1
What types of sales activities and performance outcomes are most readily encouraged by
compensation and incentive programs?
Answer:
Feedback:
Compared to straight salary compensation, the following activities can be encouraged
through compensation and incentives: Increased dollar volume; Increased sale of more
profitable items; Push new products; Push selected products at designated times; Achieve
greater market penetration; Secure larger average orders; Secure new customers; Service
and maintain existing customers; Reduce turnover of customers; Encourage cooperation
among members of the sales and other management teams; Reduce direct selling costs;
Achieve full-line (balanced) selling; Submit data and reports promptly
2
Which of the following statements is NOT an appropriate guideline for designing an
effective formal recognition program?
(A)
The program should be balanced in terms of appearing as if everyone has a chance to win
while allowing only a few people to actually be recognized
(B)
The program should have both subjective and objective selection processes
(C)
There must be adequate publicity of the winners
(D)
Winners should be recognized in a formal ceremony
(E)
The recognition program must be in good taste
Answer:
(B)
3
Which of the following statements about sales contests is true?
(A)
Sales contests should be considered as a part of a firm’s ongoing compensation plan
(B)
Most sales contests should be held for a relatively long period of time in order to maximize
benefits and participation
(C)
Sales contests should have generalized objectives to allow for unexpected benefits
(D)
It is more desirable to have a high percentage of winners in a sales contest than a low
percentage
(E)
The sales contest in which all the members of the sales force compete against each other is the
most popular format
Answer:
(D)
It is more desirable to have a high percentage of winners in a sales contest than a low
percentage
4
Which of the following sales activities could be enhanced by the planning and implementing
of a sales contest?
(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
Answer:
(A)
Finding new accounts
5
Halkco sells floor systems for semi-trailers and train cars. The objective of the company is
to increase its sales of its replacement flooring systems by 10 percent during the upcoming
fiscal year. At its national sales conference (the theme this year was Mining for Prospects),
its 124 salespeople were told about a sales contest for the upcoming year, “”The Klondike
Gold Rush””. For the contest announcement, top Halkco management was dressed like 19th
century prospectors. The ten winners will be
(A)
Making the salespeople excited about selling can create a problem with the sales reps’ internal
locus of control
(B)
Too many rewards can make winning seem not worth the effort
(C)
Sales contests circumvent the reasons for using normal compensation plans
(D)
Such contests may produce largely illusionary sales, with no lasting improvement in market
share
(E)
All of the above
Answer:
(D)
Such contests may produce largely illusionary sales, with no lasting improvement in
market share
6
Halkco sells floor systems for semi-trailers and train cars. The objective of the company is
to increase its sales of its replacement flooring systems by 10 percent during the upcoming
fiscal year. At its national sales conference (the theme this year was Mining for Prospects),
its 124 salespeople were told about a sales contest for the upcoming year, “”The Klondike
Gold Rush””. For the contest announcement, top Halkco management was dressed like 19th
century prospectors. The ten winners will be
(A)
The company does not have a clearly defined sales objective for the contest
(B)
The contest features will produce anxiety among the sales force because they are too exciting
(C)
The rewards are likely to be more demotivating than motivating
(D)
The company over-sold the sales contest
(E)
Nothing is wrong with this contest; it has every reason to succeed
Answer:
(E)
Nothing is wrong with this contest; it has every reason to succeed
7
In order to generate interest and enthusiasm for a sales contest, companies should:
(A)
Launch the contest with fanfare advertising for it
(B)
Recognize and publicize the winners after the contest
(C)
Give each salesperson frequent feedback on his or her progress
(D)
Have an exciting theme to build enthusiasm
(E)
All of the above
Answer:
(E)
All of the above
8
When considering incentive plans, you should keep in mind that:
(A)
All plans should be the same
(B)
Big companies do not need incentive plans while small companies need them
(C)
Shorter intervals between performance and receipt of rewards motivates salespeople
(D)
Team incentive plans should always be based on team performance
(E)
Bonuses should always be paid annually
Answer:
(C)
Shorter intervals between performance and receipt of rewards motivates salespeople
9
Most compensation plans credit a salesperson with a sale:
(A)
When the order is accepted by the company, less any returns and allowances
(B)
After payment is received from the customer
(C)
Only after the goods have been shipped
(D)
In a combined manner, where one-half of the sale is assigned when the order is received and
the other half when the customer pays
(E)
In a variety of ways, with no one way being more popular than any other
Answer:
(A)
When the order is accepted by the company, less any returns and allowances
10
Which of the following statements about incentive pay ceilings is true?
