Chapter 6 Creating Product Solutions

6.1 True/False Questions

1) A product strategy involves becoming a product expert and configuring value-added solutions.

Answer: TRUE

Diff: 1

Objective: LO1

2) A solution is a mutually shared answer to a recognized customer problem.

Answer: TRUE

Diff: 1

Objective: LO1

3) With fewer products being introduced in the marketplace today, it is easier for customers to decide
what to buy and who to buy it from.

Answer: FALSE

Diff: 2

Objective: LO1

4) The product selection process is often referred to as "product configuration."

Answer: TRUE

Diff: 1

Objective: LO1

5) Quotation management software enables firms to prepare written proposals that comply with federal
RFP guidelines.

Answer: FALSE

Diff: 2
Objective: LO1

6) Decision-making authority in the area of pricing gives the salesperson more responsibility but less
power because firms profit from all sales.

Answer: FALSE

Diff: 2

Objective: LO2

7) Before teaming up with another company, the strategic alliance buyer should learn about the firm the
salesperson represents.

Answer: TRUE

Diff: 2

Objective: LO3

8) Salespeople who can develop a sales proposal that contains specific information about the re-turn on
investment are more likely to get a favorable response from key decision makers.

Answer: TRUE

Diff: 2

Objective: LO2

9) Prospects are likely to use past performance of a company to evaluate the quality of the current
product offering.

Answer: TRUE

Diff: 1

Objective: LO3

10) One way to neutralize a competitor's proposal that beats your price or terms is by employing a
value-added approach.

Answer: TRUE

Diff: 2

Objective: LO5
11) Plant tours do not represent a good source of product information.

Answer: FALSE

Diff: 1

Objective: LO5

12) In the field of personal selling, customers represent an important source of product infor-mation.

Answer: TRUE

Diff: 1

Objective: LO5

13) A general benefit shows how a feature can be helpful to a buyer, but it does not relate to a specific
need expressed by the buyer.

Answer: TRUE

Diff: 2

Objective: LO6

14) A benefit is whatever provides the customer with personal advantage or gain.

Answer: TRUE

Diff: 1

Objective: LO6

15) One of the best ways to present benefits is to use a bridge statement.

Answer: TRUE

Diff: 1

Objective: LO6

6.2 Multiple-Choice Questions

1) Most written proposals include all of the following components EXCEPT a(n):

A) overview

B) schedule

C) objective

D) hypothesis

E) rationale

Answer: D

Diff: 2

Objective: LO1

2) A collection of beliefs, behaviors and work patterns held in common by people employed by a specific
firm is a(n):

A) organizational value

B) organizational culture

C) mission statement

D) strategic philosophy

E) corporate vision

Answer: B

Diff: 2

Objective: LO3

3) Throughout the sales presentation, it is usually best to:

A) describe the weakness of competing products frequently

B) discuss competing products even if you are unfamiliar with them

C) avoid shifting attention away from your product to competing products

D) refuse to answer any questions about competing products

E) be proactive about discussing competing products

Answer: C

Diff: 2
AACSB: Written and Oral Communication

Objective: LO5

4) Which of the following statements is most likely true about products and product knowledge?

A) Knowledge of a company's history is essential to selling that company's product.

B) Product knowledge is not as important as selling technique for a professional salesperson.

C) Knowledge of one's product or service is not important in all areas of professional selling.

D) The extensive variety of available products in the market complicates the buying process.

E) Salespeople who learn and impart too much product knowledge hinder the buying process.

Answer: D

Diff: 3

Objective: LO1

5) Which of the following is an example of a bridge statement?

A) "You will get good gas mileage when you buy this car."

B) "These are the finest fund-raising donuts you can buy."

C) "This hotel has 24-hour room service and free parking."

D) "Buy one, get one at half price."

E) "We have trained technicians, so you will experience less downtime."

Answer: E

Diff: 3

Objective: LO6

6) When customers ask, "What is the anticipated rate of return on this mutual fund?" they are
requesting product information from the category of:

A) performance data

B) product design

C) manufacturing process

D) product application
E) quality improvement

Answer: A

Diff: 2

AACSB: Analytical Thinking

Objective: LO3

7) Successful sales presentations convert product features into:

A) closed sales

B) buyer benefits

C) product applications

D) selling appeals

E) research statistics

Answer: B

Diff: 2

Objective: LO7

8) The speed rating assigned to a motorcycle tire is an example of product:

A) qualities

B) applications

C) features

D) benefits

E) design

Answer: C

Diff: 2

Objective: LO7
9) Paula Hillison sells a line of copy machines that feature a "quick change" toner cartridge. The empty
toner cartridge can be replaced quickly, without any mess, in a matter of seconds. Which of the
following statements represents the most effective presentation of this feature?

