MBA Sales 2

Question 1

A salesperson uses the SPIN selling technique. What does the 'N' in SPIN stand for?

Accepted Answer

Need-payoff

Answer

SPIN stands for Situation, Problem, Implication, and Need-payoff questions, a framework developed by Neil Rackham.

Question 2

Which pricing strategy involves setting a high initial price and gradually lowering it over time?

Accepted Answer

Price skimming

Answer

Price skimming captures maximum revenue from early adopters before lowering prices to attract more price-sensitive customers.

Question 3

In a B2B sales context, what is a 'champion' in the buying organization?

Accepted Answer

An internal advocate who promotes your solution to decision-makers

Answer

A champion is an internal stakeholder who believes in your solution and actively advocates for it within the buying organization.

Question 4

Which sales compensation model best aligns salesperson incentives with long-term customer retention?

Accepted Answer

Commission tied to customer lifetime value

Answer

Tying commissions to customer lifetime value incentivizes salespeople to focus on customer success and retention rather than just closing deals.

Question 5

A sales team consistently loses deals in the final stage. What is the most likely root cause?

Accepted Answer

Failure to uncover or address key objections early in the process

Answer

Late-stage deal losses typically indicate unresolved objections or concerns that were not surfaced and addressed during earlier sales stages.

MBA - Degree Master of Business Administration Practice Test