(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
Answer:
(E)
All of the above statements about incentive ceilings are true
11
Roger’s company uses a combination salary compensation plan. The incentive portion of
the plan will likely be small if:
(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
Answer:
(B)
The company’s products are largely presold through advertising
12
Warren is deciding what portion of his salespeople’s compensation should be incentive pay.
He should base his decision on:
(A)
The financial needs of his salespeople
(B)
When the company wants to expand
(C)
Which salespeople he wants to retain
(D)
The degree of relationship selling involved in the job
(E)
Who his salespeople call on
Answer:
(D)
The degree of relationship selling involved in the job
13
Which of the following questions must a sales manager answer when designing an effective
combination compensation plan?
(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
Answer:
(C)
Should there be a ceiling on incentive earnings?
14
All of the following are questions that a sales manager must answer when designing
effective combination compensation plans EXCEPT:
(A)
When should the salesperson be credited with the sale?
(B)
How often should the salesperson receive incentive payments?
(C)
What is the appropriate size of the incentive relative to the base salary?
(D)
What size sales territory will yield the appropriate sales volume for providing equitable
commissions and bonuses?
(E)
Should there be a ceiling on incentive earnings?
Answer:
(D)
What size sales territory will yield the appropriate sales volume for providing equitable
commissions and bonuses?
15
Which of the following statements about the combination compensation plan is true?
(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
Answer:
(C)
The most popular combination compensation plan offers a base salary plus some
proportion of incentive pay
16
To offset the problem of income instability associated with straight commission plans,
many companies offer their salespeople a __________ against commissions.
(A)
Straight salary
(B)
Quota
(C)
Perk
(D)
Contest
(E)
Draw
Answer:
(E)
Draw
17
Which of the following statements about straight commission compensation plans is true?
(A)
Compensation cost per unit is always lower under a straight commission plan
(B)
Many firms, especially those engaged in relationship selling have abandoned straight
commission plans
(C)
Straight commission plans increase management’s control over the sales force
(D)
Companies operating with straight commission plans tend to have lower turnover rates when
business conditions are poor than do companies with a straight salary plan
(E)
Firms that are short on working capital should never use the straight commission plan
Answer:
(B)
Many firms, especially those engaged in relationship selling have abandoned straight
commission plans
18
Commission plans are fair if:
(A)
Salaries are equivalent
(B)
Team selling is modified to meet the customer’s needs
(C)
Territories have equal potential
(D)
Commission rates vary with the time of year
(E)
Commission plans are never fair
Answer:
(C)
Territories have equal potential
19
The primary advantage of the ________________ expense reimbursement plan is it gives
the sales manager some control over the magnitude and kinds of activities salespeople will
be motivated to engage in.
(A)
Limited reimbursement
(B)
Advanced lump-sum
(C)
Fixed cost drawing account
(D)
Direct reimbursement
(E)
Computerized reimbursement
Answer:
(D)
Direct reimbursement
20
A limited reimbursement expense account plan can:
(A)
Motivate salespeople to spend their own money
(B)
Lead to uncontrollable spending
(C)
Hurt motivation of salespeople
(D)
Be used to control production financing
(E)
Stimulate bonus/quota attainment
Answer:
(C)
Hurt motivation of salespeople
21
What is required for sales contests to be successful?
Answer:
Feedback:
Successful sales contests require clearly defined, specific objectives, an exciting theme,
reasonable probability of rewards for all salespeople, attractive rewards, promotion and
follow-through.
