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Class 11 Retail Chapter 3 Mechanism for Customers to Choose Right Products
Also, you can read the NCERT book online in these sections Solutions by Expert Teachers as per Central Board of Secondary Education (CBSE) Book guidelines. AHSEC Class 11 Elective Retail Textual Solutions are part of All Subject Solutions. Here we have given AHSEC Class 11 Retail Textbook Solutions English Medium for All Chapters, You can practice these here.
Mechanism for Customers to Choose Right Products
Chapter: 3
| SESSION 1: METHODS OF SELLING |
| Check Your Progress |
A. Fill in the blanks:
1. ________________ is the act of selling a product or service in return for money.
Ans: Sale.
2. _____________ refers to a sales quote which is prepared in the form of proforma invoice.
Ans: Proforma Sale.
3. _______________ sale is public sale.
Ans: Auction.
4. Some retailers ______________ products routinely to maintain their brand image.
Ans: Rearrange.
B. Multiple choice questions:
1. The display of goods is prioritised on the basis of the manufacturer’s ________________.
(a) Competitiveness.
(b) Sale.
(c) Demand.
(d) None of the above.
Ans: (a) Competitiveness.
2. _________________ sale refers to sales made to other businesses rather than individual consumers.
(a) B2B.
(b) B2C.
(c) B2D.
(d) None of the above.
Ans: (a) B2B.
3. In electronic-based sale _________________ is used.
(a) EMI.
(b) EDI.
(c) EMC.
(d) None of the above.
Ans: (b) EDI.
4. Indirect sales are the sales of a good or service by a ___________________.
(a) Manufacturer.
(b) Seller.
(c) Third party.
(d) None of the above.
Ans: (c) Third party.
C. State whether the following are True or False:
1. B2B means business-to-business.
Ans: True.
2. The products are divided section-wise in a retail outlet.
Ans: True.
3. The retailers need not rearrange to display seasonal products.
Ans: False.
D. Match the columns:
| Column A | Column B |
| 1. Straight floor plan | (A) Earn profit and commission. |
| 2. Diagonal floor plan | (B) Telemarketing sales. |
| 3. Angular floor plan | (C) Unique store feel. |
| 4. Geometric floor plan | (D) Self-service shop. |
| 5. EDI | (E) Racks are straight live. |
| 6. Agency-based sales | (F) Curves and angles. |
| 7. Multilevel mark | (G) Standard for structuring information. |
Ans:
| Column A | Column B |
| 1. Straight floor plan | (E) Racks are straight live. |
| 2. Diagonal floor plan | (D) Self-service shop. |
| 3. Angular floor plan | (F) Curves and angles. |
| 4. Geometric floor plan | (C) Unique store feel |
| 5. EDI | (G) Standard for structuring information. |
| 6. Agency-based sales | (B) Telemarketing sales. |
| 7. Multilevel mark | (A) Earn profit and commission. |
E. Short answer questions:
1. What are direct sales?
Ans: It refers to the direct personal demonstration and sale of products and services
to the consumer. It consists of two business models, i.e., single-level marketing and multilevel marketing. A direct sale makes money by selling products directly to consumers.
2. Define proforma sales.
Ans: The term ‘proforma’ is used to describe a document that provides as a courtesy
or satisfies minimum requirement, conforms to a norm or decisive, tends to be performed as a formality. The proforma sale refers to a sales quote which is prepared in the form of a proforma invoice.
3. What is meant by agency-based sales?
Ans: It is a contractual arrangement, in which the agent has the right to negotiate on the sale of the principal’s goods and services. In exchange the agent gets a commission or fee.
The various types of agents who are involved in agency-based sales are:
(i) Sales agents.
(ii) Sales outsourcing through direct branded representation.
(iii) Transaction sales.
(iv) Consultative sales.
(v) Consignment sales.
(vi) Telemarketing or telesales.
(vii) Retail sales.
4. What is auction sale?
Ans: It is a public sale. Customers who are willing can participate in an auction. Goods are sold to the highest bidder, i.e., one who has quoted the highest price.
5. Who is a repeat customer?
Ans: The basic reason for companies to rearrange products is to give their stores a fresh look. This keeps current customers coming back to the store. Rearrangement of products displays more products to the customer, so that they visit again, and simultaneously sales volume increases.
F. Long answer questions:
1. Explain the various methods of selling.
Ans: The various retail selling methods are as follows:
(a) Direct sales: It refers to the direct personal demonstration and sale of products and services to the consumer. It consists of two business models, i.e., single-level marketing and multilevel marketing. A direct sale makes money by selling products directly to consumers.
(b) Proforma sales: The term ‘proforma’ is used to describe a document that provides as a courtesy or satisfies minimum requirement, conforms to a norm or decisive, tends to be performed as a formality. The proforma sale refers to a sales quote which is prepared in the form of a proforma invoice.
(c) Agency-based: It is a contractual arrangement, in which the agent has the right to negotiate on the sale of the principal’s goods and services. In exchange the agent gets a commission or fee.
The various types of agents who are involved in agency-based sales are:
(i) Sales agents.
(ii) Sales outsourcing through direct branded representation.
(iii) Transaction sales.
(iv) Consultative sales.
(v) Consignment sales.
(vi) Telemarketing or telesales.
(vii) Retail sales.
(d) Travelling salesman: They are a representative of a firm who visit shops and other businesses to show samples and gain orders. They are also called commercial traveller, door-to-door salesmen or hawkers.
(e) Auction sale: It is a public sale. Customers who are willing can participate in an auction. Goods are sold to the highest bidder, i.e., one who has quoted the highest price.
(f) Business-to-business (B2B) sales: It refers to Notes sales made by other businessman rather than an individual customer. An industrial or professional sale involves selling from one business to another.
(g) Electronic-based sales: It is a web-based sale. It includes both business-to-business and business-to-consumer sales. For electronic-based sale Electronic Data Interchange (EDI) is used.
(h) Indirect sales: Indirect sales are the sale of a good or service by a third party, such as a partner or affiliate rather than a company’s personnel.
2. Discuss the need for arranging products in a retail store
Ans: The need for arranging products in a retail store are as follows:
Product arrangement in a retail store is a critical element for its success. The products are divided section wise, giving a clear view of all the products available in store, and making it easy for the customer to pick up the products as they move in the store. The arrangement of the products in this manner also improves the profit of the retail store.
