Building Trust and Sales Ethics

MULTIPLE CHOICE

1. LaTasha is a purchasing agent for a large construction company. Jeff is a salesperson for a building materials company and has been calling unsuccessfully on LaTasha for several weeks. LaTasha likes Jeff and believes he is selling a good product. Unfortunately, she does not feel she can rely on him if she ever had a problem with one of the orders. Which of the following best reflects the underlying problem?

a.Jeff has lied to LaTasha.
b.Jeff’s company needs to work on its ability to deliver orders accurately and on time.
c.LaTasha doesn’t trust Jeff.
d.LaTasha is simply a tough buyer.
e.All of the above are correct.

ANS: C

2. Which of the following best describes trust in a buyer-seller context?

a.The buyer understands the salesperson
b.The salesperson is honest with the buyer
c.The buyer can rely on what the salesperson says or promises to do
d.The salesperson is able to solve the buyer’s needs cost effectively
e.The salesperson is dependable

ANS: C

3. In order for the buyer to be able to rely on what the salesperson says or promises to do, the buyer must:

a.Trust the salesperson
b.Like the salesperson
c.Know the salesperson
d.Believe the salesperson is customer-oriented
e.Believe the salesperson is honest

ANS: A

4. Which of the following is not recognized as a trust builder?

a.Power
b.Expertise
c.Candor
d.Customer orientation
e.Dependability

ANS: A

5. Which of the following is not recognized as a trust builder?

a.Customer orientation
b.Competence
c.Dependability
d.Candor
e.Each of the above is recognized as a trust builder

ANS: E

6. The question “Do you know what you’re talking about?” is addressing which component of trust?

a.Competence or expertise
b.Candor
c.Customer orientation
d.Dependability
e.Compatibility

ANS: A REF: p. 33

7. A buyer asking/thinking the question “Will you recommend what is best for me (buyer) or what is best for you (salesperson)?” is addressing which component of trust?

a.Competence or expertise
b.Candor
c.Customer orientation
d.Dependability
e.Compatibility

ANS: C REF: p. 33

8. The question “Are you being upfront with me” is addressing which component of trust?

a.Competence or expertise
b.Candor
c.Customer orientation
d.Dependability
e.Compatibility

ANS: B REF: p. 33

9. The question “Can you and your company back up your promises?” is addressing which component of trust?

a.Competence or expertise
b.Candor
c.Customer orientation
d.Dependability
e.Compatibility

ANS: D REF: p. 33

10. Which of the following is most accurate regarding successful long-term buyer-seller relationships?

a.The seller almost always charges the buyer the lowest price possible.
b.The seller must conceal some cost information from the buyer in order to maintain profitability.
c.Mutual trust is crucial.
d.The seller must be honest with the buyer.
e.All of the above are accurate.

ANS: C REF: p. 34

11. Which of the following best describes a key difference between traditional sales tactics and trust-based relationship selling methods today?

a.In trust-based relationship selling there is little concern for making sales.
b.Traditional selling tactics are always the quickest way to get a sale.
c.Getting orders is not important in trust-based relationship selling.
d.Establishing trust is more important to trust-based relationship selling methods.
e.Traditional sales tactics are more collaborative than trust-based relationship selling methods.

ANS: D REF: p. 34

12. Bill has been selling vacuum cleaners door-to-door for the past seven years. Recently he took a new job selling industrial cleaning equipment to large factories and institutions. Bill was assigned a territory that contained 35 accounts with which his company has been doing business for several years. Bill is having trouble adjusting from his role as a traditional salesperson to his role as a relational salesperson. Which of the following best reflects one of the key differences between traditional selling and relational selling that may be causing Bill some adjustment trouble.

a.In his new job, getting orders is not important.
b.The company he is now working for is not concerned about profits.
c.With his new job, Bill has to build and maintain long-term relationships.
d.The customers Bill is now calling on are only concerned about price.
e.All of the above.

