MKT 383 Final Exam Questions

After determining who will participate in selecting new salespeople, the next decision is

Who has the authority to make hiring decisions

The first decision that must be made when recruiting and selecting salespeople considers:

Who will participate in the process

Nicole is part of a recruiting and selection team for her company's sales force. After conducting a job analysis, her next step will be to

Write a job description

Which of the following would not be an advisable instruction to management for completion of performance rating forms?

base your rating on the salesperson's potential ability

Which of the following statements about the personal variables that produce successful salespeople is true?

factors that reflect a person's emotional maturity and cooperative behavior also tend to be good predictors of sales performance

Which of the following statements does not describe an advantage inherent in the straight salary compensation plan?

it directly relates selling expenses to sales resources

On-the-job training and coaching occur together; this is referred to as:

one-on-one training

________ can be very effective in delivering certain kinds of information but will not likely eliminate the need for one- on- one training for salespeople

online training methods

An agency relationship is formed when a _________ delegates work to an _______ who performs that work.

principle; agent

Percentage of quota attained sales performance evaluation ignores

profitability of sales

Which of the following is not a commonly evaluated subjective attribute used in merit rating forms?

sales results

Usually commissions are based on_______ but it is becoming more popular to base commission on__________

sales volume; profitability

Which of the following sales activities would not be enhanced through the implementation of a straight salary compensation by a company that sells customized retail stock display units?

selling the inventory system

When considering incentive plans,

shorter intervals between performance and receipt of rewards motivates salespeople

The more skill a salesperson has

the better his or her performance is likely to be

Which of the following ratios does not reflect how well a salesperson is capturing the potential business that exists in his or her territory?

the cost per call ratio

Which of the following statements about the combo comp plan is true?

the most popular combination compensation plan offers a base salary plus some proportion of incentive pay

Providing more sales training will not help a company's sales if

the product or service does not add value for the customer

When the firm considers the sales force a training ground for sales and marketing managers, ___________ may participate in recruiting process to ensure new salespeople have management potential

top-level managers

Cost per call is_____________

total cost divided by number of calls

It would be legal for an interviewer during a job interview to ask a job applicant about his or her:

work experience

Which of the following is the best way for a sales manager to deal with a plateaued salesperson?

Provide opportunities for frequent changes in job duties and responsibilities to increase job variety

Bonuses are almost always tied to

Quotas

Sales training on ethical and legal issues will most likely:

Reduce legal costs

Total number of calls, days worked, calls to prospects are measures of

effort expended

Because of the cost and time involved in recruiting and evaluating candidates for sales positions, the goal should be to

Attract a few good candidates

A well-designed sales training program begins with:

A sales training analysis

During the _____ stage of the sales career path, the salesperson is likely to have lower expectancy estimates that are often inaccurate as well as inaccurate instrumentality perceptions. A. Exploration B. Maintenance C. Plateauing D. Disengagement E. Establishment

A. Exploration

Personal characteristics that might affect an individual's level of motivation include all of the following EXCEPT: A. Her place in the organizational hierarchy B. Her age, family size and education C. Her personality D. Her job experience E. Her satisfaction with current rewards

A. Her place in the organizational hierarchy

Sally is a sales manager for a coffee distribution company. She is concerned about the ___________ and _______________ of her subordinates' expectancy perceptions. A. Magnitude, accuracy B. Magnitude, involvement C. Engagement, disengagement D. External impact, internal impact E. Stability, instability

A. Magnitude, accuracy

Which of the following statements about how personal characteristics can be used as predictors of sales performance success is true? A. Some personal variables such as personal history, family background, current marital status and vocational skills are related to differences in performance among salespeople B. Sex is an important factor for explaining the differences in performance across salespeople C. Sales aptitude and self-esteem explain the largest portion of the variance in performance across salespeople D. Physical appearance is a strong predictor of whether a candidate for a sales job will be a successful salesperson E. Marital status, family status and financial status cannot be used as predictors of an individual's success in a sales job