A) "We have recently developed the only office copy machine that features a quick change toner
cartridge."

B) "After years of research and development, our engineers have developed a quick change toner
cartridge."

C) "If you purchase one of our copy machines, you will enjoy the benefits of a quick change ton-er
cartridge."

D) "All of our copy machines are equipped with a quick change toner cartridge, which means you no
longer waste time replacing an empty toner cartridge."

E) "We have set a new industry standard with the quick change toner cartridge."

Answer: D

Diff: 3

Objective: LO7

10) Which of the following is a buyer benefit that could be used by a person selling automobile tires?

A) steel belted

B) service in all fifty states

C) 30,000-mile rating

D) manufactured in the U.S.A.

E) greater driving safety

Answer: E

Diff: 3

AACSB: Analytical Thinking

Objective: LO7

11) Which of the following is NOT an example of performance data?

A) a list of product service centers available to customers

B) the AHAM certification seal

C) a label on a storm window that indicates the product's "R" value

D) a window sticker on an automobile that lists the EPA gas mileage figures
E) research sheets on server downtime and data transfer rates

Answer: A

Diff: 2

AACSB: Analytical Thinking

Objective: LO2

12) Which of the following statements regarding product benefits is most likely true?

A) People do not buy benefits, they buy features.

B) A benefit provides the customer with a personal advantage.

C) Prospects usually display equal interest in features and benefits.

D) Product features and benefits are the same but presented differently to consumers.

E) Salespeople should avoid describing features and focus exclusively on product benefits.

Answer: B

Diff: 3

Objective: LO7

13) Which of the following statements regarding general and specific benefits is most likely true?

A) Benefit statements linked to explicit needs are not especially effective for complex sales.

B) A feature statement is general, but any benefit is specific when presented as an advantage.

C) A general benefit is a product feature for which the buyer has not expressed a need.

D) Experienced salespeople focus on bringing attention to a product's general benefits.

E) Highlighting as many general benefits as possible during a presentation tends to lead to a sale.

Answer: C

Diff: 3

Objective: LO7

14) In terms of product knowledge, salespeople:

A) can know too much about the products they sell

B) are often better off appearing to be "in the dark" at times

C) should provide prospects with limited product information

D) cannot, generally, know too much about the products they sell

E) should assume the stance of novice users to develop customer empathy

Answer: D

Diff: 1

Objective: LO3

15) Ray Fernández is a sales representative employed by Computer Resources, a computer sup-plier that
develops customer solutions that combine computer hardware, software, installation, and training.
When Ray brings together many parts of the company's product mix in order to de-velop a customized
customer solution, this is referred to as:

A) developing a product configuration

B) establishing a strategic priority

C) qualifying product benefits

D) quantifying product features

E) creating a value statement

Answer: A

Diff: 2

Objective: LO1

16) Which of the following is most likely true of sales letters?

A) Sales letters should use the same format as an email.

B) Sales letters should minimize the use of white space.

C) Most sales letters include not more than two paragraphs.

D) Because a sales letter is an introduction, formal language is unnecessary.

E) The use of the personal pronoun "I" should be minimized as much as possible.

Answer: E

Diff: 2

AACSB: Written and Oral Communication

Objective: LO2
17) Using the pronouns "you" and "your" in a sales letter:

A) assumes the customer will definitely buy

B) conveys an informal tone

C) keeps the focus on the customer

D) should be avoided if possible

E) follows standard business letter format

Answer: C

Diff: 2

AACSB: Written and Oral Communication

Objective: LO2

18) The written proposal is best described as a(n):

A) government formality that customers do not read

B) standardized document that highlights pricing

C) opportunity to demonstrate writing skills

D) plan of action based on facts and assumptions

E) analysis of competing products and services

Answer: D

Diff: 2

Objective: LO1

19) A manufacturer tests, modifies, and retests an original idea several times before offering it to the
consumer. This process is called:

A) data mining

B) product development

C) product application

D) manufacturing analysis

E) product configuration

Answer: B
Diff: 1

Objective: LO1

20) The "invisible" customer who receives a salesperson's written proposal should most likely be
considered a(n):

A) ideal customer

B) current customer

C) neutral party

D) competing salesperson

E) decision maker

Answer: E

Diff: 2

Objective: LO1

21) Which term refers to the process by which a salesperson uncovers and clarifies a customer's
problem, works with the customer to create a vision of how things could be better, and then de-velops a
plan for implementing the vision?