ANS: C REF: p. 34

13. Building long-term, mutually satisfying relationships with customers requires salespeople to be:

a.Competent
b.Likeable
c.Candid
d.Dependable
e.All of the above

ANS: E REF: p. 34-38

14. Andrew is a new sales rep for an industrial chemical supplier. Andrew makes it a point to never be late for an appointment and to always follow through immediately on promises he makes to his customers. These behaviors help Andrew build trust with his customers because they perceive him as:

a.An expert
b.Candid
c.Dependable
d.Competent
e.Helpful

ANS: C

15. Salespeople who always do what they say they’ll do earn trust because buyers perceive them as being:

a.Dependable
b.Customer oriented
c.Likeable
d.Candid
e.Knowledgeable

ANS: A

16. Susan is a new sales rep who does not yet possess a great deal of product knowledge. She is often asked questions to which she does not know the answer. By being up-front with her customers about not knowing the answers, Susan builds trust because she is perceived as:

a.An expert
b.Candid
c.Compatible
d.Competent
e.Helpful

ANS: B

17. Salespeople who place as much emphasis on their customer’s interests as their own are perceived as being:

a.Dependable
b.Customer oriented
c.Likeable
d.Candid
e.Knowledgeable

ANS: B

18. Jennifer is a salesperson for a business insurance company. Recently she told several of her customers about new legislation that may adversely affect their businesses. Jennifer is earning trust because her customers will perceive her as ____.

a.Likeable
b.Candid
c.Political
d.Customer-Oriented
e.Concerned

ANS: D

19. Suppose you are salesperson for a sales force automation consulting company. After working with a potential customer for several weeks you determine that a lower-cost and lower margin solution is best for your customer. Although a more expensive and higher margin system will work, by recommending the lower-cost solution you are demonstrating:

a.Dependability
b.Knowledge
c.Likeability
d.Customer orientation
e.Expertise

ANS: D

20. Salespeople often adapt their appearance and communication style to that of their customers. This helps them to build trust because their customers perceive them as being:

a.Experts
b.Customer oriented
c.Compatible
d.Candid
e.Knowledgeable

ANS: C

21. Which of the following best completes the sentence “It’s difficult to ____ someone if I don’t ____ them.”?

a.Know, trust
b.Know, like
c.Trust, like
d.Trust, buy from them
e.None of the above

ANS: C

22. Suppose you were just hired as a salesperson and are preparing for training. Which of the following is not one of the more common topics covered during initial sales training programs?

a.Recruiting
b.Company history
c.Selling techniques
d.Industry history
e.Enhancing relationships

ANS: A REF: p. 40

23. Which of the following training topics does not include information that will help salespeople earn trust?

a.Company policies
b.Competitive knowledge
c.Product knowledge
d.Developing customer relationships
e.All of the above will help salespeople learn how to earn trust.

ANS: E REF: p. 40

24. In order for salespeople to fine-tune a market offer to the specific needs of their customers, they must have a strong ____ knowledge base.

a.Industry
b.Competition
c.Technology
d.Product (including service and price)
e.Technical

ANS: D REF: p. 40

25. It is important for salespeople to have a complete understanding of their companies’ pricing policies because:

a.They are often responsible for negotiating price with their customers.
b.Then they can arbitrarily charge different customers different prices.
c.They can legally obligate the company to a quoted price.
d.Then they will be perceived as more dependable.
e.Both a and c are correct.

ANS: E REF: p. 41-42

26. Possessing strong product, service, and customer knowledge bases helps salespeople do a better job of:

a.creating value-added solutions to the specific needs of their customers.
b.competing on price.
c.knowing how low they can drop the price and still make a profit.
d.increasing profitability by controlling selling expenses.
e.manipulating the customer into buying the most profitable solution.

