Sales

When it is difficult for the salesperson to secure the first order from the customer, but reorders are virtually automatic, this form of commission rate would be appropriate: a. regressive. b. incremental. c. a combination of constant and progressive rates. d. constant. e. progressive.

a

The evaluation method indicated by the following example is the "Set up a scale from 1 to 10 with a rating of 3 suggesting that the salesperson could be expected to half-heartedly contribute to the team effort to accomplish goals." a. graphic rating/checklist method. b. ranking method. c. management by objectives (MBO). d. behaviorally anchored rating scale (BARS). e. team-evaluation consensus.

d

The final step in the sales training process is a. design sales training program. b. assess sales training needs. c. perform sales training. d. conduct follow-up and evaluation. e. evaluate training alternatives.

d

The majority of sales organizations evaluate salesperson performance: a. on a semiannual basis. b. on a quarterly basis. c. on a monthly basis. d. on an annual basis. e. once every two years.

d

The purpose of sales training needs assessment is to compare the specific performance-related skills, attitudes, perceptions, and behaviors required for salesforce success to the a. salesforce rating results of a customer survey. b. performance test results of each salesperson. c. job analysis of each sales position. d. state of readiness of the salesforce. e. personal observations of various salespeople recorded by sales managers.

d

The sales training process includes all of the following interrelated steps except a. follow-up and evaluation. b. designing the sales training program. c. assessing sales training needs. d. performing a salesforce audit. e. evaluating training alternatives.

d

This evaluation procedure uses salespeople to identify important performance results and the critical activities and responses necessary to achieve these results: a. graphic rating/checklist method. b. team-evaluation consensus. c. management by objectives (MBO). d. behaviorally anchored rating scales(BARS). e. assessment-center method.

d

A systematic, diagnostic, prescriptive tool that can be employed on a periodic basis to identify and address sales department problems and to prevent or reduce the impact of future problems is a. a performance test. b. sales management observation. c. a salesforce survey. d. an anonymous questionnaire sent to custom-ers. e. a salesforce audit.

e

All of the following are methods of needs assessment except a. salesforce audit. b. performance testing. c. observation. d. salesforce survey. e. job description.

e

Discriminability, as a characteristic of salesperson performance evaluation methods, can be defined as a. the need for the measurement instruments and evaluation process to be similar throughout the sales organization. b. the ability of the measure to provide accurate assessments of the criteria they are intended to measure. c. the ability of the measure to meet the needs of the sales organization. d. the need for the measures to be stable over time and exhibit internal consistency. e. the need for the evaluation method to be capable of detecting differences in the performance of individual salespeople.

e

In general, sales training objectives are set to support one or more of the following with the exception of a. increasing sales or profits. b. teaching administrative procedures. c. minimizing salesforce turnover rates. d. developing salespeople for future manage-ment positions. e. increasing the observation powers of first-level sales managers.

e

Noncompensation rewards include a. opportunities for promotion. b. those rewards given for acceptable perfor-mance or effort. c. any current spendable income. d. insurance polices and/or retirement programs. e. a supportive sales management leadership style.

e

Sales training is conducted in a. home offices. b. central training facilities. c. manufacturing plants. d. hotels. e. any of the above.

e

The ____ method calculates an expenditure level for each category by multiplying an expenditure percentage times forecasted sales. a. objective and task b. expenditure projection c. cost-justification d. zero-based budgeting e. percentage-of-sales

e

The assets that are typically included in the formula for calculating return on assets managed (ROAM) are a. accounts payable and short-term loans. b. accounts receivable and notes payable. c. inventory and fixed assets. d. accounts payable and inventory. e. inventory and accounts receivable.

e

The least valued nonfinancial reward by salespeople, other than those nearing retirement, is a. opportunity for promotion. b. sense of accomplishment. c. personal growth. d. recognition for achievement. e. job security.

e

The most often used method to establish selling budgets is a. objective and task method. b. profitability projections. c. cost-justification method. d. zero-based budgeting. e. percentage-of-sales method.