22
What five questions does any effective sales combination compensation plan need to
address?
Answer:
Feedback:
1. What is the appropriate size of the incentive relative to base salary? 2. Should a ceiling
be imposed on incentive earnings? 3. When should the salesperson be credited with a sale?
4. Should team incentives be used and if so, how should they be allocated? 5. How often
should the salesperson receive incentive payments?
23
Compare the objectives of different components of a sales compensation plan.
Answer:
Feedback:
There are five components to most sales compensation plans, sales contests, incentive
payments, commissions, salary and benefits. Sales contests stimulate additional effort
toward a targeted short-term objective. Incentive payments provide additional rewards to
top performers, direct effort toward strategic objectives and encourage sales success.
Commissions generate a high sales effort and reward success. Salary rewards experience
and competence, motivates nonselling activities and adjusts for differences in territory
potential. Benefits address security needs and can be used to match competitive offers.
24
What three basic questions determine the design and effective implementation of a
successful compensation program?
Answer:
Feedback:
The three basic questions that need to be addressed are: 1) Which compensation method is
most appropriate for motivating specific kinds of selling activities in specific selling
situations? 2) How much of a salesperson’s total compensation should be earned through
incentive programs? 3) What is the appropriate mix of financial and nonfinancial incentives
for motivating the sales force?
25
What are the advantages of a direct reimbursement expense account plan?
Answer:
Feedback:
A direct reimbursement expense account plan gives the sales manager some control over
total magnitude of sales expenses and the kinds of activities encouraged.
26
What considerations should be incorporated in any sales recognition program?
Answer:
Feedback:
A recognition program should: Be strictly performance-based with no room for subjective
judgments; It should be balanced, meaning it should be attainable but not so attainable
that everyone can achieve it; There should be a ceremony honoring those recognized; The
program should be in good taste, making people feel good about being part of the
company; There should be adequate publicity.
27
What are the common criticisms of sales contests?
Answer:
Feedback:
The criticisms include sales contests provide fleeting results, salespeople may “”borrow”” or
hold back sales to meet the contest rules, may hurt cohesiveness of sales force and may
cover up faulty compensation plans.
28
What is the primary purpose of sales contests?
Answer:
Feedback:
Sales contests are designed to achieve some short-term goal that should be specific and
clearly defined.
29
When using team incentives, what questions need to be addressed?
Answer:
Feedback:
Should incentives be tied to overall performance of the entire team? Should separate
incentives be keyed to the individual performance of each team member or both?
30
What are the options when determining when a sale is credited to a salesperson?
Answer:
Feedback:
The options include when the order is accepted by the company, when the goods are
shipped or when payment has been received.
31
Why do companies offer a draw against commissions?
Answer:
Feedback:
Because commission income is unstable.
32
What are the disadvantages of straight commission plans?
Answer:
Feedback:
The disadvantages of straight commissions include less control over the sales force, lack of
reinforcement of relationship selling, and it may lead to “”milking”” accounts.
33
What are the advantages of straight commission plans?
Answer:
Feedback:
The advantages include direct motivation, clearly defined compensation, fairness among
reps, ease of computing, compensation costs vary with volume, and they require less
working capital.
34
Which of the following statements about compensation levels for salespeople is true?
(A)
Many small firms cannot offer training programs, so they provide their sales force with above-
average compensation
(B)
Most firms consciously pay their salespeople at a rate slightly below the industry average
(C)
Large firms with large sales forces tend to offer above average compensation
(D)
The starting point for deciding on a compensation level should be the gross amount of
compensation that is necessary to attract the right level of selling talent
(E)
None of the above
Answer:
(A)
Many small firms cannot offer training programs, so they provide their sales force with
above-average compensation
35
One negative outcome of complex compensation and incentive programs is they may lead
to ____________ among salespeople.
