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Cha pt e r7 :Ne got i a t i ngSa l e sRe s i s t a nc ea ndObj e c t i onsf or“ Wi nWi n”Agr e e me nt s

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CHAPTER7

Negotiating Sales Resistance and Objections for “Win-Win” Agreements

MULTIPLE-CHOICE QUESTIONS Ans: c Page: 214 KeyWord: buyer objections

1.

A buyer objection or resistance is a. b. c. d.

Ans: a Page: 216 KeyWord: buyer objections

2.

Ans: b Page: 216 KeyWord: buyer objections

3.

something that salespeople should try to avoid. an early sign that the sale will probably not be made. anything that the prospect says or does that impedes negotiation of the sale. an indication that the salesperson has done a poor job in the sales presentation.

When prospects raise objections, chances for the sale are a. increased. b. are decreased. c. not affected. d. virtually eliminated. Prospect objections are usually a. b. c. d.

negative signs indicating no interest in buying at this time. positive signs of interest and involvement in the sales presentation. indications that the salesperson needs more training. negative signs that the salesperson has not done a good job in the sales presentation.

Ans: c Page: 214-216 KeyWord: buyer objections

4.

Objections and prospect resistance are a. the most negative aspects of personal selling. b. signs of disinterest and noninvolvement in the sales presentation. c. not always verbal. d. not valid unless the prospect can show proof.

Ans: a Page: 218, 220 KeyWord: source objections

5.

A buyer who prefers a local supplier, who wants to do business with a national company, who prefers to stick to the status quo in supplier relationships, or who has lingering concerns over past problems in doing business with the seller is an example of a buyer with which of the following type of objection? a. Source b. Capital c. Needs d. Product

Co p y r i g h t©Ho u g h t o nMi ffli nCo mp a n y .Al l r i g h t sr e s e r v e d .

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Cha pt e r7 :Ne got i a t i ngSa l e sRe s i s t a nc ea ndObj e c t i on sf or“ Wi nWi n ”Agr e e me nt s

Ans: c Page: 218, 221 KeyWord: needs objections

6.

A buyer who has no requirement for the seller’s product or service or is satisfied with the products currently being purchased illustrates which of the following type of objection? a. Source b. Capital c. Needs d. Product

Ans: c Page: 221 KeyWord: invalid objections

7.

Which of the following is a true statement about invalid objections? a. They are sincere concerns of the prospect. b. They are no longer obstacles to the sale once they have been identified. c. They are delaying actions or hidden reasons for not buying. d. They are easily uncovered by asking the prospect a few direct questions.

Ans: b Page: 219, 221 KeyWord: latent objections

8.

A buyer who usually purchases from an old friend, who does not have the authority to make the purchase but is embarrassed to let the salesperson know this, or who simply does not like the salesperson or his or her company and does not want to start a business relationship is an example of a buyer with which of the following type of objection? a. Source b. Latent c. Stalling d. Product

Ans: a Page: 221-222 KeyWord: passive resistance

9.

The best way to perk up the sales presentation and get the prospect’s attention and involvement when passive resistance is encountered is to a. ask the prospect some open-ended questions. b. ask the prospect some closed questions. c. ask the prospect some very personal questions. d. make some obviously ridiculous claim for your product.

Ans: b Page: 221-222 KeyWord: invalid objections

10.

Which of the following prospect statements is most likely to be an invalid objection? a. b. c. d.

Ans: c Page: 221-222 KeyWord: invalid objections

11.

“The price-quality relationship for your product is weak.” “Let me look over your literature, and I’ll get back to you if I’m interested.” “My open-to-buy is closed right now, so give me a call in two weeks.” “Your company’s technical support has a poor reputation.”

What would probably be the best response by salespeople who, upon calling on a prospect, hear this objection: “I have to cancel our appointment today because my schedule has been turned upside down, but leave your literature and I’ll call you if I have any questions.” a. b.

“I understand your schedule is hectic but don’t hesitate to call if you have any questions. You have my phone number, don’t you?” “How about just five minutes of your time now to explain the

Co p y r i g h t©Ho u g h t o nMi ffli nCo mp a n y .Al l r i g h t sr e s e r v e d .

