Question 1

In order to generate interest and enthusiasm for a sales contest, companies should:

Accepted Answer

A)  Launch the contest with fanfare advertising for it 
B)  Recognize and publicize the winners after the contest 
C)  Give each salesperson frequent feedback on his or her progress 
D)  Have an exciting theme to build enthusiasm 
E)  All of the above 
A)  Launch the contest with fanfare advertising for it 
B)  Recognize and publicize the winners after the contest 
C)  Give each salesperson frequent feedback on his or her progress 
D)  Have an exciting theme to build enthusiasm 
E)  All of the above

Question 2

Which of the following statements describes a disadvantage inherent in the straight commission compensation plan?

Accepted Answer

A)  It gives sales reps little financial security 
B)  It provides sales managers with minimal control over their sales forces 
C)  It can cause sales reps to provide inadequate service to smaller accounts 
D)  It makes selling expenses less predictable 
E)  All of the above 
A)  It gives sales reps little financial security 
B)  It provides sales managers with minimal control over their sales forces 
C)  It can cause sales reps to provide inadequate service to smaller accounts 
D)  It makes selling expenses less predictable 
E)  All of the above

Question 3

In most sales organizations, the total compensation comprises several components that:

Accepted Answer

A)  All focus on either sales volume or gross profit margin 
B)  Each coordinate to minimize bonuses while maximizing sales 
C)  Withdraw the most important and benefits the least important 
D)  Are each designed to achieve a different objective 
E)  All of the above 
A)  All focus on either sales volume or gross profit margin 
B)  Each coordinate to minimize bonuses while maximizing sales 
C)  Withdraw the most important and benefits the least important 
D)  Are each designed to achieve a different objective 
E)  All of the above

Question 4

To offset the problem of income instability associated with straight commission plans, many companies offer their salespeople a __________ against commissions.

Accepted Answer

A)  Straight salary 
B)  Quota 
C)  Perk 
D)  Contest 
E)  Draw 
A)  Straight salary 
B)  Quota 
C)  Perk 
D)  Contest 
E)  Draw

Question 5

Warren is deciding what portion of his salespeople's compensation should be incentive pay. He should base his decision on:

Accepted Answer

A)  The financial needs of his salespeople 
B)  When the company wants to expand 
C)  Which salespeople he wants to retain 
D)  The degree of relationship selling involved in the job 
E)  Who his salespeople call on 
A)  The financial needs of his salespeople 
B)  When the company wants to expand 
C)  Which salespeople he wants to retain 
D)  The degree of relationship selling involved in the job 
E)  Who his salespeople call on

Question 6

Sales contests provide salespeople with an opportunity to earn both extrinsic and intrinsic rewards.

Accepted Answer

A) True 
 B)False

Question 7

What types of sales activities and performance outcomes are most readily encouraged by compensation and incentive programs?

Accepted Answer

Compared to straight salary compensation

Question 8

Most compensation plans credit a salesperson with a sale:

Accepted Answer

A)  When the order is accepted by the company, less any returns and allowances 
B)  After payment is received from the customer 
C)  Only after the goods have been shipped 
D)  In a combined manner, where one-half of the sale is assigned when the order is received and the other half when the customer pays 
E)  In a variety of ways, with no one way being more popular than any other 
A)  When the order is accepted by the company, less any returns and allowances 
B)  After payment is received from the customer 
C)  Only after the goods have been shipped 
D)  In a combined manner, where one-half of the sale is assigned when the order is received and the other half when the customer pays 
E)  In a variety of ways, with no one way being more popular than any other

Question 9

What is required for sales contests to be successful?

Accepted Answer

Successful sales contests requ

Question 10

Which of the following statements about sales contests is true?

Accepted Answer

A)  Sales contests should be considered as a part of a firm's ongoing compensation plan 
B)  Most sales contests should be held for a relatively long period of time in order to maximize benefits and participation 
C)  Sales contests should have generalized objectives to allow for unexpected benefits 
D)  It is more desirable to have a high percentage of winners in a sales contest than a low percentage 
E)  The sales contest in which all the members of the sales force compete against each other is the most popular format 
A)  Sales contests should be considered as a part of a firm's ongoing compensation plan 
B)  Most sales contests should be held for a relatively long period of time in order to maximize benefits and participation 
C)  Sales contests should have generalized objectives to allow for unexpected benefits 
D)  It is more desirable to have a high percentage of winners in a sales contest than a low percentage 
E)  The sales contest in which all the members of the sales force compete against each other is the most popular format

Question 11

The primary objective of a sales contest is to:

Accepted Answer

A)  Encourage the development of a long-term emphasis on nonselling activities 
B)  Adjust differences in territory potential 
C)  Satisfy salespeople's security needs 
D)  Stimulate additional effort targeted at achieving specific short-term goals 
E)  Reward experience and competence 
A)  Encourage the development of a long-term emphasis on nonselling activities 
B)  Adjust differences in territory potential 
C)  Satisfy salespeople's security needs 
D)  Stimulate additional effort targeted at achieving specific short-term goals 
E)  Reward experience and competence

Question 12

The three primary methods of compensating salespeople are

Accepted Answer

A)  Straight salary, straight commission and combination plans 
B)  Straight nonfinancial incentives, bonuses and contests 
C)  Straight commissions, straight contests and variable benefits 
D)  Commissions, bonuses and expense accounts 
E)  Draws, prerequisites and contests 
A)  Straight salary, straight commission and combination plans 
B)  Straight nonfinancial incentives, bonuses and contests 
C)  Straight commissions, straight contests and variable benefits 
D)  Commissions, bonuses and expense accounts 
E)  Draws, prerequisites and contests

Question 13

Which of the following statements about straight commission compensation plans is true?

Accepted Answer

A)  Compensation cost per unit is always lower under a straight commission plan 
B)  Many firms, especially those engaged in relationship selling have abandoned straight commission plans 
C)  Straight commission plans increase management's control over the sales force 
D)  Companies operating with straight commission plans tend to have lower turnover rates when business conditions are poor than do companies with a straight salary plan 
E)  Firms that are short on working capital should never use the straight commission plan 
A)  Compensation cost per unit is always lower under a straight commission plan 
B)  Many firms, especially those engaged in relationship selling have abandoned straight commission plans 
C)  Straight commission plans increase management's control over the sales force 
D)  Companies operating with straight commission plans tend to have lower turnover rates when business conditions are poor than do companies with a straight salary plan 
E)  Firms that are short on working capital should never use the straight commission plan

Question 14

Which of the following statements does NOT describe an advantage inherent in the straight salary compensation plan?

Accepted Answer

A)  It directly relates selling expenses to sales resources 
B)  It provides sales reps with the maximum amount of security 
C)  It is easy to administer 
D)  It yields more predictable selling expenses 
E)  It gives sales managers a large amount of control over sales reps 
A)  It directly relates selling expenses to sales resources 
B)  It provides sales reps with the maximum amount of security 
C)  It is easy to administer 
D)  It yields more predictable selling expenses 
E)  It gives sales managers a large amount of control over sales reps

Question 15

One of the disadvantages of a combination compensation plan is that with this system, selling expenses are not as predictable as with the other two forms of compensation plans.

Accepted Answer

A) True 
 B)False

Question 16

Valerie wants her salespeople to focus on customer relationships, not short-run sales volume. She will likely use a ________________ compensation plan.

Accepted Answer

A)  Straight salary 
B)  Draws 
C)  Combination 
D)  Benefits 
E)  Commission 
A)  Straight salary 
B)  Draws 
C)  Combination 
D)  Benefits 
E)  Commission

Question 17

Commission plans are fair if:

Accepted Answer

A)  Salaries are equivalent 
B)  Team selling is modified to meet the customer's needs 
C)  Territories have equal potential 
D)  Commission rates vary with the time of year 
E)  Commission plans are never fair 
A)  Salaries are equivalent 
B)  Team selling is modified to meet the customer's needs 
C)  Territories have equal potential 
D)  Commission rates vary with the time of year 
E)  Commission plans are never fair

Question 18

Compare the objectives of different components of a sales compensation plan.

