A Salesperson Asking a Buyer "How Is Your Productivity Affected

question 70

Multiple Choice

A salesperson asking a buyer "How is your productivity affected when your copier is not functioning properly?" is asking a ____ type of SPIN question.

• A) Implication
• B) Problem
• C) Situation
• D) Need-Payoff
• E) None of the above

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Definitions:

Moral Hazard

A situation in which one party is more willing to take risks because the costs that may result will not be borne by them.

Adverse Selection

A situation in which asymmetric information leads to the market being dominated by inferior products or by participants who are at a disadvantage.

Moral Hazard

A situation where one party in a transaction has the opportunity to take risks because the costs that those risks entail will not be borne by that party.

Portfolio Risk

The variability of returns from a portfolio of investments.