ANS: A REF: p. 40-42

27. Steve is a new salesperson for XYZ Computer Co. and is responsible for business-to-business sales. Transferring from the engineering staff, Steve knows better than any other salesperson the technical specifications and performance statistics of the computers he sells. Unfortunately, Steve is relatively unfamiliar with how businesspeople use the computers on a day-to-day basis. Steve needs to work on his ____ knowledge.

a.Product
b.Competitor
c.Technical
d.Market and Customer
e.Company

ANS: D REF: p. 42-43

28. Which of the following are potential resources salespeople may use to increase their market and customer knowledge base?

a.Newspapers
b.World Wide Web
c.Trade magazines
d.Trade associations
e.All of the above are potential resources

ANS: E REF: p. 42-43

29. Which of the following most accurately reflects buyers’ information needs?

a.Generally speaking, buyers know everything they need to know about the markets in which they compete.
b.Buyers are not interested in factual knowledge unless it relates to fulfilling their specific needs.
c.Buyers are interested in learning as much factual knowledge as they can.
d.Buyers really don’t expect salespeople to be able to provide them with valuable information.
e.None of the above.

ANS: B REF: p. 42

30. In order to better understand their own product’s position in the market place, salespeople need:

a.To be customer oriented.
b.A high degree of competitor knowledge.
c.To be candid.
d.A high degree of customer knowledge.
e.Both a and c are correct.

ANS: B REF: p. 43

31. In order for salespeople to be able to deliver complete comparative product information in sales presentations they must possess:

a.assertiveness
b.adaptability
c.competitor knowledge
d.trust
e.customer knowledge

ANS: C REF: p. 43

32. Which of the following types of knowledge is probably least likely to contribute to a salesperson’s expertise?

a.Product knowledge
b.Competitor knowledge
c.Customer knowledge
d.Service knowledge
e.General historical knowledge

ANS: E REF: pgs. 38-43

33. Technology is providing faster and more efficient ways for salespeople to communicate with their customers. With respect to communication with their customers, whenever possible, salespeople should:

a.Use e-mail because it is quick and can be read/sent anytime of the day or night.
b.Use voice mail because most people are familiar with it.
c.Use the web/internet because it provides 24 hour access.
d.Use whatever communication method the customer prefers.
e.Use the telephone because it is inexpensive and allows for two-way interaction.

ANS: D REF: p. 43

34. Which of the following types of communications technology sometimes backfires on sales organizations by actually frustrating their customers?

a.e-mail
b.Web/internet
c.Voice mail
d.Pagers
e.Fax

ANS: C REF: p. 43-44

35. Ethics refers to:

a.Correct behavior.
b.Right and wrong conduct of individuals and institutions of which they are a part.
c.Moral conduct as determined by the government and society.
d.Laws governing society.
e.All of the above are correct.

ANS: B

36. Which of the following statements is most accurate with respect to sales and ethics?

a.Ethics are universal; they’re the same in every country.
b.Ethical standards for sales professionals are likely based on societies standards
c.Ethical standards are, by definition, legal standards.
d.It’s OK for salespeople to engage in unethical behavior because buyers do all the time.
e.None of the above are accurate.

ANS: B

37. What does the acronym SMEI stand for?

a.Sales and Marketing Executives International
b.Senior Marketing Executives International
c.Self-Made Entrepreneurs International
d.Sales and Marketing Era Industry
e.None of the above

ANS: A REF: p.44

38. Which of the following is not one of the most common areas of unethical behavior associated with salespeople?

a.Deceptive practices
b.Illegal activities
c.Non-customer-oriented behavior
d.Poor customer service
e.All of the above.

ANS: D

39. Which of the following are considered ethical behavior?

a.Exaggerating product benefits
b.Withholding relevant information from the customer
c.Providing answers to questions to which they do not know the answer
d.Both b and c
e.None of the above

ANS: E

40. Which of the following are considered unethical behavior?

a.Exaggerating product benefits
b.Withholding relevant information from the customer
c.Providing answers to questions to which they do not know the answer
d.Both b and c
e.All of the above

ANS: E

41. Suppose Martin, a laptop computer salesperson, tells one of his customers that his laptop computers weigh only 4 pounds, and Martin knows that the laptop computers actually weigh 6 pounds. Would Martin’s comment be considered unethical?

a.Yes, because the information, which his buyer might rely upon, is deceptive.
b.Yes, because he is clearly lying to his customer, an act that is illegal.
c.No, because it is not reasonable to expect that his customer would take his comment literally.
d.No, because it’s okay to exaggerate a product’s features and benefits when talking with customers.
e.Yes, but only if his customer buys the laptops.

