Study Guide and Quiz Answers

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1
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Which of the following is an example of an illegal business activity?

A
Cross selling
B
Network marketing
C
Cold calling
D
Price fixing
2
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What is a price ceiling?

A
The maximum price the government allows sellers to charge for a product
B
A form of price skimming that allows companies to set prices as high as they want
C
The minimum wage the government requires that companies pay employees for hourly work
D
A penetration pricing strategy
3

Price skimming works best for which type of product?

A
Products that haven't been advertised much
B
Inexpensive products with many competitors
C
Products with elastic demand
D
High-end products with unique features
4

What is a sales lead?

A
An employee on the customer service team who deals with existing customers
B
A sales person who works on a residual commission structure
C
An expert in Maslow's hierarchy of needs
D
A potential customer who has shown interest in the company's product
6

Which of the following is an example of an illegal business activity?

A
Cross selling
B
Network marketing
C
Cold calling
D
Price fixing
8

The __________ is the percentage of sales leads that actually end up buying the product.

A
Retention ratio
B
Conversion rate
C
Sales commission
D
Market penetration value
9

Which selling method is most likely to irritate potential customers?

A
Running a trade fair booth
B
Cold calling
C
Running a flea market booth
D
Telemarketing to people who are interested in the product
10

Which of the following is an example of a psychological pricing strategy?

A
Promotional pricing
B
Odd pricing
C
Product line pricing
D
Unit pricing
11

What is a clientele?

A
A list of benefits a product provides for customers
B
A team of employees who promote customer retention
C
An individual customer who is unhappy with the company's product
D
A collection of customers who purchase and use a company's product
12

The __________ is the percentage of sales leads that actually end up buying the product.

A
Retention ratio
B
Conversion rate
C
Sales commission
D
Market penetration value
14

A sales person who convinces a customer to buy a more expensive product than the customer originally intended is using what sales technique?

A
Sales lead generation
B
Cross selling
C
Upselling
D
Retention
15

What is a sales lead?

A
An employee on the customer service team who deals with existing customers
B
A sales person who works on a residual commission structure
C
An expert in Maslow's hierarchy of needs
D
A potential customer who has shown interest in the company's product
16

If a company has good customer retention, that means it has what?

A
CRM software
B
New sales leads
C
Repeat customers
D
High sales commissions
17

What is a price ceiling?

A
The maximum price the government allows sellers to charge for a product
B
A form of price skimming that allows companies to set prices as high as they want
C
The minimum wage the government requires that companies pay employees for hourly work
D
A penetration pricing strategy
18

Which selling method is most likely to irritate potential customers?

A
Running a trade fair booth
B
Cold calling
C
Running a flea market booth
D
Telemarketing to people who are interested in the product

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