University of Central Florida (UCF) MAR3391 Professional Selling Practice Exam 2

The correct answer is the comparative cost-benefit analysis. This type of analysis is specifically designed to evaluate and compare the costs associated with a buyer's current situation against the potential value and benefits offered by a proposed solution. It serves to illuminate the financial implications of remaining with the status quo versus making a change. By conducting this analysis, a salesperson can effectively demonstrate how the proposed solution could lead to cost savings, increased efficiency, or other tangible benefits that justify the investment.

Comparative cost-benefit analysis is particularly useful in the sales process as it helps to build the business case for change. It not only examines direct costs but can also include indirect benefits that might not be immediately apparent, making it an essential tool for sales professionals seeking to persuade decision-makers.

While cost analysis principally focuses on evaluating the components of costs themselves, return on investment analysis estimates the profitability of an investment by calculating the expected financial returns compared to the costs. On the other hand, total cost of ownership provides a comprehensive view of the complete costs associated with acquiring and operating a product over its entire lifecycle, but it does not always directly compare these costs with the benefits of an alternative. These analyses serve distinct purposes and may provide useful information, but they do not fulfill the specific comparative aspect that