Deck 11: Motivating Salespeople

Question 1

Every salesperson knows how to handle rejection.

Answer 1

True

Question 2

Expectancy theory hypothesizes a relationship between effort, performance, and rewards.

Answer 2

True

Question 3

Rehearsal is one behavioral self-management technique that could be either explicit or visualized.

Answer 3

True

Question 4

According to equity theory, people will evaluate their treatment in comparison of that of "relevant others".

Question 5

Motivation refers not only to the willingness to take action, but also the intensity with which activities are performed.

Question 6

According to Expectancy Theory a salesperson will be motivated to work harder when they believe that greater effort will lead to greater performance.

Question 7

During the establishment stage, salespeople focus on getting ahead in their current occupation.

Question 8

Salespeople often require extra motivation because of the environment in which they operate.

Question 9

No amount of motivation and incentives will produce a desired level of performance if the salesperson lacks the skills necessary for higher performance.

Question 10

Salespeople cannot be motivated only by their own internal drives and need help from others to perform well.

Question 11

Quotas lend themselves to management by exception where managers can focus attention on salespeople who are exceptionally below quota.

Question 12

The motivational needs of maintenance-stage people include working with greater autonomy.

Question 13

While quotas are useful for average and below average performing salespeople, high performers do not want or need specific and challenging goals.

Question 14

"Working smarter" refers to the understanding that an increase in the right kind of effort will produce greater performance.

Question 15

According to Maslow's Hierarchy, a sales manager's habit of giving fancier automobiles to his/ her senior salespeople is an example of an attempt to satisfy their "belongingness and social needs."

Question 16

Motivation is defined as an individual's willingness to exert effort to achieve the organization's goals while satisfying individual needs.

Question 17

Helping to motivate salespeople requires only an in depth understanding of their needs.

Question 18

Ability, level of motivation, and opportunity are all important determinants of performance. However, deficiencies in one factor may be offset by the others.

Question 19

According to the Herzberg Motivation Theory, achievement, recognition, challenging work and advancement are all motivating factors.

Question 20

Studies indicate that sales performance is usually highest during the maintenance career stage.

Question 21

Studies reveal little support for the common sense belief that salespeople typically set their quotas low so they are easily achieved.

Question 22

A typical sales contest lasts for a year, a period of time that allows each salesperson to cover his or her territory completely and encourages maximum sell-through of the products.

Question 23

A generally accepted performance standard for incentive programs is to produce $4 for each $1 put into them.

Question 24

Providing frequent feedback is recommended for goal setting to be effective.

Question 25

Quotas are always a good way to motivate sales teams to work together.

Question 26

Getting a salesperson to prospect for new business, call on those potential customers that fit your marketing strategy, and provide the drive to maintain a regular prospecting schedule describes which characteristic of effort?

A) The drive to initiate action on a task.
B) The quality of effort on a task.
C) The persistence to expend effort over a period of time.
D) All of the above are characteristics of effort
E) None of the above is a characteristic of effort because a person's effort level ultimately cannot be affected by outside factors.

Question 27

Goal commitment refers to a person's ability to develop achievable goals.

Question 28

Sales contests are usually held over periods of a year or more.

Question 29

Honor awards appeal to the highest of Maslow's needs, self-actualization, and often produces a standard of performance that salespeople will work to maintain for years.

Question 30

Although recognition awards can be an inexpensive way to motivate salespeople, they are rarely used alone.

Question 31

Buying Power Index measures the buying power of the world.

Question 32

A potential drawback of performance-based quotas is that non-selling activities may be neglected.

Question 33

In sales management the concern is that salespeople are (or can be) sufficiently motivated to reach the sales objectives of the firm. Which of the following is (are) reasons why salespeople need stimulation?

A) Field salespeople are continually going from the exhilaration of making a sale to the depression associated with being turned down.
B) Salespeople tend to spend long hours on the road away from direct supervision and support.
C) To maintain a salesperson's high level of enthusiasm and conviction that a product or service is best for the customer.
D) all of the above.
E) none of the above.

Question 34

A good rule of thumb is to set the qualifications and rewards at a level that will motivate the middle sixty percent of the sales force.

