A) It directly relates selling expenses to sales resources
B) It provides sales reps with the maximum amount of security
C) It is easy to administer
D) It yields more predictable selling expenses
E) It gives sales managers a large amount of control over sales reps
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The disadvantages of straight ...View Answer
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A) Finding new accounts
B) Providing service assistance
C) Setting up point-of-purchase displays
D) Keeping up with technical developments in the industry
E) All of the above
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A) Straight salary
B) Draws
C) Combination
D) Benefits
E) Commission
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A) All of the salespeople want it that way
B) The company's products are largely presold through advertising
C) The salary component is also small
D) Selling skill in an important component to overall success
E) All of the above
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A) Encourage the development of a long-term emphasis on nonselling activities
B) Adjust differences in territory potential
C) Satisfy salespeople's security needs
D) Stimulate additional effort targeted at achieving specific short-term goals
E) Reward experience and competence
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The three basic questions that need to b...View Answer
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A) Straight salary compensation is more commonly used with experienced salespeople than with new sales recruits
B) The major limitation of straight salary compensation is that financial rewards are not tied directly to any specific aspect of job performance
C) Straight salary compensation plans do not give sales managers the flexibility they have with commission plans
D) Straight salary compensation plans are most useful when management wants to motivate its salespeople to achieve short-run sales volume increases
E) Straight salary compensation is inappropriate for industries where missionary selling is commonplace
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A direct reimbursement expense...View Answer
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A) What size sales territory will yield the appropriate sales volume for providing equitable commissions and bonuses?
B) How can the most people be rewarded with the least expense?
C) Should there be a ceiling on incentive earnings?
D) How does the compensation plan support the company's mission?
E) All of the above are questions that a sales manager must answer when designing an effective combination compensation plan
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The options include when the o...View Answer
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A) Deciding on the most appropriate level of compensation
B) Monitoring sales motivation programs for fairness and effectiveness
C) Hiring young sales representatives
D) Paying straight commission
E) None of the above
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A) Incentive ceilings can be used to protect against windfalls
B) Incentive ceilings make a firm's maximum potential sales compensation expense more predictable and controllable
C) Firms in relatively low paying industries are more likely to impose incentive ceilings than those in high-paying industries
D) Incentive ceilings are used to ensure that top-performing salespeople will not make such high earnings that other employees suffer resentment and low morale
E) All of the above statements about incentive ceilings are true
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A) It gives sales reps little financial security
B) It provides sales managers with minimal control over their sales forces
C) It can cause sales reps to provide inadequate service to smaller accounts
D) It makes selling expenses less predictable
E) All of the above statements describe disadvantages inherent in the straight commission compensation plan
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A) Combination compensation plans are found more frequently in large firms than smaller ones
B) When the salesperson's selling skill is the key to sales success,the incentive portion of his or her compensation should be relatively small
C) The most popular combination compensation plan offers a base salary plus some proportion of incentive pay
D) Commission rates are more often found in companies that use combination plans than in a company that simply uses a straight commission plan
E) Combination compensation plans have all the limitations associated with straight salary and straight commission plans
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