(A)
Reduced benefits
(B)
Confusion
(C)
Increased perks
(D)
Vertical salary compression
(E)
Alternative contest complaints
Answer:
(B)
Confusion
36
Assessing the firm’s relationship selling objectives and determining which aspects of job
performance to reward are key issues when:
(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
Answer:
(B)
Monitoring sales motivation programs for fairness and effectiveness
37
Which of the following statements about limited reimbursement plans is true?
(A)
Firms on a limited reimbursement plan minimize the total amount of expense reimbursements
by setting maximum limits for each expense item
(B)
Firms on a limited reimbursement plan minimize the total amount of expense reimbursements
by providing lump-sum payments to cover total expenses
(C)
Of all the reimbursement plans, the limited plan is the best motivator
(D)
When on a limited reimbursement plan, the typical salesperson pays his or her expenses out of
pocket rather than doing without
(E)
Both A and B
Answer:
(E)
Both A and B
38
Usually commissions are based on ___________ but it is becoming more popular to base
commissions on ______________.
(A)
Straight salary; profit
(B)
Expenses; volume
(C)
Sales volume; expense account draws
(D)
Contests; volume
(E)
Sales volume; profitability
Answer:
(E)
Sales volume; profitability
39
Foster offers his salespeople a variable commission rate. He pays his salespeople based on
(A)
Straight salary
(B)
Sales of the most profitable items
(C)
Sales volume minus the expense account draws
(D)
Contests and bonuses
(E)
None of the above
Answer:
(B)
Sales of the most profitable items
40
Which of the following statements about the straight commission compensation plan is
true?
(A)
Financial administrators believe that commission compensation plans are anxiety producing
and often try to dissuade organizations from implementing such a plan
(B)
Straight commission compensation is appropriate for companies that require its sales force to
engage in missionary selling
(C)
Commission compensation plans are especially advantageous for companies that are short of
working capital
(D)
Salespeople on a straight commission plan are more likely to engage in making cold calls than
salespeople on a straight salary plan
(E)
Straight commission compensation plans are inherently unfair
Answer:
(C)
Commission compensation plans are especially advantageous for companies that are
short of working capital
41
Bonuses are almost always tied to:
(A)
Commissions
(B)
Draws
(C)
Quotas
(D)
Benefits
(E)
Expense accounts
Answer:
(C)
Quotas
42
How does a bonus differ from a commission?
(A)
Bonuses are typically made for each sale made; commissions are not paid until the salesperson
surpasses some level of total sales
(B)
Commissions are part of the basic compensation plan; bonuses are additional incentives
(C)
Bonuses satisfy the salesperson’s need for esteem; commissions satisfy the physiological and
security needs only
(D)
Bonuses are always used as a tactical motivational tool; commissions are a strategic
motivational tool
(E)
There are no real differences between bonuses and commissions
Answer:
(B)
Commissions are part of the basic compensation plan; bonuses are additional incentives
43
The core of a salary compensation plan is:
(A)
Salary and incentive payments
(B)
Straight salary
(C)
Benefits and draw
(D)
Perks and expense accounts
(E)
Quotas and bonuses
Answer:
(A)
Salary and incentive payments
44
In most sales organizations, the total compensation comprises several components that:
(A)
All focus on either sales volume or gross profit margin
(B)
Each coordinate to minimize bonuses while maximizing sales
(C)
Withdraw the most important and benefits the least important
(D)
Are each designed to achieve a different objective
(E)
All of the above
Answer:
(D)
Are each designed to achieve a different objective
45
Studies of sales force compensation indicate:
(A)
Straight commissions work best
(B)
Straight salary plus bonuses is most effective
(C)
Everything from salary to commission to various nonfinancial factors motivate salespeople
(D)
Carefully designed sales compensation plans requires years to develop but once designed will
work indefinitely
(E)
When people want to work, the compensation does not matter
Answer:
(C)
Everything from salary to commission to various nonfinancial factors motivate
salespeople
46
Candice is developing a compensation plan for the salespeople in her new company. In
order to have a successful compensation plan, a basic question she will need to address is:
(A)
How many salespeople to hire?
