-customer-oriented behavior
d.	Poor customer service
e.	All of the above.

ANS: D PTS: 1 DIF: Medium REF: p. 45-47

OBJ: 5

39. Which of the following are considered ethical behavior?

a.	Exaggerating product benefits
b.	Withholding relevant information from the customer
c.	Providing answers to questions to which they do not know the answer
d.	Both b and c
e.	None of the above

ANS: E PTS: 1 DIF: Easy REF: p. 45

OBJ: 5

40. Which of the following are considered unethical behavior?

a.	Exaggerating product benefits
b.	Withholding relevant information from the customer
c.	Providing answers to questions to which they do not know the answer
d.	Both b and c
e.	All of the above

ANS: E PTS: 1 DIF: Easy REF: p. 45

OBJ: 5

41. Suppose Martin, a laptop computer salesperson, tells one of his customers that his laptop computers weigh only 4 pounds, and Martin knows that the laptop computers actually weigh 6 pounds. Would Martin's comment be considered unethical?

a.	Yes, because the information, which his buyer might rely upon, is deceptive.
b.	Yes, because he is clearly lying to his customer, an act that is illegal.
c.	No, because it is not reasonable to expect that his customer would take his comment literally.
d.	No, because it's okay to exaggerate a product's features and benefits when talking with customers.
e.	Yes, but only if his customer buys the laptops.

ANS: A PTS: 1 DIF: Hard REF: p. 45

OBJ: 5

42. Suppose Martin, a laptop computer salesperson, tells one of his customers that his computers are as fast as lightning. Would Martin's comment be considered unethical?

a.	Yes, because the information is deceptive, no computer is fast as lightning.
b.	Yes, because he is clearly lying to his customer, an act that is illegal.
c.	No, because it is not reasonable to expect that his customer would take his comment literally.
d.	No, because it's okay to exaggerate a product's features and benefits when talking with customers.
e.	Yes, because he is misleading the customer.

ANS: C PTS: 1 DIF: Hard REF: p. 44-47

OBJ: 5

43. Which of the following is not one of the ways in which a salesperson can create product liabilities for a company?

a.	Providing express warranties
b.	Over-charging customers
c.	Misrepresentation
d.	Negligence
e.	All of the above can create product liabilities for company

ANS: B PTS: 1 DIF: Hard REF: p. 47

OBJ: 5

44. Which of the following actions taken by salespeople may be considered unethical?

a.	Forcing a customer to buy only from the salesperson's organization
b.	Misrepresenting their products
c.	Offering special inducements to the employees of a prospect
d.	Linking the sale of one of the salesperson's products to the purchase of one of the buyer's
e.	All of the above may be considered unethical

ANS: E PTS: 1 DIF: Medium REF: p. 47

OBJ: 5

45. A salesperson wishing to limit his or her exposure to legal problems should remember to:

a.	Use factual data rather than general statements of praise during the sales presentation
b.	Not to try and force the customer to buy only from his or her organization
c.	Avoid making promises that will be difficult or impossible to honor
d.	Not tamper with a competitor's product
e.	Avoid making disparaging comments about a competitor’s product without specific evidence

ANS: E PTS: 1 DIF: Medium REF: p. 49

OBJ: 5

TRUE/FALSE

1. The essence of trust is honesty.

ANS: F PTS: 1 DIF: Easy REF: p. 32

OBJ: introduction

2. Reliability is an important component of trust.

ANS: T PTS: 1 DIF: Easy REF: p. 32

OBJ: 1

3. Trust and honesty mean the same thing.

ANS: F PTS: 1 DIF: Medium REF: p. 32

OBJ: 1

4. Just because a person is dependable does not necessarily mean they are trustworthy.

ANS: T PTS: 1 DIF: Medium REF: p. 32

OBJ: 1

5. By definition, salespeople who are honest are trustworthy.

ANS: F PTS: 1 DIF: Easy REF: p. 32

OBJ: 1

6. Expertise is an important component of trust.

ANS: T PTS: 1 DIF: Easy REF: p. 33

OBJ: 1

7. Trust is composed of a variety of components, including compatibility, candor, expertise, and customer orientation.

ANS: T PTS: 1 DIF: Easy REF: p. 32

OBJ: 1

8. It is possible for a salesperson who is honest and customer-oriented to not be trustworthy.

ANS: T PTS: 1 DIF: Hard REF: p. 32

OBJ: 1

9. Salespeople who develop expertise in their fields are more likely (than those who do not) to develop trust with their customers.

ANS: T PTS: 1 DIF: Medium REF: p. 34-35

OBJ: 3

10. Expertise is unimportant to a salesperson's ability to be perceived as competent.

ANS: F PTS: 1 DIF: Easy REF: p. 34-35

OBJ: 3

11. Trust is crucial to the success of long term business relationships.

ANS: T PTS: 1 DIF: Easy REF: p. 34

OBJ: 2

12. It is can be difficult for new salespeople to be perceived as trustworthy if they do not have experience in their field.