A. Some personal variables such as personal history, family background, current marital status and vocational skills are related to differences in performance among salespeople

The text defines motivations as: A. The amount of effort the salesperson desires to expend on each activity or task associated with the sales job B. A constraint on a person's ability to perform a job C. The factor that determines whether a salesperson has the necessary native abilities to sell D. The individual's learned proficiencies E. The rewards that are the result of each additional level of effort

A. The amount of effort the salesperson desires to expend on each activity or task associated with the sales job

Allen is a senior manager in a technology company. He knows his salespeople need constant training but also knows the company's training goals face significant obstacles including:

All of the above

To be effective, quotas need to be

All of the above

To get the most out of each training dollar, researchers recommend managers should

All of the above

Warren ad Dawn are developing a measurement system for the sales training they are about to implement. When developing the measurement system, they will address the question of

All of the above

When appraisals of salespeople _______________ job satisfaction increases. A. Provide clear criteria B. Meet the approval of salespeople C. Are perceived as fair D. Used in determining rewards E. All of the above

All of the above

When developing a sales training program, sales managers must consider:

All of the above

Which of the following is a good external source for finding job recruits?

All of the above

Which of the following statements describes a disadvantage inherent in the straight commission compensation plan?

All of the above statements describe disadvantages inherent in the straight commission compensation plan

When recruiting salespeople, sales managers have often found

People with no selling experience frequently have negative attitudes toward sales

Different types of selling situations appear to require salespeople with A. Consistent educational achievement B. Different personal traits and abilities C. A variety of references D. Experience and authority E. Psychological profiles consistent with the work requirements

B. Different personal traits and abilities

The variable that usually has the most impact on the magnitude of instrumentality estimates is the A. Mental ability of the salesperson B. Firm's compensation plan C. Estimated lag-time from sales commitment to completion D. Degree of supervisory control E. Informal feedback system

B. Firm's compensation plan

Which of the following statements about the characteristics sales managers look for in potential salespeople is true? A. Company executives typically know what characteristics are needed and direct sales managers to hire individuals with those characteristics B. General sales experience is considered more relevant than specific product or industry experience C. Research has replaced opinions and experience as the primary tool for selecting an individual who will be a successful salesperson D. A study of a large cross-section of salespeople to determine what factors make a salesperson successful would be useless because it would not be industry specific E. All techniques used by sales manager to determine which potential recruits will be successful salespeople are completely subjective

B. General sales experience is considered more relevant than specific product or industry experience

Stephan perceives himself to be a talented, hard-working salesman with considerable self-esteem. As such, it is probable that Stephan A. Values annual bonuses more than other salespeople in the organization B. Has a higher valence for higher-order, intrinsic rewards C. Is fooling himself D. Does not concern himself with performance instrumentalities E. All of the above

B. Has a higher valence for higher-order, intrinsic rewards.

One of the variables affecting sales performance is skill levels. What can a sales manager do to incorporate skill levels in his/her sales force? A. Carefully design recruitment and selection policies B. Improve training and supervision C. Reduce supervisory pressure D. Institute competitive rewards systems E. Organize logical and effective territory designs

B. Improve training and supervision

One way to describe instrumentalities is, they are a salesperson's ______________ of the link between job performance and various rewards. A. Motivational expectations B. Probability estimates C. Price controls D. Earnings confirmations E. Performance attributes

B. Probability estimates

Title VII of the Civil Rights Act: A. Has been unaffected by political changes in the executive branch of the federal government B. Prohibits withholding jobs or promotions because of either customer preferences for salespeople of a particular race or sex or presumed differences in turnover rates C. Applies to all private employers, no matter what size their organization D. Applies to both public and private employers with 20 or more employees E. Is administered by the U.S. Department of Justice

B. Prohibits withholding jobs or promotions because of either customer preferences for salespeople of a particular race or sex or presumed differences in turnover rates

