In the design of a compensation plan,a factor over which a sales rep has some control,but which cannot be measured objectively is:
A)Orders from new accounts.
B)Gross margin by product line.
C)Number of product demonstrations made.
D)Number of shelf and window displays obtained.
E)Customer goodwill developed toward company.

Question

Quizplus · Accepted Answer

Customer goodwill developed toward the company is subjective and cannot be objectively measured. While it is an important factor in sales success, it cannot be used as a performance measure for compensation purposes. Therefore, it is important to focus on objective measures such as orders from new accounts, gross margin by product line, number of product demonstrations made, and number of shelf and window displays obtained.

In the Design of a Compensation Plan,a Factor Over Which