A) product development

B) quality control

C) field testing

D) solution selling

E) product configuration

Answer: D

Diff: 1

Objective: LO1

22) Which term refers to measuring products and services against established standards?

A) data mining

B) quality control

C) solution selling
D) feature dumping

E) product configuration

Answer: B

Diff: 1

Objective: LO2

23) The Whirlpool company most likely created a house filled with company products so that
salespeople could:

A) conduct tests with competing products

B) see the full life cycle of the appliances

C) become familiar with the products

D) bring customers to see the products in use

E) explore price configuration options

Answer: C

Diff: 2

AACSB: Analytical Thinking

Objective: LO2

24) Customized service agreements add value to a sale by:

A) allowing salespeople to charge more money for features that are usually free

B) requiring salespeople to spend more time with customers

C) convincing customers to spend more money on longer terms

D) incorporating the customer's special priorities, feelings, and needs

E) requiring that customers trust salespeople to keep their verbal promises

Answer: D

Diff: 2

Objective: LO2
25) Quantifying the solution can be performed with a cost-benefit analysis or with a(n):

A) frequency analysis

B) regression analysis

C) feature-benefit presentation

D) pricing model

E) ROI calculation

Answer: E

Diff: 2

Objective: LO2

26) Which of the following statements about the sources of product knowledge is most likely true?

A) Company product literature is of less value to salespeople than it is to customers.

B) The best source of information on the product is the director of sales.

C) Plant tours would be of little value to people in retail and service selling.

D) A salesperson cannot really understand the product until spending time on the manufacturing line
producing it.

E) Examining and using the product can give a salesperson in-depth knowledge of its features.

Answer: E

Diff: 2

Objective: LO6

27) The primary benefit of providing online product information to salespeople is that the infor-mation:

A) allows software integration

B) builds customer relationships

C) highlights product benefits

D) can be accessed at any time

E) can be redesigned easily

Answer: D

Diff: 1

Objective: LO6
28) A problem a salesperson could run into with regard to knowing the product extensively is:

A) relying on written proposals

B) conducting a thorough presentation

C) knowing more than the other salespeople

D) exhibiting a bad attitude at sales meetings

E) misjudging the customer's product knowledge

Answer: E

Diff: 2

Objective: LO6

29) When developing a product strategy, the salesperson must:

A) review information on consumer motivation

B) adopt the marketing concept

C) adopt the sure-win philosophy

D) consider price above other aspects of the product

E) use feature-benefit analysis

Answer: E

Diff: 2

Objective: LO7

30) Salespeople who love their products, and possess vast product knowledge, sometimes over-load
their customers with product data that is neither wanted nor needed. Which term best de-scribes this
practice?

A) product integration

B) win-win selling

C) customer overload

D) feature dumping

E) solution selling
Answer: D

Diff: 2

Objective: LO7

6.3 Short Answer Questions

1) The product selection process is often referred to as ________.

Answer: product configuration

Diff: 1

Objective: LO1

2) The customer who asks, "How many miles per gallon does the Honda CRV get?" is requesting a type
of product knowledge known as ________.

Answer: performance data

Diff: 2

AACSB: Analytical Thinking

Objective: LO3

3) ________ refers to the distinct norms, beliefs, behaviors, and work patterns of a company.

Answer: Organizational culture

Diff: 2

Objective: LO3

4) In a sales presentation, your knowledge of the product's features and your company's strengths must
be presented in terms of the resulting ________ to the buyer.

Answer: benefits

Diff: 1

AACSB: Written and Oral Communication

Objective: LO7
5) A(n) ________ is a transitional phrase that connects a statement of features with a statement of
benefits.

Answer: bridge statement

Diff: 2

AACSB: Written and Oral Communication

Objective: LO6

6.4 Essay Questions

1) Developing a product strategy in the Strategic/Consultative Selling Model involves using three
prescriptions for successful sales. List each one.

Answer:

1. Become a product expert.

2. Sell specific benefits.

3. Configure value-added solutions.

Diff: 2

AACSB: Application of Knowledge

Objective: LO1

2) Discuss the advantages of having in-depth knowledge of your product.