ANS: T PTS: 1 DIF: Easy REF: p. 34-35

OBJ: 3

13. Dependability is highly related to predictability.

ANS: T PTS: 1 DIF: Easy REF: p. 36

OBJ: 3

14. It's possible for someone to be candid but not honest.

ANS: F PTS: 1 DIF: Easy REF: p. 36

OBJ: 3

15. Salespeople who, while making sales presentations, cover both the pros and cons of their market offer are more likely than those who do not to be perceived as customer-oriented.

ANS: T PTS: 1 DIF: Medium REF: p. 36-37

OBJ: 3

16. Salespeople who are trusted and perceived as customer-oriented may be considered (by their customers) advisers rather than salespeople.

ANS: T PTS: 1 DIF: Easy REF: p. 36-37

OBJ: 3

17. In order for a salesperson to be customer-oriented they must, at least in part, be motivated by their customers' success

ANS: T PTS: 1 DIF: Medium REF: p. 36-37

OBJ: 3

18. Likeability and compatibility can be used to enhance trust building.

ANS: T PTS: 1 DIF: Easy REF: p. 37-38

OBJ: 3

19. Knowledge is of little importance when it comes to building trust.

ANS: F PTS: 1 DIF: Easy REF: p. 38-39

OBJ: 4

20. While salespeople's knowledge of their company and their products is important to building trust, knowledge of their industry is not.

ANS: F PTS: 1 DIF: Easy REF: p. 39

OBJ: 4

21. Most customers will likely assume that salespeople are knowledgeable about the products they're selling.

ANS: T PTS: 1 DIF: Easy REF: p. 40

OBJ: 4

22. It is more important for salespeople to carry a good product than to provide good service.

ANS: F PTS: 1 DIF: Medium REF: p. 40-41

OBJ: 4

23. Salespeople may use service to differentiate themselves from their competitors.

ANS: T PTS: 1 DIF: Easy REF: p. 41

OBJ: 4

24. Salespeople need only be concerned with knowing the price of their products, and not their company's pricing policies.

ANS: F PTS: 1 DIF: Easy REF: p. 41

OBJ: 4

25. Salespeople need only be concerned with knowing their customers, and not the market in which their customers operate.