(B)
What mix of financial and nonfinancial compensation and incentives to use for motivating the
sales force?
(C)
When to involve the clerical staff in the compensation plan?
(D)
How often to change the compensation plan?
(E)
Where to find bonus/quota ratios appropriate for international sales reps?
Answer:
(B)
What mix of financial and nonfinancial compensation and incentives to use for motivating
the sales force?
47
When deciding which form of expense reimbursement to use, sales managers must make
trade-offs between tight control aimed at holding down total expenses and the financial
well-being of salespeople.
(A)
True
(B)
False
Answer:
(A)
True
48
Most sales managers consider opportunities for promotion and advancement second only to
financial incentives as an effective sales force motivator.
(A)
True
(B)
False
Answer:
(A)
True
49
One of the advantages of sales contests is the way they always create employee
cohesiveness and improve employee morale.
(A)
True
(B)
False
Answer:
(B)
False
Feedback:
The effectiveness of a sales contest depends on perceived fairness. Each employee needs
to have the possibility of winning. Additionally, the type of contest would impact the
potential of improved cohesiveness, which may be increased or decreased.
50
Sales contests provide salespeople with an opportunity to earn both extrinsic and intrinsic
rewards.
(A)
True
(B)
False
Answer:
(A)
True
51
One of the problems in team selling is effective rewards for salesperson effort.
(A)
True
(B)
False
Answer:
(A)
True
52
Shorter time intervals between performance and the receipt of rewards increase the
motivational power of a compensation plan.
(A)
True
(B)
False
Answer:
(A)
True
53
Incentive programs should never have ceilings.
(A)
True
(B)
False
Answer:
(B)
False
Feedback:
The benefits of ceilings are dependent on an organization. There are both arguments for
and against the use of incentive ceilings.
54
Incentive payments are always awarded to the salesperson when the company receives the
sales order.
(A)
True
(B)
False
Answer:
(B)
False
Feedback:
When a sale is credited to a salesperson varies by company. A sale may be when a order is
received, when the goods are shipped, when payment for goods is received or any other
arrangement regarding those events.
55
Drawing accounts are provided to salespeople on a straight commission plan as added
incentive pay.
(A)
True
(B)
False
Answer:
(B)
False
Feedback:
A drawing account is a money advance to a salesperson in months when commissions are
low to ensure he or she will always take home a specified minimum amount of pay. The
amount of the draw taken is deducted from earned commission when sales improve.
56
One of the disadvantages of a combination compensation plan is that with this system,
selling expenses are not as predictable as with the other two forms of compensation plans.
(A)
True
(B)
False
Answer:
(A)
True
57
The foundation of most compensation plans is a package of benefits that is designed to
satisfy the individual salesperson’s need for security.
(A)
True
(B)
False
Answer:
(A)
True
58
Natalie wants to motivate her salespeople toward meeting the quarterly sales volume and
profit quotas. She will likely use __________ to motivate her salespeople.
(A)
Commissions
(B)
Draws
(C)
Quotas
(D)
Benefits
(E)
Expense accounts
Answer:
(C)
Quotas
59
To be effective, quotas need to be:
(A)
Specific
(B)
Measurable
(C)
Realistically attainable
(D)
All of the above
(E)
None of the above
Answer:
(D)
All of the above
60
Which of the following sales activities would NOT be enhanced through the implementation
of a straight salary compensation plan by a company that sells customized retail stock
display units?
(A)
Cold calling
(B)
Designing a product demonstration
(C)
Keeping current with technical developments in the inventory management field
(D)
Training on a new type of database software
(E)
Selling the inventory system
Answer:
(E)
Selling the inventory system
61
Which of the following statements about a straight salary compensation plan is true?
(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
Answer:
(B)
The major limitation of straight salary compensation is that financial rewards are not tied
directly to any specific aspect of job performance
62
Boris is graduating from college and looking at a career in sales. His career counselor
advises him to look at __________________ positions in order to have time to learn the
ropes and develop his selling skills.
