Deck 17: Personal Selling and Sales Management

Question 1

Japanese sales representatives are motivated more by the social pressure of their peers than by the prospect of making more money based on individual effort.

Answer 1

True
Explanation: Due to Japan's emphasis on paternalism and collectivism and its system of lifetime employment and seniority, motivation through individual incentives does not work well because Japanese employees seem to derive the greatest satisfaction from being comfortable members of a group. Japanese sales representatives are motivated more by the social pressure of their peers than by the prospect of making more money based on individual effort.

Question 2

The main disadvantage of hiring local nationals for an international sales force is the tendency of headquarters personnel to ignore their advice.

Answer 2

True
Explanation: The main disadvantage of hiring local nationals is the tendency of headquarters personnel to ignore their advice. Even though most foreign nationals are careful to keep relationships at the home office warm, their influence is often reduced by their limited English communication skills and lack of understanding of how home-office politics influence decision making.

Question 3

An international salesperson must have a high level of flexibility when working in a foreign country or in the home country.

Answer 3

True
Explanation: An international salesperson must have a high level of flexibility, whether working in a foreign country or at home.

Question 4

Virtual expatriates find it easy to maintain close contact with subordinates and customers due to advances in communication technology.

Question 5

For an American company, one of the disadvantages of recruiting a U.S. home-country national for a foreign sales assignment is the cost of double taxation.

Question 6

For selling in relationship-oriented countries, a sales force consisting of American expatriates proves to be most efficient.

Question 7

Though maturity and emotional stability are essential, the transnational manager is rarely expected to have considerable breadth of knowledge of many subjects both on and off the job.

Question 8

Since expatriates are not locals, they often have a negative effect on the prestige of the company and its product line in the eyes of foreign customers.

Question 9

In the context of international marketing, training for expatriates focuses on the company, its products, technical information, and selling methods.

Question 10

In the context of international marketing, the first step in managing a sales force is making a decision regarding its design.

Question 11

In the context of motivating sales personnel, differences in languages and culture can make mutual understanding between foreign managers and sales representatives difficult.

Question 12

Compensation packages in eastern European countries typically involve a substantially greater emphasis on performance-based incentives than in the United States.

Question 13

Marketing is a business function requiring high motivation regardless of the location of the practitioner.

Question 14

In relationship-oriented cultures, sales representatives tend to be on the bottom rung of the social ladder.

Question 15

In the context of international sales management, a manager's culture affects personnel decisions.

Question 16

Generally, the traits that make for successful sales representatives in the United States are important in other countries as well.

Question 17

Local salespeople are better able to lead a company through the maze of unfamiliar distribution systems and referral networks of a foreign land.

Question 18

Only a limited number of American high-caliber sales personnel are willing to live abroad for extended periods of time as expatriates.

Question 19

Social recognition is a more important motivating factor for an American sales representative as compared to a Japanese salesperson.

Question 20

For a company, the chief advantage of an expatriate sales force is the low cost involved in the process.

Question 21

In Europe, work councils are involved in setting compensation rules for sales people.

Question 22

Expatriates working in high-tax countries prefer direct income instead of fringe benefits as part of their compensation package.

Question 23

Countries such as Germany allow for greater use of expatriates in international sales forces. Which of the following is most likely to be the reason for this?

A) Germany is a member of the World Trade Organization.
B) Germany is a relationship-oriented culture.
C) The German language is easy to master.
D) Germany is an information-oriented culture.
E) Germany is a member of the European Union.

Question 24

In the context of American sales representatives' performance, poor performers typically stay with the company and are seldom fired.

Question 25

Most companies today limit their search for senior-level executive talent to their home countries.

Question 26

An expatriate with excellent cultural skills does not tolerate ambiguity and upholds the superiority of his or her culture.

Question 27

Personal career planning for the expatriate is a significant strategy that helps companies prevent returnee attrition.

