Question 1

A disadvantage of a straight commission compensation plan is that

Accepted Answer

A straight commission plan provides the maximum amount of selling incentive but can discourage salespeople from providing customer service.This plan is common when non-selling activities are minimal.

Question 2

A straight commission compensation plan is one

Accepted Answer

Key term definition-straight commission compensation plan.

Question 3

A ________ contains specific goals assigned to a salesperson,sales team,branch sales office,or sales district for a stated time period.

Accepted Answer

Key term definition-sales quota.

Question 4

A sales quota contains goals,such as last year/current year sales ratio,accounts generated,profit achieved,

Accepted Answer

Output measures often appear in a sales quota,which contain specific measures such as those involving dollar or unit sales volume,last year/current sales ratio,sales of specific products,new accounts generated,and profits achieved.

Question 5

About 60 percent of U.S.companies now include ________ as a behavioral measure of salesperson performance.

Accepted Answer

About 60 percent of all U.S.companies now include customer satisfaction as a behavioral measure of salesperson performance.

Question 6

________ gives its outstanding salespeople some unconventional rewards that include new pink Cadillacs and jewelry.

Accepted Answer

Mary Kay Cosmetics gives its outstanding salespeople some unconventional rewards that include new pink Cadillacs,Buicks,BMWs,and jewelry.

Question 7

With a ________,a salesperson's earnings are directly tied to sales or profits generated.

Accepted Answer

Key term definition-straight commission compensation plan.

Question 8

All of the following are output-related measures used in quantitative assessments of sales performance except which?

Accepted Answer

Quantitative assessments are based on input- and output-related objectives set forth in the sales plan.Output measures often appear in a sales quota.A sales quota contains specific goals assigned to a salesperson,sales team,branch sales office,or sales district for a stated time period.Dollar or unit sales volume,last year/current sales ratio,sales of specific products,new accounts generated,and profit achieved are typical goals.

Question 9

A straight commission compensation plan is well-suited to sales positions where

Accepted Answer

A straight commission plan provides the maximum amount of selling incentive but can discourage salespeople from providing customer service.This plan is common when non-selling activities are minimal.

Question 10

After completing an 18-week sales training program,Joshua was told,"You will be paid 4 percent on net dollar volume up to $10 million.Sales in excess of $10 million command a rate of 6 percent." The company Joshua works for is using a ________ for him after completing the sales training program.

Accepted Answer

A compensation plan where a salesperson's earnings are directly tied to sales or profit generated is called a straight commission compensation plan,the situation for Joshua after he completed sales training.

Question 11

With a ________,a salesperson is paid a specified salary plus a commission on sales or profits generated.

Accepted Answer

Key term definition-combination compensation plan.

Question 12

The most frequently used type of compensation plan for salespeople is a

Accepted Answer

Combination compensation plans are used by a majority of companies today.

Question 13

A sales quota is

Accepted Answer

Key term definition-sales quota.

Question 14

Quantitative assessments of sales performance may be based on output-related measures,such as

Accepted Answer

Quantitative assessments of sales performance may be based on output-related objectives set forth in the sales plan,such as dollar or unit sales volume,last year/current sales ratio,sales of specific products,new accounts generated,and profit achieved are typical goals.

Question 15

All of the following are behavioral measures that are used to evaluate salespeople except which?

Accepted Answer

Behavioral measures used to evaluate salespeople include assessments of a salesperson's attitude,attention to customers,product knowledge,selling and communication skills,appearance,and professional demeanor.

Question 16

Quantitative assessments of sales performance may be based on input-related objectives set forth in the sales plan,such as those involving

Accepted Answer

Quantitative assessments of sales performance are based on input- and output-related objectives set forth in the sales plan,such as those involving the number of sales calls made,selling expenses related to sales made,the number of reports submitted to supervisors,and account management policies.

Question 17

Which of the following statements regarding salesforce compensation plans is most accurate?

Accepted Answer

Ineffective practices often lead to costly salesforce turnover.The expense of replacing and training a new salesperson,including the cost of lost sales,can be high.Also,new recruits are often less productive than seasoned salespeople.

Question 18

At White Chemical Co. ,management is examining its selling strategy and wants to acknowledge the role its sales staff has in undertaking sales support (non-selling)activities,yet keep the salespeople directed toward increasing sales for the next year.What advice is most likely to be appropriate here?

Accepted Answer

Since not all desired results can be measured by sales generated,a salary base is needed to encourage the non-selling activities of the salesforce,so the combination compensation plan is most appropriate in this case.

Question 19

Behavioral measures used to evaluate salespeople include assessments of a salesperson's ________,attention to customers,product knowledge,selling and communication skills,appearance,and professional demeanor.

Accepted Answer