Question 35

Most companies will use some type of incentive program to motivate their salespeople.

Question 36

Activity quotas set targets on specific profits generated.

Question 37

According to goal theory, a quota system will work as long as management sets a specific, achievable, and difficult goal.

Question 38

Unit volume quotas not only state sales objectives in terms of number of units of each product to be sold, but also eliminate the effects of inflation from the pay system.

Question 39

Motivation is an individual's willingness to exert effort to achieve the organization's goals while satisfying individual needs. Inherent in this definition are three components:

A) persistence, intensity, organizational goals
B) effort, individual needs and organizational goals
C) direction, individual needs and effort
D) individual needs, effort and direction
E) effort, intensity and organizational goals

Question 40

The drive to initiate action on a task, the quality of effort on a task and the persistence to expend effort over a period of time sufficient to meet or exceed objectives most closely describes a salesperson who:

A) understands the organizations goals
B) is motivated
C) is a good corporate citizen in the company
D) has no innate selling skills
E) does not complete all required paperwork on time

Question 41

In the expectancy motivation model, valence refers to:

A) the likelihood that increased effort will lead to greater performance.
B) the likelihood that greater performance will lead to more rewards.
C) how much a salesperson desires a particular reward.
D) the importance of receiving more recognition.

Question 42

Fred used to be a high performing sales rep for you. However, he has not performed well lately. You've decided it was time to have a talk with Fred. Among the list of things you want to occur in this meeting is for Fred to realize what he needs to do to increase his motivation. You plan on explaining expectancy theory which is based on the relationship between:

A) effort, performance, and rewards.
B) ability, desire, and goals.
C) performance and rewards only.
D) effort, motivation and sales volume.
E) ability, effort, and sales volume.

Question 43

George is the senior salesperson on your staff who is in the maintenance career stage. Which of the following is least likely to motivate George?

A) introduce significant rewards other than money (i.e., more vacation time).
B) expand their role as a sales specialist in group decision making.
C) encourage them to use their knowledge in new and creative ways.
D) promotion to sales manager.

Question 44

A salesperson who has the following characteristics is can be labeled as having which motivational drive? -Has a desire to be the best salesperson in the company, but is not interested in outperforming specific people
-Likes to be considered an expert, but are prone to feeling slighted
-Changes jobs frequently
-Takes things personally

A) the Competitor
B) the Ego-driven
C) the Achiever
D) the Service-oriented
E) none of the above

Question 45

Behavioral Self-Management (BSM) is a process where:

A) a salesperson implements his or her own performance objectives.
B) a sales manager sets an individual salesperson's objectives.
C) the need for a sales manager is eliminated.
D) the person focuses on behaviors, not outcomes.

Question 46

According to expectancy theory of motivation, instrumentality is the likelihood that:

A) greater performance will lead to more rewards.
B) I have the motivation to make this sale.
C) greater effort will lead to greater performance.
D) my performance be rewarded with something that I value.
E) given my current level of effort and performance, I will be rewarded.

Question 47

A number of actions can be taken to motivate a sales force. If the sales manager allows salespeople to help plan sales quotas and the sequence of calls (a task normally completed by the sales manager), the manager is attempting to satisfy which sales force need:

A) routine
B) accomplishment
C) control
D) status
E) honesty

Question 48

The performance-reward relationship is the belief that a higher level of performance will lead to greater personal rewards. This is also referred to as:

A) instrumentality.
B) restitution.
C) the theory of profitability.
D) compensational work ethic.
E) none of above are correct.

Question 49

There are three characteristics of efforts put forth by people as described by sales managers. Which of the following is not one of these characteristics?

A) a drive to initiate action on a task
B) a constant expression of a positive attitude
C) a high quality of effort on a task
D) a persistence in giving the effort needed to complete objective
E) all of the above

Question 50

Which is the correct order of the four career stages a person in the sales profession will experience?

