A commission plan is likely to be used when:
A) a sales force includes many part-timers.
B) the earnings of part-time salespeople are required to be tied to their performance.
C) a company does not emphasize service to customers.
D) a company does not anticipate long-term customer relationships.
E) any of these situations arises.

Question

Quizplus · Accepted Answer

A commission plan is often used in various scenarios to motivate salespeople by tying their earnings directly to their performance. This can be particularly effective when dealing with part-time salespeople (A and B), as it incentivizes them to perform better despite their limited hours. While C and D might seem less intuitive, commission plans can also be used in these contexts, as they focus on immediate sales results rather than long-term customer service or relationships. Therefore, a commission plan can be applicable in any of these situations.

A Commission Plan Is Likely to Be Used When