Question 1

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

Accepted Answer

Research in sales and organizational behavior often finds that sales quotas are set based on a variety of factors including past performance, market conditions, and organizational goals, rather than a simplistic approach of setting them low for easy achievement. This challenges the common sense belief that salespeople typically set their quotas low.

Question 2

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.

Accepted Answer

A typical sales contest usually lasts for a shorter period, such as a few weeks to a few months, to create urgency and motivate immediate performance improvements.

Question 3

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

Accepted Answer

This is true, as a 4:1 return on investment (ROI) is a commonly used benchmark for measuring the effectiveness of incentive programs. However, the exact ROI can vary depending on the type of program and other factors such as the industry and company size.

Question 4

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

Accepted Answer

Providing frequent feedback helps to track progress, identify any issues or obstacles, and make necessary adjustments to achieve the goal. It also provides motivation and encourages individuals to continue working towards their goals.

Question 5

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

Accepted Answer

While quotas may provide a clear goal for sales teams and provide a sense of urgency, they can also create a competitive and individualistic environment where team members prioritize their personal targets over teamwork and collaboration. Additionally, unrealistic or unfair quotas can lead to demotivation and resentment among team members. Therefore, quotas are not always a good way to motivate sales teams to work together.

Question 6

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?

Accepted Answer

The description encompasses initiating action (drive to initiate), quality of effort (fitting the marketing strategy), and persistence over time (maintaining a regular schedule), which are all characteristics of effort.

Question 7

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

Accepted Answer

Goal commitment refers to the determination or attachment a person has to achieving a set goal, not to their ability to develop achievable goals.

Question 8

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

Accepted Answer

Sales contests can be held over various periods of time, ranging from a weekly, monthly, quarterly or yearly basis. Therefore, sales contests are not necessarily held over a period of a year or more.

Question 9

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.

Accepted Answer

Honor awards recognize individuals for their exceptional performance, which appeals to their need for self-actualization, according to Maslow's hierarchy of needs. This recognition can motivate salespeople to maintain and even exceed their performance levels for years to come. Therefore, the statement is true.

Question 10

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

Accepted Answer

Recognition awards may be a cost-effective way to motivate salespeople, but they are typically used in conjunction with other incentives and strategies such as commission, bonuses, performance-based promotions, team-based incentives, and recognition programs. Combining these incentives will significantly increase the chances of achieving desired results.

Question 11

Buying Power Index measures the buying power of the world.

Accepted Answer

The Buying Power Index (BPI) measures the relative purchasing power of a country's currency and is not an index that measures the overall buying power of the world.

Question 12

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

Accepted Answer

Performance-based quotas often focus solely on sales results, leaving other important activities such as customer service, relationship building, and strategic planning to fall by the wayside.

Question 13

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?

Accepted Answer

All three options A, B, and C are reasons why salespeople need stimulation. Field salespeople experience a wide range of emotions in their day to day work and need motivation to continue pursuing sales. Salespeople often work remotely and require guidance and direction to stay on track. And maintaining a positive attitude and belief in the product or service they are selling is crucial for a successful salesperson.

Question 14

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.

Accepted Answer

This is a commonly acknowledged best practice in setting sales incentives, as the middle sixty percent of the sales force is typically the largest group and thus has the greatest potential impact on sales performance. By setting qualifications and rewards that motivate this group, companies can drive overall sales results more effectively.

Question 15

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

Accepted Answer

It is common for companies to use incentive programs to motivate their salespeople as it can improve performance and ultimately increase revenue.

Question 16

Activity quotas set targets on specific profits generated.

Accepted Answer

Activity quotas set targets on specific activities to be performed, such as number of sales calls, meetings with clients, etc. They do not directly measure profits generated. However, achieving the activity quotas can ultimately lead to increased profits.

Question 17

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

Accepted Answer

The answer of According to goal theory, a quota system...

Question 18

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.

Accepted Answer

Unit volume quotas do state sales objectives in terms of number of units to be sold, and they are not affected by inflation, making them an effective way to measure sales performance.

Question 19

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:

Accepted Answer

The definition of motivation given in the question includes three components: effort, individual needs, and organizational goals. Choice B accurately lists all three of these components. Choices A, C, D, and E do not accurately capture all three components listed in the definition.

Question 20

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:

Accepted Answer

The description given in the question most closely aligns with the concept of motivation, which involves drive, effort, and persistence towards achieving goals. Therefore, the best choice is B - a salesperson who is motivated. None of the other choices directly address the specific qualities mentioned in the question.

Quiz 11: Motivating Salespeople