Rearrangement of products is done for the following reasons:
(i) Repeat customers: The basic reason for companies to rearrange products is to give their stores a fresh look. This keeps current customers come back to the store. Rearrangement of products displays more products to the customer, so that they visit again, and simultaneously sales volume increases.
(ii) Sales promotion: Retailers rearrange products for sales promotion. Rearrangement of stock increases customers.
(iii) Brand image: Some retailers rearrange products routinely to maintain their brand image. Monthly rearranging of products and changing of colour schemes is essential in building new and fresh style of product arrangements.
(iv) Seasonal: Retailers display products in one area. The retailers rearrange to display seasonal products.
3. Explain the procedure for arranging products in a store.
Ans: The process of arranging products in a retail store compels activity. The arrangement of products is very much affected by the store plan choice, including the size of the store, the type of product to be sold and the extent of customer focus required on a product.
There are certain ways to be focused upon for arranging a product in the store, which are based on the following:
(i) Straight floor plan: In this floor plan, a retailer arranges products in a straight line. It is the most commonly used floor plan in the Indian retail industry and is economical as well.
(ii) Diagonal floor plan: This type of floor plan has more visibility for the store staff and customers. It requires a small space for arranging the products.
(iii) Angular floor plan: It gives a spacious look with a lot of space. This type of floor plan is used by high-value and high-end retailers. This reduces the display area and focuses only on a few popular products.
(iv) Geometric floor plan: In this floor plan, a retailer uses racks and other fixtures to create a different style of floor plan. This layout is used for trendy products like cosmetics, watches, etc.
4. Elaborate the steps adopted in identifying the product responsible for sale.
Ans: Customer service associates (CSA) in a retail store are responsible for identifying the products that are to be sold.
Here are few steps that help the CSA in identifying the products for sale:
(i) He or she must have full information about the retail store and the products that are being sold.
(ii) The CSA must follow the instructions given by the store manager or supervisor regarding the stock that is to be received from different manufacturers.
(iii) The store manager or supervisor allocates the product sections to the CSA. The product sections in a retail store will be like vegetable section, housekeeping material section, stationery section, clothes section, etc.
(iv) The CSA is responsible for the section allotted to him or her and must hold full record regarding the stock received from the manufacturers till the product is sold.
(v) The CSA must have complete knowledge about the product being allotted to him or her and must possess the skills to sell it to the customers.
G. Write short notes on:
1. Promotion activities.
Ans: The promotion activities are classified into the following types:
(i) Sales force promotion (Sales force members).
(ii) Trade promotion (Wholesalers and retailers).
(iii) Business promotion (Business customers).
(iv) Consumer promotion (Final buyers).
2. Point-of-sale display.
Ans: These are materials provided by vendors for placing products that customers often buy. It includes special fixtures such as paperback publisher racks, dry battery stands, cold drink racks, etc. Other point-of-sale displays include display signs, leaflets, demonstrations, etc.
3. Trade incanting.
Ans: These are trade-offs or cash incentives directly provided by vendors to retailers. The benefit may sometimes not be extended to customers. Various types of trade incentives include cash discounts, special credit terms, goods in lieu of cash, staff incentives, and more.
4. In-store activity.
Ans: These sales promotion activities are targeted to give cash or kind advantages to customers. Various types of in-store promotional activities include price-off packs, premiums, small gifts, cooperative promotions, sampling, coupons, “buy one get one free” offers, multipacks, etc.
H. Check your performance:
1. Classify the methods of selling in retail.
Ans: The various retail selling methods are as follows:
(a) Direct sales: It refers to the direct personal demonstration and sale of products and services to the consumer. It consists of two business models, i.e., single-level marketing and multilevel marketing. A direct sale makes money by selling products directly to consumers.
(b) Proforma sales: The term ‘proforma’ is used to describe a document that provides as a courtesy or satisfies minimum requirement, conforms to a norm or decisive, tends to be performed as a formality. The proforma sale refers to a sales quote which is prepared in the form of a proforma invoice.
(c) Agency-based: It is a contractual arrangement, in which the agent has the right to negotiate on the sale of principle’s goods and services. In exchange the agent gets a commission or fee. The various types of agents who are involved in agency-based
sales are:
(i) Sales agents.
(ii) Sales outsourcing through direct branded representation.
(iii) Transaction sales.
(iv) Consultative sales.
(v) Consignment sales.
(vi) Telemarketing or telesales.
(vii) Retail sales.
(d) Travelling salesman: They are a representative of a firm who visit shops and other businesses to show samples and gain orders. They are also called commercial traveller, door-to-door salesmen or hawkers.
(e) Auction sale: It is a public sale. Customers who are willing can participate in an auction. Goods are sold to the highest bidder, i.e., one who has quoted the highest price.
(f) Business-to-business (B2B) sales: It refers to Notes sales made by other businessman rather than an individual customer. An industrial or professional sale involves selling from one business to another.
(g) Electronic-based sales: It is a web-based sale. It includes both business-to-business and business-to-consumer sales. For electronic-based sale Electronic Data Interchange (EDI) is used.
(h) Indirect sales: Indirect sales are the sale of a good or service by a third party, such as a partner or affiliate rather than a company’s personnel.
2. Prepare a chart on different methods of selling in different retail formats.
Ans:
| Selling Method | Description | Retail Format/Example |
| (a) Direct Sales | Personal demonstration and sale directly to the consumer. | Single-level & Multilevel marketing (e.g., Amway, Avon). |
| (b) Proforma Sales | Sales based on a proforma invoice – a formal quotation. | B2B transactions, custom orders. |
| c) Agency-Based Sales | Agents sell on behalf of a principal for a commission. | Sales agents, consultative sales, telesales, consignment shops. |
| (d) Travelling Salesman | Salespersons visit shops or homes to take orders. | Door-to-door sales, mobile selling units. |
| (e) Auction Sale | Goods sold to the highest bidder in a public auction. | e.g., OLX Auctions, livestock markets, antique auctions. |
| (f) B2B Sales | Sales from one business to another. | Industrial goods, wholesalers to retailers. |
| (g) Electronic-Based Sales | Sales through online platforms or electronic data systems. | E-commerce websites (e.g., Amazon), EDI portals. |
| (h) Indirect Sales | Sales through third-party affiliates or partners. | Franchise stores, affiliate marketing |
3. Demonstrate the checking of product packaging.
Ans: Step 1: Look at the Outside
(i) See if the box or packet is torn or damaged.
