Adverse Selection

question 136

Multiple Choice

Adverse selection:

• A)results from unobserved characteristics of people or commodities.
• B)relates to the actions of people.
• C)occurs after parties have entered into an agreement.
• D)All of these statements are true.

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Definitions:

Need Awareness

The process of recognizing and understanding a customer's needs or problems that a product or service can solve.

FAB Selling Technique

A method focusing on the Features, Advantages, and Benefits of a product or service, highlighting its value to the customer.

Sales Presentation

A structured dialogue or demonstration aimed at persuading a potential buyer to purchase a product or service.

Trial Close

A technique used in sales to ask preliminary questions or make statements to gauge the customer's readiness to make the purchase.