Accepted Answer

There are five components to most sales

Question 19

What three basic questions determine the design and effective implementation of a successful compensation program?

Accepted Answer

The three basic questions that need to b

Question 20

All of the following are questions that a sales manager must answer when designing effective combination compensation plans EXCEPT:

Accepted Answer

A)  When should the salesperson be credited with the sale? 
B)  How often should the salesperson receive incentive payments? 
C)  What is the appropriate size of the incentive relative to the base salary? 
D)  What size sales territory will yield the appropriate sales volume for providing equitable commissions and bonuses? 
E)  Should there be a ceiling on incentive earnings? 
A)  When should the salesperson be credited with the sale? 
B)  How often should the salesperson receive incentive payments? 
C)  What is the appropriate size of the incentive relative to the base salary? 
D)  What size sales territory will yield the appropriate sales volume for providing equitable commissions and bonuses? 
E)  Should there be a ceiling on incentive earnings?

In order to generate interest and enthusiasm for a sales contest, companies should:

Which of the following statements describes a disadvantage inherent in the straight commission compensation plan?

In most sales organizations, the total compensation comprises several components that:

To offset the problem of income instability associated with straight commission plans, many companies offer their salespeople a __________ against commissions.

Warren is deciding what portion of his salespeople's compensation should be incentive pay. He should base his decision on:

Sales contests provide salespeople with an opportunity to earn both extrinsic and intrinsic rewards.

What types of sales activities and performance outcomes are most readily encouraged by compensation and incentive programs?

Most compensation plans credit a salesperson with a sale:

What is required for sales contests to be successful?

Which of the following statements about sales contests is true?

The primary objective of a sales contest is to:

The three primary methods of compensating salespeople are

Which of the following statements about straight commission compensation plans is true?

Which of the following statements does NOT describe an advantage inherent in the straight salary compensation plan?

One of the disadvantages of a combination compensation plan is that with this system, selling expenses are not as predictable as with the other two forms of compensation plans.

Valerie wants her salespeople to focus on customer relationships, not short-run sales volume. She will likely use a ________________ compensation plan.

Commission plans are fair if:

Compare the objectives of different components of a sales compensation plan.

What three basic questions determine the design and effective implementation of a successful compensation program?

All of the following are questions that a sales manager must answer when designing effective combination compensation plans EXCEPT:

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

In order to generate interest and enthusiasm for a sales contest, companies should:

Which of the following statements describes a disadvantage inherent in the straight commission compensation plan?

In most sales organizations, the total compensation comprises several components that:

To offset the problem of income instability associated with straight commission plans, many companies offer their salespeople a __________ against commissions.

Warren is deciding what portion of his salespeople's compensation should be incentive pay. He should base his decision on:

Sales contests provide salespeople with an opportunity to earn both extrinsic and intrinsic rewards.

What types of sales activities and performance outcomes are most readily encouraged by compensation and incentive programs?

Most compensation plans credit a salesperson with a sale:

What is required for sales contests to be successful?

Which of the following statements about sales contests is true?

The primary objective of a sales contest is to:

The three primary methods of compensating salespeople are

Which of the following statements about straight commission compensation plans is true?

Which of the following statements does NOT describe an advantage inherent in the straight salary compensation plan?

One of the disadvantages of a combination compensation plan is that with this system, selling expenses are not as predictable as with the other two forms of compensation plans.

Valerie wants her salespeople to focus on customer relationships, not short-run sales volume. She will likely use a ________________ compensation plan.

Commission plans are fair if:

Compare the objectives of different components of a sales compensation plan.

What three basic questions determine the design and effective implementation of a successful compensation program?

All of the following are questions that a sales manager must answer when designing effective combination compensation plans EXCEPT:

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