Question 28

In the context of designing an international sales force, which of the following is true of information-oriented cultures?

A) They require the most complete local knowledge possessed only by natives.
B) Personal selling has to be localized for even the most global of corporations.
C) People belonging to such cultures are hostile toward third-country nationals.
D) Such cultures allow for greater use of expatriates in the sales force.
E) Virtual expatriates are more efficient in selling consulting services in these countries.

Question 29

The largest personnel requirement for international marketing for most companies is in the:

A) management team.
B) finance department.
C) information technology team.
D) advertising department.
E) sales force.

Question 30

Separation allowances are benefits paid when an expatriate manager leaves a company.

Question 31

In the context of designing an international sales force, which of the following is true of Japan?

A) Japan has an information-oriented culture.
B) Japan allows for greater use of expatriates.
C) In Japan, personal selling need not be localized.
D) Japan is not a member of World Trade Organization.
E) In Japan, complete local knowledge is important for salespeople.

Question 32

Which of the following is the final link in the culmination of a company's marketing and sales efforts?

A) Chairperson
B) Marketing manager
C) Sales representative
D) General manager
E) Accountant

Question 33

In countries like Japan, a sales force is likely to be most effective if it consists mostly of:

A) professional expatriates.
B) local nationals.
C) virtual expatriates.
D) third world nationals.
E) expatriates from Asian countries.

Question 34

In which of the following situations is an expatriate sales force most likely to have an advantage over a native sales force?

A) When selling consulting services.
B) When selling in relationship-oriented countries.
C) When the product caters to a niche market.
D) When the product is highly technical.
E) When the product is global in nature.

Question 35

A multinational company, with its headquarters in the U.S., wants to sell a new high-technology product in foreign markets. For effective selling, the sales force for this company should consist mostly of:

A) local nationals.
B) college recruits.
C) temporary personnel.
D) American expatriates.
E) veterans.

Question 36

Which of the following is true of an expatriate sales force?

A) In relationship-based cultures, an expatriate sales force proves to be most efficient.
B) An expatriate sales force is unsuitable when a company wants to sell high-technology products.
C) An expatriate sales force is found to be lacking in knowledge regarding the product line of the company.
D) Information-oriented cultures do not respond favorably to an expatriate sales force.
E) When selling requires an extensive background of information, an expatriate sales force is the best choice.

Question 37

The inability of a manager's spouse to adjust to a different cultural environment adversely affects the expatriate's effectiveness in a foreign assignment.

Question 38

In the context of evaluating and controlling sales representatives, the primary control tool used by American sales managers is the incentive system.

Question 39

In the context of motivating sales personnel, expatriate managers fear that they will lose opportunities for promotion because they will be forgotten by the home office.

Question 40

An expatriate with excellent management and technical skills is sure to excel in any environment even if he or she lacks an understanding of cultural differences.

Question 41

In relationship-oriented cultures such as France, Mexico, and Japan, sales representatives:

A) are available only during the peak hiring season.
B) tend to be on the bottom rung of the social ladder.
C) are better paid than their U.S. counterparts.
D) lack proper knowledge of their culture.
E) are respected and held in high esteem.

Question 42

Which of the following is a disadvantage of teams managed by virtual expatriates?

A) It is difficult to build a close contact with subordinates and customers.
B) The cost involved in an actual executive move is excessive.
C) The risk of losing visibility at corporate headquarters is very high.
D) Virtual expatriates lack the understanding of how home-office politics influence decisions.
E) The personnel at the headquarters tend to ignore the advice of the virtual expatriates.

Question 43

From an international firm's perspective, which of the following is an advantage associated with virtual assignments?

A) Sales personnel can avoid health risks involved in flying frequently to foreign countries.
B) Customer relationship structures may be improved due to direct customer interaction.
C) The extra expense involved in an actual executive move may be avoided.
D) Problems related to low morale of personnel due to living in hotels can be avoided.
E) Misunderstandings due to lack of cultural skills may be avoided.