______ is a behavior evaluated in terms of its contribution to the goals of the organization.

Performance

Which of the following statements about the stages in the sales career path is true? A. Salespeople in the exploration stage would typically have high valences for higher-order rewards and higher expectancies than salespeople at other stages B. Salespeople in the establishment stage have the highest valence for promotion and recognition C. The point at which a salesperson would be resigned to remaining in sales would be in the establishment stage D. Job performance is typically poor in the establishment stage E. Personal commitment to the job is usually highest in the exploration stage

B. Salespeople in the establishment stage have the highest valence for promotion and recognition.

Vicon Pharmaceuticals spends considerable effort testing and interviewing candidates for their sales positions, determining which candidates have the traits and characteristics needed for success. Vicon has developed ________________ to use in choosing sales reps. A. Corporate visions B. Selection criteria C. Character references D. Performance indicators E. Industry guidelines

B. Selection criteria

The theories of Maslow, Alderfer and Herzberg: A. Are examples of other motivation theories that differ from expectancy theory by emphasizing the human element B. Suggest the greater a salesperson's satisfaction with attainment of low-order rewards, the higher the valence of increased attainment of higher-order rewards C. Can be used to explain why closer supervision can have a positive impact on the magnitude and accuracy of both expectancy estimates and instrumentality perceptions D. Can be used to explain the changes a salesperson experiences as he or she progresses down the sales career path E. Are useful in conjunction with leadership theories to explain what personal and environmental variables motivate an individual to become a successful leader

B. Suggest the greater a salesperson's satisfaction with attainment of low-order rewards, the higher the valence of increased attainment of higher-order rewards

Which of the following statements about the expectancy theory and its components is true? A. Valence for performance is the perceived desirability of receiving more of a particular reward B. Valence for reward considers the value of both extrinsic and intrinsic rewards C. Expectancy theory is the only theory that completely explains the motivation process D. Instrumentality is the perceived linkage between increased effort on some task such as developing sales presentations and improved performance E. Valence for performance determines a salesperson's motivation to expend effort on a given task

B. Valence for reward considers the value of both extrinsic and intrinsic rewards

In the area of skills, the variables affecting sales performance the most are A. Sales presentation and interpersonal skills B. Vocational and general management skills C. Interpersonal and vocational esteem skills D. General management and sales presentation E. Responsibility and dominance

B. Vocational and general management skills

Which of the following is one of the major causes of plateauing

Boredom

Which of the following background and experience variables is the best predictor of a candidate's potential for sales success?

Personal history and family background

Which of the following attribution of poor performance can actually have a positive impact on the magnitude of a salesperson's expectancy estimates? A. A stable internal factor B. A stable external factor C. An unstable internal factor D. An unstable external factor

C. An unstable internal factor

Which of the following aptitudes is most relevant to the success of a person who is hired for a sales position? A. Intelligence B. Math ability C. Cognitive abilities D. Sales aptitude E. Verbal intelligence

C. Cognitive abilities

Research indicates that a salesperson's _____________________ will more accurately perceive the linkages between effort and performance than the salesperson. A. Family B. Coworkers C. Manager D. Vice President for marketing E. All of the above

C. Manager

__________ are management actions that primarily attempt to influence aptitude and personal characteristics. A. Interviews and testing B. Aptitude and skill levels C. Recruitment and selection policies D. Aptitude and motivation E. Training and supervision

C. Recruitment and selection policies

Which of the following is an example of an environmental characteristic that impacts the magnitude of a salesperson's expectancy estimates? A. The salesperson's overall level of self-esteem B. The salesperson's perceived ability to perform necessary tasks C. Restrictions on product availability due to raw material shortages D. The salesperson's previous sales experience E. None of the above

C. Restrictions on product availability due to raw material shortages.

Which of the following selection tools is most commonly used by both small and large companies as they look for new salespeople?

