(for Expert_Researcher)
olaele
sale_management_part_4.docxQuestion 1
Which of the following is the best definition of motivation?
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behavior that is consistent with your attitudes |
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doing things that satisfy you |
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the desire to expend effort to fulfill a need |
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your reaction to role conflict and role ambiguity |
Question 2
The most basic need in Maslow's hierarchy is_________.
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esteem |
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safety |
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social |
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physiological |
Question 3
A sales compensation plan calling for a straight commission based on net sales is least likely to:
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attract good salespeople. |
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lower the morale of poor sales representatives. |
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increase the rep's independence of action. |
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stimulate missionary selling activities. |
Question 4
Which of the following is a major trend today in sales force compensation?
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Straight commission plans are increasing as a percentage of total plans. |
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Companies are designing plans which stress customer satisfaction rather than straight sales volume. |
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The average level of pay is decreasing. |
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Fringe benefits are not being used as much as in the past. |
Question 5
With regard to compensation, which of the following is true?
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Companies change their compensation plans more frequently than they change their strategies. |
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Compensation plans should be reviewed frequently to make sure that they are consistent with strategies. |
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Most firms change their compensations plans at least once in two years. |
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Firms should only change their compensation program when the salespeople are dissatisfied. |
Question 6
Studies show that recognition programs are:
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never very effective in motivating representatives. |
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most effective when they recognize between 10 to 20 percent of the sales force. |
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most effective when they recognize between 45 to 55 percent of the sales force. |
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most effective when they recognize between 60 to 70 percent of the sales force. |
Question 7
An unwanted side effect of a sales contest might be a(n):
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boost of morale. |
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increase in sales. |
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motivated salespeople. |
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decline in post-contest sales. |
Question 8
Regarding the problem of plateau salespeople:
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it is an important, but relatively rare problem. |
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these salespeople should usually be fired. |
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this is a pervasive problem for sales managers. |
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these are usually relatively inexperienced salespeople. |
Question 9
For which of the following products would the straight-commission plan of compensation be most appropriate?
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Encyclopedias sold door-to-door |
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Hammers, wrenches, and nails sold in a hardware store |
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Potato chips, corn chips, and pretzels sold by a route salesperson |
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Shoes sold in a large department store |
Question 10
In four of the following pairs of concepts regarding compensation plans, the ideas are mutually incompatible or diametrically opposite. In which pair is there no conflict?
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Plan should maximize salespeople's income and minimize company outlay. |
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Plan should provide greatest degree of security and incentive. |
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Plan should be extremely flexible, yet simple and easy to administer. |
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Plan should provide both a competitive level and a competitive method of compensation. |
Question 11
Read the Biolab Pharmaceutical Company Case Study 8-2 on page 252 of the textbook. Do you approve of Kathryn’s plans of action? If so, why, and how could she approve her plan of action? If not, what changes would you suggest she consider making? Describe your views in detail.
Question 12
In what respects would a compensation plan differ among salespeople for the following firms? a) the manufacturer of small airplanes used by executives; b) a wholesaler of office equipment and supplies; c) an automobile dealer.
Question 13
Assume that salespeople’s earnings in a certain firm have no limit and that a good sales rep can earn more than many of the company’s sales managers. What incentive to these salespeople have to move into management? Especially consider those for whom a promotion means a decrease in income. Are you aware of circumstances like this? What affect did it have on the company and sales morale?
