Which of the following statements is true of the salary-only approach?
A) The salary-only approach is useful when an organization emphasizes serving and retaining existing accounts.
B) The salary-only approach is useful when an organization emphasizes generating new sales and accounts.
C) The salary-only approach is useful only when an organization is compensating experienced sales executives.
D) The salary-only approach is not useful in compensating sales representatives who are new to the job.

Question

Quizplus · Accepted Answer

The salary-only approach is suitable for organizations that prioritize serving and retaining existing accounts rather than generating new sales and accounts. This is because sales representatives who are compensated solely on salary have less motivation to engage in new business development activities. Additionally, the salary-only approach may not be appropriate for sales representatives who are new to the job or for organizations that need to incentivize their salesforce to achieve specific sales targets or objectives.

Which of the Following Statements Is True of the Salary-Only