Personal interveiw

One of the variables affecting sales performance is motivation. What can a sales manager do to influence his sales force's level of motivation? A. Make sure that the company only recruits highly motivated individuals to be salespeople B. Set up extensive and thorough training programs for all salespeople C. Set up a compensation and reward system that directly satisfies the needs of the members of the sales force D. Set up a management hierarchy based on wide spans of control E. Do any or all of the above

C. Set up a compensation and reward system that directly satisfies the needs of the members of the sales force

As the technology and customers become more sophisticated, A. Sales managers hire younger workers B. Sales managers hire people with technical backgrounds C. The quality of the presentation must get better D. Industrial buyers are leaving the industry E. Interpersonal skills are becoming less important

C. The quality of the presentation must get better

Arnaut finds his top salespeople hold reasonably consistent views concerning which activities are most important but his low-performing salespeople do not have similar views. Arnaut could consider A. Less restrictive supervision B. Eliminating time allocation schedules C. Using the high performing salespeople as a model for the others D. Hiring only experienced salespeople E. Recruiting inexperienced salespeople that can be trained from the beginning to have accurate expectancy perceptions

C. Using the high performing salespeople as a model for the others

Which of the following statements about the external sources for job recruiting is true?

Colleges are a common source of recruits for firms that require salespeople with sound mental abilities or technical backgrounds

A manufacturing firm might choose to recruit current employees to fill an opening in its sales department because:

Company employees have established performance records

The recruitment effort should:

Concentrate on sources that are most likely to produce the kind of people needed to fill the job

Long Enterprises makes and sells x-ray equipment. It needs to hire three new salespeople. After the company has determined who participates in the hiring process and who has the authority to make hiring decision, it needs to:

Conduct a job analysis

One negative outcome of complex compensation and incentive programs is they may lead to ________ among salespeople.

Confusion

The chances that a salesperson will quit or be fired in their first five years are: A. 1 in 100 B. 90 out of 100 C. Almost 100 percent D. 50 out of 100 E. Almost zero percent

D. 50 out of 100

An extreme view of financial rewards argues that: A. Linking pay to performance can have a negative effect on motivation B. Employees become less interested in what they are doing C. Extrinsic motivation undermines intrinsic motivation D. All of the above E. None of the above

D. All of the above

Which of the following is a characteristic of a highly motivated salesperson? A. Takes initiative B. Expends effort C. Is persistent D. All of the above E. None of the above

D. All of the above

When asked "What type of sales representative has a tougher time making sales?" sales managers most frequently stated, salespeople who A. Speak too fast B. Have a heavy accent C. Are older D. Dress sloppily E. Are overweight

D. Dress sloppily

The potentially most useful approach to defining sales aptitude and evaluating a person's potential is to: A. Gain all the demographic information possible about the job candidate B. Establish the person's aptitude and if and where any training is needed for a general sales position C. Match the salesperson in terms of demographics, personality and attitude with the customers he or she will be calling on D. First determine the kinds of tasks involved in a specific sales job E. Rely on managerial opinion and experience in the selection process

D. First determine the kinds of tasks involved in a specific sales job

The less salespeople believe they have internal control over their life, the A. Greater they enjoy management B. Lower their performance anxiety C. Higher their performance plateau D. Lower their magnitude of instrumentality estimates E. More they will demand in salary

D. Lower their magnitude of instrumentality estimates

Which of the following is NOT one of the personality types in the Sales Management Enneagram Personality Tool? A. Achiever B. Team player C. Perfectionist D. Non-conformist E. Enthusiast

D. Non-conformist

Which of the following is NOT an assumption of agency theory: A. All actors are self-interested B. All actors are boundedly rational C. Agents are more risk averse than principals D. Principals seek to maximize agency costs. E. Agents will seek to maximize their own interests at the expense of the principal.

D. Principals seek to maximize agency costs.

Which of the following personal characteristics is the best predictor of sales success? A. The salesperson's sex B. The salesperson's ethnic background C. The result of the salesperson's intelligence test D. The salesperson's personal history and family background E. Results of sales aptitude tests

D. The salesperson's personal history and family background

One way to describe attempts to improve the accuracy of expectancy estimates of salespeople is A. Ceteris paribus B. The Peter principle C. All's fair in love and war D. Work smarter not harder E. Run to a round house, they can't corner you there

D. Work smarter not harder

Lori is deciding which input measures to use as part of her assessment of sales performance. Which of the following is a measure of a salesperson's input?

