235) Consider Figure 20-7 above, which is an account management policy grid that groups
customers according to the level of opportunity and the firm’s competitive sales position. Box C
represents which account management policy?
A) accounts that the firm should consider replacing personal calls with telephone sales or direct
mail to service accounts
B) accounts that should emphasize a heavy sales organization position or shift resources to other
accounts if a stronger sales organization position is impossible
C) accounts that offer a poor opportunity because they have high levels of competition
D) accounts that should receive a high level of sales calls and service to retain and possibly build
accounts
E) accounts that should receive moderate level of sales and service to maintain current position
of sales organization
236) Consider Figure 20-7 above, which is an account management policy grid that groups
customers according to the level of opportunity and the firm’s competitive sales position. Box D
represents which account management policy?
A) accounts that the firm should consider replacing personal calls with telephone sales or direct
mail to service accounts
B) accounts that should emphasize a heavy sales organization position or shift resources to other
accounts if a stronger sales organization position is impossible
C) accounts that offer a strong opportunity because they have low levels of competition
D) accounts that should receive a high level of sales calls and service to retain and possibly build
accounts
E) accounts that should receive moderate level of sales and service to maintain current position
of sales organization
237) When using an account management policy grid, an account would replace personal calls
with telemarketing or direct mail if the account opportunity level assessment is
A) high and the sales organization has a strong competitive position.
B) low and the sales organization has a strong competitive position.
C) high and there is a likelihood that a strong competitive position can be achieved in the future.
D) low and the sales organization has a low competitive position.
E) high and the sales organization has strong competitive position.
238) When using an account management policy grid, an account would receive a high level of
sales calls if the account opportunity level assessment is
A) high and the sales organization has a weak competitive position.
B) low and the sales organization has a strong competitive position.
C) high and there is a likelihood that a strong competitive position can be achieved.
D) low and the sales organization has a low competitive position.
E) high and the sales organization has strong competitive position.
239) There are three major tasks involved in the implementation stage of the sales management
process: salesforce motivation and compensation, salesforce training, and
A) salesforce recruitment and selection.
B) developing account management policies.
C) assignment of territories and/or accounts.
D) setting sales objectives.
E) salesforce evaluation.
240) Which of the following is one of the three major tasks involved in the implementation stage
of the sales management process?
A) setting sales objectives.
B) developing account management policies.
C) salesforce motivation and compensation.
D) salesforce evaluation.
E) assignment of territories and/or accounts.
241) One of the most crucial tasks of sales management is ________; it begins with a carefully
crafted job analysis.
A) salesforce evaluation
B) setting sales objectives
C) developing account management policies
D) salesforce motivation and compensation
E) effective recruitment and selection of salespeople
242) Job analysis refers to
A) a thorough evaluation of a salesperson’s performance based upon both input and output
objectives.
B) a detailed assessment to determine what occurred at which stage in the selling process that
prevented a qualified lead being converted into a sale.
C) a study of a particular sales position, including how the job is to be performed and the tasks
that make up the job.
D) a protocol used to assign relative weights to various aspects of the selling process to create an
individualized compensation plan.
E) a written document that describes the job relationships and requirements that characterize
each sales position.
243) Information from a ________ is used to write a job description.
A) job analysis
B) salesforce compensation plan
C) sales plan
D) sales performance audit
E) personal performance plan
244) A(n) ________ is a written document that describes job relationships and requirements that
characterize each sales position.
A) sales plan
B) job analysis
C) employee contract
D) job description
E) personal performance plan
245) Applied to recruiting and selecting salespeople, a ________ includes to whom a salesperson
reports, how he or she interacts with other company personnel, and the customers to be called on.
A) job description
B) sales plan
C) job analysis
D) sales performance audit
E) personal performance plan
246) All of the following are aspects of a job description for a salesperson except which?
A) the physical and mental demands of the job
B) the customers to be called on
C) the types of products and services to be sold
D) to whom a salesperson reports
E) effective communication and listening skills
247) A job description is a written document that describes job relationships and requirements
that characterize each sales position. Once established, the job description is then translated into
A) statement of job credentials.