Question 44

Which of the following is a characteristic of a professional expatriate?

A) They work abroad for a period of one month and then return to the home office.
B) They work for a foreign company in a third country for a short period.
C) They work abroad in country after country for the greater part of their careers.
D) They work in their home branches for most of their careers.
E) They manage operations in other countries but do not move there.

Question 45

The difference between professional expatriates and virtual expatriates is that:

A) professional expatriates can avoid misunderstandings that arise from cross-cultural communications.
B) for virtual expatriates, building a close contact with customers is much easier.
C) professional expatriates do not incur any extra expense to the company.
D) for virtual expatriates, establishing a good working relationship with subordinates is much easier.
E) virtual expatriates work from their home branch and do not relocate to the assignment country.

Question 46

Which of the following is a strategy that international companies use to encourage sales personnel to accept foreign assignments?

A) International experience is considered important to join top management.
B) It is made mandatory for all sales personnel to take up expatriate positions.
C) A part of the headquarters of the company is set up at the foreign location.
D) A support team along with the expatriate manager is shifted to the foreign location.
E) Legal obligations are imposed on the expatriate sales representatives.

Question 47

Norman, a German national, works as a sales manager for Black Oil Corporation in the Middle-East. Given the benefits associated with the job, he works on one foreign assignment after another and rarely returns to the headquarters in Germany. In view of the given information we can say that Norman is a:

A) virtual manager.
B) virtual expatriate.
C) third-country national.
D) professional expatriate.
E) native salesperson.

Question 48

In the context of recruiting marketing and sales personnel, which of the following is true of local nationals?

A) They are not keen on maintaining a cordial relationship at the home office.
B) They lack the knowledge of local culture and prevalent practices.
C) They are better able to lead a company through the maze of unfamiliar referral networks.
D) They do not communicate with subordinates and customers directly.
E) They are expatriates from their own countries working for a foreign company in a third country.

Question 49

Which of the following is an advantage that a sales force consisting of local nationals is likely to have over a sales force of expatriates?

A) They are more efficient in communicating with and influencing headquarters' personnel.
B) They cost the firm less with respect to maintenance.
C) They are more knowledgeable about the company and its product line.
D) They have greater technical expertise.
E) They are less likely to accept any form of bribe.

Question 50

George, an American citizen, works as the sales manager at Blue Inc. He is posted at the company headquarters in the U.S. and manages operations in China. He makes long visits to conduct business meetings with his colleagues working in China. George may be considered to be a:

A) repatriate.
B) virtual expatriate.
C) third-country national.
D) professional expatriate.
E) local sales manager.

Question 51

Which of the following is an advantage of hiring local nationals in the sales force?

A) They are more efficient in communicating with and influencing headquarters' personnel.
B) They are more knowledgeable about a country's business structure and systems.
C) They are more knowledgeable of the company and its product line.
D) They are likely to have superior technical expertise.
E) They are less likely to accept any form of bribe.

Question 52

Which of the following is one of the advantages of a sales force consisting of expatriate sales representatives?

A) They possess greater technical training.
B) They transcend cultural and legal barriers.
C) They cost less to maintain in a foreign location.
D) The cultural gap can be easily narrowed.
E) They have a better understanding of distribution channels.

Question 53

Which of the following is a disadvantage associated with a sales force comprising expatriate salespeople?

A) Adverse effect on the prestige of the product.
B) Deterioration of product quality.
C) Lack of technological expertise.
D) Inadequate knowledge of the company.
E) Large cultural barriers.

Question 54

Which of the following is the main disadvantage of hiring local nationals in the sales force?

A) Headquarters personnel tend to ignore the advice of local nationals.
B) Most local nationals turn out to be costlier in the long run.
C) Poaching of experienced personnel by competitor companies increases.
D) Cultural differences lead to communication issues.
E) National interests conflict with the corporate strategy.

