Question 1

All of the following normally are considered to be elements (building blocks)in a sales compensation plan,except:

Accepted Answer

A) Commission. 
B) Bonus. 
C) Sales contest with cash prizes. 
D) Salary. 
E) Insurance and pension plans. 
A) Commission. 
B) Bonus. 
C) Sales contest with cash prizes. 
D) Salary. 
E) Insurance and pension plans. C

Question 2

Which of the following factors is least likely to influence the level of sales force compensation?

Accepted Answer

A) The firm's financial position. 
B) The method of compensation. 
C) The age of the salespeople. 
D) The level of pay of factory and office workers in the firm. 
E) The size of the company. 
A) The firm's financial position. 
B) The method of compensation. 
C) The age of the salespeople. 
D) The level of pay of factory and office workers in the firm. 
E) The size of the company. D

Question 3

A company will most likely use a straight salary plan for compensating its sales force when:

Accepted Answer

A) Adequate field supervision is not feasible. 
B) Part-time salespeople or independent contractors are used. 
C) The sale involves a complex product,and requires lengthy periods of service and negotiations. 
D) The firm is in a weak financial position. 
E) Very little non-selling,missionary type of work is needed. 
A) Adequate field supervision is not feasible. 
B) Part-time salespeople or independent contractors are used. 
C) The sale involves a complex product,and requires lengthy periods of service and negotiations. 
D) The firm is in a weak financial position. 
E) Very little non-selling,missionary type of work is needed. C

Question 4

The objectives of a good compensation plan should be viewed only from the company's perspective.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is a trend in sales force compensation today?

Accepted Answer

A) A greater use of salary only plans. 
B) Incentive pay for performance is a bigger component of compensation. 
C) A greater use of incentive pay for organizational citizenship behaviors. 
D) A greater use of bonuses for meeting volume targets. 
E) A greater use of commission only plans. 
A) A greater use of salary only plans. 
B) Incentive pay for performance is a bigger component of compensation. 
C) A greater use of incentive pay for organizational citizenship behaviors. 
D) A greater use of bonuses for meeting volume targets. 
E) A greater use of commission only plans.

Question 6

Which of the following are trends in sales force compensation today?

Accepted Answer

A) A greater use of the commission only plan. 
B) Compensation incentives related to profitable sales. 
C) Compensation based on customer satisfaction. 
D) A greater use of salary only compensation plans. 
E) Both B and C are trends. 
A) A greater use of the commission only plan. 
B) Compensation incentives related to profitable sales. 
C) Compensation based on customer satisfaction. 
D) A greater use of salary only compensation plans. 
E) Both B and C are trends.

Question 7

Which of the following is the best tool for improving customer satisfaction?

Accepted Answer

A) Pay a bonus based on exceeding quota. 
B) Pay the reps' travel expense. 
C) Provide a drawing account. 
D) Pay a bonus based on a customer satisfaction survey. 
E) Base the commission on gross margin instead of net sales. 
A) Pay a bonus based on exceeding quota. 
B) Pay the reps' travel expense. 
C) Provide a drawing account. 
D) Pay a bonus based on a customer satisfaction survey. 
E) Base the commission on gross margin instead of net sales.

Question 8

Compensating salespeople with a straight commission on net sales is consistent with which of the following specific goals?

Accepted Answer

A) Developing a new territory. 
B) Increasing sales volume. 
C) Reducing fluctuations in salespeople's income. 
D) Increasing gross margin. 
E) Discouraging small orders. 
A) Developing a new territory. 
B) Increasing sales volume. 
C) Reducing fluctuations in salespeople's income. 
D) Increasing gross margin. 
E) Discouraging small orders.

Question 9

It is a good idea to pretest a compensation plan and introduce it to the sales force before the plan is installed on a permanent basis.

Accepted Answer

A) True 
 B)False

Question 10

Salespeople paid by straight commission usually have a lower turnover rate for personnel than those do paid by straight salary.

Accepted Answer

A) True 
 B)False

Question 11

_________ is an example of a non-financial element in a sales force compensation plan:

Accepted Answer

A) A market share based bonus. 
B) An honor citation from the president of the firm. 
C) A paid vacation of three weeks a year. 
D) A commission based business from new customers. 
E) A company-paid retirement program. 
A) A market share based bonus. 
B) An honor citation from the president of the firm. 
C) A paid vacation of three weeks a year. 
D) A commission based business from new customers. 
E) A company-paid retirement program.

