Deck 17: Personal Selling and Sales Management

Question 1

Compared to Japanese salesperson, social recognition is more important for the American.

Answer 1

False

Question 2

Expatriate managers fear that they will be forgotten by the home office.

Answer 2

True
Explanation: One of the greatest fears of expatriate managers, which can be easily allayed, is that they will be forgotten by the home office.

Question 3

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 3

True
Explanation: 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.

Question 4

Expatriate managers are still the preferred workforce for foreign assignments.

Question 5

Experts believe that compensation systems are becoming more diversified across the world.

Question 6

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

Question 7

Generally, successful sales representatives share common traits across cultures.

Question 8

The first step in managing a sales force is its design.

Question 9

Continual training may be more important in foreign markets than in domestic ones.

Question 10

In Europe, internal labor committees are influential in setting compensation rules for sales people.

Question 11

Selling in relationship-oriented countries will require the most complete local knowledge possessed only by natives.

Question 12

Double taxation is one of the disadvantages of recruiting an American expatriate.

Question 13

Paper-and-pencil ability tests, biographical information, and reference checks are the most effective tools in assessing the personality tools required for an expatriate manager's position.

Question 14

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

Question 15

Third-country nationals are foreign nationals working as managers in the company's home country.

Question 16

Virtual expatriates find managing contacts with subordinates and customers easier than before.

Question 17

Salespersons in relationship-oriented cultures are considered to belong down in the social ladder.

Question 18

The main disadvantage of hiring local nationals is the tendency of headquarters personnel to ignore their advice.

Question 19

The number of companies relying on expatriate personnel is increasing.

Question 20

Though maturity and emotional stability is essential, the transnational manager is not expected to have a breadth of knowledge.

Question 21

According to experts, what form of selling has the best results in Japan?

A) Expatriate selling
B) Localized selling
C) Virtual selling
D) Asian selling (i.e., personnel from China)
E) Visionary selling

Question 22

American salespersons are mostly distributed as a few high performers and mostly middle-level performers, but almost no low performers.

Question 23

A(n) _____ is a person who leaves their home country to work for their domestic employer in a foreign country.

A) home-country manager
B) foreign manager
C) outsourcer
D) other-country manager
E) expatriate

Question 24

The largest personnel requirement abroad for most companies is:

A) the management team.
B) the service department.
C) the purchasing professionals.
D) the advertising specialists.
E) the sales force.

Question 25

Because of new advances in communications technology, a new form of expatriate has emerged. What is the name of this new form of expatriate?

A) The geek expatriate
B) The virtual expatriate
C) The e-com expatriate
D) The dotcom expatriate
E) The visionary expatriate

Question 26

According to some experts, which of the following may be a reason that substantial reductions in field sales may occur in the future?

A) Cost of maintaining a sales team
B) Lack of security for confidential information
C) Skill-set deficiencies in the sales force
D) Advances in information technology
E) Increasing competition

Question 27

The most direct tie to the customer is the:

A) product.
B) manager of the company.
C) salesperson.
D) advertising specialist.
E) public relations specialist.

Question 28

All of the following are disadvantages to having an expatriate salesperson in a foreign market EXCEPT:

A) high cost.
B) cultural barriers.
C) willingness to live abroad for extended periods.
D) unverified dependability.
E) legal barriers.

Question 29

Distribution strategies will often vary from country to country. Some markets may require a direct sales force, whereas others may not. Countries such as Japan will require the most complete local knowledge possessed only by natives. Which aspect of Japanese culture requires this feature in the sales strategy?

A) Strong traditions and taboos
B) Unfamiliarity with the English language
C) Relationship orientation
D) General suspicion of foreigners
E) Ethnocentrism

Question 30

Which of the following reasons would best explain why a country such as Germany allows for greater use of expatriates in international sales forces?

