50) Margo is selling Mr. Green a personal computer. He states, "I don't think I will ever learn how to operate this thing." Margo responds, "I understand how you feel, Mr. Green; many customers have felt this way; but they found they were able to master the PC." Margo used the ________ tactic. A) indirect denial B) direct denial C) empathy D) questions E) soft side Answer: a 51) The price-cost comparison is most appropriate for: A) inferior quality products. B) products with short usage or service life. C) products with long usage or service life. D) transactional buying situations. E) inexpensive purchases. Answer: c 52) Zachary often gives a prospect an opportunity to try the product without making a purchase commitment. This is known as a: A) demonstration. B) Ferris wheel close. C) trial offer. D) superior benefit. E) free use. Answer: c 53) Studies indicate that ________ can be an effective method of responding to buyer concerns. Neutral parties must be used. A) third-party testimonials B) hat-in-the-hand closing C) demonstration D) questions E) trial offers Answer: a 54) Which of the following would be appropriate as part of strategically planning for the negotiation of buyer concerns? A) offer a low price. B) prepare to bargain aggressively with the customers. C) anticipate buyer concerns. D) prepare a presentation which has negative comments about the competition. E) plan to make concessions to secure the sale. Answer: c 55) One of the objectives of negotiation is: A) to make the customers happy by letting them win in negotiation. B) to get more sales commissions. C) to get the lowest price for the customers. D) to build long-term relationship with the customers. E) to get the sale no matter how hard the customers are negotiating. Answer: d 56) Jennifer has just looked at some cars but she is not willing to pay more than $ 20,000 for the car with those particular features. The salesperson should: A) remove some features and offer the car to meet Jennifer's budget. B) reduce the price of the car. C) tell Jennifer to look elsewhere. D) tell Jennifer about a competitor's car which will meet his budget. E) walk away from the sale. Answer: a 57) Bob expresses his preference for a product but is concerned that the price is too high. The salesperson should: A) give him a discount to make him a loyal customer. B) make a "take-it or leave-it" offer at the stated price. C) apologize for the price. D) point out the relationship between price and quality. E) offer him a cheaper product. Answer: d 58) A risk free method of negotiating buying concern is: A) third-party testimony. B) the superior benefit. C) direct denial. D) the demonstration method. E) the trial offer. Answer: e 59) If a customer is reluctant to buy because the product is not well established, a good strategy to overcome this concern is to: A) demonstrate the product. B) use testimonials of satisfied customers. C) use direct denial. D) use indirect denial. E) reduce the price. Answer: b 60) An appropriate negotiation strategy when the customer is using the stall is: A) question B) indirect denial C) direct denial D) demonstration E) postpone method Answer: a 61) When a customer raises concerns that you would prefer to respond to later in the presentation, an appropriate method would be: A) stall method B) question method C) combination method D) trial offer method E) postpone method Answer: e 62) The riskiest method of negotiating buyer concern is: A) the trial offer approach. B) the split-the-difference approach. C) the direct denial approach. D) the demonstration approach. E) the testimonials approach. Answer: c 63) James is not sure if a product will meet his requirements. Chin offers to give him the name of one of his customers who recently purchased the same product and is very satisfied with it. Chin is using the: A) superior benefit method. B) felt-felt-found method. C) third-party testimonial approach. D) recommendation approach. E) question approach. Answer: c 64) In strategic alliance or partnership type of business relationships the negotiation stage: a. can extend over weeks, months or even years. b. can become very awkward for the seller. c. is very short, that is, resolved in a day or two. d. does not arise because the buyer and seller are always on the same page. e. needs third-party mediators to handle this delicate process so that neither party is offended. Answer: a 65) The quality required for successful negotiations is: A) being very competitive. B) being very calm. C) being driven by winning. D) being well prepared for the negotiations. E) being very aggressive. Answer: d 66) The walk-away point, the lowest offer a party is willing to accept is also referred to as the: A) agreement value. B) negotiations zone. C) reservation zone. D) agreement zone. E) reservation value. Answer: e 67) Two concepts that are helpful to know at the negotiations phase are: A) DBM and FBR B) BANTU and ZOLA C) FBR and BATNA D) BATNA and ZOPA E) FBR and ZOPA Answer: d 68) A challenge that comes about when negotiations are conducted by a buying team is: A) internal conflicts can arise in the team due to conflicting agendas. B) encountering a phenomenon called group think. C) dealing with various communication styles in the team. D) the balance of power shifts to the team with the most number of people in it. E) some people in the team may not be very well informed about the product. Answer: c 69) In the negotiations process, offering an alternative solution to a buyer's concern is also referred to as: A) reinforcing. B) logging. C) logrolling. D) logjamming. E) rebarring. Answer: c 70) The best strategy to overcome need resistance is to: A) explain the advantages of making a decision now. B) explain how your product is superior to competitor's products. C) show how your product is a good investment. D) give a price discount. E) establish