Question 1

Common expense account padding tactics include seeking reimbursement for personal expenses and inventing purchases.

Accepted Answer

A) True 
 B)False

Question 2

Salespersons' choices of which activities warrant action are less important than how hard they work or how well they persist in their efforts.

Accepted Answer

A) True 
 B)False

Question 3

Any major change in financial compensation practices is likely to produce widespread concern among the salesforce that their earnings will decline.

Accepted Answer

A) True 
 B)False

Question 4

Reward system management involves the selection and utilization of organizational rewards to

Accepted Answer

A)  direct salespeople's behavior toward the attainment of organizational objectives. 
B)  reward salespeople for outstanding sales achievements. 
C)  direct effort toward the attainment of short-term goals (e.g., a sales contest during a seasonal slump). 
D)  compensate salespeople, with either financial or nonfinancial rewards, depending on those desired most by the individual salesperson. 
E)  compensate salespeople according to the profitability of their total sales to customers. 
A)  direct salespeople's behavior toward the attainment of organizational objectives. 
B)  reward salespeople for outstanding sales achievements. 
C)  direct effort toward the attainment of short-term goals (e.g., a sales contest during a seasonal slump). 
D)  compensate salespeople, with either financial or nonfinancial rewards, depending on those desired most by the individual salesperson. 
E)  compensate salespeople according to the profitability of their total sales to customers.

Question 5

It is generally believed that sales contests have some positive effects on salesforce performance.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is true regarding the design of a global salesforce compensation system?

Accepted Answer

A)  Design the plan centrally and dictate to local countries. 
B)  Involve reps from key countries. 
C)  Do not allow local countries flexibility in implementation. 
D)  Vary communication and training themes worldwide. 
E)  Do not allow local managers to decide the mix between base an incentive pay. 
A)  Design the plan centrally and dictate to local countries. 
B)  Involve reps from key countries. 
C)  Do not allow local countries flexibility in implementation. 
D)  Vary communication and training themes worldwide. 
E)  Do not allow local managers to decide the mix between base an incentive pay.

Question 7

Which of the following is not a factor to be considered when developing a commission-only plan?

Accepted Answer

A)  Commission base 
B)  Commission rate 
C)  Commission margin 
D)  Commission splits 
E)  Commission payout event 
A)  Commission base 
B)  Commission rate 
C)  Commission margin 
D)  Commission splits 
E)  Commission payout event

Question 8

If the nonselling administrative duties of the salesperson are of major importance, this compensation plan is recommended:

Accepted Answer

A)  straight salary. 
B)  salary plus bonuses. 
C)  straight commission. 
D)  salary plus commission. 
E)  straight commission plus bonuses. 
A)  straight salary. 
B)  salary plus bonuses. 
C)  straight commission. 
D)  salary plus commission. 
E)  straight commission plus bonuses.

Question 9

A progressive commission rate declines at some predetermined point of sales.

Accepted Answer

A) True 
 B)False

Question 10

The most productive salespeople have the best opportunities to leave the firm for more attractive work situations.

Accepted Answer

A) True 
 B)False

Question 11

Expense-report software makes it easier to report and track sales expenses.

Accepted Answer

A) True 
 B)False

Question 12

A salesperson who is intrinsically motivated

Accepted Answer

A)  is motivated by the rewards that the job provides. 
B)  is motivated by the need for love and belongingness. 
C)  finds the job to be inherently rewarding. 
D)  finds that the job's fringe benefits, pay, and generous vacation policy provide motivation. 
E)  works for the feeling of security offered by the job. 
A)  is motivated by the rewards that the job provides. 
B)  is motivated by the need for love and belongingness. 
C)  finds the job to be inherently rewarding. 
D)  finds that the job's fringe benefits, pay, and generous vacation policy provide motivation. 
E)  works for the feeling of security offered by the job.

Question 13

With regards to determining appropriate financial compensation levels, all of the following are true except

Accepted Answer

A)  In general, sales positions that are more complicated and require more skills are compensated at a higher level. 
B)  Salespeople with the most experience should always receive the highest wages. 
C)  Information about competitive salaries and the requirements for attracting and keeping qualified salespeople is necessary. 
D)  Information on competitive salaries can be obtained by benchmarking earnings levels of salespeople through a variety of methods. 
E)  Determining the appropriate financial compensation level depends upon an understanding of the duties expected for a particular sales position. 
A)  In general, sales positions that are more complicated and require more skills are compensated at a higher level. 
B)  Salespeople with the most experience should always receive the highest wages. 
C)  Information about competitive salaries and the requirements for attracting and keeping qualified salespeople is necessary. 
D)  Information on competitive salaries can be obtained by benchmarking earnings levels of salespeople through a variety of methods. 
E)  Determining the appropriate financial compensation level depends upon an understanding of the duties expected for a particular sales position.

Question 14

Straight commission compensation plans tend to limit control of the salesforce.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following is not a guideline recommended in the management of motivation?

Accepted Answer

A)  Recruit and select salespeople whose personal motives match the requirements and rewards of the job. 
B)  Provide adequate job information and assure proper skill development for the salesforce. 
C)  Take a reactive approach to seeking out motivational problems and sources of frustration in the salesforce. 
D)  Concentrate on building the self-esteem of salespeople. 
E)  Use job design and redesign as motivational tools. 
A)  Recruit and select salespeople whose personal motives match the requirements and rewards of the job. 
B)  Provide adequate job information and assure proper skill development for the salesforce. 
C)  Take a reactive approach to seeking out motivational problems and sources of frustration in the salesforce. 
D)  Concentrate on building the self-esteem of salespeople. 
E)  Use job design and redesign as motivational tools.

Question 16

Commission plans may attract competent results-oriented salespeople and eliminate incompetent reps.

Accepted Answer

A) True 
 B)False

Question 17

The value of nonfinancial compensation is illustrated by the considerable number of salespeople who knowingly take cuts in financial compensation to become sales managers.

Accepted Answer

A) True 
 B)False

Question 18

Research suggests that salespeople's enthusiasm for participating in contests and their design preferences for goal type, number of winners, contest duration, and award value may vary by

Accepted Answer

A)  individual characteristics. 
B)  supervisory characteristics. 
C)  sales setting characteristics. 
D)  all of the above. 
A)  individual characteristics. 
B)  supervisory characteristics. 
C)  sales setting characteristics. 
D)  all of the above.

Question 19

The Million Dollar Roundtable designation in the insurance industry is an example of this type of nonfinancial reward:

Accepted Answer

A)  opportunity for promotion. 
B)  sense of accomplishment. 
C)  personal growth. 
D)  recognition for achievement. 
E)  job security. 
A)  opportunity for promotion. 
B)  sense of accomplishment. 
C)  personal growth. 
D)  recognition for achievement. 
E)  job security.

Question 20

The majority of sales organizations offer full reimbursement to their salespeople for legitimate sales expenses such as travel, lodging, and meals.

Accepted Answer

A) True 
 B)False

Common expense account padding tactics include seeking reimbursement for personal expenses and inventing purchases.

Salespersons' choices of which activities warrant action are less important than how hard they work or how well they persist in their efforts.

Any major change in financial compensation practices is likely to produce widespread concern among the salesforce that their earnings will decline.

Reward system management involves the selection and utilization of organizational rewards to

It is generally believed that sales contests have some positive effects on salesforce performance.

Which of the following is true regarding the design of a global salesforce compensation system?

Which of the following is not a factor to be considered when developing a commission-only plan?

If the nonselling administrative duties of the salesperson are of major importance, this compensation plan is recommended:

A progressive commission rate declines at some predetermined point of sales.

The most productive salespeople have the best opportunities to leave the firm for more attractive work situations.

Expense-report software makes it easier to report and track sales expenses.

A salesperson who is intrinsically motivated

With regards to determining appropriate financial compensation levels, all of the following are true except

Straight commission compensation plans tend to limit control of the salesforce.

Which of the following is not a guideline recommended in the management of motivation?

Commission plans may attract competent results-oriented salespeople and eliminate incompetent reps.

The value of nonfinancial compensation is illustrated by the considerable number of salespeople who knowingly take cuts in financial compensation to become sales managers.

Research suggests that salespeople's enthusiasm for participating in contests and their design preferences for goal type, number of winners, contest duration, and award value may vary by

The Million Dollar Roundtable designation in the insurance industry is an example of this type of nonfinancial reward:

The majority of sales organizations offer full reimbursement to their salespeople for legitimate sales expenses such as travel, lodging, and meals.

Overview of Personal Selling

Organizational Strategies and the Sales Function

Sales Organization Structure and Salesforce Deployment

Acquiring Sales Talent: Recruitment and Selection

Continual Development of the Salesforce:

Sales Leadership, Management, and Supervision

Evaluating the Effectiveness of the Organization

Evaluating the Performance of Salespeople

Developing Forecasts

Filters

Exam 7: Motivation and Reward System Management

Common expense account padding tactics include seeking reimbursement for personal expenses and inventing purchases.

Salespersons' choices of which activities warrant action are less important than how hard they work or how well they persist in their efforts.

Any major change in financial compensation practices is likely to produce widespread concern among the salesforce that their earnings will decline.

Reward system management involves the selection and utilization of organizational rewards to

It is generally believed that sales contests have some positive effects on salesforce performance.

Which of the following is true regarding the design of a global salesforce compensation system?

Which of the following is not a factor to be considered when developing a commission-only plan?

If the nonselling administrative duties of the salesperson are of major importance, this compensation plan is recommended:

A progressive commission rate declines at some predetermined point of sales.

The most productive salespeople have the best opportunities to leave the firm for more attractive work situations.

Expense-report software makes it easier to report and track sales expenses.

A salesperson who is intrinsically motivated

With regards to determining appropriate financial compensation levels, all of the following are true except

Straight commission compensation plans tend to limit control of the salesforce.

Which of the following is not a guideline recommended in the management of motivation?

Commission plans may attract competent results-oriented salespeople and eliminate incompetent reps.

The value of nonfinancial compensation is illustrated by the considerable number of salespeople who knowingly take cuts in financial compensation to become sales managers.

Research suggests that salespeople's enthusiasm for participating in contests and their design preferences for goal type, number of winners, contest duration, and award value may vary by

The Million Dollar Roundtable designation in the insurance industry is an example of this type of nonfinancial reward:

The majority of sales organizations offer full reimbursement to their salespeople for legitimate sales expenses such as travel, lodging, and meals.

Overview of Personal Selling

Organizational Strategies and the Sales Function

Sales Organization Structure and Salesforce Deployment

Acquiring Sales Talent: Recruitment and Selection

Continual Development of the Salesforce:

Sales Leadership, Management, and Supervision

Evaluating the Effectiveness of the Organization

Evaluating the Performance of Salespeople

Developing Forecasts

Filters