A) It is cheap to live there
B) The language is easy to master
C) It wants to spread its arms to the international community
D) It is an information-oriented culture
E) It is a multi-cultural society

Question 31

According to studies, most chief executives had an HR background.

Question 32

In which of the following scenarios is an expatriate sales force the best choice for a company?

A) When the product is customized
B) When the product is mass-marketed
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 33

Personal career planning for the expatriate is the significant strategy that leads to higher retention of returnee expatriates.

Question 34

Mike Assaini has found that his ability to speak several Middle-Eastern languages is a real asset in his chosen career as a salesperson for Shell Oil. Since Mike works one foreign assignment after another and rarely returns to home base in Holland, he is called a(n):

A) rover.
B) castaway.
C) wanderer.
D) professional expatriate.
E) troubleshooter.

Question 35

The primary control tool used by American managers is the reporting system.

Question 36

All of the following are advantages that an expatriate salesperson has in representing his or her company in a foreign market; however, one of these advantages stands out above the others. Which one is it?

A) Greater technical training
B) Better knowledge of the company and its product line
C) Proven dependability
D) Adds prestige to the product line, in the eye of the buyer
E) The ability to communicate with and influence headquarter's personnel

Question 37

Which of the following is the major deterrent for executives offered an expatriate position?

A) The threat of international terrorist attacks in foreign markets
B) The loss of visibility at corporate headquarters
C) The steep increase in living costs in a foreign location
D) The lack of proper communication technology
E) The loss of deep-rooted friendships at the home-country office

Question 38

What strategy do companies take to ensure that executives accept expatriate positions?

A) Promote overseas stint as a ticket to top management
B) Mandate expatriate positions for all executives
C) Shift a part of the head-office to the new location
D) Transfer a support team along with the expatriate manager
E) Find a mentor in the new country to guide the executive

Question 39

Which of the following is one of the advantages of using an expatriate salesperson?

A) Greater technical training
B) Increases the diversity mix of the organizational profile
C) Usually more experienced than local nationals
D) Other-country teams are more accepting of an expatriate manager
E) Lesser risk of employee-poaching in a foreign market

Question 40

Studies find that the expatriate manager's lack of cultural awareness was the primary reason for his/her failure to function effectively in a foreign assignment.

Question 41

The _____ are a group whose nationality has little to do with where they work or for whom.

A) virtual expatriates
B) expatriate managers
C) third-country nationals
D) transnational expatriates
E) local nationals

Question 42

Particularly in relationship-oriented cultures such as France, Mexico, and Japan, sales representatives tend to be:

A) available only on a part-time basis.
B) on the bottom rung of the social ladder.
C) too close to customers to develop a professional selling relationship.
D) unwilling to commit to an organization for any length of time.
E) respected and held in high esteem.

Question 43

All of the following is true of virtual expatriates EXCEPT that they:

A) do not move to other countries.
B) don't stay in hotels.
C) make long visits.
D) are glued to their laptops and cell phones.
E) maintain their families at home.

Question 44

Which of the following external uncontrollable factor influences selection of expatriates over local nationals?

A) The host government's attitude toward foreign workers
B) Market acceptance of foreign products
C) Technical complexity of the product(s)
D) Size and spread of the customer base
E) Demographic profile of the target customer

Question 45

What explains the fact that continual training may be more important in foreign markets than in domestic ones?

A) Foreign markets are slower to adapt to innovative products
B) Cultural distance could result in dilution of core aspects of the strategy
C) Updating of newer technological innovations in the product
D) Lack of technical knowledge among the foreign salespersons
E) Lack of routine contact with the parent company

Question 46

The growing use of third-country nationals is, in part, a(n):

A) response to the increased availability of third-country nationals.
B) symbol of the death of nationalism.
C) acknowledgment that personal skills and motivation are international values.
D) alternative to using domestic product controls.
E) an attempt to stimulate world peace through international marketing.

Question 47

Why do international sales representatives require lots of stamina?