credibility through referrals. Answer: c 71) The best strategy to overcome resistance arising from product concerns is: A) focusing on superior benefits of your product. B) giving a price discount. C) explain how your price is lower than competitors price. D) establish your credibility through referrals. E) explain the advantages of making a purchase decision now. Answer: a 72) The third-party testimony can be effective at overcoming the _________ objection. A) stall B) price C) time D) source E) need Answer: d 73) The trial-offer strategy is quite effective to overcome the __________ objection. A) product B) time C) place D) source E) stall Answer: a 74) An effective strategy to overcome the price objection is to use the __________ approach. A) question B) feel-felt-found C) direct denial D) indirect denial E) stall Answer: a 75) An appropriate response to a "sell low now, make profit later" tactic is to: A) walk away from the negotiations B) maintain the price for the present order but agree to discount future orders. C) unbundle the product features to reduce the price. D) discount the present order hoping the customer will give future orders. E) agree to split the difference in price. Answer: b 76) Matching a. Make early concessions to improve the relationship - inappropriate during the presentation b. Withdrawing from the negotiation with a transactional buyer who is only interested in the lowest price - appropriate during the presentation c. Using a feel-felt-found strategy - appropriate during the presentation d. Review methods of negotiating buyer concerns - appropriate during preapproach e. Developing a negotiation worksheet - appropriate during preapproach f. Dealing with a concern raised by the customer at a later point in the presentation - postpone method g. Using the words, "Yes, I agree that..." to reduce impact of denial - appropriate during the presentation h. Using the direct denial method during highly sensitive negotiations inappropriate during the presentation i. Finding some point of agreement - appropriate during the presentation j. A negotiating technique of offering an alternative solution to the buyer logrolling k. The Pareto Law - 80% of negotiations conclude in the last 20% of the time allowed l. Buyer is reluctant to buy because he feels loyal to his supplier - source related concern m. The buyer can't perceive the added value in the purchase - price related concern n. The most high-risk method of negotiating buyer concerns - direct denial method o. " Reward in Heaven Tactic" - "Sell Low Now, Make Profits Later Tactic" 77) A _______ is a benefit that will, in most cases, outweigh the customer's specific concern. Answer: superior benefit 78) The _______ method of negotiating buyer concerns is one of the most convincing ways to overcome buyer skepticism. Answer: demonstration 79) The _______ method of negotiating concerns is popular with customers because they can get fully acquainted with the product without making a major commitment. Answer: trial offer 80) One way to empathize with the client's concerns and turn resistance into sales is to use the _______ strategy. Answer: "feel-felt- found" 81) When a salesperson bends a little and acknowledges that the prospect is at least partially correct, he/she is using the _______ method of negotiating buyer concerns. Answer: indirect denial 82) List five common types of buyer concerns. Answer: a. Concerns related to need for the product b. Concerns related to the product c. Concerns related to source d. Concerns related to price e. Concerns related to time 83) What are some strategies to overcome price concerns? Answer: a. Add value with a cluster of satisfactions - which includes the product, the salesperson and the company. b. Do not make price the focal point of your sales presentation - bring up price only after the features and benefits have been discussed. c. Do not apologize for the price - if your company has adopted a value-added strategy, point this fact out to the prospect. d. Point out the relationship between price and quality. e. Explain the difference between price and cost - price is the initial amount the buyer pays for the product, whereas cost is amount the buyer pays over the usage life of the product. 84) Explain why negotiation should be a win-win outcome. Answer: Negotiation involves "working to reach an agreement that is mutually satisfactory to both the buyer and seller." It involves taking a long-term perspective on selling by building relationships rather than a transactional view of selling. To forge a win-win outcome, both parties should feel they have gained from the relationship. In good negotiations when the buyer "wins" he will return to the seller for repeat business and will be loyal. When the seller "wins" he will provide value-added service to the buyer and treat the buyer with respect which will encourage the buyer to return to the seller. 85) Explain the purpose of a Negotiation worksheet? Answer: The Negotiation worksheet helps classify possible buyer concerns so that the salesperson can anticipate the common concerns and plan the responses to overcome those concerns. 86) List some tactics that trained negotiators utilize during the negotiations process, and how salespeople should respond to those tactics. Answer: a. The Budget Limitation tactic - offer to unbundle the product features to reduce the price. b. The Take-It-Leave-It tactic - offer a price concession or appeal to the sense of fairness of the buyer. c. Let-Us-Split-the-Difference tactic - accept the offer of splitting the difference with the buyer or if that is not acceptable, to make a counter offer to the buyer. d. 'If....Then tactic" - the response depends on who has established the balance of power during the sales presentation. If your product has a clear competitive advantage then you may not accept this proposition.