ANS: A

42. Suppose Martin, a laptop computer salesperson, tells one of his customers that his computers are as fast as lightning. Would Martin’s comment be considered unethical?

a.Yes, because the information is deceptive, no computer is fast as lightning.
b.Yes, because he is clearly lying to his customer, an act that is illegal.
c.No, because it is not reasonable to expect that his customer would take his comment literally.
d.No, because it’s okay to exaggerate a product’s features and benefits when talking with customers.
e.Yes, because he is misleading the customer.

ANS: C

43. Which of the following is not one of the ways in which a salesperson can create product liabilities for a company?

a.Providing express warranties
b.Over-charging customers
c.Misrepresentation
d.Negligence
e.All of the above can create product liabilities for company

ANS: B

44. Which of the following actions taken by salespeople may be considered unethical?

a.Forcing a customer to buy only from the salesperson’s organization
b.Misrepresenting their products
c.Offering special inducements to the employees of a prospect
d.Linking the sale of one of the salesperson’s products to the purchase of one of the buyer’s
e.All of the above may be considered unethical

ANS: E

45. A salesperson wishing to limit his or her exposure to legal problems should remember to:

a.Use factual data rather than general statements of praise during the sales presentation
b.Not to try and force the customer to buy only from his or her organization
c.Avoid making promises that will be difficult or impossible to honor
d.Not tamper with a competitor’s product
e.Avoid making disparaging comments about a competitor’s product without specific evidence

ANS: E REF: p. 49

TRUE/FALSE

1. The essence of trust is honesty.

ANS: F

OBJ: introduction

2. Reliability is an important component of trust.

ANS: T

3. Trust and honesty mean the same thing.

ANS: F

4. Just because a person is dependable does not necessarily mean they are trustworthy.

ANS: T

5. By definition, salespeople who are honest are trustworthy.

ANS: F

6. Expertise is an important component of trust.

ANS: T REF: p. 33

7. Trust is composed of a variety of components, including compatibility, candor, expertise, and customer orientation.

ANS: T

8. It is possible for a salesperson who is honest and customer-oriented to not be trustworthy.

ANS: T

9. Salespeople who develop expertise in their fields are more likely (than those who do not) to develop trust with their customers.

ANS: T REF: p. 34-35

10. Expertise is unimportant to a salesperson’s ability to be perceived as competent.

ANS: F REF: p. 34-35

11. Trust is crucial to the success of long term business relationships.

ANS: T REF: p. 34

12. It is can be difficult for new salespeople to be perceived as trustworthy if they do not have experience in their field.

ANS: T REF: p. 34-35

13. Dependability is highly related to predictability.

ANS: T

14. It’s possible for someone to be candid but not honest.

ANS: F

15. Salespeople who, while making sales presentations, cover both the pros and cons of their market offer are more likely than those who do not to be perceived as customer-oriented.

ANS: T

16. Salespeople who are trusted and perceived as customer-oriented may be considered (by their customers) advisers rather than salespeople.

ANS: T

17. In order for a salesperson to be customer-oriented they must, at least in part, be motivated by their customers’ success

ANS: T

18. Likeability and compatibility can be used to enhance trust building.

ANS: T REF: p. 37-38

19. Knowledge is of little importance when it comes to building trust.

ANS: F

20. While salespeople’s knowledge of their company and their products is important to building trust, knowledge of their industry is not.

ANS: F

21. Most customers will likely assume that salespeople are knowledgeable about the products they’re selling.

ANS: T REF: p. 40

22. It is more important for salespeople to carry a good product than to provide good service.

ANS: F REF: p. 40-41

23. Salespeople may use service to differentiate themselves from their competitors.

ANS: T REF: p. 41

24. Salespeople need only be concerned with knowing the price of their products, and not their company’s pricing policies.

ANS: F REF: p. 41

25. Salespeople need only be concerned with knowing their customers, and not the market in which their customers operate.