(A)
Market research
(B)
Relationship selling
(C)
Product stocking
(D)
Nonfinancial selling
(E)
Straight commission
Answer:
(B)
Relationship selling
63
Which of the following statements describes an advantage inherent in the straight
commission compensation plan?
(A)
It gives sales reps little financial security
(B)
It provides sales managers with minimal control over their sales forces
(C)
It allows sales managers to relate selling expenses directly to sales resources
(D)
It makes selling expenses less predictable
(E)
All of the above
Answer:
(C)
It allows sales managers to relate selling expenses directly to sales resources
64
Which of the following statements describes a disadvantage inherent in the straight
commission compensation plan?
(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
Answer:
(E)
All of the above
65
Salespeople who are primarily engaged in ___________ will likely be paid straight salary.
(A)
Market research
(B)
Customer problem analysis
(C)
Product stocking
(D)
Customer education
(E)
All of the above
Answer:
(E)
All of the above
66
Which of the following statements does NOT describe an advantage inherent in the straight
salary compensation plan?
(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
Answer:
(A)
It directly relates selling expenses to sales resources
67
Brett is part of a sales team. His task is to address existing and potential customers’
technical questions. He rarely is involved in prospecting or closing sales. Brett will likely be
paid:
(A)
Commission
(B)
Draws
(C)
Combination
(D)
Benefits
(E)
Straight salary
Answer:
(E)
Straight salary
68
Valerie wants her salespeople to focus on customer relationships, not short-run sales
volume. She will likely use a ________________ compensation plan.
(A)
Straight salary
(B)
Draws
(C)
Combination
(D)
Benefits
(E)
Commission
Answer:
(A)
Straight salary
69
The goal in developing a salary compensation plan is to create:
(A)
Security
(B)
Cooperation
(C)
Loyalty
(D)
Pay for performance
(E)
Variable defined compensatory valences
Answer:
(D)
Pay for performance
70
In recent years, a steady trend has developed toward ____________ compensation plans.
(A)
Salary
(B)
Draws
(C)
Combination
(D)
Benefits
(E)
Commission
Answer:
(C)
Combination
71
The three primary methods of compensating salespeople are
(A)
Straight salary, straight commission and combination plans
(B)
Straight nonfinancial incentives, bonuses and contests
(C)
Straight commissions, straight contests and variable benefits
(D)
Commissions, bonuses and expense accounts
(E)
Draws, prerequisites and contests
Answer:
(A)
Straight salary, straight commission and combination plans
72
Gerald is having a difficult time recruiting salespeople. He learns competing firms are
offering better _________ to meet the security needs of salespeople.
(A)
Commissions
(B)
Draws
(C)
Territories
(D)
Benefits
(E)
Expense accounts
Answer:
(D)
Benefits
73
If Arlene wants to motivate a high level of sales effort among her sales representatives,
she should focus on:
(A)
Commissions
(B)
Draws
(C)
Perks
(D)
Benefits
(E)
Expense accounts
Answer:
(A)
Commissions
74
In designing a compensation plan, the primary objective of a salary is to:
(A)
Stimulate additional effort targeted at achieving specific short-term goals
(B)
Motivate salespeople to a higher level of selling effort
(C)
Encourage sales success
(D)
Satisfy salespeople‘s security needs
(E)
None of the above
Answer:
(E)
None of the above
75
The primary objective of a sales contest is to:
(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
Answer:
(D)
Stimulate additional effort targeted at achieving specific short-term goals
76
In terms of Maslow’s hierarchy of needs, benefit packages as a part of a compensation plan
are intended to satisfy a salesperson’s need for:
(A)
Self-esteem
(B)
Belonging
(C)
Security
(D)
Self-actualization
(E)
Style
Answer:
(C)
Security
77
A sales contest can be designed to encourage extra effort aimed at specific short-term
objectives.
(A)
True
(B)
False
Answer:
(A)
True