Question 1

With regard to sales compensation plans, which of the following is non-incentive based?

Accepted Answer

Hourly wage is a non-incentive based sales compensation plan because it is not tied to sales performance.

Question 2

Which of the following is a non-incentive-based sales compensation plan?

Accepted Answer

A straight salary is a fixed regular payment that does not vary with sales performance, making it a non-incentive-based compensation plan.

Question 3

With respect to sales compensation plans, which of the following is benefits-based?

Accepted Answer

Health insurance is a benefit provided to employees as part of their compensation package, rather than a direct form of monetary compensation or incentive.

Question 4

With respect to compensation plans, which of the following is not a category of salespeople listed below?

Accepted Answer

Fringe benefit-oriented is not a recognized category of salespeople in terms of compensation plans. The other options are common categories used to describe salespeople's motivations and behaviors.

Question 5

In examining the effect of various compensations plans on company profits, a seminal study identified several types of salespeople. __________ try to maintain their standard of living by earning a predetermined amount of money.

Accepted Answer

The answer of In examining the effect of various compensations...

Question 6

In examining the effect of various compensations plans on company profits, a seminal study identified several types of salespeople. __________ prefer recognition as achievers by peers and by superiors and tend to be sales-quota-oriented, with money serving mainly as a by-product of achievement.

Accepted Answer

Goal-oriented individuals are motivated by recognition and achievement, aligning with the description of those who are sales-quota-oriented and view money as a by-product of their success.

Question 7

In examining the effect of various compensations plans on company profits, a seminal study identified several types of salespeople. __________ allocate their time according to a personally determined ratio of work and leisure that is not influenced by opportunities for increased earnings.

Accepted Answer

The answer of In examining the effect of various compensations...

Question 8

In examining the effect of various compensations plans on company profits, a seminal study identified several types of salespeople. __________ seek to maximize their earnings and may sacrifice family relationships, personal pleasures, and even health to increase their income.

Accepted Answer

Money-oriented individuals are described as those who prioritize maximizing their earnings, often at the expense of personal relationships and well-being.

Question 9

In examining the effect of various compensations plans on company profits, a seminal study identified several types of salespeople. __________

Accepted Answer

The answer of In examining the effect of various compensations...

Question 10

With regard to compensation systems which one of the following statements is incorrect?

Accepted Answer

The answer of With regard to compensation systems which one...

Question 11

Which of the following is not a reason that has contributed to why many firms have already adopted flexible, cafeteria-type compensation plans, which have become an increasingly popular alternative to standardized reward systems?

Accepted Answer

The U.S. workforce becoming a melting pot is more about diversity and inclusion rather than a direct reason for adopting flexible compensation plans.

Question 12

The first step in developing the compensation plan for a sales force is to

Accepted Answer

The answer of The first step in developing the compensation...

Question 13

The third step in developing the compensation plan for a sales force is to

Accepted Answer

The third step in developing a compensation plan typically involves determining the general levels of compensation, after establishing objectives and preparing job descriptions.

Question 14

The fifth step in developing the compensation plan for a sales force is to

Accepted Answer

Pretesting the plan is typically the fifth step in developing a compensation plan, as it follows the establishment of objectives, preparation of job descriptions, and determination of compensation levels.

Question 15

The seventh step in developing the compensation plan for a sales force is to

Accepted Answer

The answer of The seventh step in developing the compensation...

Question 16

The eighth step in developing the compensation plan for a sales force is to

Accepted Answer

Evaluating the plan is typically one of the final steps in developing a compensation plan, after objectives have been set, job descriptions prepared, and compensation levels determined.

Question 17

Compensation plans are designed to achieve certain organizational objectives, which include:

Accepted Answer

Compensation plans are often designed to support a range of organizational objectives, including increasing market share, improving profit margins, and facilitating the introduction of new products.

Question 18

Compensation plans are designed to achieve certain organizational objectives, which include:

Accepted Answer

Compensation plans are typically designed to achieve multiple organizational objectives, including winning new accounts, reducing selling costs, and introducing new services, making "all the above" the correct choice.

Question 19

Any compensation plan may have several objectives, depending upon the needs of the specific company, sales manager, or salesperson. From the company's vantage point, the plan should stress the following except:

Accepted Answer

The plan should stress control, economy, and simplicity, so none of these should be excluded.

Question 20

Any compensation plan may have several objectives, depending upon the needs of the specific company, sales manager, or salesperson. From the company's vantage point, an ____________ plan is one that offers a desirable balance between sales costs and sales results:

Accepted Answer

An economy plan is designed to balance sales costs with sales results, ensuring that the company achieves its sales objectives without overspending.

Quiz 12: Sales Force Compensation

With regard to sales compensation plans, which of the following is non-incentive based?

Which of the following is a non-incentive-based sales compensation plan?

With respect to sales compensation plans, which of the following is benefits-based?

With respect to compensation plans, which of the following is not a category of salespeople listed below?

In examining the effect of various compensations plans on company profits, a seminal study identified several types of salespeople. __________ try to maintain their standard of living by earning a predetermined amount of money.

In examining the effect of various compensations plans on company profits, a seminal study identified several types of salespeople. __________ prefer recognition as achievers by peers and by superiors and tend to be sales-quota-oriented, with money serving mainly as a by-product of achievement.

In examining the effect of various compensations plans on company profits, a seminal study identified several types of salespeople. __________ allocate their time according to a personally determined ratio of work and leisure that is not influenced by opportunities for increased earnings.

In examining the effect of various compensations plans on company profits, a seminal study identified several types of salespeople. __________ seek to maximize their earnings and may sacrifice family relationships, personal pleasures, and even health to increase their income.

In examining the effect of various compensations plans on company profits, a seminal study identified several types of salespeople. __________

With regard to compensation systems which one of the following statements is incorrect?

Which of the following is not a reason that has contributed to why many firms have already adopted flexible, cafeteria-type compensation plans, which have become an increasingly popular alternative to standardized reward systems?

The first step in developing the compensation plan for a sales force is to

The third step in developing the compensation plan for a sales force is to

The fifth step in developing the compensation plan for a sales force is to

The seventh step in developing the compensation plan for a sales force is to

The eighth step in developing the compensation plan for a sales force is to

Compensation plans are designed to achieve certain organizational objectives, which include:

Compensation plans are designed to achieve certain organizational objectives, which include:

Any compensation plan may have several objectives, depending upon the needs of the specific company, sales manager, or salesperson. From the company's vantage point, the plan should stress the following except:

Any compensation plan may have several objectives, depending upon the needs of the specific company, sales manager, or salesperson. From the company's vantage point, an ____________ plan is one that offers a desirable balance between sales costs and sales results: