Deck 16: Evaluating a Salespersons Performance

Question 1

The average order is an output factor.

Answer 1

True

Question 2

It can be difficult to compare the performances of sales reps selling in large metropolitan areas with those people selling in rural territories.

Answer 2

True

Question 3

An evaluation system which emphasizes outputs over behaviors leads to greater organizational commitment by salespeople.

Answer 3

False

Question 4

A low call rate could reflect the nature of the rep's territory or the types of customers called upon.

Question 5

A poor batting average might be an indication that the sales rep is a poor closer of sales.

Question 6

There is a place in the evaluation process for subjective appraisals of the sales rep's performance.

Question 7

A high rate of cancellation of orders in a territory might indicate that the rep was using high-pressure selling tactics.

Question 8

A poor batting average might indicate that the rep is calling on poor prospects.

Question 9

The evaluation of salespeople serves as means of directing salespeople's efforts.

Question 10

An evaluation of sales force performance can enable management to discover particularly effective sales techniques and incorporate them into the firm's training program.

Question 11

A salesperson should be evaluated only on factors over which he or she has control.

Question 12

A low average order might indicate that the sales rep was failing to sell the entire product line.

Question 13

A low call rate often means that the rep is calling on poor prospects.

Question 14

Productivity is the ratio of input to output.

Question 15

A low call rate might mean that the rep is making ineffective use of his or her time.

Question 16

Three hundred sixty degree feedback involves getting feedback primarily from all of the salesperson's customers.

Question 17

Sales reps' reports are a key source for input factors.

Question 18

There are objective ways for measuring the sales rep's skills at opening new accounts.

Question 19

An evaluation system which measures both inputs and outputs leads to lower profits.

Question 20

Salespeople should not be evaluated on the gross profit they bring in because they have no control over it.

Question 21

Which of the following is a purpose of evaluation?

A)To determine corrective actions to improve performance.
B)To provide a basis for rewarding performance.
C)To help direct the activities of salespeople.
D)To determine training needs.
E)All of these.

Question 22

A quantitative factor which is useful for measuring output (results)in a sales rep's performance is:

A)Direct selling expense.
B)Gross margin.
C)Days worked.
D)Advertising displays set up.
E)Meeting held with dealers.

Question 23

An evaluation of sales reps' performance is important because it can:

A)Reduce selling costs.
B)Boost the reps' morale.
C)Spot weaknesses in field selling efforts.
D)Do All of these.
E)Do only two of A-B-C above.

Question 24

Regarding the question of who should participate in the evaluation of a sales rep's performance:

A)The salesperson's immediate boss is the only sales executive that should be involved.
B)The company's personnel department should do most of the job.
C)The rep's immediate supervisor and this supervisor's boss are the key executives to be involved.
D)Self-evaluation by the rep is of virtually no value.
E)None of these are correct.

Question 25

An accurate generalization about evaluating sales force performance is that:

A)Management should use as many bases as possible when appraising performance.
B)Qualitative bases for evaluation should not be used because they involve subjective judgement and personal biases.
C)In the evaluation process,salespeople should not be allowed to rate themselves.
D)The most useful bases for evaluating all salespeople are gross margin and net profit.
E)None of these is correct.

Question 26

Typically,in 360-degree feedback evaluation,

A)the manager gives evaluative feedback to subordinates.
B)subordinates give evaluative feedback to the manager.
C)workers received evaluative feedback from their peers.
D)customers give evaluative feedback to salespeople.
E)All of these.

Question 27

The task of appraising the performance of individual salespeople is basically a part of the managerial function of:

A)Planning.
B)Evaluation.
C)Setting goals.
D)Sales operations.
E)Staffing.

Question 28

A quantitative factor which may be used as a basis for performance evaluation is:

A)Knowledge of product.
B)Sales rep's planning of sales calls.
C)Acceptance of responsibility.
D)Sales rep's ability to manage their time.
E)Average size of order.

Question 29

Which of the following tools is most useful in a sales force performance evaluation?

A)Compensation plan.
B)Battery of psychological tests.
C)Sales training program.
D)Good job descriptions for the sales rep.
E)Good selection and recruiting program.

Question 30

Before conducting an actual evaluation of sales reps' performance,management first should establish a policy on which of the following?

A)Which executives will participate in the evaluation.
B)How frequently will an evaluation be made.
C)What will be the role of self-evaluation by the reps.
D)Policies must be set for all of these.
E)Policies are needed on only two of A-B-C.

Question 31

Evaluating a salesperson's performance is a difficult job because:

A)Evaluations usually underrate a rep who has a pleasant personality.
B)The time and expense of an evaluation usually outweigh its benefits.
C)Many duties of a sales rep cannot be measured objectively.
D)Most companies do not set quotas or other performance goals.
E)None of these is correct.

Question 32

A low average order might indicate that the sales rep needs more training on product knowledge and building up the order.

Question 33

The evaluation activity takes on a fuller,richer meaning if we think of this activity in terms of the evaluation and ______ of individual salespeople.

A)Reorganizing.
B)Criticizing.
C)Development.
D)Selection.
E)Compensation.

Question 34

Which of the following is least likely to be an objective of a sales force performance evaluation?

A)To increase sales quotas assigned to the sales force.
B)To raise sales force morale.
C)To aid in sales supervision activities.
D)To help salespeople discover their own strengths and weaknesses.
E)To help in determining pay increases for salespeople.

Question 35

Sales managers frequently make evaluations that are too general and too subjective.

Question 36

An effective program for evaluating salespeople's performance is least likely to:

A)Standardize conditions under which the sales force works.
B)Improve salespeople's performance.
C)Reduce marketing costs.
D)Boost sales force morale.
E)Aid in sales supervision activities.

Question 37

Which of the following is the best example of a quantitative factor used as a basis for evaluating sales force performance?

A)acceptance of responsibility.
B)number of orders generated.
C)ability to manage their time.
D)knowledge of the products sold.
E)relations with their customers.

Question 38

The evaluation procedure known as 360 degree feedback involves getting feedback from which of the following?

A)The salesperson's peers.
B)The salesperson's clients.
C)The salesperson's subordinates.
D)Only two of the above.
E)All of these.

Question 39

The advantage of merit rating sheets is that they completely eliminate executive bias from entering into the evaluation process.

Question 40

A low average order might indicate that the sales rep was calling too much on the small accounts in the territory.

Question 41

Regarding the use of gross margin as a basis for evaluating salespeople's performance:

A)This is a good basis when the company sells different products with widely varying gross margins.
B)This takes selling expenses into consideration.
C)This rewards the salesperson who has the highest sales volume.
D)This is a poor basis for evaluating salespeople.
E)This encourages missionary selling activities.

Question 42

In performance evaluation,Behaviorally Anchored Rating Scales (BARS)are used primarily as an aid when:

A)Evaluating the reps on subjective,qualitative bases.
B)Developing merit-rating forms.
C)Preparing a job description for evaluation purposes.
D)Conducting sales-volume and marketing cost analyses.
E)Management wants to eliminate interpersonal bias and the halo effect.

Question 43

Which of the following leads to greater organizational commitment by the salespeople?

A)An evaluation system that emphasizes sales results.
B)An evaluation system that emphasizes sales behaviors.
C)An evaluation system that emphasizes sales volumes.
D)An evaluation system that emphasizes sales dollars.
E)None of these.

Question 44

A quantitative input factor which can be used as a basis for performance evaluation is:

A)Sales volume as percentage of quota.
B)Number of orders.
C)Daily call rate.
D)Percentage of new accounts sold.
E)Sales volume in units.

Question 45

Regarding the interpretation of quantitative data used in a performance evaluation:

A)Sales-volume data alone are no use in a performance evaluation.
B)A low expense-to-sales ratio is a key indicator that the sales rep is doing a good job.
C)Poor sales reps work fewer days than do the good salespeople.
D)A salesperson's call rate is important in evaluating performance because usually the more calls you make,the more sales you make.
E)None of these are correct.

Question 46

Among the following steps in an evaluation procedure,which is the most difficult?

A)Deciding how often to evaluate the salespeople.
B)Setting performance standards.
C)Selecting the quantitative bases to use.
D)Measuring performance against the standards.
E)Filling out a merit-rating form.

Question 47

Regarding the interpretation of quantitative data in a performance evaluation:

A)Similar data (order size,call rate,sales,etc. )gathered from the different territories may not be comparable.
B)Gross margin is a poor indicator of performance,especially if the company sells many products with quite different margins.
C)Market share performance is an exact basis for comparing several sales reps.
D)It is better to have a high average order size than to get a large number of orders.
E)A high batting average (orders - calls)is a good indicator of a well-balanced sales job.

