Question 1

Incentive payments are always awarded to the salesperson when the company receives the sales order.

Accepted Answer

A) True 
 B)False  False

Question 2

Natalie wants to motivate her salespeople toward meeting the quarterly sales volume and profit quotas. She will likely use __________ to motivate her salespeople.

Accepted Answer

A)  Commissions 
B)  Draws 
C)  Quotas 
D)  Benefits 
E)  Expense accounts 
A)  Commissions 
B)  Draws 
C)  Quotas 
D)  Benefits 
E)  Expense accounts C

Question 3

Halkco sells floor systems for semi-trailers and train cars. The objective of the company is to increase its sales of its replacement flooring systems by 10 percent during the upcoming fiscal year. At its national sales conference (the theme this year was Mining for Prospects), its 124 salespeople were told about a sales contest for the upcoming year, ""The Klondike Gold Rush"". For the contest announcement, top Halkco management was dressed like 19th century prospectors. The ten winners will be

Accepted Answer

A)  The company does not have a clearly defined sales objective for the contest 
B)  The contest features will produce anxiety among the sales force because they are too exciting 
C)  The rewards are likely to be more demotivating than motivating 
D)  The company over-sold the sales contest 
E)  Nothing is wrong with this contest; it has every reason to succeed 
A)  The company does not have a clearly defined sales objective for the contest 
B)  The contest features will produce anxiety among the sales force because they are too exciting 
C)  The rewards are likely to be more demotivating than motivating 
D)  The company over-sold the sales contest 
E)  Nothing is wrong with this contest; it has every reason to succeed E

Question 4

If Arlene wants to motivate a high level of sales effort among her sales representatives, she should focus on:

Accepted Answer

A)  Commissions 
B)  Draws 
C)  Perks 
D)  Benefits 
E)  Expense accounts 
A)  Commissions 
B)  Draws 
C)  Perks 
D)  Benefits 
E)  Expense accounts

Question 5

How does a bonus differ from a commission?

Accepted Answer

A)  Bonuses are typically made for each sale made; commissions are not paid until the salesperson surpasses some level of total sales 
B)  Commissions are part of the basic compensation plan; bonuses are additional incentives 
C)  Bonuses satisfy the salesperson's need for esteem; commissions satisfy the physiological and security needs only 
D)  Bonuses are always used as a tactical motivational tool; commissions are a strategic motivational tool 
E)  There are no real differences between bonuses and commissions 
A)  Bonuses are typically made for each sale made; commissions are not paid until the salesperson surpasses some level of total sales 
B)  Commissions are part of the basic compensation plan; bonuses are additional incentives 
C)  Bonuses satisfy the salesperson's need for esteem; commissions satisfy the physiological and security needs only 
D)  Bonuses are always used as a tactical motivational tool; commissions are a strategic motivational tool 
E)  There are no real differences between bonuses and commissions

Question 6

Which of the following statements is NOT an appropriate guideline for designing an effective formal recognition program?

Accepted Answer

A)  The program should be balanced in terms of appearing as if everyone has a chance to win while allowing only a few people to actually be recognized 
B)  The program should have both subjective and objective selection processes 
C)  There must be adequate publicity of the winners 
D)  Winners should be recognized in a formal ceremony 
E)  The recognition program must be in good taste 
A)  The program should be balanced in terms of appearing as if everyone has a chance to win while allowing only a few people to actually be recognized 
B)  The program should have both subjective and objective selection processes 
C)  There must be adequate publicity of the winners 
D)  Winners should be recognized in a formal ceremony 
E)  The recognition program must be in good taste

Question 7

What are the disadvantages of straight commission plans?

Accepted Answer

The disadvantages of straight

Question 8

Which of the following sales activities would NOT be enhanced through the implementation of a straight salary compensation plan by a company that sells customized retail stock display units?

Accepted Answer

A)  Cold calling 
B)  Designing a product demonstration 
C)  Keeping current with technical developments in the inventory management field 
D)  Training on a new type of database software 
E)  Selling the inventory system 
A)  Cold calling 
B)  Designing a product demonstration 
C)  Keeping current with technical developments in the inventory management field 
D)  Training on a new type of database software 
E)  Selling the inventory system

Question 9

Which of the following statements about incentive pay ceilings is true?

