Quiz #3- Objection Handling

1. What does ARC stand for?

Application, Replication, Cultivation

Acknowledge, Reply, Create

Ackowledge, Respond, Close

Apply, Retract, Conform

ARC stands for Acknowledge, Respond, Close. This acronym is commonly used in customer service or support settings to outline the steps that should be taken when dealing with customer inquiries or issues. "Acknowledge" refers to acknowledging the customer's concern or question, "Respond" involves providing a helpful and appropriate response, and "Close" means concluding the interaction or resolving the customer's problem satisfactorily. This acronym serves as a reminder for customer service representatives to follow a structured and effective approach when dealing with customer interactions.

Explanation

ARC stands for Acknowledge, Respond, Close. This acronym is commonly used in customer service or support settings to outline the steps that should be taken when dealing with customer inquiries or issues. "Acknowledge" refers to acknowledging the customer's concern or question, "Respond" involves providing a helpful and appropriate response, and "Close" means concluding the interaction or resolving the customer's problem satisfactorily. This acronym serves as a reminder for customer service representatives to follow a structured and effective approach when dealing with customer interactions.

2. "We don't discount!" What would be your response?

I completely understand. I called you because we feature businesses that typically don't discount. Groupon is primarily a customer acquitision tool. How do you usually acquire new customers?

If your business can use a larger customer base, you should be discounting.

Discounting should not be a concern if your volume increases drastically after running a Groupon.,

A lot of businesses I call say they don't discount but eventually they agree to a contract and are happy with the results.

The follow up question actas as a "pivot".

Explanation

The follow up question actas as a "pivot".

3. What does ARP stand for?

Amicable Relationship Placement

Apply, Reply, Pivot

Always Read People

Acknowledge, Respond, Pivot

ARP stands for Acknowledge, Respond, Pivot. This acronym is commonly used in communication or conflict resolution strategies. "Acknowledge" refers to recognizing and validating the other person's feelings or concerns. "Respond" means actively engaging in the conversation and providing a thoughtful reply. "Pivot" suggests the ability to adapt or shift the conversation in a positive direction. This acronym emphasizes the importance of effective communication and problem-solving skills in building and maintaining relationships.

Explanation

ARP stands for Acknowledge, Respond, Pivot. This acronym is commonly used in communication or conflict resolution strategies. "Acknowledge" refers to recognizing and validating the other person's feelings or concerns. "Respond" means actively engaging in the conversation and providing a thoughtful reply. "Pivot" suggests the ability to adapt or shift the conversation in a positive direction. This acronym emphasizes the importance of effective communication and problem-solving skills in building and maintaining relationships.

4. Vendors are paid by Living Social 1 month after the feature. Given our payment structure, how would you overcome this objection?

Groupon is exponentially larger than Living Social and we do not have the capacity to pay everyone up front.

The amount that you will receive from Groupon (5-7 days) the week after the feature will, in many instances, outway the total amount you will receive from Living Social. Also, Groupon would like the payment structure to reflect the rate of redemption.

We hold on to the revenue to maximize interest as our company continues to grow and expand into new markets

The credit card companys have informed us that we cannot pay for services that have not yet been rendered. We would be happy to change our payment structure if it did not violate

The explanation for the given correct answer is that Groupon offers a quicker payment structure compared to Living Social, with vendors receiving payment within 5-7 days after the feature. This is advantageous as it allows vendors to have access to their funds sooner, which can be beneficial for their cash flow. Additionally, Groupon wants the payment structure to align with the rate of redemption, ensuring that vendors are paid in a timely and fair manner based on the actual usage of their services.

Explanation

The explanation for the given correct answer is that Groupon offers a quicker payment structure compared to Living Social, with vendors receiving payment within 5-7 days after the feature. This is advantageous as it allows vendors to have access to their funds sooner, which can be beneficial for their cash flow. Additionally, Groupon wants the payment structure to align with the rate of redemption, ensuring that vendors are paid in a timely and fair manner based on the actual usage of their services.

5. "How do we make money?" What would be your response?

We pay you the day after the feature

All Groupon merchants eventually make money

By converting Groupon subscribers into regular customers

It doesn't cost anything to participate with Groupon

The correct answer is "By converting Groupon subscribers into regular customers." This means that the main way Groupon makes money is by getting people who have subscribed to their service to become regular customers of the businesses they feature. This suggests that Groupon's business model relies on building a loyal customer base for the businesses they partner with.

Explanation

The correct answer is "By converting Groupon subscribers into regular customers." This means that the main way Groupon makes money is by getting people who have subscribed to their service to become regular customers of the businesses they feature. This suggests that Groupon's business model relies on building a loyal customer base for the businesses they partner with.

6. Identify all of Groupon's current and potential competitors. (Check all that apply)

Yelp!

Living Social

BuyDig

BuyWithMe

Google Offers

Imitation is the best form of flattery and we are flattered more and more everyday!!!

Explanation

Imitation is the best form of flattery and we are flattered more and more everyday!!!

Submit

7. Identify the difference(s) between Groupon and Living Social. (Check all that apply)

Discussion Board

Opt-in subscriber base

Payment Structure

Revenue Sharing/Split Profit

Review Restrictions

Performance Based Models

Groupon and Living Social have differences in their discussion board, opt-in subscriber base, payment structure, and review restrictions. Groupon has a discussion board where users can engage in conversations and share their experiences, while Living Social may not have this feature. Groupon also has an opt-in subscriber base, meaning users have to actively subscribe to receive their offers, while Living Social may have a different approach. The payment structure may differ between the two platforms, with Groupon possibly having a different system for merchants to receive payments. Lastly, Groupon may have review restrictions in place, whereas Living Social may not have any restrictions on user reviews.

Explanation

Groupon and Living Social have differences in their discussion board, opt-in subscriber base, payment structure, and review restrictions. Groupon has a discussion board where users can engage in conversations and share their experiences, while Living Social may not have this feature. Groupon also has an opt-in subscriber base, meaning users have to actively subscribe to receive their offers, while Living Social may have a different approach. The payment structure may differ between the two platforms, with Groupon possibly having a different system for merchants to receive payments. Lastly, Groupon may have review restrictions in place, whereas Living Social may not have any restrictions on user reviews.

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