Study Guide and Quiz Answers

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1
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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
2
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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
3

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

A
Cross selling
B
Network marketing
C
Cold calling
D
Price fixing
4

When a potential customer becomes serious about the purchase and is likely to buy the product, the customer becomes a ___________.

A
Sales prospect
B
Retained customer
C
Cross seller
D
Sales quota
5

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
6

Which of the following commission structures creates sales people who are highly motivated to close sales, because their entire income depends on it?

A
Salary plus bonus
B
Salary only
C
Residual commission
D
Commission only
7

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
8

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
9

A sales quota is usually expressed in a dollar amount or in __________.

A
Volume
B
Commission
C
Bonus
D
Retention
10

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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