SE - 017 Pretest

Selling is important to the American economy because it helps

• control competition.

• increase prices of products.

• keep our standard of living from improving.

• create desire for goods and services.

Answer explanation

Create desire for goods and services. Salespeople can create desire for new or established products by informing customers, showing them products, and explaining how the products could benefit them. Other roles of selling include keeping the economy moving, improving our standard of living, promoting competition, affecting employment, and adding utility to products. The competition among sellers helps control prices of products.

Using selling to satisfy customers' needs or desires should ensure that the salesperson and the business will both benefit over time from

• increased returns.

• repeat business.

• quick profits.

• added utility.

Answer explanation

Repeat business. Satisfied customers will not only return to the business but may tell friends and associates about the service they received. Repeat business is the backbone of selling, and salespeople rely on repeat customers for their success. Making a quick profit does not have the long-term benefit that results from repeat business. Customers' returns of unwanted items should be reduced rather than increased. Using selling to satisfy customers does not add utility, or usefulness, to products.

Products that are sold to the individual(s) who will make personal use of them are being sold for

• promotional purposes.

• industrial purposes.

• eventual resale.

• ultimate consumption.

Answer explanation

Ultimate consumption. These are products sold for personal use, rather than for use by a business. Products sold for resale are usually sold to intermediaries to sell to their customers. Products sold for promotional purposes are display or advertising items used by businesses. Products sold for industrial purposes are purchased by business and industry to use in making other products or in the operation of the business.

School supplies sold by a wholesaler to a retail store is an example of goods sold for

• ultimate consumption.

• production.

• industrial use.

• resale.

Answer explanation

Resale. Products that are sold to intermediaries such as wholesalers or retailers are sold for resale. Products sold to industrial users are used in the production of other goods. Goods sold for ultimate consumption will be used by the individual(s) who bought them.

An example of an intangible product for sale is

• lawn care.

• automated machinery.

• a computer.

• a delivery truck.

Answer explanation

Lawn care. Lawn care is a productive activity that consumers can pay someone else to perform. The service is considered intangible because it cannot be detected through the senses. Computers, automated machinery, and delivery trucks are all tangible products.

One of the ways that salespeople can use selling to create desire for products is by

• emphasizing the high cost of a product.

• using product demonstrations.

• monitoring the competition.

• making a good impression.

Answer explanation

Using product demonstrations. Salespeople who determine customer buying motives can then demonstrate to customers the features and benefits of a product that would appeal to them. This creates desire for products by showing customers how they will benefit from owning the products. Emphasizing the high cost of a product might decrease desire because customers cannot afford the price. Making a good impression on the customer should create a good selling atmosphere, but does not necessarily create desire for a product. Monitoring the competition should be an ongoing effort that helps the business remain competitive.

A salesperson who can determine customers' buying motives, handle objections, and close sales is demonstrating

• ethical standards.

• selling skills.

• product knowledge.

• creativity.

Answer explanation

Selling skills. Salespeople must use specific selling techniques to be effective. Other valuable selling skills include the ability to open sales, question customers, suggest additional or substitute products, demonstrate products, and follow up sales. Demonstrating product knowledge involves obtaining information about the product and using it in selling. Demonstrating ethical standards involves being honest so that customers know they can trust you. Demonstrating creativity involves finding and using new and improved methods for selling your products.

One of the benefits of using ethical standards in selling is that it can establish an atmosphere of

• empathy.

• trust.

• competition.

• enthusiasm.

Answer explanation

Trust. Ethical standards are unwritten rules of good conduct. These rules include being honest and straightforward with others. Being honest with your customers will develop an atmosphere of trust and help them trust you as a salesperson. None of the other alternatives results from using ethical standards. Enthusiasm is intense interest or excitement. Empathy is the ability to put yourself in another person's place. Competition is the rivalry between businesses to attract consumer dollars.

Mike feels that by doing his job as a salesperson effectively, he is benefiting the customer. This demonstrates Mike's belief in

• selling as a service.

• product knowledge.

• understanding ethical standards.

• communication skills.

Answer explanation

Selling as a service. Believing that selling is a service to the customer helps the salesperson do his/her job effectively. The primary goal is to satisfy the customer, not to make a quick buck. Product knowledge is a salesperson's grasp of all the features and benefits of his/her product. Understanding ethical standards is not enough. Using them helps a salesperson gain the customer's trust. Communication skills involve expressing yourself well to others.

Customers are more likely to trust businesses and products when the salesperson is

• talkative.

• aggressive.

• self-confident.

• insistent.

Answer explanation

Self-confident. The salesperson's confidence gives customers confidence in the business. They feel that the company will stand by its promises and that they have made a good buying decision. Customers often do not respond well to salespeople who are aggressive, talkative, or insistent.