(ii)The outside should be clean and strong.
Step 2: Check the Label
(i) Make sure the label is clear.
(ii) It should show the name of the product, price, date, and barcode.
Step 3: Open and Match
(i) Open the pack and check if the right product is inside.
(ii) Match the product name or number with the bill or order.
Step 4: Seals and Stickers
(i) Look for any safety seal or sticker.
(ii) It should not be broken or opened.
Step 5: Inside Packing
(i) Check if the product has bubble wrap or paper inside to protect it.
(ii) It should not move or be loose in the box.
Step 6: Check for Damage
(i) Make sure nothing is broken, leaking, or dirty.
Step 7: Tell the Supervisor
(i) If anything is wrong, tell your boss or write it down.
| SESSION 2: SALES PROMOTIONAL ACTIVITIES |
| Check Your Progress |
A. Fill in the blanks:
1. Growing is the fastest ______________ area of the marketing activities.
Ans: Sales promotion.
2. ________________ activities of sales promotion are targeted to give cash or kind advantage to customers.
Ans: In-store.
B. Multiple choice questions:
1. Coupons are the best example of __________________ for the customer.
(a) Trade incentive.
(b) Direct promotion.
(c) In-store activities.
(d) None of the above.
Ans: (b) Direct promotion.
2. Package design is the sales promotion technique initiated by the _______________.
(a) Dealer/producer.
(b) Consumer.
(c) Retailer.
(d) None of the above.
Ans: (c) Retailer.
3. Window display is the _________________ originated sales promotion.
(a) Producer.
(b) Dealer.
(c) Retailer.
(d) None of the above.
Ans: (c) Retailer.
4. Explicit characteristics of a product refers to _______________.
(a) The existence and attributes of the product.
(b) Nature and attributes the product.
(c) Both (a) and (b).
(d) None of the above.
Ans: (a) The existence and attributes of the product.
5. Physical configuration of a product refers to ________________.
(a) Shape.
(b) Size.
(c) Weight.
(d) All of the above.
Ans: (d) All of the above.
C. State whether the following are True or False:
1. Sales promotion refers to communicating with the audience through personal and non-media vehicles.
Ans: True.
2. Cash incentives are directly provided by the vendors to the retailers.
Ans: False.
3. The retailers support packs which have better design.
Ans: True.
4. Window display includes many promotion techniques, such as mass display, store loyalty cards, etc.
Ans: False.
D. Match the columns:
| Column A | Column B |
| 1. The disagreeing point in a product | (A) Physio-psychological process. |
| 2. Common agreement for product attributes | (B) Sales promotion. |
| 3. Perception of the product | (C) Public relations. |
| 4. The direct and immediate | (D) Dealer promotion. |
| 5. Comparing efforts involved and reward received | (E) Explicit product. |
| 6. Indirect activity of sales promotion | (F) Product evaluation. |
| 7. Direct activity of sales promotion | (G) Implicit product. |
Ans:
| Column A | Column B |
| 1. The disagreeing point in a product | (G) Implicit product. |
| 2. Common agreement for product attributes | (E) Explicit product. |
| 3. Perception of the product | (A) Physio-psychological process. |
| 4. The direct and immediate | (F) Product evaluation. |
| 5. Comparing efforts involved and reward received | (B) Sales promotion. |
| 6. Indirect activity of sales promotion | (C) Public relations. |
| 7. Direct activity of sales promotion | (D) Dealer promotion. |
E. Short answer questions:
1. Define sales promotion.
Ans: Sales promotion is the fastest growing area of the marketing activities. It is a major component of promotion which helps the retailer in improving the sales and generate higher profits. Promotion is like communicating with an audience through a variety of non-personal and non-media channels. In sales promotion, the firm provides special offers to customers, such as providing discounts, etc. Offers are direct proposition, which form a part of the deal. Thus, sales promotion stands for all those activities, which supplement, coordinate and make an effective effort of personal selling and advertising. It increases sales and also stimulates the consumers to buy more.
2. List out vendor-originated sales promotion techniques.
Ans: Vendor-originated sales promotion techniques are classified as in-store activities, point of display, trade incentives, direct promotion to customers and pack design.
These have been briefly discussed below:
(i) In-store activities: These activities of sales promotion are targeted to give cash or kind advantage to customers. The various type of in-store activities of sales promotion are prose off pack, premiums, small gifts, cooperative promotion, sampling, coupons, buy one get one free, multipacks, etc.
(ii) Point-of-sale display material: These are the material provided by vendors for placing products the customers often buy. It includes special fixtures, such as paperback publisher racks, dry battery stand and cold drink racks, etc. The other point-of-sale display includes display sign, leaflets demonstration, etc.
(iii) Trade incentives: These are tradeoffs or cash incentives directly provided by the vendors to the retailers. The benefit sometimes may not be extended to the customers. There can be various types of trade incentives and cash discounts, special credit terms, goods in lieu of cash, staff incentives, etc.
(iv) Direct promotion to customers: The vendor manufacturer may make use of direct promotion at the consumer’s doorsteps. This includes the distribution of coupons and free samples.
(v) Pack design: It is one of the most important techniques of promotion for the retailer. The retailer may decide to accept a package design over its contents. Normally, the retailers support those packs which have a better package design.
3. What is a point-of-sale display?
Ans: These are materials provided by vendors for placing products that customers often buy. It includes special fixtures such as paperback publisher racks, dry battery stands, cold drink racks, etc. Other point-of-sale displays include display signs, leaflets, demonstrations, etc.
4. What is trade incentive?
Ans: These are trade-offs or cash incentives directly provided by vendors to retailers. The benefit may sometimes not be extended to customers. Various types of trade incentives include cash discounts, special credit terms, goods in lieu of cash, staff incentives, and more.