Answer: A salesperson whose product knowledge is complete and accurate is better able to sat-isfy
customers. This is without doubt the most important justification for becoming totally famil-iar with the
products you sell. It is simply not possible to provide maximum assistance to poten-tial customers
without this information. Additional advantages to be gained from knowing your product include
greater self-confidence, increased enthusiasm, improved ability to overcome ob-jections, development
of stronger selling appeals, and the preparation of more effective written sales proposals.

Diff: 2

AACSB: Analytical Thinking

Objective: LO2

6.5 Applied Multiple Choice Questions

A customer walks into a ShipNow location with four boxes and a document envelope, all going to
different destinations in different amounts of time with different security and notification needs.

1) The ShipNow salesperson's job is most likely to:

A) convince the customer into shipping everything with ShipNow

B) provide a solution for the customer's complex shipping needs

C) explain the packaging features offered by ShipNow

D) describe the many services offered by ShipNow

E) build rapport with the customer

Answer: B

Diff: 3

AACSB: Application of Knowledge

Objective: LO1

2) What should the salesperson focus on to differentiate ShipNow's product from other shipping
services?

A) varying shipping speeds available to ShipNow customers

B) ShipNow's lower than average prices for equally fast shipping speeds

C) ShipNow's Internet tracking of packages through the company Website

D) auxiliary products that ShipNow sells, like boxes, envelopes, and packing tape

E) the added value the salesperson creates by making the shipping process easy for the customer

Answer: E

Diff: 3

AACSB: Application of Knowledge

Objective: LO1, LO7

3) ShipNow requires every new store salesperson to ride along on deliveries with drivers for two weeks
before beginning the sales course necessary to be able to have contact with customers. What is the
most likely purpose of the ride-alongs?

A) to enable the salesperson to empathize with drivers

B) to assign a mentor to provide support to the salesperson

C) to help the driver with deliveries during the rushed holiday season

D) to give the salesperson in-depth knowledge of the delivery process

E) to provide a trial period to determine if the salesperson will be a good employee

Answer: D

Diff: 3

AACSB: Application of Knowledge

Objective: LO2, LO3, LO6

4) Sean, a ShipNow salesperson, has a meeting scheduled with Zippy Shoes, an online shoe re-tailer that
ships hundreds of packages each day. Sean expects that price will be a significant bar-rier to closing the
sale with Zippy Shoes. What should Sean most likely do to prepare for price objections?

A) Base the Zippy Shoes deal on prices offered to smaller ShipNow customers.

B) Calculate the commission on the Zippy Shoes deal to ensure that it is fair and equitable.

C) Refer all pricing questions to the ShipNow accounting department to ensure an accurate ROI.

D) conduct a cost-benefit analysis to determine the savings Zippy Shoes should expect by using
ShipNow.

E) Ask a supervisor for the authorization to set a range of shipping prices for Zippy Shoes that are based
on industry standards.

Answer: D

Diff: 3

AACSB: Application of Knowledge

Objective: LO2

5) Sean, a ShipNow salesperson, has a meeting scheduled with Zippy Shoes, an online shoe re-tailer that
ships hundreds of packages each day. Sean is in the process of developing a written proposal that will be
included with his sales presentation. Which of the following should most likely be addressed in the
"Objective" component of the proposal?

A) how using ShipNow will benefit Zippy Shoes

B) when ShipNow will create value for Zippy Shoes

C) how ShipNow will fulfill obligations to Zippy Shoes

D) which ShipNow features will be available to Zippy Shoes

E) where ShipNow will be able to ship products for Zippy Shoes

Answer: A

Diff: 3

AACSB: Application of Knowledge

Objective: LO1

Clyde, the owner of Quick-Clean, a laundromat, notices that the laundromat across the street, E-Z Clean,
offers free pick-up and delivery of laundry from Monday to Friday, 9-5. Clyde has ob-served that many
Quick-Clean customers seem frazzled and overburdened both when they drop clothing off before work
in the morning and when they pick up their clean laundry after work.

6) What service could Clyde most likely offer to eliminate stress for his customers that his com-petitor
does not offer?

A) free fabric softener on any drop-off order

B) free pick-up and delivery Monday to Friday from 9 am to 5 pm

C) free pick-up and delivery seven days a week from 6 am to 11 pm

D) drop-off and pick-up of laundry only on weekends, when customers are not as stressed

E) keeping the laundromat open 24 hours a day

Answer: C

Diff: 3

AACSB: Application of Knowledge

Objective: LO1, LO4

7) Given Clyde's observations about his customers, which of the following would be the best product
configuration to increase Quick-Clean business?