Question 12

Successful companies in the 21st century:

Accepted Answer

A) Will reward selling as much as possible. 
B) Will primarily reward maintaining market share. 
C) Will reward immediate results. 
D) Will reward gaining customers with fewer calls. 
E) Will reward building customer share over the long term. 
A) Will reward selling as much as possible. 
B) Will primarily reward maintaining market share. 
C) Will reward immediate results. 
D) Will reward gaining customers with fewer calls. 
E) Will reward building customer share over the long term.

Question 13

The best signal that your compensation plan isn't working is that several of your best salespeople quit.

Accepted Answer

A) True 
 B)False

Question 14

A sales compensation plan calling for a straight commission based on net sales is least likely to:

Accepted Answer

A) Attract good salespeople. 
B) Lower the morale of poor sales reps. 
C) Increase the rep's independence of action. 
D) Result in fluctuating earnings for the reps. 
E) Stimulate missionary selling activities. 
A) Attract good salespeople. 
B) Lower the morale of poor sales reps. 
C) Increase the rep's independence of action. 
D) Result in fluctuating earnings for the reps. 
E) Stimulate missionary selling activities.

Question 15

Profit sharing should not be a significant part of a sales compensation plan,because profit:

Accepted Answer

A) Is not sufficiently controllable by the reps. 
B) Cannot be measured objectively. 
C) Fluctuates too much. 
D) Provides no incentive for the reps. 
E) Greatly reduces management's ability to control the sales force activities. 
A) Is not sufficiently controllable by the reps. 
B) Cannot be measured objectively. 
C) Fluctuates too much. 
D) Provides no incentive for the reps. 
E) Greatly reduces management's ability to control the sales force activities.

Question 16

The least likely administrative problem encountered under the straight commission method of compensating salespeople is:

Accepted Answer

A) Dividing the commission when three sales reps are involved in the sale. 
B) Establishing the rate of commission. 
C) Determining the commission payments on installment sales. 
D) Controlling the ratio of selling expenses to net sales. 
E) Handling situations involving a drawing account. 
A) Dividing the commission when three sales reps are involved in the sale. 
B) Establishing the rate of commission. 
C) Determining the commission payments on installment sales. 
D) Controlling the ratio of selling expenses to net sales. 
E) Handling situations involving a drawing account.

Question 17

For which of the following products would the straight-commission plan of compensation be most appropriate?

Accepted Answer

A) Encyclopedias sold door-to-door. 
B) Hammers,wrenches,and nails sold in a hardware store. 
C) Potato chips,corn chips,and pretzels sold by a route salesperson. 
D) Shoes sold in a large department store. 
E) Fax machines sold to the military. 
A) Encyclopedias sold door-to-door. 
B) Hammers,wrenches,and nails sold in a hardware store. 
C) Potato chips,corn chips,and pretzels sold by a route salesperson. 
D) Shoes sold in a large department store. 
E) Fax machines sold to the military.

Question 18

An illustration of the method of compensation,as contrasted with the level of pay,is:

Accepted Answer

A) Sales reps are paid a salary plus 5 percent commission on sales. 
B) The top half of our sales reps average $1,500 a month in total earnings. 
C) The average pay of our sales reps is 10 percent above the average received by our unionized production workers. 
D) Our top sales rep earned $70,000 last year. 
E) None of these is an example of method of pay. 
A) Sales reps are paid a salary plus 5 percent commission on sales. 
B) The top half of our sales reps average $1,500 a month in total earnings. 
C) The average pay of our sales reps is 10 percent above the average received by our unionized production workers. 
D) Our top sales rep earned $70,000 last year. 
E) None of these is an example of method of pay.

Question 19

Experts recommend that the incentive reward for outstanding performance should be twice the average incentive payout.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following is the best argument in favor of placing a limit on a salesperson's earnings?

Accepted Answer

A) Salespeople should not receive financial benefit from "windfall" sales over which they had no influence. 
B) It is good for executives' morale. 
C) A sales representative should not be able to earn an outrageous sum of money. 
D) It encourages a sales representative to work harder. 
E) It helps the company control sales costs. 
A) Salespeople should not receive financial benefit from "windfall" sales over which they had no influence. 
B) It is good for executives' morale. 
C) A sales representative should not be able to earn an outrageous sum of money. 
D) It encourages a sales representative to work harder. 
E) It helps the company control sales costs.