5. Why is package design an important sales promotion technique?
Ans: It is one of the most important techniques of promotion for the retailer. The
retailer may decide to accept a package design over its contents. Normally, the retailers support those packs which have a better package design.
6. What is trade incentive?
Ans: These are trade-offs or cash incentives directly provided by vendors to retailers. The benefit may sometimes not be extended to customers. Various types of trade incentives include cash discounts, special credit terms, goods in lieu of cash, staff incentives, and more.
7. Differentiate between explicit and implicit characteristics of a product.
Ans: The differences between explicit and implicit characteristics of a product are as follows:
| Explicit | Implicit |
| Common agreement on existence and attributes. | Lack of uniformity in viewpoint; points of disagreement. |
| Objective and clearly measurable features. | Subjective and based on personal views and emotions. |
| Directly observable and generally measurable. | Perceived and interpreted differently by individuals |
| (a) Physical configuration – shape, size, weight, colour, taste, etc. (b) Associated services – warranty, repair, etc. (c) Package and brand name. (d) Product size.(e) Product life cycle. | (a) Product symbolism – status, economy, performance. (b) Communication media – personal interpretation. (c) Perception. (d) Product evaluation. |
| Forms the basis of product specifications, features, and tangible benefits communicated. | Influences branding, messaging, emotional appeal, and how the product is positioned in the consumer’s mind. |
8. What is meant by physical configuration?
Ans: A product is a bundle of physical stuff. Every product has its own shape, size, density, odour, taste, texture, colour, weight and a host of other physical attributes. Hence, the sales associate has to acquire knowledge about these areas of a product to influence the customer’s buying behaviour.
9. What is product symbolism?
Ans: A product is a symbol by virtues of its form, size, colour and function. The significance attributed by individuals vary according to the needs and social interaction. Hence, the sales associate has to study the product in terms of status symbol, economy, performance, etc., in relation to customers’ needs.
10. What is product perception?
Ans: Perception is the physiopsychological process. The sales associate has to understand how products are perceived by the consumers. These perceptions influence the marketability of a product. Hence, the sales associate has to gather information about the
perception of consumers on the product sold by the retailers. This helps to reformulate product policies to suit the product needs of consumers
F. Long answer questions:
1. Define the objectives of sales promotion.
Ans: Sales promotion is designed to be used as a short-term tactic to boost sales.
The objectives of sales promotions are as follows:
(i) Stimulate inquiries from consumers, asking for detailed information about a product.
(ii) Increase the product trials in expectation that the trial would lead to customer satisfaction.
(iii) Encourage repurchase of goods, develop loyalty in a customer’s mind.
(iv) Initiate inventory building by retailers to help the consumers with a ready supply.
(v) Get the promotional assistance of dealers by co-coordinating with personal selling.
2. Explain the nature of products in detail.
Ans: The nature of products are as under:
(i) Explicit characteristics: The explicit characteristics of a product refers to those characteristics over which there is a common agreement, in both the existence and attributes of the product. There are five attributes, which require the attention of the sales associate.
They are as follows:
(a) Physical configuration: A product is a bundle of physical stuff. Every product has its own shape, size, density, odour, taste, texture, colour, weight and a host of other physical attributes. Hence, the sales associate has to acquire knowledge about these areas of a product to influence the customer’s buying behaviour.
(b) Associated service: A sales associate should have knowledge of before and after-sales service. Before-sales services include product demonstration, informing about credit facilities, if available; and after-sales services include delivery, installation, provision of spare parts, repair service, warranties, etc.
(c) Package and brand name: The sales associate has to gain knowledge of packaging or brand name to differentiate with competitors’ brand or products. This enables to highlight the product features in comparison with other products available in the market.
(d) Product size: A sales associate must have the knowledge of a product’s width, depth and consistency. ‘Width’ refers to a product lines’ depth for the number of items displayed of every product line, and ‘consistency’ indicates the similarity among the product lines.
(e) Product life cycle: A product’s life cycle includes introduction, growth, maturity and decline. A product can be located at any stage of its existence, and hence, the sales associate has to know at which stage of existence the product is. This enables him or her to formulate different strategies for selling goods and services.
Implicit characteristics: It is evident that every person sees a product in a different way and uniformity lacks in their viewpoint. The perception of a person may not match with the perception of another. These points of disagreements are called ‘implicit characteristics’.
The implicit characteristics of a product are as follows:
(a) Product symbolism: A product is a symbol by virtues of its form, size, colour and function. The significance attributed by individuals vary according to the needs and social interaction. Hence, the sales associate has to study the product in terms of status symbol, economy, performance, etc., in relation to customers’ needs.
(b) Communication media: The sales associate has to determine the consumer’s personal interpretation of the symbols medicated by his or her culture groups and group influence and personality. He or she has to study whether the product information is given or hidden. The sales associate also needs to understand and communicate as to what the product is used for, at what rate, made by whom and where it is available.
(c) Product perception: Perception is the physio-psychological process. The sales associate has to understand as to how products are perceived by the consumers. These perceptions influence the marketability of a product. Hence, the sales associate has to gather information about the perception of consumers on the product sold by the retailers. This helps to reformulate product policies to suit the product needs of consumers.
(d) Product evaluation: Product evaluation helps the retailer to know consumer satisfaction over the product used by him or her. Evaluation refers to comparing the efforts involved and rewards received by the consumer. Thus, every product has both explicit and implicit characteristics, which are to be understood by the retailers. It helps the retailers to formulate successful product policies.
G. Check your performance:
1. Draw a chart on sales promotion techniques adapted by different retail formats.
Ans:
2. Identify the techniques that are suitable for various retail formats.
Ans: Sales promotion techniques are used by retailers across all formats like departmental stores, supermarkets, convenience stores, specialty stores, discount stores and e-tailers. The most commonly used techniques include coupons, premium offers, price-off, product bundling, sampling, contests, lucky draws, scratch cards, free gifts, exchange offers, buy one get one free and special festive discounts.
| SESSION 3: RESPONDING TO QUESTIONS AND COMMENTS |
| Check Your Progress |
A. Fill in the blanks:
1. A sales associate should always aim to ______________ a conversation.
Ans: Close.
2. __________________ language replaces negative phrases.
Ans: Positive.
3. Receiving a defective product is discouraging from a _________________ perspective.
Ans: Customer’s.
