ME Unit 8 Test Review

XYZ Company sold 5 units at $3 per unit. Their business cost was $4. What was their profit?

• $11

• $15

• $20

• $17

Match each type of salesperson to its correct definition.

• Retail

• These people go by titles that include sales representative, sales executive, sales consultant, and sales associate and often do door-to-door selling

• External/Channel Sales Representatives

• These are people who conduct sales over the phone or Internet with no in-person contact

• Sales Engineer

• You need these people when customer questions or issues are complex and require technical expertise in order to complete sales

• Direct

• These are the people who help customers at the point of sale in a retail location, like at a front register

• Telemarketing/Internet Sales

• These are salespeople who focus on selling through another business, or who work for a business partner while selling your products

A group of employees dedicated to selling products and services for a business is a _____.

• sales force

• selling group

• sales commission

• sales team

An employee is compensated via _____ when they earn a percentage of the sales transaction as income.

• sales commission

• an hourly wage

• a bonus

• a salary

A specific sales goal a salesperson pursues for a stated period of time is a _____.

• sales quota

• sales forecast

• sales evaluation

• sales goal

_____ is used as an evaluation method that focuses on the volume and accuracy of their future sales estimates.

• Sales forecasting

• Sales prediction

• Sales estimate

• Sales quota

Match each pricing objective to its correct definition.

• Status Quo

• This is pricing products to generate as much revenue as possible, regardless of what it does to a firm’s profits

• Market Share

• To try to generate maximum profits on each unit sold, you can set prices to increase revenues as high as possible in comparison to costs

• Sales

• This is setting prices to capture a larger share of the industry sales

• Profit

• This is pricing to keep things the same, either by equaling competitor prices or keeping the same prices

Price elasticity refers to customer sensitivity to price changes, and it strongly affects the demand for products. A product has (a)   demand when customers are very sensitive to price changes, and (b)   demand when customers are not sensitive to changes in price.

• elastic
• inelastic

Match the following pricing strategies to their correct definition.

• Price Skimming

• Sums the total unit cost of a product or service and adds a specific amount to arrive at a price

• Prestige Pricing

• When a high price is set so quality or status-conscious customers will be attracted to buy

• Standard Markup Pricing

• Set the highest price that customers who really want your product are willing to pay, and after they are satisfied, the price is lowered to attract the next set of customers

• Cost-Plus Pricing

• Adds a fixed/set percentage to the cost of all items

What is the CORRECT order of the selling process?

• Attention, Interest, Desire, Action

• Interest, Desire, Action, Attention

• Action, Attention, Interest, Desire

• Desire, Attention, Interest, Action