Question 1

It is relatively easy to design a sales contest that will maximally motivate every member of the salesforce.

Accepted Answer

A) True 
 B)False

Question 2

Industries that have traditionally used a straight-commission-based compensation pay plan include all of the following except

Accepted Answer

A)  real estate. 
B)  securities. 
C)  automobiles. 
D)  wholesalers. 
E)  computers. 
A)  real estate. 
B)  securities. 
C)  automobiles. 
D)  wholesalers. 
E)  computers.

Question 3

Employees typically find verbal or written praise to be of little importance.

Accepted Answer

A) True 
 B)False

Question 4

Determining the appropriate financial compensation level depends upon an understanding of the duties expected for a particular sales position.

Accepted Answer

A) True 
 B)False

Question 5

It is a good idea to reward both individual and team performance.

Accepted Answer

A) True 
 B)False

Question 6

Noncompensation rewards include factors related to the work situation and well-being of each salesperson.

Accepted Answer

A) True 
 B)False

Question 7

Among older salespeople, opportunity for promotion often eclipses pay as the most valued reward.

Accepted Answer

A) True 
 B)False

Question 8

A straight-commission compensation plan is suggested for salespeople such as missionaries and detailers.

Accepted Answer

A) True 
 B)False

Question 9

The optimal reward system would balance the needs of the organization, its salespeople, and its customers.

Accepted Answer

A) True 
 B)False

Question 10

Boredom is a typical problem with sales jobs.

Accepted Answer

A) True 
 B)False

Question 11

The most serious disadvantage of a straight-salary compensation plan is

Accepted Answer

A)  that it builds little in the way of salesforce loyalty or commitment to the company. 
B)  that differences in salary levels among salespeople are often a function of seniority on the job instead of true merit. 
C)  that they offer little financial incentive to perform past a merely acceptable level. 
D)  the financial burden the firm suffers if the market declines or stagnates. 
E)  that high-pressure, non-customer-oriented sales techniques are often used to boost total sales. 
A)  that it builds little in the way of salesforce loyalty or commitment to the company. 
B)  that differences in salary levels among salespeople are often a function of seniority on the job instead of true merit. 
C)  that they offer little financial incentive to perform past a merely acceptable level. 
D)  the financial burden the firm suffers if the market declines or stagnates. 
E)  that high-pressure, non-customer-oriented sales techniques are often used to boost total sales.

Question 12

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

Accepted Answer

A)  combination pay plan. 
B)  straight commission pay plan. 
C)  straight salary pay plan. 
D)  none of the above. 
A)  combination pay plan. 
B)  straight commission pay plan. 
C)  straight salary pay plan. 
D)  none of the above.

Question 13

Salespeople appear to be fond of being recognized by their peers.

Accepted Answer

A) True 
 B)False

Question 14

Many companies believe that money spent on recognition programs is a good investment.

Accepted Answer

A) True 
 B)False

Question 15

There is general agreement that salesforce loyalty to the company may be greater with straight-commission plans.

Accepted Answer

A) True 
 B)False

Question 16

With a straight-salary compensation plan, the least productive members of the salesforce tend to be the most rewarded salespeople.

Accepted Answer

A) True 
 B)False

Question 17

With straight-salary compensation plans, there is less chance that high-pressure, non-customer-oriented sales techniques will be used.

Accepted Answer

A) True 
 B)False

Question 18

When determining the financial compensation mix, the sales manager must

Accepted Answer

A)  decide what the commission payout event will be. 
B)  determine what percentage in commission is to be paid to salespeople. 
C)  determine the relative amounts to be paid in salary, commission, and bonus. 
D)  decide on what type of benefits package to offer. 
E)  review the compensation plans offered by other firms in the industry. 
A)  decide what the commission payout event will be. 
B)  determine what percentage in commission is to be paid to salespeople. 
C)  determine the relative amounts to be paid in salary, commission, and bonus. 
D)  decide on what type of benefits package to offer. 
E)  review the compensation plans offered by other firms in the industry.

Question 19

As compared to a straight-salary or combination plan, the straight-commission compensation plan is more complex and difficult to administer.