Days worked

Which of the following statements about methods of measuring a salesperson's performance is true?

Days worked x call rate x batting average x average order size = sales

Competent sales training

Delivers specific skills and techniques designed to enhance the salesperson's success

Primary responsibility for recruiting and selecting new salespeople for a firm is:

Dependent upon the size of the sales force and the kind of selling involved

The most difficult part of the recruitment and selection process is:

Determining the qualifications job prospects should have

Elizabeth is a sales manager for a golf products company. She has conducted a job analysis and written a job description. Next, she will

Develop a statement of job qualifications

In order to generate interest and enthusiasm for a sales contest, companies should:

Do all of the above

To avoid or at least minimize, potential problems associated with using intelligence, aptitude and personality tests as selection criteria, sales managers should:

Do all of the above

Agency costs are defined as: A. Any costs incurred by the principal in association with the agent's divergence from the principal's interests. B. Any costs incurred by the agent in association with the principal's divergence from the agent's interests. C. The fees paid to a real estate agent. D. The fees paid to an advertising agency. E. All of the above are accurate definitions of agency costs.

E. All of the above are accurate definitions of agency costs.

The four stages that make up the sales career path are: A. Exploration, establishment, plateauing and disenfranchisement B. Entry-level, growth, plateauing and termination C. Exploration, growth, maintenance and attrition D. Exploration, growth, maturity and disengagement E. Exploration, establishment, maintenance and disengagement

E. Exploration, establishment, maintenance and disengagement.

Will Presley sells management training classes to entrepreneurs and Fortune 1000 companies. Last quarter his sales were very disappointing. When asked, he admitted that his poor performance was directly related to his wife having a new baby. He had not the time to devote to sales that he should have. As a result of Will's poor performance in the last quarter, which of the following is likely to occur. A. His expectancy estimates will be higher and his instrumentality estimate will remain the same B. His instrumentality estimates will be lower and his expectancy estimates will remain the same C. His expectancy estimates for the next quarter will be lower D. Neither her expectancy nor instrumentality estimates will change E. His expectancy estimates for the next quarter will be higher

E. His expectancy estimates for the next quarter will be higher

Which of the following questions CANNOT be legally asked during a job interview? A. Do you have a college degree? B. How long have you worked for your previous employer? C. What characteristics do you have that you think make you suited to a job in sales? D. What kind of extracurricular activities did you participate in while in school? E. How old are you?

E. How old are you?

One of the variables affecting sales performance is organizational and environmental factors. What can a sales manager do to incorporate this in their sales management strategy? A. Design recruitment and selection policies B. Improve training and supervision C. Reduce supervisory pressure D. Institute competitive rewards systems E. Organize logical and effective territory designs

E. Organize logical and effective territory designs

In most sales organizations, the total compensation comprises several components,

Each designed to achieve a different objective

The ratio of the total financial compensation of the highest paid salesperson to the average in a sales force is the:

Earnings opportunity ratio

Studies of sales force compensation indicate

Everything from salary to commission to various non financial factors motivate salespeople

The conceptual framework for studying motivation is called

Expectancy Theory

The most useful approach to defining sales aptitude and evaluating a person's potential is to:

First determine the kinds of tasks involved in a specific sales job

Warren is evaluating his salespeople's performance and finds Fred is well below his quota. The problem could be

Fred, the quota, a change in the marketing environment so--- any of the above

During the disengagement stage of a salesperson's career, the salesperson will:

Have the lowest instrumental perceptions and valence for both higher-order and lower-order rewards

A personal history evaluation of existing sales force members:

Helps to validate the selection criteria used by the hiring firm

Recruiters know that_____________ enhance(s) the firm's ability to recruit and retain salespeople.