A) Interacting with other-country colleagues is a stressful procedure.
B) Presentations to foreign customers are generally lengthy procedures.
C) Most of them are required to work late nights.
D) It requires lots of stressful travel and immigration procedures.
E) The new market may be physically difficult to access.

Question 48

According to a recent study, Japanese sales representatives tended to be more satisfied with their jobs when:

A) their values were consistent with those of their company.
B) they received high salaries.
C) they were better educated.
D) they had high salaries and were better educated.
E) they did not have to work abroad.

Question 49

Which of the following is the main disadvantage of hiring local nationals?

A) Headquarters personnel ignore their advice.
B) Most local nationals turn out to be costlier in the long run.
C) Poaching by competition turns out to be a huge challenge.
D) Cultural differences lead to communication issues.
E) National interests conflict with the corporate strategy.

Question 50

Training for local personnel should require greater emphasis on all of the following EXCEPT:

A) the company.
B) selling methods.
C) technical information.
D) special foreign problems.
E) the company's products.

Question 51

Which of the following makes an expatriate manager often three times costlier than their national counterparts?

A) Exchange rate variations
B) Higher taxes for earnings
C) Special cost-of-living benefits
D) Added costs for the goodwill generated
E) Thrice the average pay is the normal expatriate compensation expected

Question 52

There is evidence that a manager's _____ affects personnel decisions when hiring in the international arena.

A) age
B) sex
C) culture
D) income level
E) emotional stability

Question 53

Which of the following traits of the expatriate would ensure the company to have confidence in his/her ability to make ethical decisions and commitments without constant recourse to the home office?

A) Positive outlook
B) Cultural empathy
C) Breadth of knowledge
D) Flexibility
E) Maturity

Question 54

Fritz Weaver is a German national working for a U.S. company in Argentina. This would be an example of which of the following types of foreign worker classifications?

A) Outsourcers
B) Global specialists
C) Global expatriates
D) Third-country nationals
E) Multi-country nationals

Question 55

Which of the following is the most common job in the United States?

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

Question 56

When hiring new personnel, most of the traits necessary for success in international marketing can be assessed by:

A) tests.
B) interviews and role-playing exercises.
C) biographical information.
D) checking references.
E) body language.

Question 57

Which of the following is suggested to make home-office personnel more aware of problems of foreign operations?

A) Cross-cultural training
B) Global selling techniques
C) Newer technical skills
D) Telecommuting and teleconferencing skills
E) Email and presentation skills

Question 58

Compared to the diplomatic skills required in a transnational management position, what are the major skills people operating in the home country require?

A) Proficiency in at least two languages
B) Attributes of effective salespersons
C) People management and reporting skills
D) Quantitative skills to read market trends
E) Effective strategic planning skills

Question 59

Cultural empathy means that a person is:

A) subservient to a superior culture.
B) sympathetic and understanding of a culture other than their own.
C) tolerant of inferior cultures.
D) knowledgeable in the major cultural trends, globally.
E) hostile to all cultures except his own.

Question 60

The historical preference for expatriate managers and salespeople from the home country is giving way to a preference for:

A) outsourcers from the home country.
B) virtual managers and salespeople.
C) virtual expatriates.
D) local nationals.
E) visionary expatriates.

Question 61

What are the advantages and disadvantages of using an expatriate sales force?

Question 62

Better qualified and ambitious personnel decline to go abroad because sometimes expatriate positions do not have clear evidence of advance planning to protect career development. This "out of sight, out of mind" fear is closely linked to the problems of:

A) conflict of interests.
B) acculturation.
C) skill redundancy.
D) variable compensation.
E) repatriation.

Question 63

Which of the following represents one of the greatest fears of expatriate managers?

A) They will forget their own culture and traditions.
B) They might be stressed out in the new market.
C) Their product(s) might be unsuitable in the new market.
D) They will be forgotten by the home office.
E) Colleagues in the foreign country will be hostile.

