LGST Exam 3

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the simulation suggests that

raising prices and paying salespeople more leads to a better strategy for increasing

Other than product manufacturing costs, the largest SMS costs are

sales expenses

if your forecasts and production exceeds demand, you pay inventory carrying costs per unit

$25

in SMS, teams offer two product models, base and premium, the manufacturing cost of base model is

$3000

Om SMS teas offer two product models base and premium, the manufacturing cost of the premium model is

$4000

internal selling correlates the closest with

company reputation for that quarter

IN period one, you could deploy

5 trained sales people

potential salesperson recruits reject offers that are less than expectations by

5000 or more

Your firm can direct the amount of time salespeople spend on

both internal vs. external selling, and the base vs. the premium product

The simulation suggests that critical to effective sales management in a developing industry is

building and keeping as large a sales force as you can

before starting up you had commissioned three research studies to assess potential demand results were

each study predicts a different growth pattern- developing saturated stagnant

the industry employee expectation (market) research report does not report

compensation expectations four quarters in the future

the industry employee compensation (market) research report does not report

contest amount

When a firm recruits more than one salesperson in a period it has the flexibility to offer

different salaries

the simulation suggest that

given the same salesforce size, hiring more rather than less

company reputation (a better place to work for) does NOT depend on

its ability to avoid production overtime, the greater the proportion of overtime to total production the worse the reputation

The calculation of net promotor score requires answers to the following questions

number of promoters less number of detractors dividing by total number of respondents

the simulation suggest that

paying salespeople more through commission than through salary increase current terms sales and profit

net promoter score positive WOM does not depend on

the extent to which sales effort is focused on the premium product the more the focus the better

not included in startup costs is

the opportunity cost or offers that were rejected


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