Cha pt e r7 :Ne got i a t i ngSa l e sRe s i s t a nc ea ndObj e c t i onsf or“ Wi nWi n”Agr e e me nt s

c. d.

Ans: a Page: 222-223 KeyWord: hidden resistance

12.

Ans: c Page: 222-226 KeyWord: buyer resistance

13.

With regard to buyer resistance, all of the following are true except a.

c. d. 14.

a.

c. d. 15.

d. 16.

remain silent until the prospect stops talking, and then ask whether all objections have been dealt with. suggest other potential objections to see how the prospect reacts. ask for the order. show through body language that he or she is becoming impatient.

In personal selling, negotiation can best be defined as a. b. c.

Ans: c Page: 221-223 KeyWord: final objection

buyer resistance nearly always consists of more than one objection. there is usually one objection that acts as a keystone in the buyer’s “arch of resistance.” the essential reason behind all buyer resistance is the product’s price. determining the prospect’s key objection can be one of the salesperson’s most difficult tasks.

To determine if there are any more unresolved objections, the salesperson should

b.

Ans: b Page: 226 KeyWord: negotiating

basic benefits of the product?” “I understand how schedules can be disrupted. Why don’t you read the literature, and I’ll come back next Wednesday at 3:30 p.m. to answer your questions and explain the program?” “Look, my time’s valuable and I had an appointment with you, so the least you can do is give me ten minutes to give you an abbreviated presentation.”

A good way to uncover hidden resistance is to a. cultivate a relationship with someone else in the prospect company who knows why the prospect isn’t receptive. b. ask the prospect point-blank why he or she doesn’t want to buy from you. c. ask the prospect obtuse questions until the hidden objection appears. d. mail the prospect a survey that asks questions about several potentially hidden objections.

b.

Ans: c Page: 223-224 KeyWord: unresolved objections

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manipulating or outfoxing a prospect. working together with prospects to reach mutually satisfying agreements. using persuasive communication to win a prospect over to your way of thinking. defusing every objection that a prospect brings up until he or she has no alternative but to buy.

When prospects bring up that final objection, a. b. c. d.

Co p y r i g h t©Ho u g h t o nMi ffli nCo mp an y .Al l r i g h t sr e s e r v e d .

salespeople know the sale is lost because they should have already answered all objections. it’s time to close hard and fast before the prospect can think of another objection. salespeople should restate the objection in their own words to ensure that it is understood. salespeople should ignore it and try a trial close unless the

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Cha pt e r7 :Ne got i a t i ngSa l e sRe s i s t a nc ea ndObj e c t i on sf or“ Wi nWi n ”Agr e e me nt s

prospect persists in stating the objection. Ans: c Page: 226-227 KeyWord: negotiating

17.

Which of the following is not one of the basic strategies for salespeople to follow in negotiating with prospects? a. Focus on issues where you and the prospect have the most agreement. b. Take a relatively firm negotiating position initially. c. Quickly make the first concession on a major point to win the prospect’s confidence. d. Begin negotiations with your highest expectations in price and terms.

Ans: a Page: 226-227 KeyWord: negotiating

18.

Studies show that the person who makes the first concession usually a. gets the worst end of the agreement. b. gets the best end of the agreement. c. is the prospect. d. is the salesperson.

Ans: b Page: 226-227 KeyWord: negotiating

19.

Which of the following strategies would probably be most effective in moving a prospect from a resistance to a problem-solving mentality? a. b. c. d.

Emphasize the features and advantages of the product first before talking about benefits. Keep track of the issues resolved during the discussion and use frequent recaps to confirm the progress being made. Take a relatively soft negotiating position initially but steadily become firmer as the negotiations continue. Focus on the areas where there is the most disagreement so that they can be resolved first.

Ans: d Page: 226-227 KeyWord: negotiating

20.

Which of the following strategies would not be effective in moving a prospect from a resistance to a problem-solving mentality? a. Concentrate on problem-solving approaches that satisfy the needs of both the buyer and seller. b. Leave the areas of widest disagreement until last. c. Avoid making the first concession except on a minor point. d. Take a relatively soft negotiating position initially but steadily toughen up as the negotiations continue.