Accepted Answer

A)  Incentive ceilings can be used to protect against windfalls 
B)  Incentive ceilings make a firm's maximum potential sales compensation expense more predictable and controllable 
C)  Firms in relatively low paying industries are more likely to impose incentive ceilings than those in high-paying industries 
D)  Incentive ceilings are used to ensure that top-performing salespeople will not make such high earnings that other employees suffer resentment and low morale 
E)  All of the above statements about incentive ceilings are true 
A)  Incentive ceilings can be used to protect against windfalls 
B)  Incentive ceilings make a firm's maximum potential sales compensation expense more predictable and controllable 
C)  Firms in relatively low paying industries are more likely to impose incentive ceilings than those in high-paying industries 
D)  Incentive ceilings are used to ensure that top-performing salespeople will not make such high earnings that other employees suffer resentment and low morale 
E)  All of the above statements about incentive ceilings are true

Question 10

Studies of sales force compensation indicate:

Accepted Answer

A)  Straight commissions work best 
B)  Straight salary plus bonuses is most effective 
C)  Everything from salary to commission to various nonfinancial factors motivate salespeople 
D)  Carefully designed sales compensation plans requires years to develop but once designed will work indefinitely 
E)  When people want to work, the compensation does not matter 
A)  Straight commissions work best 
B)  Straight salary plus bonuses is most effective 
C)  Everything from salary to commission to various nonfinancial factors motivate salespeople 
D)  Carefully designed sales compensation plans requires years to develop but once designed will work indefinitely 
E)  When people want to work, the compensation does not matter

Question 11

Which of the following statements about the combination compensation plan is true?

Accepted Answer

A)  Combination compensation plans are found more frequently in large firms than smaller ones 
B)  When the salesperson's selling skill is the key to sales success, the incentive portion of his or her compensation should be relatively small 
C)  The most popular combination compensation plan offers a base salary plus some proportion of incentive pay 
D)  Commission rates are more often found in companies that use combination plans than in a company that simply uses a straight commission plan 
E)  Combination compensation plans have all the limitations associated with straight salary and straight commission plans 
A)  Combination compensation plans are found more frequently in large firms than smaller ones 
B)  When the salesperson's selling skill is the key to sales success, the incentive portion of his or her compensation should be relatively small 
C)  The most popular combination compensation plan offers a base salary plus some proportion of incentive pay 
D)  Commission rates are more often found in companies that use combination plans than in a company that simply uses a straight commission plan 
E)  Combination compensation plans have all the limitations associated with straight salary and straight commission plans

Question 12

Salespeople who are primarily engaged in ___________ will likely be paid straight salary.

Accepted Answer

A)  Market research 
B)  Customer problem analysis 
C)  Product stocking 
D)  Customer education 
E)  All of the above 
A)  Market research 
B)  Customer problem analysis 
C)  Product stocking 
D)  Customer education 
E)  All of the above

Question 13

Bonuses are almost always tied to:

Accepted Answer

A)  Commissions 
B)  Draws 
C)  Quotas 
D)  Benefits 
E)  Expense accounts 
A)  Commissions 
B)  Draws 
C)  Quotas 
D)  Benefits 
E)  Expense accounts

Question 14

What considerations should be incorporated in any sales recognition program?

Accepted Answer

A recognition program should: Be strictl

Question 15

What five questions does any effective sales combination compensation plan need to address?

Accepted Answer

1. What is the appropriate size of the i

Question 16

Which of the following statements about compensation levels for salespeople is true?

Accepted Answer

A)  Many small firms cannot offer training programs, so they provide their sales force with above-average compensation 
B)  Most firms consciously pay their salespeople at a rate slightly below the industry average 
C)  Large firms with large sales forces tend to offer above average compensation 
D)  The starting point for deciding on a compensation level should be the gross amount of compensation that is necessary to attract the right level of selling talent 
E)  None of the above 
A)  Many small firms cannot offer training programs, so they provide their sales force with above-average compensation 
B)  Most firms consciously pay their salespeople at a rate slightly below the industry average 
C)  Large firms with large sales forces tend to offer above average compensation 
D)  The starting point for deciding on a compensation level should be the gross amount of compensation that is necessary to attract the right level of selling talent 
E)  None of the above

Question 17

In recent years, a steady trend has developed toward ____________ compensation plans.

Accepted Answer

A)  Salary 
B)  Draws 
C)  Combination 
D)  Benefits 
E)  Commission 
A)  Salary 
B)  Draws 
C)  Combination 
D)  Benefits 
E)  Commission

Question 18

Halkco sells floor systems for semi-trailers and train cars. The objective of the company is to increase its sales of its replacement flooring systems by 10 percent during the upcoming fiscal year. At its national sales conference (the theme this year was Mining for Prospects), its 124 salespeople were told about a sales contest for the upcoming year, ""The Klondike Gold Rush"". For the contest announcement, top Halkco management was dressed like 19th century prospectors. The ten winners will be

Accepted Answer

A)  Making the salespeople excited about selling can create a problem with the sales reps' internal locus of control 
B)  Too many rewards can make winning seem not worth the effort 
C)  Sales contests circumvent the reasons for using normal compensation plans 
D)  Such contests may produce largely illusionary sales, with no lasting improvement in market share 
E)  All of the above 
A)  Making the salespeople excited about selling can create a problem with the sales reps' internal locus of control 
B)  Too many rewards can make winning seem not worth the effort 
C)  Sales contests circumvent the reasons for using normal compensation plans 
D)  Such contests may produce largely illusionary sales, with no lasting improvement in market share 
E)  All of the above

Question 19

What are the advantages of straight commission plans?