Question 48

Regarding the sources of information used in a performance evaluation:

A)Salespeople's reports are a very poor source of information about performance input (effort)factors.
B)A widely used (and good)source is to actively and regularly solicit opinions from customers regarding the sales rep's performance.
C)Sales managers should not be used as information sources.
D)The company's accounting records are probably the best source regarding performance input factors.
E)The company's records are the best source regarding performance output factors.

Question 49

A sales rep worked 25 days last month,made 150 calls,and wrote 60 orders for a total sales volume of $200,000.Which of the following is nearest to his batting average?

A).200
B).333
C).400
D).600
E).750

Question 50

Among the following factors,the most difficult to quantify (measure objectively)in a performance evaluation is the sales rep's:

A)Ability to collect past due accounts.
B)Ability to "close" a sale.
C)Cooperativeness and resourcefulness.
D)Ability to get good shelf space (when selling to supermarkets).
E)Tendency to high-pressure or overstock a customer.

Question 51

Marion sells for the Whatisits Company of Whoville.An analysis of the performance of the company's 25 person sales force shows that the average sales rep works 250 days a year,makes four calls a day,obtains an order,averaging $15,000,every ten calls made.Marion worked 200 days last year during which she made a total of 700 calls which resulted in 50 orders totaling $1,500,000 in sales volume.What was Marion's average order size?

A)$ 7,500.
B)$ 30,000.
C)$ 50,000.
D)$150,000.
E)None of these.

Question 52

A qualitative factor frequently used as a basis for evaluating sales force performance is the rep's:

A)Daily call rate.
B)Ratio of expense to sales.
C)Average order size.
D)Gross margin.
E)Ability to work with customers' salespeople.

Question 53

Input measures:

A)Use primarily qualitative data.
B)Cannot be used as part of a ratio measure.
C)Are used to measure performance results.
D)Are based on behaviors which are usually under the salesperson's control.
E)None of these.

Question 54

All of the following are qualitative bases for performance evaluation,except:

A)The reps' ability to manage their time.
B)Reps' personal appearance and health.
C)Reps' knowledge of customers.
D)Reps' ability to accept responsibility.
E)Reps' selling expenses.

Question 55

Regarding the interpretation of performance data:

A)Placing much weight on a gross margin performance will encourage salespeople to do missionary selling activities.
B)Most qualitative evaluation factors can be measured objectively.
C)Customer feedback is of no use when interpreting qualitative evaluation factors.
D)Salespeople should not be asked to make a self-evaluation of their performance.
E)None of these is correct.

Question 56

To get information on quantitative output factors in a performance evaluation,management most likely will rely on:

A)Company records.
B)Reports from salespeople.
C)Customer feedback.
D)Field supervisors' reports.
E)A marketing cost analysis.

Question 57

To get information on quantitative input factors in a performance evaluation,management most likely will rely on:

A)Reports from customers.
B)Company accounting system.
C)Field supervisors' reports.
D)Salespeople's reports.
E)A merit rating form.

Question 58

Which of the following leads to a greater use of adaptive selling behaviors?

A)An evaluation system that emphasizes sales results.
B)An evaluation system that emphasizes sales behaviors.
C)An evaluation system that emphasizes sales volumes.
D)An evaluation system that emphasizes sales dollars.
E)None of these.

Question 59

When conducting a performance evaluation,a sales manager may let his evaluation of one factor influence his evaluation of other factors.This situation is referred to as:

A)Interpersonal bias.
B)The halo effect.
C)The chemistry between manager and rep.
D)A Behaviorally Anchored Rating Scale (BARS).
E)Input-output evaluation.

Question 60

Which of the following leads to greater sales and profits?

A)Evaluation based on inputs.
B)Evaluation based on outputs.
C)Evaluation based on sales and profits.
D)Evaluation based on both inputs and outputs.
E)None of these lead to greater sales.

Question 61

Max sells for Whatisits Company.His batting average is by far the highest in the firm - .400.Unfortunately,his average order is the lowest - $3,000.He only saves himself by making a large number of calls per day (5)while working 275 days a year.Which of the following questions is most relevant to a sales manager evaluating Max? As Max's sales manager,before talking with Max what one fact would you like to know?

A)How is his home life?
B)The size of the potential accounts in Max's territory.
C)Is he using some stimulants?
D)What is his work record with the company?
E)How old is he?