4. A sales associate gives the customer satisfaction by providing the right ___________ about the product, which the customer has decided to buy.
Ans: Information.
5. A sales associate should show ___________ to the customer, when any product is defective or needs replacement.
Ans: Empathy.
B. Multiple choice questions:
1. How is a sales associate supposed to respond to an angry customer?
(a) Angrily.
(b) Must apologise.
(c) Complain to the superior.
(d) All of the above.
Ans: (b) Must apologise.
2. Many a time, angry customers like to be _______________.
(a) Empathised with.
(b) Argued with.
(c) Fought with.
(d) None of the above.
Ans: (a) Empathised with.
3. While dealing with customers, it is important to always close the sale by making the _________________.
(a) Customer doubtful.
(b) Customer happy.
(c) Customer move away.
(d) None of the above.
Ans: (b) Customer happy.
4. When a sales associate is unable to answer a customer’s query he or she must ___________________.
(a) Panic.
(b) Not panic.
(c) Leave the place.
(d) None of the above.
Ans: (b) Not panic.
C. State whether the following are True or False:
1. A sales associate should not panic for not knowing an answer.
Ans: True.
2. Training allows the sales associate to have some idea of what to say to customers in a tough situation.
Ans:True.
3. Receiving a defective product is not discouraging from the customer’s perspective.
Ans: False.
4. Sales associates are not required to be polite to an angry customer.
Ans: False.
D. Match the columns:
| Column A | Column B |
| 1. Sales associate have to use positive | (A) Sales. |
| 2. Holding the product’s vision is the responsibility of | (B) Phrase. |
| 3. In case of a defective product | (C) Language. |
| 4. Closing a conversation is not closing | (D) Sales associate. |
| 5. End conversation with a | (E) Empathise with the customer. |
Ans:
| Column A | Column B |
| 1. Sales associate have to use positive | (C) Language. |
| 2. Holding the product’s vision is the responsibility of | (D) Sales associate. |
| 3. In case of a defective product | (E) Empathise with the customer. |
| 4. Closing a conversation is not closing | (A) Sales. |
| 5. End conversation with a | (B) Phrase. |
E. Short answer questions.
1. How should a sales associate respond to a customer’s query when he or she has no answer?
Ans: A sales associate must not panic for not knowing an answer because his or her responsibility is to show firmness to make things right.
Never should the sales associate say, “I don’t know”, as such a response will not help the customer. Instead of giving such a response, the sales associate should say that “It is a valid question. Let me find out the right thing for you”. Place the need of the customer as important over a situation of not knowing the answer. The question must be taken to the concerned staff or superior to find out the answer and respond to the customer.
2. How should a sales associate reply to the customer when a particular item is not available in the store?
Ans: Any sales associate will not prefer to tell the customer about the unavailability of a product. The main skills while dealing with the customers is the use of positive language. It helps avoid nasty or rash reactions. For example, when a customer shows interest in a product, but it is presently unavailable or will only be available after sometime, in such a situation, the sales associate might respond to the customer in two ways.
(i) With positive language: The sales associate may say that the product will be available next month and I will place an order for you, if needed.
(ii) Without positive language: The sales associate may tell the customer that the product required is unavailable.
(iii) Positive language replaces negative phrases (“I can’t…”).
3. How should a sales associate react to the comments made by customers on a product?
Ans: Customers can often have some valuable comments and suggestions on the usage and improvement in a product. However, holding the product’s vision is the responsibility of the sales associate. If a customer gives suggestions or comments on the features of the product, then the sales associate should not respond, saying “We will take a look.” This response gives false hope to the customers and if they check after a few weeks, this may disappoint them.
F. Long answer questions:
1. Explain how a sales associate should respond to questions regarding transferring a call of the customer, product quality and defective product.
Ans: Sometimes, the call of a customer needs to be transferred to the concerned department to help them. Customers feel happy if their concerns are addressed.
Customers can often have some valuable comments and suggestions on the usage and improvement in a product. However, holding the product’s vision is the responsibility of the sales associate. If a customer gives suggestions or comments on the features of the product, then the sales associate should not respond, saying “We will take a look.” This response gives a false hope to the customers and if they check after few weeks, this may disappoint them.
Receiving a defective product is discouraging from a customer’s perspective. In such a situation, showing empathy to the customer is important. Consider the examples given below to know the responses to be made and how a problem can be fixed.
“I am so sorry to disappoint you. There was a mistake in the manufacturing process or shipping. Can I send a new one to you?”
Such a response completes the important objectives given below:
(a) Understanding a customer’s frustrating experience—it explains what the problem is and how clearly an immediate solution can be given.
(b) Depending on the type of product sold and how a business is conducted, the sales associate can respond to the customer, saying: “Should I send you a full refund?”
2. How should a sales associate handle severely angry customers?
Ans: The sales associate is required to be polite while dealing with an emotional and angry customer.
The sales associate may keep the following in mind:
(i) Apologise sincerely: “I am sorry” is a mandatory response in such situations. Make a personal apology to the customer, who has faced an ugly experience.
(ii) Sympathise: Many a time, angry customers need to be empathised with. Even small phrases spoken by the sales associate like “I understand how upsetting that must have been,” can help the customer realise that the sales team is in the pursuit to make things right.
(iii) Accept responsibility: The sales associate must accept responsibility for a customer’s unhappiness. It does not make the sales associate ‘at fault’.
(iv) Prepare to help: Fixing a problem by setting the things right is important. A sales associate places a replacement order for customers. Even if things are handled perfectly, some customer simply cannot calm down. In such a situation, the sales associate should try making the best effort.
G. Check your performance:
1. Identify situations where a sales associate is unable to answer or items are not available.
Ans: A sales associate must not panic for not knowing an answer because his or her responsibility is to show firmness to make things right. Never should the sales associate say, “I don’t know”, as such a response will not help the customer. Instead of giving such a response, the sales associate should say that “It is a valid question. Let me find out the right thing for you”. Place the need of the customer as important over a situation of not knowing the answer. The question must be taken to the concerned staff or superior to find out the answer and respond to the customer.