e

These methods are best used as supplemental training to update the salesforce, reinforce previous training, or to provide basic materials to be covered in more detail at a later date: a. on-the-job. b. behavioral simulations. c. ease studies. d. classroom/conference. e. absorption.

e

This form of commission rate may actually result in overselling and higher selling costs to the company: a. regressive. b. incremental. c. a combination of constant and regressive rates. d. constant. e. progressive.

e

Which method of determining expenditure levels for selling expense categories depends upon accurate sales forecasts? a. Objective and task method b. Zero-based budgeting c. Cost-justification method d. Profit margin budgeting e. Percentage-of-sales method

e

A firm offering a college tuition reimbursement program has made a commitment to providing this nonfinancial reward: a. opportunity for personal growth. b. recognition for achievement. c. sense of accomplishment. d. opportunity for promotion. e. job redesign.

a

An evaluation of sales results throughout the sales organization from a top-down perspective is a a. hierarchical sales analysis. b. scaled sales analysis. c. stepladder sales analysis. d. pyramid sales analysis. e. single stage sales analysis.

a

Behaviorally anchored rating scales (BARS) are a unique evaluation procedure because they are the only method that a. tries to link salesperson behaviors with specific results. b. tries to link salesperson behaviors with promotability. c. attempts to correlate sales-training methods with sales results. d. uses behavior to predict a salesperson's level of motivation. e. tries to link salesperson attitudes with their performance.

a

If personal selling is prominent in the firm's marketing strategy, some sort of ____ to help determine sales training needs is highly recommended. a. customer survey b. job analysis c. competitor survey d. performance testing e. salesforce audit

a

If the nonselling administrative duties of the salesperson are of major importance, this compensation plan is recommended: a. straight salary. b. salary plus bonuses. c. straight commission. d. salary plus commission. e. straight commission plus bonuses.

a

Methods of needs assessment include all of the following except a. performance audit. b. observation. c. salesforce survey. d. customer survey. e. job analysis.

a

Standardization, as a characteristic of salesperson performance evaluation methods, can be defined as a. the need for the measurement instruments and evaluation process to be similar throughout the sales organization. b. the ability of the measure to provide accurate assessments of the criteria they are intended to measure. c. the ability of the measure to meet the needs of the sales organization. d. the need for the measures to be stable over time and exhibit internal consistency. e. the need for both sales managers and salespeople to understand the entire performance-appraisal process and to be able to implement the process in a reasonable amount of time.

a

The basic form of this method for determining expenditure levels for selling expense categories could be called zero-based budgeting: a. objective and task method. b. profitability projections. c. cost-justification method. d. profit margin budgeting. e. percentage-of-sales method.

a

Which of the following is an advantage of a straight-commission compensation plan? a. Operating costs are minimized during slack selling periods. b. They are highly flexible, allowing frequent changes in compensation practices to achieve short-term objectives. c. They are attractive to college graduates desir-ing an opportunity to earn while they train. d. The salesforce's loyalty to the company is enhanced. e. Salespeople often adopt high-pressure, non-customer-oriented sales techniques which increase total sales.

a

Which of the following is not true regarding the design of a global salesforce compensation system? a. Design the plan centrally and dictate to local countries. b. Involve reps from key countries. c. Allow local countries flexibility in imple-mentation. d. Use consistent communication and training themes worldwide. e. Allow local managers to decide the mix be-tween base an incentive pay.

a

Which of the following statements regarding changes in the reward system is false? a. They should be made during recessionary periods. b. They will likely produce widespread concern among the salesforce that their earnings will decline. c. They are precipitated by poor financial per-formance by the company. d. They can be traumatic for salespeople and management alike. e. Reasons for the change should be openly dis-cussed.

a

Which of the following statements regarding productivity analysis is false? a. The most useful input unit for productivity analysis is total sales per salesperson. b. Productivity is typically measured in terms of ratios between outputs and inputs. c. Sales productivity and profitability are highly interrelated. d. Productivity analysis is managerial orient-ed. e. Improvements in sales productivity should be achieved by an increase in output with the same level of input.