Accepted Answer

A) True 
 B)False

Question 20

Current spendable income includes

Accepted Answer

A)  salaries and commissions, but not bonuses. 
B)  salaries only. 
C)  salaries, commissions, and bonuses. 
D)  any cash award, but not bonuses such as merchandise or free trips. 
E)  weekly or monthly income, but not rewards made only annually. 
A)  salaries and commissions, but not bonuses. 
B)  salaries only. 
C)  salaries, commissions, and bonuses. 
D)  any cash award, but not bonuses such as merchandise or free trips. 
E)  weekly or monthly income, but not rewards made only annually.

It is relatively easy to design a sales contest that will maximally motivate every member of the salesforce.

Industries that have traditionally used a straight-commission-based compensation pay plan include all of the following except

Employees typically find verbal or written praise to be of little importance.

Determining the appropriate financial compensation level depends upon an understanding of the duties expected for a particular sales position.

It is a good idea to reward both individual and team performance.

Noncompensation rewards include factors related to the work situation and well-being of each salesperson.

Among older salespeople, opportunity for promotion often eclipses pay as the most valued reward.

A straight-commission compensation plan is suggested for salespeople such as missionaries and detailers.

The optimal reward system would balance the needs of the organization, its salespeople, and its customers.

Boredom is a typical problem with sales jobs.

The most serious disadvantage of a straight-salary compensation plan is

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

Salespeople appear to be fond of being recognized by their peers.

Many companies believe that money spent on recognition programs is a good investment.

There is general agreement that salesforce loyalty to the company may be greater with straight-commission plans.

With a straight-salary compensation plan, the least productive members of the salesforce tend to be the most rewarded salespeople.

With straight-salary compensation plans, there is less chance that high-pressure, non-customer-oriented sales techniques will be used.

When determining the financial compensation mix, the sales manager must

As compared to a straight-salary or combination plan, the straight-commission compensation plan is more complex and difficult to administer.

Current spendable income includes

Overview of Personal Selling

Organizational Strategies and the Sales Function

Sales Organization Structure and Salesforce Deployment

Acquiring Sales Talent: Recruitment and Selection

Continual Development of the Salesforce:

Sales Leadership, Management, and Supervision

Evaluating the Effectiveness of the Organization

Evaluating the Performance of Salespeople

Developing Forecasts

Filters

Exam 7: Motivation and Reward System Management

It is relatively easy to design a sales contest that will maximally motivate every member of the salesforce.

Industries that have traditionally used a straight-commission-based compensation pay plan include all of the following except

Employees typically find verbal or written praise to be of little importance.

Determining the appropriate financial compensation level depends upon an understanding of the duties expected for a particular sales position.

It is a good idea to reward both individual and team performance.

Noncompensation rewards include factors related to the work situation and well-being of each salesperson.

Among older salespeople, opportunity for promotion often eclipses pay as the most valued reward.

A straight-commission compensation plan is suggested for salespeople such as missionaries and detailers.

The optimal reward system would balance the needs of the organization, its salespeople, and its customers.

Boredom is a typical problem with sales jobs.

The most serious disadvantage of a straight-salary compensation plan is

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

Salespeople appear to be fond of being recognized by their peers.

Many companies believe that money spent on recognition programs is a good investment.

There is general agreement that salesforce loyalty to the company may be greater with straight-commission plans.

With a straight-salary compensation plan, the least productive members of the salesforce tend to be the most rewarded salespeople.

With straight-salary compensation plans, there is less chance that high-pressure, non-customer-oriented sales techniques will be used.

When determining the financial compensation mix, the sales manager must

As compared to a straight-salary or combination plan, the straight-commission compensation plan is more complex and difficult to administer.

Current spendable income includes

Overview of Personal Selling

Organizational Strategies and the Sales Function

Sales Organization Structure and Salesforce Deployment

Acquiring Sales Talent: Recruitment and Selection

Continual Development of the Salesforce:

Sales Leadership, Management, and Supervision

Evaluating the Effectiveness of the Organization

Evaluating the Performance of Salespeople

Developing Forecasts

Filters