Which of the Following Is Recommended When Using Suggestion Selling

question 23

Multiple Choice

Which of the following is recommended when using suggestion selling?

• A)Don't waste time suggesting low-profit items.
• B)Don't hesitate to make suggestions before closing the sale.
• C)Don't make suggestions until you have first satisfied the customer's primary need.
• D)Show the suggested item only if the customer seems interested and profit margins are high.
• E)Suggestion selling should be used to generate half again as much revenue as the primary product does.

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Definitions:

Decision Tree

A timeline representation used in planning projects subject to multiple outcomes. Wherever an event has several outcomes, the timeline branches into as many paths, each with a probability. The result is a proliferation of possible paths to completion, each representing an outcome, its financial implication, and its probability. Hence, the decision tree specifies a probability distribution for the project’s overall financial outcome.

NPV Profile

A graphical representation showing the relationship between the Net Present Value (NPV) of a project and various discount rates.

Certainty Equivalent NPV

A method that adjusts the net present value (NPV) of an investment by incorporating the decision maker's risk aversion, providing a risk-adjusted NPV under certainty.

Traditional NPV

Net Present Value; a method of evaluating the profitability of an investment by calculating the present value of expected future cash flows minus the initial investment cost.