a

Which of the following statements regarding the use of outcome-based and behavior-based perspectives in the evaluation of salesperson performance is false? a. A review of current practice indicates a tendency toward a behavior-based perspective. b. Most sales organizations operate somewhere between the two extreme positions. c. The relative emphasis on outcome-based and behavior-based measures depends upon environmental, firm, and salesperson considerations. d. A salesperson's performance on post-sale service is considered a behavior-based measure. e. Unethical activities that produce immediate sales may result from a totally outcome- based perspective.

a

A comprehensive evaluation of salesperson performance should incorporate criteria from all of the following dimensions except a. profitability. b. political. c. professional development. d. behavioral. e. results.

b

A definition for sales organization effectiveness would be: a. an overall evaluation of how well each salesperson performed in his/her situation. b. an overall evaluation of how well the sales organization did in achieving its goals and objectives. c. an overall evaluation of how well the firm did in achieving its sales goals and objectives. d. an overall evaluation of how well the sales organization did in developing new accounts. e. a comprehensive approach toward evaluating the performance of the managerial component of the firm.

b

Advantages of straight-salary compensation plans include all of the following except a. salaries can provide control over salespeople's activities, especially nonselling activities. b. the working capital requirements are lessened with the straight-salary compensation plan. c. reassigning salespeople and changing sales territories is less of a problem than with other financial compensation plans. d. they are the simplest plans to administer, with adjustments usually occurring only once a year. e. planned earnings for the salesforce are easy to project, which facilitates the salesforce budgeting process.

b

All of the following are characteristics of benchmarking except a. It is an ongoing measurement and analysis process. b. It involves comparing an organization's current operating practices to average industry operating practices. c. It can lead to greater customer satisfaction. d. It may lead to lower operating costs. e. It may lead to improved operations.

b

An assessment technique that involves performance assessment from multiple raters including sales managers, internal and external customers, team members, and even oneself is a. performance management b. 360-degree feedback c. total quality management d. multiple feedback e. broad-based assessment

b

An example of a performance test would be a. asking first-level sales managers to critique the performance of the salespersons with whom they work. b. giving salespeople a written exam over prod-uct knowledge to check their retention rate. c. appraising the salesforce activities and the environment in which the salesforce operates. d. checking the results of a customer survey to see if the performance of the salesforce is rated as good as or better than a competitor's. e. asking the salesperson to give an impromptu sales presentation for a convenient item, such as an ashtray.

b

Characteristics of a useful outside training program include all of the following except: a. Content and delivery must consider the skill level, education level, and learning style of participants. b. Only sophisticated technology should be used. c. Participants should be actively involved in the program. d. The trainer must clearly understand the pro-gram's objectives. e. The program should motivate participants to drop old habits, adopt new skills, and desire continued training.

b

In budgeting for each expense category, a sales manager should attempt to a. set the budget at the lowest possible level. b. determine the lowest expenditure level necessary to achieve the sales quotas. c. cut costs from last year's level of expenditure. d. justify the highest possible level of ex-penditure in order to have some flexibility in the budget. e. improve profitability in the short run by cutting unnecessary expenditures for training and travel.

b

Limited research shows that behavior-based control appears to be used under all of the following conditions except a. the selling environment is uncertain. b. the salesforce is large. c. outputs and the cost of measuring them are inadequate. d. products are less complex. e. salespeople are more educated.

b

Perhaps the most serious shortcoming of straight-commission plans is that a. salespeople may earn more than their manag-ers. b. they contribute little to company loyalty, resulting in potential salesforce control prob-lems. c. the firm suffers financially if the market de-clines or stagnates. d. high-pressure, non-customer-oriented sales techniques are often used to boost total sales. e. they are difficult to administer.

b

Salesperson performance evaluation methods should possess all of the following characteristics except a. usefulness. b. complexity. c. practicality. d. comparability. e. reliability.

b

The ____ ranks all salespeople according to relative performance on each performance criterion. a. graphic rating/checklist method b. ranking method c. management by objectives (MBO) d. behaviorally anchored rating scale (BARS) e. team-evaluation consensus

b

The salesperson's choice to expend effort over a period of time, especially when faced with adverse conditions is referred to as a. intensity. b. persistence. c. tenacity. d. determination. e. degree.

b

This form of nonfinancial reward is generally considered to be more desirable to younger salespeople than to older salespeople: a. opportunity for personal growth. b. opportunity for promotion. c. job security. d. sense of accomplishment. e. recognition for achievement.

b

This form of on-the-job training is often used to groom salespeople for management positions: a. filling in for vacationing salespeople b. job rotation c. working with a senior salesperson d. working with a sales manager who acts as a "coach" e. a "sink or swim" form of on-the-job training

b

This method includes business games and simulations, case studies, and role playing: a. on-the-job b. behavioral simulations c. absorption d. classroom/conference e. none of the above

b

Which of the following actions would improve future ROAM performance? a. Increasing selling expenses b. Reducing inventory levels c. Increasing accounts receivable d. Reducing total sales e. Reducing short-term notes

b

Which of the following is not a form of nonfinancial compensation? a. Career advancement through promotion b. Job redesign c. Job security d. Recognition of achievement e. A sense of accomplishment on the job

b

Which of the following is not an advantage of combination plans? a. They are flexible. b. They are fairly simple to administer. c. Sales behavior can be rewarded frequently. d. Specific sales behaviors can be reinforced or stimulated quickly. e. They are attractive to high-potential, but un-proven, candidates for sales jobs.

b

Which of the following provides a benchmark for the evaluation of selling costs? a. Sales quotas b. Selling budgets c. Cost quotas d. Variance analysis e. Sales forecasts

b

Which of the following statements regarding the benefits of setting objectives for sales training is false? a. Specific training objectives provide a standard for measuring the effectiveness of training. b. Top management is responsive to well-written, specific objectives and may be more willing to provide budget support for the training. c. Training simply for training's sake is a good doctrine for most companies to follow be-cause it keeps salesforce product knowledge current. d. Sales managers are forced to define the rea-sonable expectations of sales training rather than to view training as a quick-fix panacea for all the problems faced by the salesforce. e. Written objectives become a good communi-cations vehicle to inform the salesforce and other interested parties about upcoming training.

b

Which of the following statements regarding the sales organization audit is false? a. It is an expensive and time-consuming process. b. It should be conducted by someone within the sales organization. c. It generates diagnostic information that can help management correct problems in early stages or eliminate potential problems be-fore they become serious. d. It should be performed on some type of regular basis. e. Its purpose is to make a systematic and comprehensive investigation to identify problems, determine their causes, and take the necessary corrective action.

b

While other methods of performance evaluation were rated very good on job relatedness and reliability criteria, this method received a poor rating: a. graphic rating/checklist method. b. ranking methods. c. management by objectives (MBO). d. behaviorally anchored rating scales (BARS). e. team-evaluation consensus.

b

A behavior-based perspective to evaluating and controlling salesperson performance a. focuses on objective measures of results. b. has very little monitoring or directing of salespersons by sales managers. c. incorporates complex and often subjective assessments of salesperson characteristics. d. may lead to a focus on short-term outcomes. e. minimizes activities related to customer relationships.

c

A salesperson who is intrinsically motivated a. is motivated by the rewards that the job pro-vides. b. is motivated by the need for love and belong-ingness. c. finds the job to be inherently rewarding. d. finds that the job's fringe benefits, pay, and generous vacation policy provide motivation. e. works for the feeling of security offered by the job.

c

According to a survey of industrial salespeople, which of the following was considered the most ethically troubling situation or practice salespeople would like addressed by company policy? a. Giving physical gifts such as free sales pro-motion prizes. b. Using the firm's economic power to obtain premium prices or other concessions from buyers. c. Making statements to an existing purchaser that exaggerate the seriousness of the problem in order to obtain a bigger order or other concessions. d. Seeking information from purchasers on competitor's quotations for the purpose of submitting another quotation. e. Giving preferential treatment to customers who are also good suppliers.

c

All of the following are benefits of 360-degree feedback except a. it reduces assessment bias. b. it detects barriers to success. c. it eliminates sales manager involvement. d. it helps better understand customer needs. e. it helps assess developmental needs.

c

All of the following are typical reimbursable expense items except a. automobile. b. mileage allowance. c. home. d. telephone. e. entertainment.

c

Answers to the what, when, where, and how questions are finalized during this step in the sales training process: a. assess sales training needs b. perform sales training c. design sales training program d. follow-up and evaluation e. evaluate training alternatives

c

During this step in the sales training process, sales managers may have to seek budget approval from upper management: a. assess sales training needs b. perform sales training c. design sales training program d. follow-up and evaluation e. evaluate training alternatives

c

Expense account padding a. is an expected activity and is generally ig-nored unless it is very blatant. b. occurs very rarely as most salespeople are quite honest. c. is considered a serious offense, which, if de-tected, often leads to termination of employ-ment. d. is so difficult to uncover that most companies simply do not try. e. is viewed as a fringe benefit by most sales-people.

c

Initiation to task is the degree: A) to which the salesperson has managed to prioritize tasks in a way that will ensure success. B) of personal satisfaction that the sales trainee feels in his or her job. C) to which a sales trainee feels competent and accepted as a working partner. D) of training that the sales trainee has received. E) of the sales trainee's understanding of how time should be allocated among tasks.

c

The most commonly used definitions of motivation include these three dimensions: a. intensity, degree, persistence. b. severity, direction, perseverance. c. persistence, intensity, direction. d. instruction, degree, tenacity. e. tenacity, persistence, direction.

c

The most serious disadvantage of a straight-salary compensation plan is a. that it builds little in the way of salesforce loyalty or commitment to the company. b. that differences in salary levels among sales-people are often a function of seniority on the job instead of true merit. c. that they offer little financial incentive to perform past a merely acceptable level. d. the financial burden the firm suffers if the market declines or stagnates. e. that high-pressure, non-customer-oriented sales techniques are often used to boost total sales.

c

The mutual setting of well-defined and measurable goals within a specified time period is a concept incorporated into this type of performance evaluation method: a. graphic rating/checklist method. b. ranking method. c. management by objectives (MBO). d. behaviorally anchored rating scale (BARS). e. team-evaluation consensus.

c

The results of salesperson performance evaluations can be used for all of these sales management purposes except to a. identify salespeople that might need to be terminated and to supply evidence to support the need for termination. b. identify salespeople that might be promoted. c. assess the adequacy of a firm's sales management process and to provide direction for improved performance and prescription for needed changes. d. ensure that compensation and other reward disbursements are consistent with actual salesperson performance. e. determine the specific training and counseling needs of individual salespeople and the overall salesforce.

c

This category of sales training methods involves furnishing trainees or salespeople with materials which they peruse without opportunity for immediate feedback and questioning: a. on-the-job b. behavioral simulations c. absorption d. classroom/conference e. none of the above

c

This type of criterion assesses improvements in certain characteristics of salespeople that are related to successful performance in the sales job: a. profitability. b. productivity. c. professional development. d. behavioral. e. results.

c

Validity in the salesperson evaluation method is necessary because it ensures that a. the measurement instruments and evaluation process will be similar throughout the sales organization. b. the performance evaluation method will be designed to meet the needs of the sales organization. c. the measures provide accurate assessments of the criteria they are intended to measure. d. the measures will be stable over time and exhibit internal consistency. e. the evaluation methods will be capable of detecting differences in the performance of individual salespeople

c

When using a top-down perspective in sales analysis, the emphasis is on identifying potential problem areas at each level and then a. using analysis at the next highest level to pinpoint the specific problem. b. having that level's sales management analyze the problem and provide an explanation. c. using analysis at lower levels to pinpoint the specific problems. d. analyzing what impact that problem might have on the next level's performance. e. attempting to prevent these problems from occurring through effective sales management.

c

Which of the following is not a factor to be considered when developing a commission-only plan? a. Commission base b. Commission rate c. Commission margin d. Commission splits e. Commission payout event

c

Which of the following is not one of the four categories of training methods discussed in the text? a. On-the-job b. Behavioral simulations c. Case studies d. Classroom/conference e. Absorption

c

Which of the following statements concerning a 360-degree feedback system is false? a. Ensure that participants provide honest feedback by distributing the feedback instrument confidentially. b. Explain to all participants how the data will be used. c. Make sure those being rated know who did the rating. d. Verify that the data are accurate. e. Ensure that subjects can use the data to improve their performance.

c

Which of the following statements regarding role play as a training technique is false? a. The role play is often videotaped for critique by a group of salespeople. b. Typically one trainee plays the role of the salesperson, and another trainee acts as the buyer. c. This can be an extremely effective means of teaching personal selling, without the risk of a poor performance in the presence of a live customer. d. Properly conducted role play includes a prompt critique emphasizing the negative points of the performance that need improvement. e. A good way to maximize the critique is to have the person who has played the role of salesperson offer opinions first and then solicit opinions from observers.

c

Which of the following statements regarding the graphic rating/checklist method of performance evaluation is false? a. This method is very popular in many sales organizations. b. It consists of approaches where salespeople are evaluated using some type of performance evaluation form. c. This method involves ranking salespeople according to their relative performance on each performance criterion. d. It was rated poor on the discriminability criterion. e. With this method, some sales managers tend to give all ratings around the average.

c

Which of the following would not be an expense category for a selling budget? a. Recruiting expenses b. Salespeople's lodging expenses c. Production expense d. Salespeople's salaries e. Sales office expense

c

A major advantage of productivity ratios is a. the ability to integrate sales growth and productivity assessments into one analysis. b. the ability to compare total productivity to targeted productivity. c. the inclusion of asset investment considerations in the ratio analysis. d. that they can be compared directly across the entire sales organization and with other sales organizations. e. that they eliminate the need for allocation judgments and are therefore viewed as more objective.

d

Compensation rewards might include all of the following except a. recognition. b. bonus. c. promotion. d. task significance. e. opportunity for personal growth.

d

Complete this sentence. The more a salesperson performance evaluation system is behavior-based than outcome-based a. the less likely that risk-averse salespeople will be attracted, nurtured, and retained. b. the more salespeople will have reduced levels of intrinsic motivation. c. the less salespeople identify with and feel committed to the sales organization. d. the less the need for using pay as a control mechanism. e. the more likely salespeople will reject the authority of sales management.

d

District 1 has a poor level of ROAM. However, their profit contribution percentage is acceptable, but they have a very low asset turnover ratio. What might cause this? a. Selling too many low-margin products b. Problems with accounts payable c. Negotiating low selling prices d. Problems with accounts receivable e. Excessive selling expenses

d

In general, companies rely most heavily on ____ to conduct sales training. a. outside training consultants b. specialized schools c. mass-produced videotapes d. their own personnel e. industry association conferences

d

Relative to the graphic rating, MBO and BARS performance evaluation methods, which of the following statements is false regarding the ranking method of performance evaluation? a. It is poor in job relatedness. b. It is poor in practicality. c. It is poor in reliability. d. It is poor in standardization. e. It is good in comparability.

d

The amount of mental and physical effort put forth by the salesperson is referring to a. degree. b. persistence. c. tenacity. d. intensity. e. direction.

d

This method features lectures, demonstrations, and group discussion with expert trainers serving as instructors: a. on-the-job b. behavioral simulations c. absorption d. classroom/conference e. none of the above

d

This method is frequently used for training on basic product knowledge, new product introductions, and legal issues: a. on-the-job b. behavioral simulations c. absorption d. classroom/conference e. none of the above

d

Which of the following is not considered a key to successful benchmarking? a. Clearly identify critical activities that will improve quality or service or reduce cost. b. Properly prepare and benchmark only one activity at a time. c. Provide adequate resources--financial and personnel. d. Make sure that you clearly understand the processes of your benchmarking partner company first. e. Verify that your benchmarking partner company is the best in its class.

d

Which of the following statements regarding sales organization effectiveness is true? a. Most firms conduct annual assessments of cost, profit contribution, net profit, or re-turn on assets. b. Sales analyses are performed only at the lowest level of the sales organization, typically by territory. c. The one summary measure of sales organization effectiveness is a productivity analysis. d. Sales analyses can be conducted in several ways, including by total sales or by sales to specific customers. e. Most firms employ the same type of sales analysis, an analysis of sales of specific products.

d

Which of the following statements regarding the objective and task method of determining ex-penditure levels for selling expense categories is true? a. It is probably the most popular method for establishing selling budgets. b. This method calculates an expenditure level for each category by multiplying an ex-penditure percentage times forecasted sales. c. This method uses typical expenditure percentages provided by readily available published sources. d. Each sales manager prepares a separate budget request; these are reviewed and through an iterative process selling budgets are approved. e. This method separates out the major ac-counts, which are then budgeted for individually.

d

Which one of the following statements regarding global compensation is false? a. The compensation of native salespeople is difficult. b. In many countries, political or cultural factors may have a strong influence on salesforce pay practices. c. Overseas assignments can enhance career opportunities. d. Companies are increasing incentives for for-eign-based employment. e. Sales managers often rely on human resource professionals to assist in global compensation planning.

d

A benchmarking study should provide all of the following except a. a measure that compares performance for the benchmarked process relative to the organization studied. b. identification of the organization's perfor-mance gap relative to benchmarked per-formance levels. c. identification of best practices and facilita-tors that produced the results observed during the study. d. performance goals for the process studied. e. a set of solutions to commonly encountered performance problems.

e

A sales organization audit can best be defined as a. a systematic and diagnostic tool that is used to determine the adequacy of a firm's advertising expenditures. b. a prescriptive device that is generally used in the redesign of territories or districts. c. a framework that can be used to assess salespeople for promotion potential. d. a tool that is used by all organizations to help them achieve their goals. e. a comprehensive, systematic, diagnostic and prescriptive tool used to assess the adequacy of a firm's sales management process.

e

A salesperson who is extrinsically motivated a. would work for the pure pleasure of working. b. doesn't need or desire formal recognition for outstanding achievements. c. is motivated by personal growth needs. d. finds the job to be inherently rewarding. e. is motivated by the rewards that the job pro-vides.

e

To implement a new or modified reward system, sales managers should do all of the following except a. clearly communicate details of the plan to the salesforce prior to its implementation. b. encourage salesforce feedback. c. promptly answer questions. d. detail any expected changes in job activities. e. issue a press release detailing the company's changes.

e

Which of the following approaches to salesperson performance evaluations is false? a. Most sales organizations employ combinations of input and output criteria that are evaluated by quantitative and qualitative measures. b. Sales organizations that set performance standards or quotas tend to enlist the aid of salespeople in establishing these objectives. c. Most salesperson performance evaluations are conducted by the field sales manager who supervises the salesperson. d. Most sales organizations provide salespeople with a written copy of their performance review. e. Discussions of performance evaluations with salespeople are typically conducted in the field.

e

Which of the following is not an advantage of the commission compensation plan? a. Income is linked to results. b. There is a strong financial incentive to im-prove results. c. Costs are reduced during slow sales periods. d. Less operating capital is required. e. Customer loyalty is enhanced.

e

Which of the following is not one of the four types of analyses outlined in the text as a method for analyzing sales organization effectiveness? a. cost analysis. b. profitability analysis. c. productivity analysis. d. sales analysis. e. market-share analysis.

e

___________ rewards are those that are given in return for acceptable performance or effort. a. Sales b. Intrinsic c. Noncompensation d. Compensatory e. Compensation

e