Question 1

A constant commission rate changes incrementally as salespeople reach prespecified target levels of sales.

Accepted Answer

A) True 
 B)False

Question 2

With regards to designing a global compensation system, don't allow local managers to decide the mix between base and incentive pay.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following is not mentioned in the text as a challenge to sales managers attempting to adjust their compensation plans to recognize team performance?

Accepted Answer

A)  Existing reward systems for individual salespeople are not easy to adapt to team selling situations. 
B)  Salespeople who are accustomed to earning commissions based on their individual efforts may not respond enthusiastically to team-based compensation. 
C)  There is concern that rewards for high performers may be diminished by lower-performing team members. 
D)  It is difficult to determine an individual salesperson's contribution to overall team performance. 
E)  Overall compensation and rewards increase with the use of team selling. 
A)  Existing reward systems for individual salespeople are not easy to adapt to team selling situations. 
B)  Salespeople who are accustomed to earning commissions based on their individual efforts may not respond enthusiastically to team-based compensation. 
C)  There is concern that rewards for high performers may be diminished by lower-performing team members. 
D)  It is difficult to determine an individual salesperson's contribution to overall team performance. 
E)  Overall compensation and rewards increase with the use of team selling.

Question 4

Most recognition programs are simply popularity contests and leave salespeople feeling let down and deceived.

Accepted Answer

A) True 
 B)False

Question 5

Management should consider how any change in compensation will affect the company's top performers and attempt to avoid a change that would hurt them.

Accepted Answer

A) True 
 B)False

Question 6

Combination compensation plans may encourage crisis-oriented objectives.

Accepted Answer

A) True 
 B)False

Question 7

A straight-commission compensation plan is appropriate for sales trainees who are involved in learning about the job rather than producing on the job.

Accepted Answer

A) True 
 B)False

Question 8

Entertainment is a typical reimbursable sales expense item.

Accepted Answer

A) True 
 B)False

Question 9

Formal recognition programs have a better chance of success if sales managers do all of the following except:

Accepted Answer

A)  publicize the program before it is implemented. 
B)  make it easy enough to allow for a majority of the salesforce to win. 
C)  ensure that the celebration for winners is well-conceived and executed. 
D)  arrange for individual salespeople or sales teams to acknowledge the support of others who helped them win the award. 
E)  remember that the program should make sense from a return-on-investment perspective. 
A)  publicize the program before it is implemented. 
B)  make it easy enough to allow for a majority of the salesforce to win. 
C)  ensure that the celebration for winners is well-conceived and executed. 
D)  arrange for individual salespeople or sales teams to acknowledge the support of others who helped them win the award. 
E)  remember that the program should make sense from a return-on-investment perspective.

Question 10

The primary advantage of combination pay plans is the flexibility they offer.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following conditions is not typically associated with higher pay levels?

Accepted Answer

A)  Job experience. 
B)  The importance of personal selling in the overall marketing effort. 
C)  Higher skill levels. 
D)  The extent to which there is an expectation that salespeople will service current customers. 
E)  Highly competitive markets where an intense personal selling effort is important for customer retention and growth. 
A)  Job experience. 
B)  The importance of personal selling in the overall marketing effort. 
C)  Higher skill levels. 
D)  The extent to which there is an expectation that salespeople will service current customers. 
E)  Highly competitive markets where an intense personal selling effort is important for customer retention and growth.

Question 12

A large direct sales company such as Avon would most likely compensate their salespeople in this manner

Accepted Answer

A)  straight salary. 
B)  salary plus bonuses. 
C)  straight commission. 
D)  salary plus commission. 
E)  straight commission plus bonuses. 
A)  straight salary. 
B)  salary plus bonuses. 
C)  straight commission. 
D)  salary plus commission. 
E)  straight commission plus bonuses.

Question 13

The motivational task is generally more difficult for sales managers than for other managers.

Accepted Answer

A) True 
 B)False

Question 14

Most salespeople prefer some stability in their reward system and care little about incentive rewards.

Accepted Answer

A) True 
 B)False

Question 15

The best time to institute major changes in salesforce reward systems is during a recessionary period.

Accepted Answer

A) True 
 B)False

Question 16

The most popular commission base appears to be sales volume.

Accepted Answer

A) True 
 B)False

Question 17

From the organization's perspective, the reward system should attract and retain competent salespeople.