Question 55

Which of the following best defines a virtual expatriate?

A) They can easily transcend the legal and cultural barriers of the assignment country.
B) They lack an understanding of how home-office politics influences decision making.
C) They work abroad in one country after another for the greater part of their career.
D) They are expatriates from their own countries working for a foreign company in a third country.
E) They manage operations in foreign countries but do not move there.

Question 56

In the context of recruiting sales and marketing personnel for an international sales force, there is a clear biased in favor of the locals. The reason for this is most likely that:

A) they transcend both cultural and legal barriers.
B) they have greater technological expertise than expatriates.
C) they are more knowledgeable and experienced as compared to expatriates.
D) they have a better understanding of home-office politics.
E) they are less likely to accept bribes as compared to expatriates.

Question 57

Which of the following is true of virtual expatriates?

A) They stay in hotels, make long visits to the foreign country to which they have been assigned, and maintain their families at home.
B) They are expatriates working in a foreign country for a short period of a year.
C) They are expatriates from their own countries working for a foreign company in a third country.
D) They are essentially professional expatriates, working abroad in country after country.
E) They are usually more knowledgeable about the foreign country's business structure and systems.

Question 58

Which of the following is an advantage of virtual expatriates?

A) They can bond well and work better with their subordinates in the foreign country.
B) They can establish closer relationships with their customers in the foreign country.
C) Their families do not have to be uprooted from their home country.
D) They possess complete local knowledge about cultural practices in the foreign country.
E) They can avoid cross-cultural communications problems with their foreign colleagues.

Question 59

A disadvantage of hiring local nationals is the tendency of headquarters personnel to ignore their advice. Which of the following is most likely to be the reason for this tendency?

A) Foreign nationals are not keen on keeping relationships at the home office cordial.
B) Foreign nationals lack the understanding of how home-office politics work.
C) Foreign nationals have a good grasp of the local culture and prevalent practices.
D) Foreign nationals cannot build a close contact with subordinates and customers.
E) Foreign nationals have superior technical expertise which makes people at the headquarters insecure.

Question 60

Why are third-country nationals sought by American companies for their international sales forces?

A) They transcend legal and cultural barriers.
B) They are knowledgeable about a country's business structure.
C) They are able to speak several languages.
D) They cost less to maintain than a staff of expatriates.
E) They can lead a company better through unfamiliar referral networks.

Question 61

Which of the following is the most important quality that a recruiter should consider while hiring marketing personnel?

A) They should have little cultural empathy as this might distract them from their main purpose.
B) When working in a foreign country, they must be capable of taking decisions that are not influenced by the habits of the market.
C) They should be able to represent a culturally superior image of their country and its products.
D) They should be hypersensitive to the behavioral variations in different countries.
E) They should possess a considerable breadth of knowledge of many subjects both on and off the job.

Question 62

_____ are expatriates from their own countries working for a foreign company in another country.

A) Long-term virtual expatriates
B) Native salespeople
C) Third-country nationals
D) Short-term virtual expatriates
E) Local nationals

Question 63

Which of the following is true of sales compensation practices across the globe?

A) Most companies in Japan have adopted the U.S. system with its emphasis on commissions based on individual performance.
B) Government intervention in pay determination aimed at leveling pay scales, is gaining popularity in European countries.
C) Most multinational companies describe their sales compensation plans as global in nature.
D) The International Labor Organization plays a key role in determining compensation practices worldwide.
E) Most companies establish sales compensation practices locally either at the country or regional levels.

Question 64

Considering the specific characteristics of Japan's culture, which of the following strategies would be most successful in motivating employees in Japanese organizations?

A) Individual commission systems
B) Group bonus schemes
C) Company cars
D) Birthday gift vouchers
E) Best employee awards

Question 65

David is a Canadian national who works for a U.S. company in Japan. David may be considered to be a _____.

