Question 1

Behavioral measures of performance are usually more effective for salaried work forces.

Accepted Answer

Behavioral measures of performance are often more effective for salaried workforces because they focus on how tasks are performed, including aspects like teamwork, creativity, and leadership, which are crucial in roles where output is not easily quantified.

Question 2

The development of Behavioral Observation Scales (BOS) requires specific job dimensions and critical incidents for each level and type of sales job.

Accepted Answer

Developing Behavioral Observation Scales (BOS) requires a thorough understanding of job dimensions and critical incidents for each level and type of sales job. This information is used to identify the behaviors and competencies necessary for success in the specific job role and to develop corresponding assessment criteria. Therefore, the statement is true.

Question 3

Territorial sales data can seldom be a useful guide to help solve problems that lie under the surface of performance figures.

Accepted Answer

Territorial sales data can often provide insights into underlying issues affecting performance, such as market trends, customer preferences, and areas needing improvement, making it a useful tool for problem-solving.

Question 4

In a cost and profit analysis, the profit contribution figure shows how much price-cutting and sharing of commission is being employed by salespeople to move the products.

Accepted Answer

The profit contribution figure shows the profit generated by each unit sold after all the costs (such as production and marketing costs) have been taken into account. It does not refer to price-cutting or sharing of commission by salespeople.

Question 5

One significant problem with successful implementation of behavioral control systems is that there is no reliable mechanism to gather the necessary information.

Accepted Answer

The statement is inaccurate as there are various methods to gather information and data for the implementation of behavioral control systems, such as surveys, observations, interviews, and feedback mechanisms. The key challenge is not the lack of mechanisms, but rather the accuracy, validity, and completeness of the information collected.

Question 6

Contribution margin minus direct fixed selling costs equals variable cost.

Accepted Answer

Contribution margin minus direct variable selling costs equals variable cost, not direct fixed selling costs.

Question 7

Call reports do not allow sales managers to set activity objectives for individual salespeople.

Accepted Answer

Call reports can provide detailed information on the activities of individual salespeople, which can be used by sales managers to set activity objectives for their team members. Hence, the statement is false.

Question 8

As a sales manager, it is often useful to conduct a cost and profit analysis. This analysis starts with gross sales revenues because returns, bad debt accounts, and allowances must be taken into account in order to more accurately assess salesperson performance.

Accepted Answer

The answer of As a sales manager, it is often...

Question 9

Detailed call reports allow sales managers to set activity objectives for individual salespeople and then measure results.

Accepted Answer

Detailed call reports provide valuable data and insights to sales managers, enabling them to set specific activity goals for each salesperson and track their progress. This helps managers identify areas of improvement, reward high-performing reps, and ensure that their team is working towards achieving the desired outcomes.

Question 10

Outcome evaluation systems are recommended in industries where the salesperson has a substantial influence on the results.

Accepted Answer

Outcome evaluation systems are recommended in industries where the salesperson's performance has a direct impact on the results. The evaluation systems help to measure the results achieved by the salesperson and provide feedback for improvement.

Question 11

Although a sales analysis provides managers with useful data, it does not reveal the effects of price-cutting or the differences in selling costs, potential, and saturation that exist across products or territories.

Accepted Answer

A sales analysis only provides data on sales performance and trends, it does not take into account factors such as price-cutting, selling costs, potential, and market saturation which vary across products or territories.

Question 12

A call report that shows the relationship between some predetermined plan and actual performance is an example of management by objectives.

Accepted Answer

Yes, a call report that shows the relationship between the predetermined plan and actual performance is an example of management by objectives. It helps managers to evaluate their team's progress towards the set objectives and identify deviations, allowing them to take corrective actions to get back on track.

Question 13

Behavioral based control systems are primarily concerned with tracking one key outcome factor.

Accepted Answer

Behavioral based control systems are concerned with tracking multiple factors and behaviors, not just one key outcome factor. These systems focus on measuring and managing employee behaviors to ensure they align with organizational goals and values. Examples include tracking attendance, productivity, and customer service performance.

Question 14

One can look at sales results by breaking them out by territories.

Accepted Answer

Sales results can be analyzed by breaking them out by territories to identify trends and performance variations in different regions.

Question 15

One problem with using sales results in evaluating salespeople is that they do not adequately measure conditions faced by salespeople in the field.

Accepted Answer

Sales results may not account for external factors such as market fluctuations, competitive pressures, or changes in customer preferences, which can significantly impact a salesperson's performance. Therefore, it may not be an accurate measure of the effectiveness of a salesperson in the field.

Question 16

Analyzing a territory's contribution margin is an example of a profit-based evaluation.

Accepted Answer

Analyzing a territory's contribution margin involves determining the sales revenue minus variable costs associated with that territory, ultimately resulting in the contribution margin. This type of analysis is focused on identifying the profitability of a particular area or product, making it a profit-based evaluation.

Question 17

The primary disadvantage of MBO systems is that considerable time is required to fill out the necessary call reports.

Accepted Answer

MBO systems require managers and employees to spend a significant amount of time filling out call reports, which can be a disadvantage as it can take away from other important tasks.

Question 18

Once sales managers have reliable measures of potential, the next step is to convert these numbers into planned sales figures for each territory.

Accepted Answer

Once sales managers have reliable measures of potential, they can use them to determine planned sales figures for each territory.

Question 19

Performance evaluation can only be accomplished by objective performance measures.

Accepted Answer

Performance evaluation can be accomplished using both objective and subjective measures. Objective measures include quantifiable metrics such as sales figures or production numbers, while subjective measures may include feedback from supervisors or peers about an employee's communication skills or work ethic.

Question 20

Behavioral measures are recommended when the sales environment is competitive.

Accepted Answer

The answer of Behavioral measures are recommended when the sales...

Quiz 13: Evaluating Sales Force Performance