Selling Skills MCQs

Selling Skills MCQs

Our experts have gathered these Selling Skills MCQs through research, and we hope that you will be able to see how much knowledge base you have for the subject of Selling Skills by answering these 70 multiple-choice questions.
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Which of the following statements is/are true?

i)A ‘Theory Y’ sales manager would closely monitor the team’s performance.

ii)A ‘paternalistic’ sales manager would inform the team of changes rather than consult it.

A.   Both (i) and (ii) are true.

B.   Only (i) is tru

C.   Only (ii) is true.

D.   Neither true

2: A product that is sold below the cost price in order to boost sales of other products is known as a:

A.   dead loss

B.   loss-leader

C.   sacrificial lamb

D.   gambit product

3: A product or service specifically designed to benefit its association with the success of another product is known as a:

A.   Parasite

B.   Stable mate

C.   Free rider

D.   Tie-in

4: For which of the following businesses would a company be LESS concerned about attracting repeat business from customers?

A.   A local window-cleaning company.

B.   A restaurant in a small town.

C.   A supermarket in a large retail park.

D.   A bar in an area dominated by holiday makers.

5: A small independent retailer needing to stock low volumes of a broad range of products would source its stock ________.

A.   from a larger retailer

B.   direct from factories

C.   from a wholesaler

D.   through catalogues


Which of the following statements is/are true?

i)The role of marketing is to make the sales environment more favorable.

ii)Effective marketing is about reducing the price at which a product can be sold in the desired volumes.

A.   Both (i) and (ii) are true

B.   Only (i) is true

C.   Only (ii) is true

D.   Neither is true

7: Which of the following would not typically be included in a monthly sales report to management?

A.   Hit rate

B.   Average selling price

C.   Volume of sales

D.   Production costs

8: Break-even analysis helps a company determine the volume of sales at which the total revenue will equal the __________.

A.   fixed costs

B.   total costs

C.   variable costs

D.   opportunity costs

9: A company’s set of processes relating to handling contact with customers is known as:

A.   Client account monitoring

B.   Stakeholder mapping tools

C.   Client management software

D.   Customer relationship management


Why do some companies introduce self-service checkouts?

i)To reduce theft

ii)To reduce staff overheads

iii)To reduce queuing time for customers

iv)To reduce the error rate

A.   I and II only

B.   i and iii only

C.   i and iv only

D.   ii and iii only


11: Exploiting data on items examined or purchased by a customer to advertise further products to them is known as:

A.   Customer profiling

B.   Customer imaging

C.   Customer identification

D.   Customer targeting

12: Which of the following sales methods would be best suited to the customers who were unable to visit shops and wanted a broad range of products?

A.   Catalogue

B.   Wholesale

C.   Retail

D.   Door-to-door

13: The art of creating and developing the image of a product is known as:

A.   Brand management

B.   Product design

C.   Product management

D.   Brand design

14: Which of the following is NOT a direct benefit of introducing a loyalty card scheme?

A.   More detailed information about customer purchases.

B.   Increased probability of repeat business.

C.   Targeted discounts may increase sales.

D.   Reduced administrative overhead.

15: The term ‘Dutch auction’ is best defined as:

A.   where bidders provide sealed bids.

B.   where the asking price descends until a bidder accepts it.

C.   where bidders participate remotely by telephone.

D.   where bidders must bid for a package of lots.

16: The term ‘marginal cost’ refers to additional _________________ costs.

A.   average total

B.   indirect

C.   social

D.   fixed

E.   variable

17: Which of these is NOT a reason to sell via wholesalers?

A.   The manufacturer does not have to store unsold stock.

B.   Transport costs for the manufacturer are reduced.

C.   Wholesalers have greater sales expertise.

D.   Higher prices can be charged than if selling directly to consumers.

18: The term ‘positive elasticity of demand’ relates to goods:

A.   for which sales volume is highly-sensitive to marketing activities.

B.   for which sales are strongly affected by price changes.

C.   which attract a premium due to perceived environmental friendliness.

D.   for which a higher price can increase demand.


Which of the following statements is/are true?

 i)The demographics of the target market should not affect a company’s decision about whether to adopt an ‘Internet-only’ sales approach.

ii)Customer perception of the security of internet-based transactions does not affect sales volumes.

A.   Both (i) and (ii)

B.   Only (i)

C.   Only (ii)

D.   Neither is true.

20: The term ‘Sales Intelligence’ (SI) refers to:

A.   monitoring the abilities of the sales team.

B.   customers’ ability to identify bargains.

C.   performance data about sales.

D.   choosing the best moment at which to discount products.


Which of the following statements is/are true?

i)Offering financial rewards for strong performance is the best way to motivate staff.

ii)Hygiene factors, such as the perception of job security, are not important in getting the job done.

A.   Both (i) and (ii) are true.

B.   Only (i) is true.

C.   Only (ii) is true.

D.   Neither is true.


Which of following statements is/are true?

i)’Cross-selling’ refers to a customer-supplier relationship that covers multiple products.

ii)’Cross-selling’ tends to reduce the customer’s administrative overheads.

A.   Both (i) and (ii) are true.

B.   Only (i) is true.

C.   Only (ii) is true.

D.   Neither is true.


Which of the following is NOT a method of sales forecasting?

A.   Market survey method

B.   Statistical methods

C.   Determination of sales territories

D.   Sales force composite method

24: What is meant by the term ‘Customer Value Proposition’?

A.   An impromptu discount made by a salesperson to clinch a sale.

B.   The sum total of benefits which the customer will receive in return for his purchase.

C.   Where the customer is asked to name their desired price for a product.

D.   The long-term benefit to the organisation of retaining that customer.

25: Which of the following is NOT a reason for this approach?