Question 62

Marion sells for the Whatisits Company of Whoville.An analysis of the performance of the company's 25 person sales force shows that the average sales rep works 250 days a year,makes four calls a day,obtains an order,averaging $15,000,every ten calls made.Marion worked 200 days last year during which she made a total of 700 calls which resulted in 50 orders totaling $1,500,000 in sales volume.What was Marion's batting average?

A).03.
B).10.
C).15.
D).17.
E)None of these.

Question 63

Marion sells for the Whatisits Company of Whoville.An analysis of the performance of the company's 25 person sales force shows that the average sales rep works 250 days a year,makes four calls a day,obtains an order,averaging $15,000,every ten calls made.Marion worked 200 days last year during which she made a total of 700 calls which resulted in 50 orders totaling $1,500,000 in sales volume.If you were Marion's sales manager you would most likely try to get Marion to: (choose the best answer since there are several that could be correct)

A)Choose prospects with larger potential sales.
B)Make more calls per day.
C)Close a higher percentage of calls made.
D)Work more days.
E)Make her average order the same as the company's.

Question 64

Marion sells for the Whatisits Company of Whoville.An analysis of the performance of the company's 25 person sales force shows that the average sales rep works 250 days a year,makes four calls a day,obtains an order,averaging $15,000,every ten calls made.Marion worked 200 days last year during which she made a total of 700 calls which resulted in 50 orders totaling $1,500,000 in sales volume.If Marion worked 250 days in 1991 with the same effectiveness as she did in 1990 what would her sales volume be approximately?

A)$1,500,000.
B)$1,750,000.
C)$1,875,000.
D)$2,000,000.
E)$2,500,000.

Question 65

Max sells for Whatisits Company.His batting average is by far the highest in the firm - .400.Unfortunately,his average order is the lowest - $3,000.He only saves himself by making a large number of calls per day (5)while working 275 days a year.What is his sales volume for the year?

A)$ 650,000.
B)$1,000,000.
C)$1,500,000.
D)$1,650,000.
E)None of these.

Question 66

Marion sells for the Whatisits Company of Whoville.An analysis of the performance of the company's 25 person sales force shows that the average sales rep works 250 days a year,makes four calls a day,obtains an order,averaging $15,000,every ten calls made.Marion worked 200 days last year during which she made a total of 700 calls which resulted in 50 orders totaling $1,500,000 in sales volume.In determining whether or not to talk to Marion about her performance figures,a wise sales manager would want to:

A)Closely examine the nature of the accounts in Marion's territory.
B)Determine what potential business she is missing in her territory.
C)Look at her call reports carefully to try to discern how many calls it takes for her to sell to one of her account.
D)All of these.
E)None of these,let her alone she's doing fine.

Question 67

Max and Marion sell for Whatisits Company.Max has by far the highest in the firm - .400.Unfortunately,his average order is the lowest - $3,000.He only saves himself by making a large number of calls per day (5)while working 275 days a year.On the other hand,Marion worked 200 days last year during which she made a total of 700 calls which resulted in 50 orders totaling $1,500,000 in sales volume.
What is Max's selling strategy in contrast to Marion's?

A)Max is focusing on covering many small accounts while Marion is covering relatively few large accounts.
B)Max doesn't stay long enough to build a sale while Marion stays and talks to the account.
C)Max works hard while Marion works smart.
D)Max loves customer contact while Marion loves large orders.
E)Max skims the cream from the market while Marion milks the market for everything that is there.

Question 68

Marion sells for the Whatisits Company of Whoville.An analysis of the performance of the company's 25 person sales force shows that the average sales rep works 250 days a year,makes four calls a day,obtains an order,averaging $15,000,every ten calls made.Marion worked 200 days last year during which she made a total of 700 calls which resulted in 50 orders totaling $1,500,000 in sales volume.What was Marion's call rate?

A)3.
B)3.5.
C)4.
D)14.
E)None of these.

Question 69

Marion sells for the Whatisits Company of Whoville.An analysis of the performance of the company's 25 person sales force shows that the average sales rep works 250 days a year,makes four calls a day,obtains an order,averaging $15,000,every ten calls made.Marion worked 200 days last year during which she made a total of 700 calls which resulted in 50 orders totaling $1,500,000 in sales volume.Why is Marion most likely only working 200 days a year?

A)She has been ill.
B)Family problems.
C)She is lazy.
D)Wants the day off and can afford to take it.
E)Can't see her accounts on Mondays.