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web.groovymark@gmail.com
- December 8, 2024
Question 01
What is the “Six-Step Buying Process” model’s key advantage over the AIDA model?
a) It focuses on post-purchase relationship-building
b) It simplifies the customer decision-making process
c) It assumes customers always purchase on impulse
d) It concludes with the purchase as the final step
Answer: a) It focuses on post-purchase relationship-building
Explanation: Unlike the AIDA model, which ends at the point of purchase, the Six-Step Buying Process includes post-purchase activities like relationship building, leading to repeat purchases and long-term customer engagement.
Question 02
Which of the following best describes “Transactional Selling”?
a) Focuses on building long-term relationships with customers
b) Emphasizes achieving quick sales with minimal relationship-building
c) Involves customized sales approaches based on customer preferences
d) Focuses on consultative discussions to assess customer needs
Answer: b) Emphasizes achieving quick sales with minimal relationship-building
Explanation: Transactional selling is primarily concerned with making immediate sales without focusing on long-term relationships or deep customer engagement.
Question 03
What does “Relationship Selling” primarily focus on?
a) Negotiating the best possible price for both parties
b) Building long-term relationships and satisfying customer needs
c) Closing deals as quickly as possible
d) Offering frequent discounts and promotions
Answer: b) Building long-term relationships and satisfying customer needs
Explanation: Relationship selling is a sales strategy focused on creating long-term relationships with customers by understanding their needs and maintaining ongoing communication.
Question 04
Which term refers to tailoring a sales approach based on the customer’s social style?
a) Consultative selling
b) Transactional selling
c) Adaptive selling
d) Direct selling
Answer: c) Adaptive selling
Explanation: Adaptive selling involves using a sales approach that changes based on the customer's social style, ensuring a more personalized and effective interaction.
Question 05
Which social style matrix category is characterized by low responsiveness and high assertiveness?
a) Analytical
b) Amiable
c) Expressive
d) Driver
Answer: d) Driver
Explanation: Drivers are low in responsiveness but high in assertiveness. They are focused on achieving results and prefer direct, efficient communication.
Question 06
In the social style matrix, people with high responsiveness and low assertiveness are classified as?
a) Drivers
b) Amiables
c) Analyticals
d) Expressives
Answer: b) Amiables
Explanation: Amiables are highly responsive and have low assertiveness. They value personal connections and relationships over detailed data or control.
Question 07
What is the key characteristic of the “Consultative Selling” approach?
a) Focusing on closing sales as quickly as possible
b) Acting as a trusted advisor to help the customer solve problems
c) Offering limited discounts to encourage immediate purchases
d) Selling products without customizing the sales pitch
Answer: b) Acting as a trusted advisor to help the customer solve problems
Explanation: Consultative selling involves becoming a trusted advisor by deeply understanding the customer’s needs and providing solutions that address those needs effectively.
Question 08
In the context of sales, what does the term “Customer Lifetime Value” (CLV) refer to?
a) The average amount of time a customer remains with a company
b) The total net profit a company expects to earn from a customer over the duration of their relationship
c) The number of purchases a customer makes in one year
d) The total revenue earned from a single purchase
Answer: b) The total net profit a company expects to earn from a customer over the duration of their relationship
Explanation: CLV represents the long-term value of a customer by predicting the total net profit a company can generate from that customer.
Question 09
Which social style prefers to know “how” things work and is low in both assertiveness and responsiveness?
a) Amiable
b) Driver
c) Analytical
d) Expressive
Answer: c) Analytical
Explanation: Analytical individuals prioritize facts and data. They are low in responsiveness and assertiveness and are interested in understanding how things work before making decisions.
Question 10
What is a key characteristic of “Expressives” in the social style matrix?
a) They focus on the “who” and appreciate recognition and approval
b) They focus on “what” and prefer clear, concise communication
c) They want to know “how” and rely on facts and figures
d) They focus on “why” and prefer emotional connections
Answer: a) They focus on the "who" and appreciate recognition and approval
Explanation: Expressives are high in both assertiveness and responsiveness, often focusing on relationships, recognition, and social interaction when making decisions.
Question 11
What is the “Law of Psychological Reciprocity”?
a) People are more likely to purchase if they feel rushed
b) When someone does something nice for you, you feel obligated to return the favor
c) Customers tend to buy from sellers they do not like
d) Salespeople should always take credit for the customer’s decisions
Answer: b) When someone does something nice for you, you feel obligated to return the favor
Explanation: The Law of Psychological Reciprocity states that when someone gives us something or does us a favor, we feel a strong urge to give something back in return.