A) exploration, establishment, maintenance, disengagement
B) exploration, establishment, disengagement, maintenance
C) exploration, maintenance, establishment, disengagement
D) disengagement, exploration, maintenance, establishment

Question 51

As a new first-line sales manager, you would like to understand what motivates each salesperson. Joe, one of your salespeople, is a person who is almost completed self-motivated - you don't need to do much of anything to keep this person going. Joe always sets high goals for himself and likes it when the branch achieves its monthly quota, regardless of who sold the most to make that possible. Based on this information, you determine that Joe has which motivational drive?

A) the Competitor
B) the Ego-driven
C) the Achiever
D) the Service-oriented
E) a combination of all of the above

Question 52

Expectancy theory deals with the relationship among these three elements:

A) goals, efforts, results.
B) expectancy, goals, results.
C) goals, performance, rewards.
D) performance, efforts, rewards.

Question 53

According to this theory, salespeople have three professional needs, achievement, affiliation and power. Also, a high need for achievement and affiliation has been related to higher sales force performance.

A) Theory of Learned Needs
B) Motivation-Hygiene
C) ERG Theory
D) Equity Theory
E) Hierarchy of Needs

Question 54

Which of the following are characteristics of employees in the disengagement phase?

A) feeling a loss of focus
B) less satisfied with their job
C) a decrease in sales performance
D) a and b
E) all of the above

Question 55

Liz has been a salesperson with your company for 15 years. Lately, she has been having some doubts about her career choice and has been thinking about taking a new direction with the company. The _____________ stage best describes her career stage.

A) establishment
B) disengagement
C) exploration
D) maintenance
E) none of the above

Question 56

A sales consultant preparing to discuss reasons why salespeople need extra motivation would not want to mention which of the following:

A) the emotional ups and downs associated with selling.
B) the frequent encounters with strangers.
C) long hours on the road.
D) the difficult economic conditions negatively affecting purchase intentions.

Question 57

Some of your lower performing salespeople complain to you about begin stuck with a "bad" territory. They say that the higher performing salespeople have easier territories to sell in. Which of the following theory best describes the salespeople's thinking?

A) Theory of Learned Needs
B) Motivation-Hygiene
C) ERG Theory
D) Equity Theory
E) Hierarchy of Needs

Question 58

Herzberg's Motivation Theory referred to the desire for unfulfilled needs as:

A) deficiency factors.
B) motivation factors.
C) achievement factors.
D) hygiene factors.
E) ego factors.

Question 59

According to research by the Gallup Management Consulting Group, high performing salespeople are likely to exhibit which of the following personality types?

A) someone who only wants to win
B) someone who is not interested in beating specific competitors, but just wants to win
C) someone who is motivated by building and cultivating relationships
D) someone who likes accomplishment, regardless of who receives the credit
E) all of the above

Question 60

The psychological need for autonomy and competition is likely to be strongest for people in which career stage?

A) establishment
B) disengagement
C) exploration
D) maintenance
E) needs do not apply to any individual career stage

Question 61

You would like to use activity quotas, but one of the serious disadvantages of activity quotas that keeps you from using this type of quota is:

A) they will lower sales force morale.
B) the additional information you need to collect to track activities.
C) they are not under the control of the salesperson.
D) the lack of objectivity measuring what is successful activity performance.

Question 62

On which of the following are profit-based quotas most likely to be based?

A) net income
B) retained earnings
C) gross margin
D) accounts receivable
E) accounts payable

Question 63

According to the text, the qualifications and rewards of an effective sales incentive program should be set with the following objective in mind:

A) set the reward level so that all salespeople having an opportunity to win the top prize.
B) set the reward level so that only the top ten percent have a legitimate chance to win something.
C) set the reward level to have one or two grand prizes that the top salespeople will have an opportunity to win.
D) set the reward level that will motivate the middle 60 percent of the sales force.
E) Set the reward level so that the contest lasts for at least one full year.

Question 64

_______________ are more optimistic goals used to stimulate the sales force, whereas _______________ are the maximum share of demand in each product market that a multi-product firm can attain under ideal conditions, and are generally unrealistic objectives.

A) Sales forecasts, quotas
B) Quotas, sales forecasts
C) Quotas, sales potentials
D) Sales potentials, quotas

Question 65

As a sales manager responsible for setting quotas, which of the following would you least likely to use as a benchmark when establishing individual sales volume quotas?