Ans: b Page: 226-227 KeyWord: negotiating

21.

Which of the following is considered a good strategy for salespeople to follow in negotiating concessions? a. b. c. d.

Ans: a Page: 226-227 KeyWord: negotiating

22.

Make your best offer first to establish credibility. Try to get all the prospect’s demands out on the table before you start making any concessions. Agree to “split the difference” anytime there is a bottleneck. Discuss the areas of widest disagreement first.

Which of the following is good advice for salespeople in negotiating concessions? a. Don’t overvalue your desire to be liked when negotiating concessions. b. Assume a prospect understands the value of any concession you make. c. Remember past experiences, both good and bad, when negotiating with a new prospect.

Co p y r i g h t©Ho u gh t o nMi ffli nCo mp a n y .Al l r i g h t sr e s e r v e d .

Cha pt e r7 :Ne got i a t i ngSa l e sRe s i s t a nc ea ndObj e c t i onsf or“ Wi nWi n”Agr e e me nt s

d. Ans: c Page: 226-227 KeyWord: negotiating

23.

b. c. d. 24.

Ans: d Page: 227, 229 KeyWord: negotiation outcomes

25.

Match any concession that the prospect makes with one of equal value.

Which of the following is the best advice for salespeople in negotiating concessions? a.

Ans: c Page: 227, 229 KeyWord: negotiation outcomes

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Never admit that you made a mistake earlier in the negotiations because the buyer will use it against you in the final agreement. Never attempt to withdraw a concession you have already made. Make concessions in small amounts. Pretend to become angry if the prospect continues to push for a particular concession.

A “win-win” outcome in negotiations can best be described as one where the a. b. c. d.

buyer is satisfied and the seller is dissatisfied. seller is satisfied and the buyer is dissatisfied. buyer and the seller are satisfied. buyer and the seller are dissatisfied.

Which statement best describes the state of the relationship after a “buyer win–salesperson lose” negotiation outcome? a. b. c. d.

A long-term problem-solving partnership is developing because the buyer is happy. The buyer will probably deliberately lose the next round of negotiations to even things out. It’s hard to say anything about the relationship because there is always a winner and a loser in any negotiation. This business relationship is in trouble.

Ans: a Page: 227, 229 KeyWord: negotiation outcomes

26.

Which statement best describes the state of the relationship after a “buyer lose–salesperson win” negotiation outcome? a. The buyer probably feels manipulated, and the relationship is in trouble. b. This is the outcome that every assertive salesperson should be seeking. c. It’s hard to say anything about the state of the relationship because there is always a winner and a loser in any negotiation. d. The buyer probably feels challenged by the skill of the salesperson and is eager to begin the next round of negotiations.

Ans: c Page: 227, 229 KeyWord: negotiation outcomes

27.

What is most likely to happen when there is a “buyer lose– salesperson lose” negotiation outcome? a. A long-term, problem-solving relationship has developed. b. This deal probably fell through, but the buyer and seller will have an incentive to try harder next time. c. The bond of trust between the buyer and seller may be severed. d. The salesperson and the buyer gain new respect for the professional abilities of the other, and both will eagerly anticipate the challenge of future negotiations.

Co p y r i g h t©Ho u g h t o nMi ffli nCo mp an y .Al l r i g h t sr e s e r v e d .

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Cha pt e r7 :Ne got i a t i ngSa l e sRe s i s t a nc ea ndObj e c t i on sf or“ Wi nWi n ”Agr e e me nt s

Ans: b Page: 227, 229 KeyWord: negotiation outcomes

28.

What is most likely to happen when there is a “buyer win–seller lose” negotiation outcome? a. The buyer’s sales and profits go up dramatically. b. The seller will attempt to cut corners on product quality or customer service in order to make a profit. c. The seller will be pleased to have gotten a “foot in the door,” paving the way for more profitable business. d. The buyer will feel obligated to make a major concession on price in the next negotiations.

Ans: a Page: 227, 229 KeyWord: negotiation outcomes

29.