Accepted Answer

A) True 
 B)False

Question 18

According to the text, controls typically used by companies to ensure judicious spending by the salesforce include all of the following except

Accepted Answer

A)  the use of allowances for certain expenditures. 
B)  the requirement of documentation for expenses to be reimbursed. 
C)  the requirement that expenses be charged and the bills sent directly to the company for payment by the accounting department. 
D)  a definition of which expenses are reimbursable. 
E)  the establishment of expense budgets. 
A)  the use of allowances for certain expenditures. 
B)  the requirement of documentation for expenses to be reimbursed. 
C)  the requirement that expenses be charged and the bills sent directly to the company for payment by the accounting department. 
D)  a definition of which expenses are reimbursable. 
E)  the establishment of expense budgets.

Question 19

Opportunities for promotion are easily varied in the short run.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following is not a guideline for optimizing the use of sales contests?

Accepted Answer

A)  Recognize that contests will concentrate efforts in specific areas, often at the temporary neglect of other areas so plan accordingly. 
B)  Consider the positive effects of including nonselling personnel in sales contests. 
C)  Use variety as a basic element of sales contests by varying timing, duration, themes, and rewards. 
D)  Ensure that sales contest objectives are clear, realistically attainable, and quantifiable to allow performance assessment. 
E)  Salespeople should compete in teams with each member of the team making a contribution to the group's total goal. 
A)  Recognize that contests will concentrate efforts in specific areas, often at the temporary neglect of other areas so plan accordingly. 
B)  Consider the positive effects of including nonselling personnel in sales contests. 
C)  Use variety as a basic element of sales contests by varying timing, duration, themes, and rewards. 
D)  Ensure that sales contest objectives are clear, realistically attainable, and quantifiable to allow performance assessment. 
E)  Salespeople should compete in teams with each member of the team making a contribution to the group's total goal.

A constant commission rate changes incrementally as salespeople reach prespecified target levels of sales.

With regards to designing a global compensation system, don't allow local managers to decide the mix between base and incentive pay.

Which of the following is not mentioned in the text as a challenge to sales managers attempting to adjust their compensation plans to recognize team performance?

Most recognition programs are simply popularity contests and leave salespeople feeling let down and deceived.

Management should consider how any change in compensation will affect the company's top performers and attempt to avoid a change that would hurt them.

Combination compensation plans may encourage crisis-oriented objectives.

A straight-commission compensation plan is appropriate for sales trainees who are involved in learning about the job rather than producing on the job.

Entertainment is a typical reimbursable sales expense item.

Formal recognition programs have a better chance of success if sales managers do all of the following except:

The primary advantage of combination pay plans is the flexibility they offer.

Which of the following conditions is not typically associated with higher pay levels?

A large direct sales company such as Avon would most likely compensate their salespeople in this manner

The motivational task is generally more difficult for sales managers than for other managers.

Most salespeople prefer some stability in their reward system and care little about incentive rewards.

The best time to institute major changes in salesforce reward systems is during a recessionary period.

The most popular commission base appears to be sales volume.

From the organization's perspective, the reward system should attract and retain competent salespeople.

According to the text, controls typically used by companies to ensure judicious spending by the salesforce include all of the following except

Opportunities for promotion are easily varied in the short run.

Which of the following is not a guideline for optimizing the use of sales contests?

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

A constant commission rate changes incrementally as salespeople reach prespecified target levels of sales.

With regards to designing a global compensation system, don't allow local managers to decide the mix between base and incentive pay.

Which of the following is not mentioned in the text as a challenge to sales managers attempting to adjust their compensation plans to recognize team performance?

Most recognition programs are simply popularity contests and leave salespeople feeling let down and deceived.

Management should consider how any change in compensation will affect the company's top performers and attempt to avoid a change that would hurt them.

Combination compensation plans may encourage crisis-oriented objectives.

A straight-commission compensation plan is appropriate for sales trainees who are involved in learning about the job rather than producing on the job.

Entertainment is a typical reimbursable sales expense item.

Formal recognition programs have a better chance of success if sales managers do all of the following except:

The primary advantage of combination pay plans is the flexibility they offer.

Which of the following conditions is not typically associated with higher pay levels?

A large direct sales company such as Avon would most likely compensate their salespeople in this manner

The motivational task is generally more difficult for sales managers than for other managers.

Most salespeople prefer some stability in their reward system and care little about incentive rewards.

The best time to institute major changes in salesforce reward systems is during a recessionary period.

The most popular commission base appears to be sales volume.

From the organization's perspective, the reward system should attract and retain competent salespeople.

According to the text, controls typically used by companies to ensure judicious spending by the salesforce include all of the following except

Opportunities for promotion are easily varied in the short run.

Which of the following is not a guideline for optimizing the use of sales contests?

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