Question 64

Which of the following differentiates companies with least amount of returnee attrition from those with the highest attrition?

A) Specialized expatriate department
B) Personal career planning
C) Continued cultural training
D) Increased compensation
E) Family migration planning

Question 65

Overseas premiums, paid if the family does not go along, are called:

A) resettlement claims.
B) family compensation.
C) displacement allowances.
D) fringe benefits.
E) separation allowances.

Question 66

What are the most frequently mentioned reasons for a manager to refuse a foreign assignment?

A) Compensation
B) Destination of the assignment
C) Fear of travel and its hardships
D) Concerns for career and family
E) Dislike of foreigners

Question 67

Which of the following is the single most important reason for expatriate dissatisfaction?

A) Unsuccessful family adjustment
B) Cultural conflict in the foreign country
C) Non-cooperation of foreign colleagues
D) Communication issues with home-country head quarters
E) Redundant/mismatching skills in a foreign country

Question 68

When selecting sales and marketing personnel to go abroad, what are the specific characteristics and skills that a company should look for in these personnel?

Question 69

Unlike the Japanese, Americans sales managers do not have to worry about the problem of how to motivate poor performers. Why?

A) The group incentive system balances pay differences and thus is motivating enough.
B) Companies are more focused on long-term loyalty and are willing to compromise on performance initially.
C) They are automatically shifted to areas where their performance levels could meet expectations.
D) The system of peer-mentoring takes care of progress of low performers.
E) The team usually does not have any low performers as they quit or are fired.

Question 70

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

A) Most Asian MNCs 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) A majority (nearly 75 percent) of multinational companies describe their sales compensation plans as global in nature.
D) The International Labour Organization is playing a key role in determining compensation practices worldwide.
E) Most companies establish sales compensation practices locally.

Question 71

Which of the following agencies/bodies is actively involved in setting rules about compensation (even for sales people) in Europe?

A) Pension committees
B) Work councils
C) International Labour Organization
D) The European Union
E) The WTO

Question 72

In a study, when asked to rate the rewards from work, Japanese and American salespersons showed surprising similarity barring one aspect which the Japanese rated as more important than what their American counterparts did. Identify the one from the following.

A) Job security
B) Promotion
C) Feeling of worthwhile accomplishment
D) Social recognition (sales club awards)
E) Personal growth and development

Question 73

Describe TCN. What is the significance of the growth of TCNs?

Question 74

Which of the following reward areas scores the highest among American salespeople?

A) Job security
B) Promotion
C) Merit increase with pay
D) Feeling of worthwhile accomplishment
E) Social recognition (sales club awards)

Question 75

Describe virtual expatriates.

Question 76

Which of the following is the primary reason for an expatriate's failure to function effectively in a foreign assignment?

A) Differing customer expectations on product features
B) Lack of synergy owing to ineffective team communication
C) Ineffectiveness of home-country skills in the foreign country
D) Inability of the manager's spouse to adjust to a different environment
E) Cultural differences leading to conflicts of interest

Question 77

IBM's revamping of its sales compensation scheme led to some valuable information. Which of the following is NOT one of them?

A) Do involve representatives from key countries.
B) Do allow local managers to decide the mix between base and incentive pay.
C) Do use consistent performance measures.
D) Do allow local countries flexibility in implementations.
E) Do assume that cultural differences can be managed through the incentive plan.

Question 78

The primary control tool used by American sales managers is:

A) the threat of termination.
B) the quota system.
C) the incentive system.
D) the attraction of a foreign assignment.
E) tolerance and patience.

Question 79

Considering the specific characteristics of Japan's culture, which of the following strategies might be used as a motivator in Japanese organizations?

A) Individual rewards
B) Group bonus schemes
C) Early promotion opportunities
D) Individual commission system
E) Merit increase in pay

Question 80

Why do companies favor third-country nationals for overseas assignments?