Any sales associate will not prefer to tell the customer about the unavailability of a product. The main skills while dealing with the customers is the use of positive language. It helps avoid nasty or rash reactions. For example, when a customer shows interest in a product, but it is presently unavailable or will only be available after sometime, in such a situation, the sales associate might respond to the customer in two ways.
(i) With positive language: The sales associate may say that the product will be available next month and I will place an order for you, if needed.
(ii) Without positive language: The sales associate may tell the customer that the product required is unavailable.
(iii) Positive language replaces negative phrases (“I can’t…”).
2. Demonstrate customer handling skills.
Ans: The sales associate is required to be polite while dealing with an emotional and angry customer.
The sales associate may keep the following in mind:
(i) Apologise sincerely: “I am sorry” is a mandatory response in such situations. Make a personal apology to the customer, who has faced an ugly experience.
(ii) Sympathise: Many a time, angry customers need to be empathised with. Even small phrases spoken by the sales associate like “I understand how upsetting that must have been”, can help the customer realise that the sales team is in the pursuit to make things right.
(iii) Accept responsibility: The sales associate must accept responsibility for a customer’s unhappiness. It does not make the sales associate ‘at fault’.
(iv) Prepare to help: Fixing a problem by setting the things right is important. A sales associate places a replacement order for customers. Even if things are handled perfectly, some customer simply cannot calm down. In such a situation, the sales associate should try making the best effort.
3. Perform role-play on closing a conversation with a customer.
Ans: The sales associate must always aim to ‘close’ a conversation. This does not refer to closing the sale. Instead closing a conversation means that a customer is happy about the product. The sales associate has to ensure that the customer is leaving happy and satisfied.
This can be seen with three important things:
(a) Care must be taken about getting what the customer requires.
(b) If the customer needs information or has a query to be answered, the sales associate must provide the right information.
(c) The customer determines what is needed and that the need is met in a right way.
The sales associate must try ending a conversation with phrases like “I am happy to help you, sir or ma’am”, “We are happy to serve you”, etc., as they make a big impact.
| SESSION 4: TECHNIQUES OF CLOSING A SALE |
| Check Your Progress |
A. Fill in blanks:
1. The last step in the selling process is __________________.
Ans: Closing a sale .
2. _______________ means the act of actually getting prospect’s assets to a sales proposal.
Ans: Close.
3. Natural close is also called _________________.
Ans: Ask for it close.
4. The technique in which the questions asked are not in direct reference to the purchase is called _______________.
Ans: Order form close.
B. Multiple choice questions:
1. The technique in which a sales associate assumes that a customer visiting a store will definitely buy a product is called __________________.
(a) Natural close.
(b) Summary close.
(c) Alternative close.
(d) None of the above.
Ans: (c) Alternative close.
2. The process of summarising the list of benefits customer gets is known as __________________.
(a) Final objective close.
(b) Summary close.
(c) Cautionary tale close.
(d) None of the above.
Ans: (b) Summary close.
3. The closing technique, which is intended to motivate the customer to buy a product is known as __________________.
(a) Conditional table close.
(b) Conditional close.
(c) Balance sheet close.
(d) Lost sales approach.
Ans: (a) Conditional table close.
4. The closing technique, which is intended for customers who are slow in making decisions is called ___________________.
(a) Conditional close.
(b) Assumption close.
(c) Balance sheet close.
(d) Lost sales approach.
Ans: (a) Conditional close.
5. In which selling technique does a sales associate reasons for and the buyer’s reasons against a product?
(a) Lost sales approach.
(b) Summary close.
(c) Balance sheet close.
(d) None of the above.
Ans: (c) Balance sheet close.
C. State whether the following are True or False:
1. Having a friendly appearance is a social quality of a sales associate.
Ans: True.
2. In an alternative close, the sales associate has to provoke a customer to make the final choice between different products.
Ans: True.
3. For unpredictable customers, the techniques for closing a sale are called alternative close.
Ans: True.
4. The implications of failing to decide to purchase a product at the very moment is called final objective close.
Ans: False.
D. Match the columns:
| Column A | Column B |
| 1. Conditional close | (A) Motivating the customer. |
| 2. Final objection close | (B) Reason for and against. |
| 3. Lost sales approach | (C) Objective right at the end. |
| 4. Assumption close | (D) show in making decision. |
| 5. Balance sheet close | (E) Loss of customer. |
| 6. The cautionary tale close | (F) Expressions and communication of customers . |
Ans:
| Column A | Column B |
| 1. Conditional close | (A) Motivating the customer. |
| 2. Final objection close | (C) Objective right at the end. |
| 3. Lost sales approach | (E) Loss of customer. |
| 4. Assumption close | (F) Expressions and communication of customers . |
| 5. Balance sheet close | (B) Reason for and against. |
| 6. The cautionary tale close | (D) show in making decision. |
E. Short answer questions.
1. Define closing of sale.
Ans: Closing a sale, an important part of personal selling process, refers to completing a sales transaction– it is the final step while making a sales call to a customer. It refers to the customer signing on the dotted line of the agreement completing the sale. The sales process is adaptive, which means that each situation may be different and sales associates have to adapt and understand what is important to each customer and where each is in the buying process. But in order for a sales associate to use adaptive selling, he or she must thoroughly understand the steps in the selling process and how each works to use them effectively.
2. What is natural close?
Ans: It is also called as ‘ask for it’ close. The sales associate has to be sure that the customer does not sense that he or she is using a special formula to close a sale. The closing technique should appear as a natural development from the sales conversation. It has to be like a natural resolution of the sales interview without the customer knowing the special tactics of the sales associate.
3. What do you understand by the term ‘summary close’?
Ans: The sales associate summarises the list of benefits that the customer receives if a product is purchased from the store. The sales associate may say that “we have reached the end of sale, so may I highlight the main points so that we could close a deal. This technique is one of the most natural methods of closing a sale and is used by the sales associate for those customers, who are unpredictable.
4. What is meant by ‘balance sheet close’?
Ans: It is closing technique in which the sales associate assists an indecisive prospect to list on paper the arguments ‘for’ and ‘against’ a particular product choice.
