Question 1

Quantitative assessments of sales performance may be based on output-related measures,such as

Accepted Answer

Output-related measures such as dollar or unit sales volume, last year/current year sales ratio, and new accounts generated provide quantitative assessments of sales performance because they directly measure the success of sales efforts in generating revenue and expanding the customer base. The other options listed are not directly related to output and revenue generation.

Question 2

A disadvantage of a straight commission compensation plan is that

Accepted Answer

A straight commission compensation plan can lead salespeople to prioritize selling over providing customer service, since they are only paid for sales made. This can lead to a decrease in customer satisfaction and repeat business.

Question 3

With a __________,a salesperson is paid a specified salary plus a commission on sales or profits generated.

Accepted Answer

A combination compensation plan includes both a base salary and a commission on sales or profits generated, providing a balance between guaranteed income and incentive for increased sales.

Question 4

Which of the following statements regarding salesforce compensation plans is MOST ACCURATE?

Accepted Answer

Ineffective compensation practices can lead to dissatisfaction among salespeople and ultimately result in high turnover rates which can be costly for the organization. The other options are inaccurate - straight commission plans are not always preferred, nonmonetary rewards can be effective motivators, seasoned professionals are often more productive, and the expense of training a new salesperson may not necessarily be lower than using a salary plus commission plan.

Question 5

Research indicates that there are four key factors involved with salesforce motivation: (1)a clear job description; (2)effective management practices; (3)__________;and (4)proper compensation,incentives,or rewards.

Accepted Answer

The answer of Research indicates that there are four key...

Question 6

Research indicates that there are four key factors involved with salesforce motivation: (1)a clear job description; (2)__________; (3)a personal need for achievement;and (4)proper compensation,incentives,or rewards.

Accepted Answer

Effective sales management practices are crucial for motivating a salesforce as they provide guidance, support, and structure necessary for achieving sales goals.

Question 7

The most frequently used type of compensation plan for salespeople is a __________.

Accepted Answer

A combination compensation plan includes both a salary and commission component. This is the most common type of compensation plan for salespeople as it provides a guaranteed base income while also incentivizing sales performance through commission. A straight salary plan may not motivate sales performance while a straight commission plan may not provide enough financial stability for the salesperson. Weighted and market share compensation plans are less common and may not be appropriate for all sales roles.

Question 8

After completing an 18-week sales training program,Joshua was told,"You will be paid 4 percent on net dollar volume up to $10 million.Sales in excess of $10 million command a rate of 6 percent." The company Joshua works for is using a __________ for him after completing the sales training program.

Accepted Answer

The description of Joshua's compensation plan indicates that he will only receive a percentage of the sales he makes, with different rates depending on the volume. This is a classic example of a straight commission compensation plan. The other options (A, B, C, and E) do not fit the description provided.

Question 9

A straight commission compensation plan is one

Accepted Answer

A straight commission compensation plan is one in which a salesperson's earnings are directly tied to the sales or profits he or she generates. This means that the more the salesperson sells, the more money he or she earns. There is no salary or fixed amount paid to the salesperson in this type of plan.

Question 10

The three commonly used compensation plans are:

Accepted Answer

The combination of salary and commission is often the most effective compensation plan as it motivates the salesperson to work hard (through commission-based incentives) while also providing them with a base salary for stability. Straight commission can be risky and deter employees from joining a company, while straight salary may not provide enough motivation for high performance.

Question 11

A straight commission compensation plan is one

Accepted Answer

A straight commission compensation plan is one where a salesperson's earnings are directly tied to the sales or profits he or she generates. The salesperson is paid a percentage of the sales revenue, and there is no fixed salary or base pay. This type of compensation plan provides a strong incentive for salespeople to work hard and generate as much revenue as possible, as they will be rewarded for their efforts through their earnings.

Question 12

With a __________,a salesperson is paid a fixed fee per week,month,or year.

Accepted Answer

In a straight salary compensation plan, a salesperson is paid a fixed fee at regular intervals, regardless of their sales performance. This type of plan can provide stability and predictability for both the salesperson and the company.

Question 13

An advantage of the straight salary compensation plan is that it

Accepted Answer

The answer of An advantage of the straight salary compensation...