A) offering extended hours and free pick-up and delivery of laundry

B) training employees to fold clothes in a distinctive pattern

C) using bags labeled with the laundromat logo and address

D) using floral-scented laundry detergent on all orders

E) hiring workers with extensive laundry experience

Answer: A

Diff: 3

AACSB: Application of Knowledge

Objective: LO1

8) The other laundromat, E-Z Clean, offers free pick-up and delivery during a narrow time frame, which
is most likely an example of:

A) a product based on a company's resources, not customers' needs

B) a product based on industry information, not company resources

C) a product developed after trial and error

D) a customer-facing sales staff

E) a customer loyalty program

Answer: A

Diff: 3

AACSB: Application of Knowledge

Objective: LO1

9) Clyde realizes that to improve sales he needs to fully understand the services and value of-fered by E-
Z Clean and other laundromats in the area. Which of the following would be the LEAST useful resource
for Clyde?

A) competitors' Websites

B) competitors' press releases

C) appliance brands used by the competition

D) marketing materials used by the competition

E) pricing and service structures of the competition

Answer: C

Diff: 3

AACSB: Application of Knowledge

Objective: LO5
10) Which of the following should Clyde most likely emphasize when developing marketing ma-terials
for Quick-Clean?

A) environmental impact of Quick-Clean and E-Z Clean washing machines

B) negative aspects of E-Z Clean services in comparison to Quick-Clean

C) benefits to customers of using Quick-Clean

D) statistical data about Quick-Clean sales

E) features offered by Quick-Clean

Answer: C

Diff: 3

AACSB: Application of Knowledge

Objective: LO7

The sales director of a medium-sized company selling chemicals to the lumber industry has ana-lyzed
sales and found serious problems with the closing rate of sales representatives relative to the number of
prospects. The sales director commissioned a research company to analyze the numbers in the CRM
system and conduct interviews with prospects who became customers as well as with prospects who did
not buy from the company. He also hired a sales training consult-ant to analyze the sales
representatives and the training they receive.

11) The training consultant finds that the sales representatives do not have a strong product strat-egy.
Without a proper product strategy, sales representatives are most likely unable to:

A) choose the correct products to sell to the customer

B) develop a marketing campaign for a given product

C) sell a product whether the customer needs it or not

D) fulfill an order once it has been placed

E) contact customers quickly

Answer: A

Diff: 3

AACSB: Application of Knowledge

Objective: LO1
12) After analyzing information gathered from prospects who did not buy from the company, it becomes
apparent that prospects felt that the sales representatives did not know about the full line of products
they carried or understand their uses. The prospects most likely did not buy be-cause they could not:

A) ensure that the company's billing process was ethical

B) understand what their business objectives were

C) pay the high prices the company was charging

D) store the chemicals once they were delivered

E) trust the sales reps to sell them the correct products

Answer: E

Diff: 3

AACSB: Application of Knowledge

Objective: LO2, LO3

13) To increase the sales representatives' product knowledge, the sales director arranges for each of
them to rotate through the product development department for a month to understand the way the
chemicals are developed. What is another department they should rotate through to gain more product
knowledge that will help them configure the right mix of products for customers?

A) customer service, so that they can learn how the chemicals are implemented and used by the
customer

B) logistics, so that they can understand how the products are delivered

C) billing, so that they understand the problems that arise when customers do not pay promptly

D) warehousing, so they can understand exactly how much room the chemicals take up in storage

E) human resources, so they can understand what characteristics a successful salesperson should have

Answer: A

Diff: 3

AACSB: Application of Knowledge

Objective: LO2, LO6

14) The training consultant feels that the sales representatives need to understand the entire mar-ket to
put their customers' needs and buying motives in context. To understand the entire indus-try, the
training consultant recommends that the sales representatives learn more about:
A) customers' business plans

B) competitor companies' products and pricing

C) management's five-year plan

D) the history of the lumber industry

E) the close rates of other sales reps in the company

Answer: B

Diff: 3

AACSB: Application of Knowledge

Objective: LO5

15) The sales director and consulting team discuss changing the entire sales model for the com-pany by
eliminating the sales representatives altogether and allowing customers to order on their own from the
company Website. What is the best argument against this plan?

A) The sales representatives rely on the income they receive from their jobs.

B) The products are complex and frequently require product configurations.

C) The company will need to alter its strategy to one based on e-commerce.

D) The products require quotation management systems for tax purposes.

E) A request for proposal is required for all government sales.

Answer: B

Diff: 3

AACSB: Application of Knowledge

Objective: LO1, LO3