F. Long answer questions:
1. What is closing a sale? Explain the factors influencing successful closing of sale.
Ans: Closing a sale, an important part of personal selling process, refers to completing a sales transaction– it is the final step while making a sales call to a customer. It refers to the customer signing on the dotted line of the agreement completing the sale. The sales process is adaptive, which means that each situation may be different and sales associates have to adapt and understand what is important to each customer and where each is in the buying process. But in order for a sales associate to use adaptive selling, he or she must thoroughly understand the steps in the selling process and how each works to use them effectively.
The factors influencing successful closing of sales are as under:
(i) Salesperson’s personality: The personality of the sales associate influences the closing of a sale. It refers to the sum total of everything about a salesperson that influences the prospects favourably. The personality of the sales associate is divided into physical, mental, social and character. The physical attributes are sound health, neat appearance and voice. The mental qualities are alertness, confidence, enthusiasm, observation, etc. The social qualities include friendly appearance, condensability, courtesy, cooperation, manners, etc. These characteristics help the sales associate in closing a sale favourably.
(ii) Awareness of company policies: The sales associate must have the basic knowledge of the company when he or she intends to close the sale with prospective customers. He or she must be aware of the history of the company its origin and later changes, philosophy and policies, etc. This enables the sales associate to clarify all queries of the prospective customers and induce them to purchase goods.
(iii) Product information: Product knowledge is necessary for the sales associate. He or she gives every possible information to the customer about the product to get orders. It includes different models, size, weight, ingredients, packaging, quality, price, discount offered, benefits, replacement, after-sales service, etc. This helps the sales associate to close the sale favourably with the prospective customers.
(iv) Need of customer: In order to close the sale, sales associates should have the knowledge of the prospective customers. He or she has to study in detail their buying behaviour, likes and dislikes, nature and type of customers, etc. This will enable him or her to adopt suitable strategies to close the sale.
(v) Information on competing products: The knowledge of the availability of the product and competitors in the market helps the sales associate to highlight relative merits of the product and closing a sale becomes an easy task.
Thus, these five factors are crucial for the sales associate in closing a sale with the prospective customers.
2. Discuss the techniques of closing a sale.
Ans: The techniques of closing a sale are as under:
(i) It is also called ‘ask for it’ close: The sales associate has to be sure that the customer does not sense that he or she is using a special formula to close a sale. The closing technique should appear as a natural development from the sales conversation. It has to be like a natural resolution of the sales interview without the customer knowing the special tactics of the sales associate.
(ii) The order form close: It is different from the natural close technique, i.e., the questions asked are not in direct reference to the purchase. Here, the sales associate has to sound natural and avoid any rejection. For example, ‘‘Sir, shall I make the invoice or bill?’’
(iii) The alternative close: In this technique, the sales associate assumes that the customer visiting a store will definitely buy a product. The only thing that is not decided is the design, colour, style, shape, etc. Hence, product presentation is important in this technique of closing the sale. The sales associate has to present an alternative option, which suits the needs of the customer. It should provoke the customer to make the final choice between the product options that were presented.
(iv) The summary close: Here, the sales associate summarises the list of benefits that the customer receives if a product is purchased from the store. The sales associate may say that “we have reached the end of sale, so may I highlight the main points so that we could close a deal. This technique is one of the most natural methods of closing a sale and is used by the sales associate for those customers, who are unpredictable.
(v) The cautionary tale close: The techniques of closing a sale are, usually, adopted by the retailer to motivate the customers to decide in favour of the purchase of a product. It has proved to be a useful technique for closing the sale. It is possible to motivate undecided customers to take a purchase decision. It helps the customer to know the implication of failing to decide to purchase the product at that very moment. Hence, the sales associate tries not to make up stories to motivate the customers to buy.
(vi) The final objection close: In spite of all efforts of the sales associate, the customer sometimes may have some objection right at the end of the sale process. The customer may feel hesitant to mention the objection point. The sales associate has to try and persuade the customer to communicate the objection point as the final objection may affect his or her buying decision in the process of buying the product.
(vii) The conditional close: This technique can be used by the sales associate for that customer, who is very slow in making a decision. These customers may have the intention to buy a product but, usually, find an excuse that they can delay their decision. At this point, the sales associate should assure and develop confidence in the customer that if any help is required, he or she will be at service. Hence, the sales associate has to come forth with the conditional close in as subtle way, assuring the customer of the best service.
(viii) The lost sales approach: Different types of customers visit a store. Some come with a definite decision to purchase, some may be inductive, some may develop objection to purchase in the end. The sales associate must not feel that he or she has lost sale with such type of customers. The lost sale can be realised with further conversation with the customers. He or she has to deal with them in maintaining a sense of balance. Therefore, lost sale can be converted as actual sale with the additional selling efforts of the salesperson.
(ix) The assumption close: The customer’s manners, body language or comment may indicate the decision that he or she made to buy a product. The expressions and communication of the customer with the sales associate gives an opportunity to make an assumption close, which means not having the purchase. It gives the customer a chance to make a painless decision.
(x) The balance sheet close: It is closing technique in which the sales associate assists an indecisive prospect to list on paper the arguments ‘for’ and ‘against’ a particular product choice.
G. Check your performance:
1. Demonstrate the various techniques for closing a sale.
Ans: The techniques of closing a sale are as under:
(i) It is also called as ‘ask for it’ close. The sales associate has to be sure that the customer does not sense that he or she is using a special formula to close a sale. The closing technique should appear as a natural development from the sales conversation. It has to be like a natural resolution of the sales interview without the customer knowing the special tactics of the sales associate.
(ii) The order form close: It is different from the natural close technique, i.e., the questions asked are not in direct reference to the purchase. Here, the sales associate has to sound natural and avoid any rejection. For example, ‘‘Sir, shall I make the invoice or bill?’’
(iii) The alternative close: In this technique, the sales associate assumes that the customer visiting a store will definitely buy a product. The only thing that is not decided is the design, colour, style, shape, etc. Hence, product presentation is important in this technique of closing the sale. The sales associate has to present an alternative option, which suits the needs of the customer. It should provoke the customer to make the final choice between the product options that were presented.
(iv) The summary close: Here, the sales associate summarises the list of benefits that the customer receives if a product is purchased from the store. The sales associate may say that “we have reached the end of sale, so may I highlight the main points so that we could close a deal. This technique is one of the most natural methods of closing a sale and is used by the sales associate for those customers, who are unpredictable.