Which of the following would help the most in conveying to prospects that the salesperson believes in “win-win” negotiating outcomes? a. Ask need-clarifying questions. b. Offer the prospect the lowest possible price prior to the start of negotiations. c. Use body language that projects competence and a winning attitude. d. Speak rapidly and with great conviction to create an impression of expertise and confidence.

Ans: c Page: 217 KeyWord: planning for objections

30.

What is one of the best ways to minimize objections? a. Explain to the prospect that the objection is not really significant. b. Explain to the prospect that company policy prevents the salesperson from conceding on a particular objection. c. Anticipate and plan for the objection. d. Act offended whenever an objection is raised and say that the relationship between buyer and seller should be based on trust.

Ans: d Page: 217-226 KeyWord: planning for objections

31.

All of the following are steps for anticipating and planning for objections except a. keep a running file of the most typical objections. b. determine whether the objections are valid or not. c. sell the prospect on the benefits to be derived from the product. d. prepare a highly structured, canned sales presentation strategy.

Ans: c Page: 226 KeyWord: negotiating objections

32.

When trying to negotiation objections, salespeople should a. b. c. d.

Ans: d Page: 238-241 KeyWord: negotiating objections

33.

ask the sales manager to get involved to enhance the credibility of answers to objections. directly confront any invalid objections. try to lead the prospect to answer his or her own objections. rephrase each objection in such a way that it is seen as trivial.

Which of the following comments would probably be best in response to a prospect’s price objection? a. “This product is very fairly priced unless you don’t want some of the extra benefits it offers.” b. “The products you’re comparing to this product are much lower in quality.” c. “Well, you get what you pay for.” d. “What would you consider a fair price?”

Co p y r i g h t©Ho u gh t o nMi ffli nCo mp a n y .Al l r i g h t sr e s e r v e d .

Cha pt e r7 :Ne got i a t i ngSa l e sRe s i s t a nc ea ndObj e c t i onsf or“ Wi nWi n”Agr e e me nt s

Ans: b Page: 238 KeyWord: price resistance

34.

With respect to price, most buyers are more concerned about a. the absolute price of the product. b. the relative value for their money. c. buying the lowest-priced product alternative. d. credit terms instead of price.

Ans: c Page: 238 KeyWord: value

35.

Prospects and customers determine perceived value by mentally dividing the a. product’s price by the prevailing interest rate. b. product’s price by perceived benefits. c. perceived benefits by the product’s price. d. perceived price by perceived costs.

Ans: b Page: 238-241 KeyWord: value

36.

Ans: b Page: 238-241 KeyWord: value

37.

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Professional salespeople usually try to sell products on the basis of a. b. c. d.

price. value. credit terms. costs to manufacture.

The essential job of the salesperson might accurately be stated as convincing prospects that the value of the perceived a. b. c. d.

benefits to the prospect is not much lower than the product’s price. benefits to the prospect exceeds the product’s price. price of the product exceeds the product’s perceived value. benefits to the prospect equals the product’s price.

Ans: a Page: 238-241 KeyWord: value

38.

Ans: d Page: 238-241 KeyWord: value analysis

39.

Concerning the concept of value analysis, which of the following statements is not accurate? a. It is sometimes called “value engineering” or “value assurance.” b. It shows how the salesperson’s product is the best value for the buyer’s money. c. It usually includes a printed document that shows a product’s cost compared to its value. d. It uses quantitative analysis to illustrate how the value of a product over its life is related to its price.

Ans: d Page: 238-241 KeyWord: value analysis

40.

Which of the three basic approaches to the preparation and presentation of a value analysis is described incorrectly? a. Unit cost: breaks the cost of the product down into smaller units. b. Cost versus value: analyzes the product’s costs over time. c. Return on investment: estimates the amount of revenue expected from an investment. d. Value return: divides the price of the product by the sales revenue generated.

Which of the following word formulas is true? a. b. c. d.

Co p y r i g h t©Ho u g h t o nMi ffli nCo mp an y .Al l r i g h t sr e s e r v e d .

Perceived value equals perceived benefits divided by price. Perceived price equals perceived value divided by cost. Perceived benefits divided by perceived value equal price. Perceived value equals perceived price divided by perceived benefits.

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