Highly regarded sales training programs

The accuracy of a salesperson's expectancy perceptions indicates:

How clearly the salesperson understands the relationship between the effort expended and the resulting achievement

During the establishment stage of a salesperson's career, the salesperson will:

Produce superior results on the job in order to be promoted

Cost and sales analyses for evaluating salespeople:

Ignore many contributions that a salesperson might make

In analyzing sales training needs, Toni knows that by reducing turnover rates she can:

Improve customer continuity

The sales expense ratio combines salespeople's_____ and ______

Inputs; results

Ideally, sales training for new recruits will:

Instill, in a relatively short period of time, a vast amount of knowledge

Which of the following statements accurately describes one of the problems sales managers face when trying to institute a sales training program is true?

Lack of buy-in from frontline sales managers and salespeople

Another name for on-the-job training is

Learning by doing

By pointing out both the attractive and unattractive aspects of a sales job and spelling out the qualifications and likely compensation, recruiters can

Maximize self-selection among prospective employees

The content of a sales training program for new salespeople is affected by:

Needs and aptitudes of the recruits

Which of the following is NOT an output factor used to evaluate salespeople?

Number of calls

"Input measures" fall under which broad category of measures firms use to evaluate salespeople?

Objective measures

Historically commissions are based on______ but it is becoming more popular to base commissions on_____

Sales volume; profitability

Which of the following statements about sales training is true?

Setting specific, realistic and measurable objectives adds credibility to the sales training program

The primary objective of a sales contest is to:

Stimulate additional efforts targeted at achieving specific short-term goals

Valerie wants her salespeople to focus on customer relationships not short-run sales volume. She will likely use a__________ compensation plan

Straight salary

The three primary methods of compensating salespeople are

Straight salary, straight commission and combination plans

Interpersonal bias, lack of an outcome focus and the halo effect are all problems encountered with:

Subjective performance ratings

Which of the following statements is based on research that has been done about the characteristics needed for a successful salesperson?

Successful People are born and made

The five keys for effective on-the-job informal training include:

Teaming, meetings, customer interaction, mentoring, peer-to-peer communication

The instruction, "Do not permit your evaluation of one factor to influence your evaluation of another," would prevent ____ from affecting a performance measurement rating form.

The Halo Effect

Roger's company uses a combination salary compensation plan. The incentive portion of the plan will likely be small if

The company's products are largely pre sold through advertising

In 360-degree sales performance feedback, which of the following people would NOT be included?

The competitors

Which of the following describes a disadvantage associated with classroom training?

The cost and time requirements

Warren is deciding what proportion of his salespeople's compensation should be incentive pay. He should base his decision on

The degree of relationship selling involved in the job

Valences are the salesperson's perception of:

The desirability of receiving more of a particular reward

Expectancies are the salesperson's perception of:

The linkage between job effort and performance

Which of the following statements about a straight salary compensation plan is true?

The major limitation of straight salary compensation is that financial rewards are not tied directly to any specific aspect of job performance

Which of the following is NOT typically included in a job description for a sales job?

The size of the sales force existing salary structure

Tristan is assessing the relationship between variations in personal characteristics of current salespeople and variations in their performance. He will use this information in selecting criteria for new sales recruits. Tristan assumes

There is a cause and effect relationship between characteristics and performance

The use of outside sources to develop and implement a training program is encouraged only if

They meet the objectives of the company

When a firm considers the sales force a training ground for sales and marketing manager,___________may participate in the recruiting process to ensure new salespeople have management potential.

Top-level managers

Most sales managers recognize that with regard to experienced sales personnel

Training is a never-ending

Without a detailed up-to-date job description, a sales manager will have difficulty deciding

What kind of personnel are needed

Most compensation plans credit a salesperson with a sale:

When the order is accepted by the company, less any returns and allowances

A theory is defined as

a supposition or proposed explanation made on the basis of limited evidence as a starting point for further investigation.

Which of the following attributions of good performance does not have a positive impact on the magnitude of a salesperson's expectancy estimates?

an unstable external factor