A.   It enables them to maximize profits from late-booking customers, as these will typically have less flexibility over dates.

B.   It encourages passengers to book early thus enabling the companies to predict numbers.

C.   It maximizes profits from early-booking customers.

D.   It enables them to advertise attractively low prices while many customers are paying substantially more.

26: Which of the following characterizes a cold-calling approach to sales?

A.   A low number of approaches with a low hit-rate.

B.   A low number of approaches with a high hit-rate.

C.   A high number of approaches with a low hit-rate.

D.   A high number of approaches with a high hit-rate.

27: The acronym ‘AIDA’ refers to the stages of persuading a customer to purchase a product. Which of the following words is not a part of AIDA?

A.   Attention

B.   Interest

C.   Detail

D.   Action


Which of these statements is/are true?

 i)Loyalty cards cannot be used to target certain products at particular customers.

ii)Seasonal variations should not be factored into predictions of sales volume.

A.   Both (i) and (ii) are true

B.   Only (i) is true

C.   Only (ii) is true

D.   Neither is true

29: Which of the following is characteristic of a monopolistic market?

A.   A high degree of competition between suppliers.

B.   Low profit margins.

C.   Customers are able to influence suppliers strongly.

D.   There may be a high degree of government regulation.

30: Retailers often used automated ‘stock-management’ systems to:

A.   ensure stock is replenished when required by monitoring sales information.

B.   organise where goods will be stored in a warehouse.

C.   monitor whether perishable goods are still in saleable condition.

D.   ensure the amount of a product being stored is maximized.

A.   An agent who is officially registered with the relevant watchdog for the sector.

B.   An agent who acts on behalf of both parties.

C.   An agent who brokers multi-national transactions.

D.   An agent who manages the transaction anonymously, so neither party knows the others identity.


Put the following stages of a negotiation into a chronological order:

i)Closing and commitment



iv)Information exchange

A.   i, iii, ii, iv

B.   iii, iv, ii, i

C.   iv, ii, i, iii

D.   ii, iv, iii, i

33: Which of the following is NOT a benefit of selling over the Internet?

A.   Reduced requirement for retail space.

B.   Higher price paid by consumer.

C.   Lower staff overheads.

D.   Access to a larger market.

34: Which of the following is NOT an example of a point-of-sale promotional display?

A.   A platform to raise a product above other ones.

B.   A basket of products outside a shop.

C.   A local radio advertisement.

D.   A sign hanging from the shop ceiling.


Which of the following statements is/are true?

i)All customers should be given the same level of customer service for a given product.

ii)Customer service is cost-neutral.

A.   Both (i) and (ii) are true.

B.   Only (i) is true.

C.   Only (ii) is true.

D.   Neither is true.

36: In which of the following situations would the price for a product be expected to fall?

A.   Where the supply exceeds the demand.

B.   Where the supply and the demand are matched.

C.   Where the demand exceeds the supply.

D.   Where the supply is decreasing.

37: Which of the following is NOT a key aspect of a sales manager’s role?

A.   Staff management

B.   Product design

C.   Performance monitoring

D.   Sales planning

38: Total "sales variance" is determined by adding sales ________ variance and sales _________ variance.

A.   volume ,type.

B.   type , price.

C.   price , volume.

D.   factor , type.

39: Which of the following does not feature in Bruce Henderson’s ‘BCG Matrix’?

A.   Question marks

B.   Dying swans

C.   Dogs

D.   Cash cows

E.   Stars

40: Which of the following items would be less suitable for sale directly over the Internet?

A.   Mobile phones

B.   Cars

C.   Flights

D.   Books


Which of the following statements is/are true?

i)Negotiations are invariably a zero-sum game.

ii)Developing a rapport is detrimental to negotiations.

A.   Both (i) and (ii) are true.

B.   Only (i) is true.

C.   Only (ii) is true.

D.   Neither is true.

42: Which of the following is NOT a source of customer feedback on a product or service?

A.   Surveys

B.   Focus groups

C.   Newspaper reviews

D.   After-sales contact

43: Which of the following sales administration procedures relates to a customer purchasing an expensive item by credit card?

A.   Credit clearance

B.   Order processing

C.   Security

D.   Customer accounts


Which of the following statements is/are true?

i)A sales quote commits the supplier to a fixed price.

ii)Sales quotes are unusual in situations where the total price is difficult to predict.

A.   Both (i) and (ii) are true.

B.   Only (i) is true.

C.   Only (ii) is true.

D.   Neither is true.

45: In a "perfect" market, the selling price for a product would:

A.   match total production costs.

B.   be below the cost of producing the item.

C.   exceed production costs by 10%.

D.   increase exactly in line with inflation.

A.   Cinemas

B.   Food outlets

C.   Bowling alleys

D.   Banks

47: If a member of a sales team is underperforming, what should the manager’s first step be?

A.   Ask the person concerned whether there are any specific causes of this.

B.   Request that other team members increase productivity to compensate.

C.   Warn him/her about future performance.

D.   Implement performance-management procedures.

48: Which of the following is NOT a valid reason for a firm to implement a price reduction?

A.   Drive to dominate the market through lower costs

B.   Distinct market segments

C.   Declining market share

D.   Excess plant capacity

49: Which of the following is NOT an element of the "promotional mix"?

A.   Advertising

B.   Product specification

C.   Publicity

D.   Personal selling


Which of the following is/are a/the source/s of management information for a retailer?

i)Data recorded by cash tills

ii)Purchases made using loyalty cards

iii)Customer surveys

A.   i and ii only

B.   i and iii only

C.   ii and iii only

D.   All of the above