A company that expects its salespeople to perform a variety of activities such as gain new customers, retain key customers, establish new product in the marketplace and maintain a balance between sales volume and profitability might use a
A) combination pay plan.
B) straight commission pay plan.
C) straight salary pay plan.
D) none of the above.

Question

Quizplus · Accepted Answer

A combination pay plan would be the best choice for a company that expects its salespeople to perform a variety of activities such as gaining new customers, retaining key customers, establishing new products in the marketplace, and maintaining a balance between sales volume and profitability. This is because a combination pay plan combines elements of both straight commission and straight salary plans, offering a base salary along with incentive-based compensation for achieving certain sales goals and objectives. This allows salespeople to focus on both growing the customer base and maintaining profitability, while still being incentivized to perform well in all areas of their job.

A Company That Expects Its Salespeople to Perform a Variety