B) statement of emotional intelligence.
C) statement of job qualifications.
D) statement of job requirements.
E) statement of job education.
248) The aptitudes, knowledge, skills, and a variety of behavioral characteristics considered
necessary to perform a job successfully are contained in a statement of job
A) credentials.
B) training.
C) education.
D) experience.
E) qualifications.
249) Attributes such as imagination and problem-solving ability, strong work ethic, honesty,
intimate product knowledge, effective communication and listening skills, and attentiveness
reflected in responsiveness to buyer needs and customer loyalty and follow-up are often found in
the ________ for sales positions.
A) job analysis
B) job description
C) statement of job credentials
D) statement of job qualifications
E) statement of job experience
250) All of the following are elements in a statement of job qualifications for an order-getting
salesperson except which?
A) honesty
B) the preferred customer type
C) imagination and problem-solving ability
D) responsiveness to buyer needs
E) effective communication and listening skills
251) The ability to understand one’s own emotions and the emotions of people with whom one
interacts on a daily basis is referred to as
A) empathetic intelligence.
B) emotional empathy.
C) emotional intelligence.
D) subliminal intelligence.
E) cognitive empathy.
252) Emotional intelligence is
A) the ability to anticipate and overcome a potential customer’s objections.
B) a method of measuring the potential of people who have not had formal schooling.
C) a measurement to determine a person’s patience in stressful selling situations.
D) the ability to pick up personal cues, ticks, or tells that helps salespeople read their customers
in order to make a sale.
E) the ability to understand one’s own emotions and the emotions of people with whom one
interacts on a daily basis.
253) Which of the following is one of the five dimensions of emotional intelligence?
A) honesty
B) sense of humor
C) empathy
D) the ability to be positive
E) a need to be in control
254) All of the following are dimensions of emotional intelligence except which?
A) the ability to manage one’s emotions and impulses
B) social skills
C) reasoning skills
D) self-motivation skills
E) self-awareness
255) Which of the following statements about salesforce training is most accurate?
A) The training of sales managers is both expensive and extensive, unlike the training of
salespeople, which is relatively inexpensive.
B) A major flaw in the sales industry is a lack of employer-sponsored training.
C) Sales ability is instinctive; it cannot be taught.
D) Whereas recruitment and selection of salespeople is a onetime event, salesforce training is an
ongoing process that affects both new and seasoned salespeople.
E) A limitation of sales training is that it is too narrowly focused on “making the sale” rather than
learning new business skills.
256) Which type of salesforce training is the most popular type of training?
A) individual instruction
B) on-the-job training
C) formal classes
D) seminars taught by sales trainers
E) computer-based training
257) Research suggest that proper compensation, incentives, or rewards are necessary to product
a motivated sales person, along with several other factors including which of these?
A) an opportunity for leadership experience
B) a personal need for achievement
C) constructive criticism
D) adequate time for bookkeeping and paperwork
E) a moderate degree of competitive spirit within a team
258) Salespeople are paid using one of three plans:
A) incremental salary, input-based commission, and output-based commission.
B) straight salary, straight commission, and graded-scale competitive pay.
C) percentage of sales, percentage of profits, and straight salary.
D) straight salary, straight commission, and a combination of salary and commission.
E) straight commission, percentage of market share, and a combination of salary and
commission.
259) With a ________, a salesperson is paid a fixed fee per week, month, or year.
A) sales response compensation plan
B) combination compensation plan
C) straight salary compensation plan
D) straight commission compensation plan
E) market share compensation plan
260) An advantage of the straight salary compensation plan is that it
A) provides an incentive to expand sales volume.
B) can be easily adapted to changes in the economy.
C) doesn’t include non-selling activities that take time away from selling.
D) allows salaries to be lower.
E) is easy to administer.
261) When Daniel was hired to work for Bush Refrigeration Co., he was told, “The sales training
program is 18 weeks, and we’ll pay you $750 per week during that time.” While in training, the
company used a ________ to compensate Daniel for his time and effort.
