1. A company wants to create a customer loyalty program to increase sales. Which purpose is the focus of this company?
A. Identifying competitive offerings
B. Closing sales for short-term profits
C. Developing a new product mix
D. Creating value and satisfaction Correct
Explanation
A customer loyalty program focuses on creating value and satisfaction to retain customers and boost sales. A is incorrect as it involves analyzing competitors, not loyalty programs. B is incorrect as it prioritizes short-term gains over retention. C is incorrect as it relates to product development, not loyalty.
2. How does consultative selling contribute to achieving sales goals?
A. It emphasizes a single transaction for short-term profitability.
B. It creates value for the customers by considering their needs. Correct
C. It gives the customer a chance to compare prices prior to a sale.
D. It allows a salesperson to solicit private business consulting opportunities.
Explanation
Consultative selling creates value by addressing customer needs, fostering long-term relationships. A is incorrect as it focuses on short-term sales. C is incorrect as price comparison is not the primary goal. D is incorrect as it involves unrelated consulting opportunities.
3. A salesperson meets with a potential customer and highlights the unique benefits of a particular product and how it compares to similar items. How is this salesperson creating value?
A. By emphasizing an innovative sales approach
B. By providing a comprehensive product description
C. By identifying the product value proposition Correct
D. By engaging in a marketing sales promotion
Explanation
Highlighting unique benefits and comparisons identifies the product’s value proposition, showing its worth to the customer. A is incorrect as the approach is not the focus. B is incorrect as a description alone doesn’t emphasize value. D is incorrect as it refers to promotional activities, not value creation.
4. A retailer in a business-to-business (B2B) market seeks to personally establish trust with clients so that the retailer can learn as much as possible about the business decision maker and do whatever it takes to build long-standing, valuable networks. Which practice is the retailer using to achieve sales goals?
A. Creating competitor influence
B. Building relationships over time Correct
C. Using business agents to communicate
D. Generating advertising revenue
Explanation
Building relationships over time fosters trust and networks, key for B2B sales. A is incorrect as it involves influencing competitors, not clients. C is incorrect as it uses third parties, not personal trust. D is incorrect as advertising revenue is unrelated to relationship-building.
5. A start-up fashion business-to-consumer (B2C) retailer wants to increase sales of existing products by 30% in one month. Which activity should the retailer use to achieve this sales goal?
A. Increase buyer's perception of value Correct
B. Identify a new distributor for products
C. Hire new sales staff to close sales
D. Research competitive sales approaches
Explanation
Increasing buyer’s perception of value drives immediate sales by making products more appealing. B is incorrect as a new distributor takes time. C is incorrect as hiring staff is slower and less direct. D is incorrect as research doesn’t directly boost sales.