A) long-term virtual expatriate
B) native salesperson
C) third-country national
D) short-term virtual expatriate
E) local national

Question 66

Cultural empathy involves:

A) being subservient to a superior culture.
B) the ability to understand another culture and not be antagonistic.
C) the belief that the people of inferior cultures should be enlightened.
D) the attitude that one's own culture is superior to others.
E) being hostile to one's own culture and adopting a new culture.

Question 67

Which of the following is considered to be the most common job in the United States despite being viewed negatively?

A) Construction worker
B) Truck driver
C) Office manager
D) Personal selling
E) Teaching

Question 68

Which of the following agencies or bodies is actively involved in setting rules about compensation companywide in Europe?

A) Pension committees.
B) Work council.
C) The World Health Organization.
D) The European Union.
E) The World Trade Organization.

Question 69

Which of the following is the main reason for the failure of individual incentives to motivate employees in Japan?

A) Emphasis on paternalism.
B) High corruption levels.
C) Practice of cultural chauvinism.
D) Democratic form of government.
E) Encouraging individualism.

Question 70

The training of foreign employees is likely to be most effective when:

A) a standard method is used to ensure uniformity.
B) it is tailored to the recipients' ways of learning.
C) national differences are ignored during motivational sessions.
D) the superiority of their culture is emphasized over others.
E) it is different from the familiar ways of communication.

Question 71

In the context of the rewards from work, Japanese and American salespersons are similar barring one aspect which the Japanese rate as more important than their American counterparts. Identify this aspect.

A) Job security
B) Promotion
C) Accomplishments
D) Social recognition
E) Personal growth and development

Question 72

Which of the following is likely to be most effective in making home-office personnel aware of the problems of foreign operations?

A) Cross-cultural training.
B) Global selling techniques.
C) Advanced technical skills.
D) Telecommuting and teleconferencing.
E) Email etiquettes.

Question 73

The marketer who expects to be effective in the international marketplace should:

A) be antagonistic toward other cultures.
B) not let the local culture influence their decisions.
C) practice cultural chauvinism.
D) not let market behavior influence their decisions.
E) have a positive outlook on an international assignment.

Question 74

Japanese sales representatives are most satisfied with their jobs when:

A) their values are consistent with those of their company.
B) they receive high salaries and many perks.
C) they are better educated than their colleagues.
D) their technological knowledge is superior to that of others.
E) they do not have to travel too much.

Question 75

Nontaxable perks such as a company vehicle given to an expatriate is an example of a(n):

A) overseas premium.
B) family compensation.
C) displacement allowance.
D) fringe benefit.
E) separation allowance.

Question 76

When hiring new personnel for international marketing, which of the following is considered to be the best way to assess the traits necessary for success?

A) Paper-and-pencil ability tests.
B) Interviews and role-playing exercises.
C) Biographical information.
D) Checking references.
E) Handwriting analysis.

Question 77

Which of the following is the reason for the fact that continual training is more important in foreign markets than in domestic ones?

A) Slow adaptation of foreign markets to innovative products.
B) Technological inferiority of domestic cultures.
C) The need to establish the superiority of domestic cultures.
D) Lack of technical knowledge among foreign salespersons.
E) Lack of routine contact with the parent company.

Question 78

In the context of designing compensation systems, the program element most often determined at the global level is:

A) Program Design Principles
B) Pay Mix
C) Job Grades
D) Formula Mechanics
E) Performance Measures

Question 79

Overseas premiums that are paid to the family of expatriates during short-term assignments if they do not relocate to the foreign country are called:

A) resettlement claims.
B) pension plans.
C) displacement reserves.
D) official benefits.
E) separation allowances.

Question 80

Which of the following is true of third country-nationals?

A) U.S. firms have to pay double tax when hiring them.
B) They are local nationals who work for a foreign company.
C) They work at the company's headquarters and are located in their home country.
D) They manage their foreign offices from their home country.
E) Their nationality has little to do with where they work or for whom.