*Correct answers are bold

1. Upon first entering the office of the purchasing manager of a company with whom you would like to do business, you notice a picture of the team mascot of your alma mater on the wall. You should:

a. Mention that you went to the same university prior to discussing business.
b. Mention that you went to the same university after discussing business.
c. Not mention this personal similarity in a business meeting.
d. Discuss the fact that you went to the same university only if the client brings up the topic.

Explanation: The Liking Principle is activated by uncovering genuine similarities; discussing these first facilitates business discussions.

2. You are attempting to persuade the Board of Directors of your company that it is in your company’s best interest to implement a costly revision to your back-office functions. You know that the Board is very concerned about costs, so you have also formulated two alternate plans that are less costly and less comprehensive. When it comes time for your presentation, which of the following strategies should you use to obtain the optimal results (the greatest degree of change the Board will support)?

a. Describe the least expensive revision first.
b. Describe the mid-range revision first, and then ask the Chair if s/he would like to hear the alternate plans.
c. Describe the most expensive revision first, then the mid-range, and then the least costly plan.
d. Ask the Chair which plan s/he is most interested in and then describe that plan only.

Explanation: The Contrast Effect states that subsequent options will be viewed in light of previously described options. Therefore, presenting the most costly option first will make the other choices seem relatively less costly and will result in an outcome that is closer to the most costly option which you prefer than will other presentation sequences.

3. Your company is launching a new product and your boss asks you to make a marketing decision. Your boss is considering two options to generate initial interest from the public: offering a price reduction on the product for a “limited-time” or offering a price reduction for a “limited number” of the product. Which approach should you recommend to get the greatest interest from the public?

a. “limited-time”
b. “limited-number”
c. Either option will produce the same positive results
d. Neither option will produce positive results

Explanation: The Scarcity Principle is amplified by competition, so limited number promotions facilitate greater interest than do limited time promotions.

4. You have an important meeting with a prospective client later today. You know from your previous discussions that the prospect is impressed with your proposal, but does not believe that implementing your ideas at this particular time is a top priority. Which of the following approaches to the meeting would provide you with the greatest chance of persuading the prospect to approve your proposal in the shortest period of time?

a. Emphasize what the prospect will lose if he does not implement your ideas at the present time.
b. Emphasize the positive features and benefits of your proposal.
c. Ask the prospect to outline his objections to your proposal.
d. Begin with a request for a commitment and then try to close the sale.

Explanation: The Scarcity Principle is amplified by the use of “loss language,” which is very motivating.

5. Imagine you are the (unlucky) campaign manager of a political candidate who has recently lost the public’s trust. Now imagine that the candidate wants to rebuild his reputation through profiling himself as a tough crime fighter. Even though his opponent has a credible track record in this regard. Of the following choices, which represents the best way for your candidate to start his next ad?

a. “My opponent has not gone far enough in fighting crime…”
b. “Many have supported my ability and willingness to fight crime…”
c. “Although my opponent has a good record of fighting crime…”
d. “Fighting crime is a critical issue…”

Explanation: The Authority Principle states that people are most influenced by those they trust. Acknowledging an opponent’s strength runs counter to self-interest and therefore promotes trust.

6. Imagine you are a financial advisor, and you believe that a young client of yours is invested too conservatively. In order to persuade her to invest in riskier, high-return investments, you should concentrate on describing:

a. How others like her have made similar mistakes. (appeal to consensus)
b. What she stands to gain if she invests in riskier options (appeal to greed)
c. What she stands to lose if she does not invest in riskier options (appeal to loss)
d. The importance of the two of you working as a team on this issue

Explanation: The Scarcity Principle is amplified by the use of “loss language,” which is very motivating.

7. You are attempting to sell your professional services to a medium-sized software company. They have never done business with you before and are uncertain as to whether they should select your company as the service provider. You will increase your persuasiveness the most by:

a. Providing them with a testimonial from Microsoft, who utilizes your services currently.
b. Providing them with a master list of all of your clients.
c. Talking about other clients’ experiences with your company in general ways, without providing any specific testimonials.
d. Providing them with several testimonials from other medium-sized software companies who are your current clients.

Explanation: The Consensus Principle is amplified when the source of the information is SIMILAR to the target.

8. If you have a new piece of information, when should you mention that it is new?

a. before you present the information
b. in the middle of the presentation of the information
c. after the presentation of the information
d. you should not mention that it is new information

Explanation: The Scarcity Principle is activated when exclusive information is involved, so the fact should be mentioned at the outset.

9. You have responsibility for motivating your company’s sales force to increase its annual performance. You were told by your supervisor to set goals for the sales people and hold them accountable. Which of the following strategies would be the most effective?

a. Set a goal for each employee based on his or her prior year’s performance and inform each of the goal.
b. Have each employee set a reasonable private goal for themselves.
c. Have each employee publicly state a reasonable goal for the year.
d. Have each employee set an unrealistically high personal goal, and keep it private.

Explanation: The Consistency Principle is amplified when a commitment is active and public.

10. You are having difficulty with employee attrition, so you organize a retreat for your office to energize your employees. You want to give each a gift for attending that will enhance the employee’s commitment to give back to the organization. Which of the following strategies is likely to produce the best results?

a. Give them all the same, expensive gift with your company’s name engraved on it.
b. Give them no gifts, but thank them for attending.
c. Give each employee a personalized gift that is meaningful, even if it is not expensive.
d. Give gifts only to those employees who complete the evaluation forms for the retreat.

Explanation: The Reciprocity Principle is amplified when a gift is tailored, significant, and unexpected even if it is not expensive.

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