A) sales response compensation plan
B) combination compensation plan
C) straight salary compensation plan
D) straight commission compensation plan
E) market share compensation plan
262) A straight commission compensation plan is one
A) that assigns the same commission dollar value regardless of a product’s value, number sold, or
difficulty level of the sales effort.
B) in which a salesperson is paid a specified salary plus a commission and/or bonus on sales
generated.
C) that determines fair and equitable compensation that includes a weighted system for different
types of items or different sized territories.
D) in which the salesperson is paid a fixed amount per week, month, or year.
E) in which a salesperson’s earnings are directly tied to the sales or profits he or she generates.
263) With a ________, a salesperson’s earnings are directly tied to sales or profits generated.
A) sales response compensation plan
B) combination compensation plan
C) straight sales compensation plan
D) straight commission compensation plan
E) market share compensation plan
264) A disadvantage of a straight commission compensation plan is that
A) it does not provide incentive to expand sales volume.
B) it can discourage salespeople from providing customer service.
C) it includes non-selling activities that take time away from selling.
D) the overall compensation is usually lower than a straight salary compensation plan.
E) it not perceived as equitable by most salespeople.
265) A straight commission compensation plan is well-suited to sales positions where
A) non-selling activities are minimal.
B) there is lively competition in the industry.
C) no technological background is necessary.
D) most salespeople are working toward management positions.
E) extensive non-selling activities are essential for closing a sale.
266) After completing an 18-week sales training program, Joshua was told, “You will be paid 4
percent on net dollar volume up to $10 million. Sales in excess of $10 million command a rate of
6 percent.” The company Joshua works for is using a ________ for him after completing the
sales training program.
A) sales response compensation plan
B) combination compensation plan
C) straight sales compensation plan
D) straight commission compensation plan
E) market share compensation plan
267) With a ________, a salesperson is paid a specified salary plus a commission on sales or
profits generated.
A) sales response compensation plan
B) combination compensation plan
C) sales plus compensation plan
D) modified commission compensation plan
E) market share compensation plan
268) The most frequently used type of compensation plan for salespeople is a
A) straight salary compensation plan.
B) straight commission compensation plan.
C) combination compensation plan.
D) weighted compensation plan.
E) market share compensation plan.
269) At White Chemical Co., management is examining its selling strategy and wants to
acknowledge the role its sales staff has in undertaking sales support (non-selling) activities, yet
keep the salespeople directed toward increasing sales for the next year. What advice is most
likely to be appropriate here?
A) Provide a base salary and a commission on sales generated.
B) Give a raise to every salesperson as a motivational incentive.
C) Provide year-end bonuses to reward the salesforce personnel who perform the best.
D) Offer straight salaries and give raises if the sales go up.
E) Offer straight commission and if sales improve, raise the commission rates.
270) Which of the following statements regarding salesforce compensation plans is most
accurate?
A) The most preferred compensation plan among salespeople is the straight commission plan.
B) Nonmonetary rewards are not very effective as salesforce motivators.
C) New recruits are often more productive than seasoned professionals.
D) Ineffective practices often lead to costly salesforce turnovers.
E) The expense of training a new salesperson, including the cost of lost sales, is still lower than
having to use a salary plus commission plan.
271) ________ gives its outstanding salespeople some unconventional rewards that include new
pink Cadillacs and jewelry.
A) Avon
B) General Motors
C) Tiffany & Co.
D) Pampered Chef
E) Mary Kay Cosmetics
272) Quantitative assessments of sales performance may be based on input-related objectives set
forth in the sales plan, such as those involving
A) new sales, new lead generation, and customer billing.
B) sales calls, selling expenses, and account management policies.
C) selling expenses, profits generated, and account management policies.
D) new lead generation, sales quotas, and sales increases over the previous evaluation period.
E) recruitment, selection, and training of new sales representatives.
273) Quantitative assessments of sales performance may be based on output-related measures,
such as
A) dollar or unit sales volume, last year/current year sales ratio, and new accounts generated.
B) sales calls, selling expenses, and account management policies.
C) selling expenses, profits generated, and emotional intelligence quotient.
D) new lead generation, sales quotas, and sales increases over the previous evaluation period.
E) recruitment, selection, and training of new sales representatives.