Question 1

When a product is being bought in conjunction with a job or task not formerly performed by the purchaser, it is a new-task purchase.

Accepted Answer

A new-task purchase involves buying a product for a task or job that the purchaser has not previously performed.

Question 2

Selling life insurance to the head of a household is a retail sales transaction.

Accepted Answer

Selling life insurance to the head of a household is considered a retail sales transaction because it involves selling a product directly to the end consumer for personal use.

Question 3

Derived demand for products in the business market means the demand for consumer products is directly caused by the demand for industrial products.

Accepted Answer

Derived demand means that the demand for a product or service is driven by the demand for another product or service. In the business market, the demand for industrial products may be driven by the demand for consumer products, but it is not the other way around.

Question 4

Retail salespeople do not engage in prospecting.

Accepted Answer

Salespeople, including retail salespeople, often engage in prospecting to seek out and approach potential customers.

Question 5

Salary based salespeople can earn more money by getting orders.

Accepted Answer

The answer of Salary based salespeople can earn more money...

Question 6

When a waitress in a restaurant recommends a piece of apple pie to go with a customer's coffee order, the waitress is engaged in STEP selling.

Accepted Answer

STEP selling refers to a structured sales process involving specific stages, whereas recommending an additional item like apple pie is an example of suggestive selling or upselling.

Question 7

In Canada, the relative importance of the business market is overrated.In fact, only 10 percent of all manufactured products are sold to the business market.

Accepted Answer

The business market in Canada is significant, with a large portion of manufactured products being sold to businesses rather than individual consumers.

Question 8

Any salesperson can easily create their own social media account to connect to their clients regardless of whether their company has its own presence on social media.

Accepted Answer

The answer of Any salesperson can easily create their own...

Question 9

Retail selling and business-to-business selling are synonymous.

Accepted Answer

Retail selling involves selling products or services directly to the end consumers or individuals for their personal use, while business-to-business selling involves selling to other businesses or organizations for their own use or resale purposes. They are not synonymous as they involve different types of customers and selling strategies.

Question 10

The requirements of retail sales roles in Canada are fairly narrow.

Accepted Answer

The requirements for retail sales roles in Canada can vary depending on the employer and the specific job position. Some roles may require only a high school diploma or equivalent, while others may require a college or university degree or specific certifications. Additionally, skills such as customer service, communication, and sales experience may also be required.

Question 11

There are approximately 10 million people working in retail in Canada.

Accepted Answer

As of the latest data, there are not 10 million people working in retail in Canada. The retail sector employs significantly fewer people, with estimates closer to 2 million.

Question 12

North American retailers that are operating outside of their countries and in other countries such as Eastern European nations can expect customers to negotiate with different methods than their home countries.

Accepted Answer

Different countries have different cultural norms when it comes to negotiations, and North American retailers should be aware of these differences when doing business in other countries.

Question 13

A modified-rebuy purchase is often associated with a blanket purchase order.

Accepted Answer

A modified-rebuy purchase involves changes to an existing order, while a blanket purchase order is a long-term agreement for recurring purchases, not necessarily involving modifications.

Question 14

As a general rule, retail salespeople should use a similar approach to engaging customers as a business salespeople.

Accepted Answer

Retail salespeople should aim to build rapport, identify needs and provide solutions to customers, just like business salespeople do with their clients. However, the specific techniques and strategies may differ based on the context and nature of the sales job.

Question 15

Retail jobs in the nonprofit sector are expected to increase in Canada within the next few years.

Accepted Answer

According to a report from Charity Village, retail jobs in the nonprofit sector are expected to grow due to an increase in social enterprises and thrift stores run by charities.

Question 16

Salespeople who earn commission can earn more money by focusing on obtaining referrals.

Accepted Answer

The answer of Salespeople who earn commission can earn more...

Question 17

A business product with inelastic demand implies that if companies decrease prices it will increase demand by a greater proportion.Therefore, companies facing this situation should decrease prices as the drop-in price will be mitigated by larger percentage increase in demand.

Accepted Answer

Inelastic demand means that the demand for the product is not very sensitive to price changes, so decreasing prices will not necessarily result in a greater proportionate increase in demand. In fact, it is possible that decreasing prices could result in only a small increase in demand, and may even lead to a decrease in revenue if the price decrease is significant enough to offset any increase in demand. Therefore, companies facing this situation should be cautious in reducing prices and should conduct thorough analysis before making any price changes.

Question 18

The terms business, industrial, producer and organizational markets are used interchangeably in describing business users.

Accepted Answer

These terms are interchangeable and can be used to describe business users.

Question 19

Retailing refers to individuals or organizations that sell directly to final consumers for business use.

Accepted Answer

Retailing refers to selling goods or services directly to final consumers for personal or household use, not for business use.

Question 20

Unlike other forms of personal selling, there are few nonfinancial rewards in retail selling.

Accepted Answer

Retail selling does offer nonfinancial rewards such as job security, flexible hours, and opportunities for advancement.

Quiz 14: Retail, Business Services, and Nonprofit Selling