Accepted Answer

The advantages include direct

Question 20

Roger's company uses a combination salary compensation plan. The incentive portion of the plan will likely be small if:

Accepted Answer

A)  All of the salespeople want it that way 
B)  The company's products are largely presold through advertising 
C)  The salary component is also small 
D)  Selling skill in an important component to overall success 
E)  All of the above 
A)  All of the salespeople want it that way 
B)  The company's products are largely presold through advertising 
C)  The salary component is also small 
D)  Selling skill in an important component to overall success 
E)  All of the above

Incentive payments are always awarded to the salesperson when the company receives the sales order.

Natalie wants to motivate her salespeople toward meeting the quarterly sales volume and profit quotas. She will likely use __________ to motivate her salespeople.

If Arlene wants to motivate a high level of sales effort among her sales representatives, she should focus on:

How does a bonus differ from a commission?

Which of the following statements is NOT an appropriate guideline for designing an effective formal recognition program?

What are the disadvantages of straight commission plans?

Which of the following sales activities would NOT be enhanced through the implementation of a straight salary compensation plan by a company that sells customized retail stock display units?

Which of the following statements about incentive pay ceilings is true?

Studies of sales force compensation indicate:

Which of the following statements about the combination compensation plan is true?

Salespeople who are primarily engaged in ___________ will likely be paid straight salary.

Bonuses are almost always tied to:

What considerations should be incorporated in any sales recognition program?

What five questions does any effective sales combination compensation plan need to address?

Which of the following statements about compensation levels for salespeople is true?

In recent years, a steady trend has developed toward ____________ compensation plans.

What are the advantages of straight commission plans?

Roger's company uses a combination salary compensation plan. The incentive portion of the plan will likely be small if:

Introduction to Sales Management in the Twenty-First Century

The Process of Selling and Buying

Linking Strategies and the Sales Role in the Era of Customer Relationship Management

Organizing the Sales Effort

The Strategic Role of Information in Sales Management Comprehensive Cases for Part One

Salesperson Performance: Behavior, Role Perceptions, and Satisfaction

Salesperson Performance: Motivating the Sales Force

Personal Characteristics and Sales Aptitude: Criteria for Selecting Salespeople

Sales Force Recruitment and Selection

Sales Training: Objectives, Techniques, and Evaluation

Cost Analysis

Evaluating Salesperson Performance

Filters

Exam 11: Salesperson Compensation and Incentives Comprehensive Cases for Part Two

Incentive payments are always awarded to the salesperson when the company receives the sales order.

Natalie wants to motivate her salespeople toward meeting the quarterly sales volume and profit quotas. She will likely use __________ to motivate her salespeople.

If Arlene wants to motivate a high level of sales effort among her sales representatives, she should focus on:

How does a bonus differ from a commission?

Which of the following statements is NOT an appropriate guideline for designing an effective formal recognition program?

What are the disadvantages of straight commission plans?

Which of the following sales activities would NOT be enhanced through the implementation of a straight salary compensation plan by a company that sells customized retail stock display units?

Which of the following statements about incentive pay ceilings is true?

Studies of sales force compensation indicate:

Which of the following statements about the combination compensation plan is true?

Salespeople who are primarily engaged in ___________ will likely be paid straight salary.

Bonuses are almost always tied to:

What considerations should be incorporated in any sales recognition program?

What five questions does any effective sales combination compensation plan need to address?

Which of the following statements about compensation levels for salespeople is true?

In recent years, a steady trend has developed toward ____________ compensation plans.

What are the advantages of straight commission plans?

Roger's company uses a combination salary compensation plan. The incentive portion of the plan will likely be small if:

Introduction to Sales Management in the Twenty-First Century

The Process of Selling and Buying

Linking Strategies and the Sales Role in the Era of Customer Relationship Management

Organizing the Sales Effort

The Strategic Role of Information in Sales Management Comprehensive Cases for Part One

Salesperson Performance: Behavior, Role Perceptions, and Satisfaction

Salesperson Performance: Motivating the Sales Force

Personal Characteristics and Sales Aptitude: Criteria for Selecting Salespeople

Sales Force Recruitment and Selection

Sales Training: Objectives, Techniques, and Evaluation

Cost Analysis

Evaluating Salesperson Performance

Filters