MKTG.3213 Exam 2 Study Guide
questions with complete solutions(12)
Which of these is not a step in the personal selling process? - correct answer ✔✔prospecting
When does initial contact with the potential consumer occur? - correct answer ✔✔approach
What happens in the Presentation stage of the personal selling process? - correct answer ✔✔determine
prospect needs and present benefits; handle objections
SPIN selling is about asking questions of potential customers. - correct answer ✔✔True
What is the point of SPIN selling? - correct answer ✔✔position your product or service as the solution to
the customer's problems
The most successful salespeople focus on the beginning aspects of the SPIN method (e.g. Situational and
Problem questions). - correct answer ✔✔False
What is the definition of Price? - correct answer ✔✔what is exchanged for the product, service, or idea
_______ is not about what we put into our product, it's what our customers get out of it. - correct
answer ✔✔Value
The "value created" of a product or service is determined from the perspective of the: - correct answer
✔✔customer
Small changes in price do not have a very large impact on bottom line profits. - correct answer ✔✔False
, Which of these does not happen in a "smart industry"? - correct answer ✔✔companies fight with price
only
What is the first step in strategic pricing? - correct answer ✔✔Knowing how your industry behaves
What is the key difference between cost-based pricing and value-based pricing? - correct answer
✔✔where you start the process
Value-based pricing will always be more profitable than cost-based pricing. - correct answer ✔✔True
What is price skimming? - correct answer ✔✔setting a high price for a new product to skim maximum
revenues
What is dynamic pricing? - correct answer ✔✔variable rate for each customer
What is flat-rate pricing? - correct answer ✔✔single rate per time period
Which of the following describes peak load or congestion pricing? - correct answer ✔✔variable rate
depending on time of day or week
You do not need to understand margin and markup if you are using value-based pricing. - correct answer
✔✔False
What is the main difference between the equations for margin and mark-up? - correct answer
✔✔Margin is (Price - Cost)/Price and Mark-up is (Price - Cost)/Cost
Mark-up can be greater than 100%. - correct answer ✔✔True
A grocer has purchased a truckload of frozen dinners for $3 each. The grocer operates on a margin of
30% for frozen food items. What is the retail price to the consumer? - correct answer ✔✔$4.29
questions with complete solutions(12)
Which of these is not a step in the personal selling process? - correct answer ✔✔prospecting
When does initial contact with the potential consumer occur? - correct answer ✔✔approach
What happens in the Presentation stage of the personal selling process? - correct answer ✔✔determine
prospect needs and present benefits; handle objections
SPIN selling is about asking questions of potential customers. - correct answer ✔✔True
What is the point of SPIN selling? - correct answer ✔✔position your product or service as the solution to
the customer's problems
The most successful salespeople focus on the beginning aspects of the SPIN method (e.g. Situational and
Problem questions). - correct answer ✔✔False
What is the definition of Price? - correct answer ✔✔what is exchanged for the product, service, or idea
_______ is not about what we put into our product, it's what our customers get out of it. - correct
answer ✔✔Value
The "value created" of a product or service is determined from the perspective of the: - correct answer
✔✔customer
Small changes in price do not have a very large impact on bottom line profits. - correct answer ✔✔False
, Which of these does not happen in a "smart industry"? - correct answer ✔✔companies fight with price
only
What is the first step in strategic pricing? - correct answer ✔✔Knowing how your industry behaves
What is the key difference between cost-based pricing and value-based pricing? - correct answer
✔✔where you start the process
Value-based pricing will always be more profitable than cost-based pricing. - correct answer ✔✔True
What is price skimming? - correct answer ✔✔setting a high price for a new product to skim maximum
revenues
What is dynamic pricing? - correct answer ✔✔variable rate for each customer
What is flat-rate pricing? - correct answer ✔✔single rate per time period
Which of the following describes peak load or congestion pricing? - correct answer ✔✔variable rate
depending on time of day or week
You do not need to understand margin and markup if you are using value-based pricing. - correct answer
✔✔False
What is the main difference between the equations for margin and mark-up? - correct answer
✔✔Margin is (Price - Cost)/Price and Mark-up is (Price - Cost)/Cost
Mark-up can be greater than 100%. - correct answer ✔✔True
A grocer has purchased a truckload of frozen dinners for $3 each. The grocer operates on a margin of
30% for frozen food items. What is the retail price to the consumer? - correct answer ✔✔$4.29
