Which of the following statements is TRUE about sales incentive plans?
A)Sales targets are effective in generating sales productivity over targets in most cases.
B)Sales incentive plans are frequently changed in most firms.
C)Sales staff are most satisfied when they are paid on straight commission plans because they are simple to calculate and result in high payouts.
D)Most companies are satisfied with their sales incentive plans.

Question

Quizplus · Accepted Answer

Sales incentive plans are often changed by firms to keep up with changing market conditions and to ensure that they remain effective. Option A is incorrect because sales targets are not always effective in generating sales productivity, and different salespeople may respond better to different types of incentives. Option C is incorrect because although some salespeople may prefer straight commission plans, others may prefer plans that offer a guaranteed base salary or other forms of compensation. Option D is also incorrect because many companies are dissatisfied with their sales incentive plans and may implement changes to improve them.

Which of the Following Statements Is TRUE About Sales Incentive