(v) The cautionary tale close: The techniques of closing a sale are, usually, adopted by the retailer to motivate the customers to decide in favour of the purchase of a product. It has proved to be a useful technique for closing the sale. It is possible to motivate undecided customers to take a purchase decision. It helps the customer to know the implication of failing to decide to purchase the product at that very moment. Hence, the sales associate tries not to make up stories to motivate the customers to buy.
(vi) The final objection close: In spite of all efforts of the sales associate, the customer sometimes may have some objection right at the end of the sale process. The customer may feel hesitant to mention the objection point. The sales associate has to try and persuade the customer to communicate the objection point as the final objection may affect his or her buying decision in the process of buying the product.
(vii) The conditional close: This technique can be used by the sales associate for that customer, who is very slow in making a decision. These customers may have the intention to buy a product but, usually, find an excuse that can delay their decision. At this point, the sales associate should assure and develop confidence in the customer that if any help is required, he or she will be at service. Hence, the sales associate has to come forth with the conditional close in a subtle way, assuring the customer of the best service.
(viii) The lost sales approach: Different types of customers visit a store. Some come with a definite decision to purchase, some may be inductive, some may develop objection to purchase in the end. The sales associate must not feel that he or she has lost sales with such types of customers. The lost sale can be realised with further conversation with the customers. He or she has to deal with them in maintaining a sense of balance. Therefore, lost sales can be converted as actual sales with the additional selling efforts of the salesperson.
(ix) The assumption close: The customer’s manners, body language or comment may indicate the decision that he or she made to buy a product. The expressions and communication of the customer with the sales associate gives an opportunity to make an assumption close, which means not having the purchase. It gives the customer a chance to make a painless decision.
(x) The balance sheet close: It is a closing technique in which the sales associate assists an indecisive prospect to list on paper the arguments ‘for’ and ‘against’ a particular product choice.
2. Identify the types and techniques of closing a sale.
Ans: Types of Closing a Sale:
The closing of a sale can be of the following types:
(a) Assumption close: The sales associate thinks the customer will surely buy. This works well with regular customers.
(b) Alternative close: The sales associate helps the customer choose between two or more options.
Example: “Do you want the red one or the blue one?”
(c) Summary close: The sales associate explains all the benefits of the product. This enables the customer to make a final decision.
(d) Order form close: The sales associate may ask questions that are not in direct reference to the purchase.
(e) Balance sheet close: The sales associate gives the buyer reasons for and against the product.
(f) Cautionary tale close: This technique is used to motivate the customer.
(g) Conditional close: This technique is used for customers who are slow in making decisions.
(h) Final objection close: The sales associate answers the customer’s last doubts and encourages them to buy.
(i) Lost sale close: The sales associate tells the customer what they might miss if they don’t buy now.
The techniques of closing a sale are as under:
(i) It is also called as ‘ask for it’ close: The sales associate has to be sure that the customer does not sense that he or she is using a special formula to close a sale. The closing technique should appear as a natural development from the sales conversation. It has to be like a natural resolution of the sales interview without the customer knowing the special tactics of the sales associate.
(ii) The order form close: It is different from the natural close technique, i.e., the questions asked are not in direct reference to the purchase. Here, the sales associate has to sound natural and avoid any rejection. For example, ‘‘Sir, shall I make the invoice or bill?’’
(iii) The alternative close: In this technique, the sales associate assumes that the customer visiting a store will definitely buy a product. The only thing that is not decided is the design, colour, style, shape, etc. Hence, product presentation is important in this technique of closing the sale. The sales associate has to present an alternative option, which suits the needs of the customer. It should provoke the customer to make the final choice between the product options that were presented.
(iv) The summary close: Here, the sales associate summarises the list of benefits that the customer receives if a product is purchased from the store. The sales associate may say that “we have reached the end of sale, so may I highlight the main points so that we could close a deal. This technique is one of the most natural methods of closing a sale and is used by the sales associate for those customers, who are unpredictable.
(v) The cautionary tale close: The techniques of closing a sale are, usually, adopted by the retailer to motivate the customers to decide in favour of the purchase of a product. It has proved to be a useful technique for closing the sale. It is possible to motivate undecided customers to take a purchase decision. It helps the customer to know the implication of failing to decide to purchase the product at that very moment. Hence, the sales associate tries not to make up stories to motivate the customers to buy.
(vi) The final objection close: In spite of all efforts of the sales associate, the customer sometimes may have some objection right at the end of the sale process. The customer may feel hesitant to mention the objection point. The sales associate has to try and persuade the customer to communicate the objection point as the final objection may affect his or her buying decision in the process of buying the product.
(vii) The conditional close: This technique can be used by the sales associate for that customer, who is very slow in making a decision. These customers may have the intention to buy a product but, usually, find an excuse that can delay their decision. At this point, the sales associate should assure and develop confidence in the customer that if any help is required, he or she will be at service. Hence, the sales associate has to come forth with the conditional close in a subtle way, assuring the customer of the best service.
(viii) The lost sales approach: Different types of customers visit a store. Some come with a definite decision to purchase, some may be inductive, some may develop objection to purchase in the end. The sales associate must not feel that he or she has lost sale with such type of customers. The lost sale can be realised with further conversation with the customers. He or she has to deal with them in maintaining a sense of balance. Therefore, lost sales can be converted as actual sales with the additional selling efforts of the salesperson.
(ix) The assumption close: The customer’s manners, body language or comment may indicate the decision that he or she made to buy a product. The expressions and communication of the customer with the sales associate gives an opportunity to make an assumption close, which means not having the purchase. It gives the customer a chance to make a painless decision.
(x) The balance sheet close: It is closing technique in which the sales associate assists an indecisive prospect to list on paper the arguments ‘for’ and ‘against’ a particular product choice.
Hi! my Name is Parimal Roy. I have completed my Bachelor’s degree in Philosophy (B.A.) from Silapathar General College. Currently, I am working as an HR Manager at Dev Library. It is a website that provides study materials for students from Class 3 to 12, including SCERT and NCERT notes. It also offers resources for BA, B.Com, B.Sc, and Computer Science, along with postgraduate notes. Besides study materials, the website has novels, eBooks, health and finance articles, biographies, quotes, and more.