A) past sales
B) new product development
C) territory reorganization
D) forecasted company sales
E) forecasted competitive actions

Question 66

As the sales manager of WGASA Corporation, a major West Coast wholesaler, it's up to you to set quotas for each of WGASA's territories. The veteran sales force tends to work autonomously with minimal supervision or required paperwork on activities. Also, salespeople have no opportunity to set prices or margins. With this type of situation you are most likely to use:

A) expense report quotas.
B) dollar volume quotas.
C) activity quotas.
D) all of the above.
E) none of the above.

Question 67

Quota levels should typically be:

A) set at the sales forecast level.
B) set at the sales potential level.
C) set between the sales forecast and sales potential levels.
D) set below the sales potential levels.
E) based only on historical sales.

Question 68

Incentive programs can be best described as:

A) fairly long term promotional events.
B) a breakeven affair - sales increases equal contest costs.
C) inspiring people to a greater than usual performance level and rewarding them as a result.
D) occurring very infrequently, maybe once a year to inspire high performance.
E) a poor motivation device for most salespeople.

Question 69

As a sales manager, you realize that your new sales goals must be accepted by the sales force to be effective in increasing performance. For salespeople to accept the goals as their own, you need to play a greater role than simply setting the new goals. Which of the following should you NOT do to get the sales force to accept these goals:

A) provide frequent feedback on progress toward the goal
B) emphasize that these quotas are "best case scenarios" and might be changed depending on performance
C) gain goal commitment from the sales force
D) build self confidence
E) none of the above, you should do all of these

Question 70

Quotas:

A) are often used as a basis for compensation and performance evaluation.
B) are goals assigned for individual salespeople for a particular time period.
C) are equivalent to asking you to "do your best."
D) both a and b of the above.
E) all of the above.

Question 71

Profit-based quotas will be most likely used when:

A) prices are set at headquarters and are non-negotiable.
B) selling a single product or product line.
C) salespeople having some pricing flexibility.
D) salespeople are restricted to selling within a defined geographic territory.
E) all of the above.

Question 72

An example of applying Behavioral Self-Management (BSM) to increase the number of sales calls made each week is:

A) using daily tally sheets to record success and failures.
B) setting cold calling goals for each of your salespeople.
C) making mental notes of previous actions.
D) sales management evaluation of performance.

Question 73

_______________ based programs are most often used for motivating salespeople, directing salesperson effort and providing a performance standard:

A) Quota
B) Salary
C) Recognition
D) Non-financial
E) Esteem

Question 74

Typical "non-selling activities" quotas encompassing individual sales duties include all except:

A) making a number of calls per day.
B) calls on new accounts.
C) number of product demonstrations.
D) number of proposals submitted.
E) all of the above

Question 75

While establishing quota levels is not an exact science, a sales manager's objective in setting quotas should include all of the following except:

A) providing a challenging goal.
B) allowing only high achievers the opportunity to accomplish quota goals.
C) ensuring that quotas are realistic and attainable.
D) having significant rewards for those who obtain their quota.

Question 76

As a part of Behavioral Self-Management, a salesperson should:

A) observe and record their behavior.
B) modify consequences of behavior.
C) systematically practice a desired behavior.
D) all of the above.

Question 77

Goal Theory involves each of the following elements except:

A) feedback - informing salespeople of their past performance
B) goal commitment - personal acceptance of an objective
C) valences - the desirability of rewards given for achieving a specific goal
D) self-efficacy - how an individual feels about his/her capacity to perform
E) performance - how motivated an individual is to perform

Question 78

All of the following are reasons for using quotas except:

A) quotas guarantee minimum performance.
B) they provide motivation.
C) they trigger incentive compensation.
D) they provide standards for performance evaluation.
E) they provide an alert for managers in case of the need for corrective action.

Question 79

Which of the following are examples of activity quotas?

A) calls on new accounts
B) product demonstrations
C) number of calls per day
D) proposals submitted
E) all of the above

Question 80

The most frequently used type of quota by sales organizations is:

A) number of sales calls
B) total direct selling expense
C) net profits before taxes
D) sales volume
E) point-of-purchase display