Question 14

All of the following are output-related measures used in quantitative assessments of sales performance EXCEPT:

Accepted Answer

Selling expense related to sales made is an input-related measure, not an output-related measure.

Question 15

__________ gives its outstanding salespeople some unconventional rewards that include new pink Cadillacs and jewelry.

Accepted Answer

Mary Kay Cosmetics rewards its outstanding salespeople with unconventional rewards such as new pink Cadillacs and jewelry.

Question 16

With a __________,a salesperson's earnings are directly tied to sales or profits generated.

Accepted Answer

With a straight commission compensation plan, a salesperson's earnings are directly tied to sales or profits generated. This means that their income is based solely on the sales they make, with no base salary or other bonuses.

Question 17

White Chemical Company is examining its selling strategy and one of the issues it believes needs attention is the role its sales staff has in undertaking sales support (non-selling)activities;yet it wants to keep the salespeople directed towards increasing sales for the next year.If you did not know which plan the firm presently uses,what advice would you give?

Accepted Answer

Providing a base salary and a commission on sales generated would incentivize salespeople to focus on increasing sales while also allowing them to address non-selling activities as needed. This would strike a balance between increasing sales and providing adequate support for those sales. Option B may not be feasible if the budget is limited, and option C may only motivate those who are already high-performing rather than incentivizing improvement. Option D does not provide a direct link between sales and compensation, and option E may not be adequate if sales do not improve significantly.

Question 18

Quantitative assessments of sales performance may be based on input-related objectives set forth in the sales plan,such as those involving

Accepted Answer

The answer of Quantitative assessments of sales performance may be...

Question 19

When Daniel was hired to work for Bush Refrigeration Company,he was told,"The sales training program is 18 weeks,and we'll pay you $750 per week during that time." While in training,the company used a __________ to compensate Daniel for his time and effort.

Accepted Answer

The statement "we'll pay you $750 per week during that time" indicates a straight salary compensation plan, where the employee receives a fixed salary regardless of their performance or sales results.

Question 20

A straight commission compensation plan is well-suited to sales positions where

Accepted Answer

Straight commission compensation plans are typically used in sales positions where the primary focus is on selling activities. This type of plan is suited to roles where nonselling activities, such as administrative tasks, are minimal or can be delegated to support staff. This allows salespeople to focus on generating revenue through selling.

Quiz 20: Personal Selling and Sales Management

Quantitative assessments of sales performance may be based on output-related measures,such as

A disadvantage of a straight commission compensation plan is that

With a __________,a salesperson is paid a specified salary plus a commission on sales or profits generated.

Which of the following statements regarding salesforce compensation plans is MOST ACCURATE?

Research indicates that there are four key factors involved with salesforce motivation: (1) a clear job description; (2) effective management practices; (3) __________;and (4) proper compensation,incentives,or rewards.

Research indicates that there are four key factors involved with salesforce motivation: (1) a clear job description; (2) __________; (3) a personal need for achievement;and (4) proper compensation,incentives,or rewards.

The most frequently used type of compensation plan for salespeople is a __________.

After completing an 18-week sales training program,Joshua was told,"You will be paid 4 percent on net dollar volume up to $10 million.Sales in excess of $10 million command a rate of 6 percent." The company Joshua works for is using a __________ for him after completing the sales training program.

A straight commission compensation plan is one

The three commonly used compensation plans are:

A straight commission compensation plan is one

With a __________,a salesperson is paid a fixed fee per week,month,or year.

An advantage of the straight salary compensation plan is that it

All of the following are output-related measures used in quantitative assessments of sales performance EXCEPT:

__________ gives its outstanding salespeople some unconventional rewards that include new pink Cadillacs and jewelry.

With a __________,a salesperson's earnings are directly tied to sales or profits generated.

Quantitative assessments of sales performance may be based on input-related objectives set forth in the sales plan,such as those involving

When Daniel was hired to work for Bush Refrigeration Company,he was told,"The sales training program is 18 weeks,and we'll pay you $750 per week during that time." While in training,the company used a __________ to compensate Daniel for his time and effort.

A straight commission compensation plan is well-suited to sales positions where