Question 12
Which of the following describes the “Value Proposition”?
a) A promise of low prices
b) The total amount of revenue generated from a customer
c) A feature or benefit that makes a company or product attractive to customers
d) The total cost of producing a product
Answer: c) A feature or benefit that makes a company or product attractive to customers
Explanation: The value proposition is the unique benefit or feature that makes a product or service stand out to customers and convinces them to choose it over competitors.
Question 13
What is the formula for calculating “Return on Investment” (ROI)?
a) ROI = (Net profit ÷ Total revenue) × 100
b) ROI = (Net profit ÷ Investment) × 100
c) ROI = (Gross revenue ÷ Investment) × 100
d) ROI = (Total revenue ÷ Investment) × 100
Answer: b) ROI = (Net profit ÷ Investment) × 100
Explanation: Return on investment (ROI) is a performance metric that measures the efficiency of an investment, calculated by dividing the net profit by the investment and multiplying by 100 to get a percentage.
Question 14
Which of the following describes the difference between a “Straight Rebuy” and a “New Task Purchase”?
a) Straight rebuy involves new suppliers, while new task purchases do not
b) Straight rebuy is a repeat purchase, while new task purchase is the first-time purchase of a product
c) New task purchase involves selecting a product from multiple suppliers, while straight rebuy does not
d) There is no difference between the two
Answer: b) Straight rebuy is a repeat purchase, while new task purchase is the first-time purchase of a product
Explanation: A straight rebuy occurs when a business purchases the same product or service without any modifications, whereas a new task purchase involves buying a product or service for the first time.
Question 15
Which of the following defines the “Pareto Principle” (80/20 Rule) in sales?
a) 80% of sales activities result in 20% of the revenue
b) 20% of customers generate 80% of the company’s revenue
c) 80% of customers make purchases in 20% of the time
d) 80% of leads are generated by 20% of sales representatives
Answer: b) 20% of customers generate 80% of the company’s revenue
Explanation: The Pareto Principle, or 80/20 Rule, states that 20% of a company's customers typically generate 80% of its revenue, highlighting the importance of focusing on high-value customers.
Question 16
What is “Sales Quota”?
a) A number of products each customer is required to buy
b) A benchmark or target that sales representatives are expected to achieve
c) The total amount of revenue generated in a fiscal year
d) The total number of new leads a salesperson must contact each month
Answer: b) A benchmark or target that sales representatives are expected to achieve
Explanation: Sales quotas are specific targets set for salespeople, indicating how much they need to sell within a certain timeframe.
Question 17
In what type of selling is the focus on providing technical expertise to potential customers?
a) Transactional selling
b) Technical selling
c) Adaptive selling
d) Missionary selling
Answer: b) Technical selling
Explanation: Technical selling involves providing detailed product expertise, often for complex or highly technical products, to help customers make informed purchasing decisions.
Question 18
Which of the following defines “Business Intelligence” (BI)?
a) A company’s plan for selling products
b) A strategy for storing large amounts of customer data
c) The use of data to facilitate decision-making in an enterprise
d) The process of hiring sales representatives
Answer: c) The use of data to facilitate decision-making in an enterprise
Explanation: Business intelligence (BI) involves collecting, analyzing, and using data to help businesses make informed decisions, improving overall performance and strategy.
Question 19
What is “Big Data Analytics” used for in business?
a) Managing inventory levels
b) Tracking employee attendance
c) Analyzing large, complex data sets to predict trends and forecasts
d) Determining marketing budgets
Answer: c) Analyzing large, complex data sets to predict trends and forecasts
Explanation: Big Data Analytics involves analyzing vast amounts of data to uncover patterns, predict trends, and make strategic business decisions based on data insights.
Question 20
Which of the following factors contributes to a “Sustainable Competitive Advantage”?
a) Lower prices than competitors
b) Access to cheap materials
c) Hard-to-duplicate assets or abilities that provide long-term competitive advantage
d) High employee turnover rates
Answer: c) Hard-to-duplicate assets or abilities that provide long-term competitive advantage
Explanation: A sustainable competitive advantage is achieved when a company possesses assets, skills, or attributes that are difficult for competitors to replicate, ensuring a favorable market position.