ANS: F REF: p. 42-43

26. For a salesperson, expertise is closely associated with knowledge of the market.

ANS: T REF: p. 42-43

27. Salespeople need to be concerned with knowing not only their products, but their competitors as well.

ANS: T REF: p. 43

28. A salesperson’s knowledge of their competitors’ products will help them better understand their own.

ANS: T REF: p. 43

29. Voice mail is probably the best way for salespeople to be accessible to every one of their customers.

ANS: F REF: p. 43

30. It is unlikely that salespeople could use technology to differentiate themselves from their competitors.

ANS: F REF: p. 43-44

31. Anything that is unethical is also illegal.

ANS: F

32. Technology can often be a barrier to communication between salespeople and their customers.

ANS: T REF: p. 43-44

33. Ethical standards are based on society’s standards..

ANS: T

34. Sales ethics and trust are unrelated.

ANS: F

35. When deciding what is ethical and unethical, a salesperson need only look at what is legal and illegal.

ANS: F

36. A person’s personal ethics may differ from the ethics of the company for which they work.

ANS: T

37. The American Marketing Association has established its own code of ethics in which its members are committed to.

ANS: T

38. Maintaining high ethical standards is important if one is to be considered a professional.

ANS: T

39. By definition, deceptive practices are illegal practices.

ANS: F

40. Salespeople can create product liabilities for their companies.

ANS: T

41. A salesperson can create an express warranty to which his/her company is legally bound.

ANS: T

42. Express warranties are written and made part of the basis-of-the-bargain.

ANS: F

43. Bribery is considered illegal in this country.

ANS: T

44. Many companies are spending time covering ethics in their training programs.

ANS: T

45. A salesperson’s customers may initiate unethical behavior.

ANS: T

COMPLETION

1. The extent of the buyer’s confidence that he or she can rely on the salesperson’s integrity is called_________.

ANS: Trust

2. ____________refers to a state of being completely free from concealment: exposed to general view or knowledge.

ANS: Openness

3. The salesperson’s fairness and straightforwardness of conduct refers to the salespersons degree of _____________.

ANS: Honesty

4. Consistency of a salesperson over time to do what is right is referred to as ___________________.

ANS: Reliability (Predictability)

5. ____________ refers to the extent to which a salesperson is marked by impartiality and honesty.

ANS: Fairness

6. The ability, knowledge, and resources to meet customer expectations are collectively referred to as ___________, one of the components of trust.

ANS: Expertise

REF: p. 34

7. Closely tried to predictability is the characteristic of ____________________, one of the components of trust.

ANS: Dependability

8. Honesty of the spoken word is called ____________, one of the components of trust.

ANS: Candor

9. Wayne is a salesperson who is honest and upfront with his customers. Accordingly, Wayne’s customers most likely perceive him as being ____________, one of the components of trust.

ANS: Candid (Candor)

10. The act of salespeople placing as much emphasis on the customers’ interests as their own is called __________, one of the components of trust.

ANS: Customer Orientation

11. Companies provide extensive ______________to be sure they send knowledgeable sales representatives and field.

ANS: Training

12. Knowledge tools salespeople must have to explain their firm’s promotional programs are referred to as ___________knowledge.

ANS: Promotion

REF: p. 41

13. In order to better understand how to position their products relative to others in a competitive marketplace, salespeople must possess _____________knowledge.

ANS: Competitor

REF: p. 43

14. _________ refers to the right and wrong conduct of individuals and institutions of which there are a part.

ANS: Ethics

15. A(n) ___________ warranty is a way a salesperson can create product liabilities by giving a product warranty or guarantee that obligates the selling organization even if the salesperson does not intend to give a warranty.

ANS: Express

16. Jeni tells her customers her product is lightweight even though it is much heavier than any of the competitive products. Jeni is making false claims about her product, an unethical activity otherwise known as ______________________.

ANS: Misrepresentation

17. _______________is a way a salesperson can create product liability is by making a false claim about a product hoping the buyer will think it’s true.

ANS: Misrepresentation

18. ______________refers to a way a salesperson can create product liability by making a claim about a product without exercising reasonable care to see that this claim is accurate.

ANS: Negligence

19. ________________ is a term used when a buyer relied on the seller’s statement in making a purchase decision.

ANS: Basis of the Bargain

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