ANS: F PTS: 1 DIF: Easy REF: p. 42-43

OBJ: 4

26. For a salesperson, expertise is closely associated with knowledge of the market.

ANS: T PTS: 1 DIF: Easy REF: p. 42-43

OBJ: 4

27. Salespeople need to be concerned with knowing not only their products, but their competitors as well.

ANS: T PTS: 1 DIF: Easy REF: p. 43

OBJ: 4

28. A salesperson's knowledge of their competitors' products will help them better understand their own.

ANS: T PTS: 1 DIF: Easy REF: p. 43

OBJ: 4

29. Voice mail is probably the best way for salespeople to be accessible to every one of their customers.

ANS: F PTS: 1 DIF: Medium REF: p. 43

OBJ: 4

30. It is unlikely that salespeople could use technology to differentiate themselves from their competitors.

ANS: F PTS: 1 DIF: Medium REF: p. 43-44

OBJ: 4

31. Anything that is unethical is also illegal.

ANS: F PTS: 1 DIF: Easy REF: p. 44

OBJ: 5

32. Technology can often be a barrier to communication between salespeople and their customers.

ANS: T PTS: 1 DIF: Hard REF: p. 43-44

OBJ: 4

33. Ethical standards are based on society’s standards..

ANS: T PTS: 1 DIF: Easy REF: p. 44

OBJ: 5

34. Sales ethics and trust are unrelated.

ANS: F PTS: 1 DIF: Easy REF: p. 44

OBJ: 5

35. When deciding what is ethical and unethical, a salesperson need only look at what is legal and illegal.

ANS: F PTS: 1 DIF: Easy REF: p. 44

OBJ: 5

36. A person's personal ethics may differ from the ethics of the company for which they work.

ANS: T PTS: 1 DIF: Medium REF: p. 44

OBJ: 5

37. The American Marketing Association has established its own code of ethics in which its members are committed to.

ANS: T PTS: 1 DIF: Medium REF: p. 44

OBJ: 5

38. Maintaining high ethical standards is important if one is to be considered a professional.

ANS: T PTS: 1 DIF: Easy REF: p. 44

OBJ: 5

39. By definition, deceptive practices are illegal practices.

ANS: F PTS: 1 DIF: Medium REF: p. 45

OBJ: 5

40. Salespeople can create product liabilities for their companies.

ANS: T PTS: 1 DIF: Easy REF: p. 47

OBJ: 5

41. A salesperson can create an express warranty to which his/her company is legally bound.

ANS: T PTS: 1 DIF: Easy REF: p. 47

OBJ: 5

42. Express warranties are written and made part of the basis-of-the-bargain.

ANS: F PTS: 1 DIF: Easy REF: p. 47

OBJ: 5

43. Bribery is considered illegal in this country.

ANS: T PTS: 1 DIF: Easy REF: p. 47

OBJ: 5

44. Many companies are spending time covering ethics in their training programs.

ANS: T PTS: 1 DIF: Medium REF: p. 47

OBJ: 5

45. A salesperson's customers may initiate unethical behavior.

ANS: T PTS: 1 DIF: Medium REF: p. 48

OBJ: 5

COMPLETION

1. The extent of the buyer’s confidence that he or she can rely on the salesperson’s integrity is called_________.

ANS: Trust

PTS: 1 DIF: Easy REF: p. 32 OBJ: 1

2. ____________refers to a state of being completely free from concealment: exposed to general view or knowledge.

ANS: Openness

PTS: 1 DIF: Hard REF: p. 32 OBJ: 1

3. The salesperson’s fairness and straightforwardness of conduct refers to the salespersons degree of _____________.

ANS: Honesty

PTS: 1 DIF: Hard REF: p. 32 OBJ: 1

4. Consistency of a salesperson over time to do what is right is referred to as ___________________.

ANS: Reliability (Predictability)

PTS: 1 DIF: Medium REF: p. 32 OBJ: 1

5. ____________ refers to the extent to which a salesperson is marked by impartiality and honesty.

ANS: Fairness

PTS: 1 DIF: Medium REF: p. 32 OBJ: 1

6. The ability, knowledge, and resources to meet customer expectations are collectively referred to as ___________, one of the components of trust.

ANS: Expertise

PTS: 1 DIF: Medium REF: p. 34 OBJ: 3

7. Closely tried to predictability is the characteristic of ____________________, one of the components of trust.

ANS: Dependability

PTS: 1 DIF: Medium REF: p. 36 OBJ: 3

8. Honesty of the spoken word is called ____________, one of the components of trust.

ANS: Candor

PTS: 1 DIF: Medium REF: p. 36 OBJ: 3

9. Wayne is a salesperson who is honest and upfront with his customers. Accordingly, Wayne’s customers most likely perceive him as being ____________, one of the components of trust.

ANS: Candid (Candor)

PTS: 1 DIF: Medium REF: p. 36 OBJ: 3

10. The act of salespeople placing as much emphasis on the customers’ interests as their own is called __________, one of the components of trust.

ANS: Customer Orientation

PTS: 1 DIF: Medium REF: p. 36 OBJ: 3

11. Companies provide extensive ______________to be sure they send knowledgeable sales representatives and field.

ANS: Training

PTS: 1 DIF: Medium REF: p. 39 OBJ: 4

12. Knowledge tools salespeople must have to explain their firm’s promotional programs are referred to as ___________knowledge.

ANS: Promotion

PTS: 1 DIF: Medium REF: p. 41 OBJ: 4

13. In order to better understand how to position their products relative to others in a competitive marketplace, salespeople must possess _____________knowledge.

ANS: Competitor

PTS: 1 DIF: Medium REF: p. 43 OBJ: 4

14. _________ refers to the right and wrong conduct of individuals and institutions of which there are a part.

ANS: Ethics

PTS: 1 DIF: Medium REF: p. 44 OBJ: 5

15. A(n) ___________ warranty is a way a salesperson can create product liabilities by giving a product warranty or guarantee that obligates the selling organization even if the salesperson does not intend to give a warranty.

ANS: Express

PTS: 1 DIF: Medium REF: p. 47 OBJ: 5

16. Jeni tells her customers her product is lightweight even though it is much heavier than any of the competitive products. Jeni is making false claims about her product, an unethical activity otherwise known as ______________________.

ANS: Misrepresentation

PTS: 1 DIF: Medium REF: p. 47 OBJ: 5

17. _______________is a way a salesperson can create product liability is by making a false claim about a product hoping the buyer will think it’s true.

ANS: Misrepresentation

PTS: 1 DIF: Medium REF: p. 47 OBJ: 5

18. ______________refers to a way a salesperson can create product liability by making a claim about a product without exercising reasonable care to see that this claim is accurate.

ANS: Negligence

PTS: 1 DIF: Medium REF: p. 47 OBJ: 5

19. ________________ is a term used when a buyer relied on the seller’s statement in making a purchase decision.

ANS: Basis of the Bargain

PTS: 1 DIF: Hard REF: p. 47 OBJ: 5