A disadvantage of a straight commission compensation plan is that
A) it does not provide incentive to expand sales volume.
B) it can discourage salespeople from providing customer service.
C) it includes non-selling activities that take time away from selling.
D) the overall compensation is usually lower than a straight salary compensation plan.
E) it not perceived as equitable by most salespeople.

Question

Quizplus · Accepted Answer

A straight commission compensation plan can discourage salespeople from providing customer service because their earnings are directly tied to sales, not service, which may lead them to focus solely on closing sales rather than building customer relationships.

A Disadvantage of a Straight Commission Compensation Plan Is That