Study Guide and Quiz Answers

The __________ is the percentage of sales leads that actually end up buying the product.A.Retention ratioB.Conversion rateC.Sales commissionD.Market penetration value

When a potential customer becomes serious about the purchase and is likely to buy the product, the customer becomes a ___________.A.Sales prospectB.Retained customerC.Cross sellerD.Sales quota

A sales quota is usually expressed in a dollar amount or in __________.A.VolumeB.CommissionC.BonusD.Retention

Which of the following is an example of a variable cost?A.Hourly laborB.Interest on a loanC.InsuranceD.Rent for an office

Which of the following commission structures creates sales people who are highly motivated to close sales, because their entire income depends on it?A.Salary plus bonusB.Salary onlyC.Residual commissionD.Commission only

What is a clientele?A.A list of benefits a product provides for customersB.A team of employees who promote customer retentionC.An individual customer who is unhappy with the company's productD.A collection of customers who purchase and use a company's product

Which selling method is most likely to irritate potential customers?A.Running a trade fair boothB.Cold callingC.Running a flea market boothD.Telemarketing to people who are interested in the product

What is a price ceiling?A.The maximum price the government allows sellers to charge for a productB.A form of price skimming that allows companies to set prices as high as they wantC.The minimum wage the government requires that companies pay employees for hourly workD.A penetration pricing strategy

Which category in Maslow's hierarchy includes basic survival needs such as air, food, water, and shelter?A.Physiological needsB.Social needsC.Safety needsD.Self Actualization

What is a sales lead?A.An employee on the customer service team who deals with existing customersB.A sales person who works on a residual commission structureC.An expert in Maslow's hierarchy of needsD.A potential customer who has shown interest in the company's product