All of the following normally are considered to be elements (building blocks)in a sales compensation plan,except:

Which of the following factors is least likely to influence the level of sales force compensation?

A company will most likely use a straight salary plan for compensating its sales force when:

The objectives of a good compensation plan should be viewed only from the company's perspective.

Which of the following is a trend in sales force compensation today?

Which of the following are trends in sales force compensation today?

Which of the following is the best tool for improving customer satisfaction?

Compensating salespeople with a straight commission on net sales is consistent with which of the following specific goals?

It is a good idea to pretest a compensation plan and introduce it to the sales force before the plan is installed on a permanent basis.

Salespeople paid by straight commission usually have a lower turnover rate for personnel than those do paid by straight salary.

_________ is an example of a non-financial element in a sales force compensation plan:

Successful companies in the 21^st century:

The best signal that your compensation plan isn't working is that several of your best salespeople quit.

A sales compensation plan calling for a straight commission based on net sales is least likely to:

Profit sharing should not be a significant part of a sales compensation plan,because profit:

The least likely administrative problem encountered under the straight commission method of compensating salespeople is:

For which of the following products would the straight-commission plan of compensation be most appropriate?

An illustration of the method of compensation,as contrasted with the level of pay,is:

Experts recommend that the incentive reward for outstanding performance should be twice the average incentive payout.

Which of the following is the best argument in favor of placing a limit on a salesperson's earnings?

The Field of Sales Force Management

Strategic Sales Force Management

Personal Selling Process

Sales Force Organization

Profiling and Recruiting Salespeople

Selecting and Hiring Applicants

Developing, Delivering, and Reinforcing a Sales Training Program

Motivating a Sales Force

Sales Force Quotas Expenses

Leadership of a Sales Force

Sales Forecasting and Developing Budgets

Sales Territories

Analysis of Sales Volume

Marketing Cost and Profitability Analysis

Evaluating a Salespersons Performance

Ethical and Legal Responsibilities of Sales Managers

Filters

Exam 9: Sales Force Compensation

All of the following normally are considered to be elements (building blocks)in a sales compensation plan,except:

Which of the following factors is least likely to influence the level of sales force compensation?

A company will most likely use a straight salary plan for compensating its sales force when:

The objectives of a good compensation plan should be viewed only from the company's perspective.

Which of the following is a trend in sales force compensation today?

Which of the following are trends in sales force compensation today?

Which of the following is the best tool for improving customer satisfaction?

Compensating salespeople with a straight commission on net sales is consistent with which of the following specific goals?

It is a good idea to pretest a compensation plan and introduce it to the sales force before the plan is installed on a permanent basis.

Salespeople paid by straight commission usually have a lower turnover rate for personnel than those do paid by straight salary.

_________ is an example of a non-financial element in a sales force compensation plan:

Successful companies in the 21st century:

The best signal that your compensation plan isn't working is that several of your best salespeople quit.

A sales compensation plan calling for a straight commission based on net sales is least likely to:

Profit sharing should not be a significant part of a sales compensation plan,because profit:

The least likely administrative problem encountered under the straight commission method of compensating salespeople is:

For which of the following products would the straight-commission plan of compensation be most appropriate?

An illustration of the method of compensation,as contrasted with the level of pay,is:

Experts recommend that the incentive reward for outstanding performance should be twice the average incentive payout.

Which of the following is the best argument in favor of placing a limit on a salesperson's earnings?

The Field of Sales Force Management

Strategic Sales Force Management

Personal Selling Process

Sales Force Organization

Profiling and Recruiting Salespeople

Selecting and Hiring Applicants

Developing, Delivering, and Reinforcing a Sales Training Program

Motivating a Sales Force

Sales Force Quotas Expenses

Leadership of a Sales Force

Sales Forecasting and Developing Budgets

Sales Territories

Analysis of Sales Volume

Marketing Cost and Profitability Analysis

Evaluating a Salespersons Performance

Ethical and Legal Responsibilities of Sales Managers

Filters

Successful companies in the 21^st century: