MKGT 637 Chapter 8
Which of the following is not a guideline recommended in the management of motivation?
Take a reactive approach to seeking out motivational problems and sources of frustration in the salesforce.
Formal recognition programs have a better chance of success if sales managers do all of the following except:
make it easy enough to allow for a majority of the salesforce to win.
Which of the following is an advantage of a straight-commission compensation plan?
Operating costs are minimized during slack selling periods.
All of the following are typical reimbursable expense items except
home.
The amount of mental and physical effort put forth by the salesperson is referring to degree.
intensity.
Expense account padding
is considered a serious offense, which, if detected, often leads to termination of employment.
A salesperson who is extrinsically motivated
is motivated by the rewards that the job provides
To implement a new or modified reward system, sales managers should do all of the following except
issue a press release detailing the company's changes.
The least valued nonfinancial reward by salespeople, other than those nearing retirement, is
job security.
When a sales manager assures salespeople that they fulfill a critical role in revenue production and other key activities within the company, he/she is offering this non-financial reward:
sense of accomplishment.
According to the text, which of the following is not one of the rewards typically offered to salespeople?
social interaction opportunities
A large direct sales company such as Avon would most likely compensate their salespeople in this manner
straight commission
If the nonselling administrative duties of the salesperson are of major importance, this compensation plan is recommended:
straight salary.
Which of the following is not a guideline for optimizing the use of sales contests?
Salespeople should compete in teams with each member of the team making a contribution to the group's total goal.
Compensation rewards might include all of the following except
task significance
Which of the following statements regarding sales contests is true?
Sales contests will continue to be an important tool for achieving expedient results.
Which of the following is not a form of nonfinancial compensation?
Job redesign
Which of the following is not an advantage of combination plans?
They are fairly simple to administer.
A salesperson who is intrinsically motivated
finds the job to be inherently rewarding.
A firm offering a college tuition reimbursement program has made a commitment to providing this nonfinancial reward:
opportunity for personal growth.
A common criticism of combination pay plans is that they
tend to produce too many salesforce objectives which are of the crisis-resolution variety.
The most serious disadvantage of a straight-salary compensation plan is
that they offer little financial incentive to perform past a merely acceptable level.
According to the text, controls typically used by companies to ensure judicious spending by the salesforce include all of the following except
the requirement that expenses be charged and the bills sent directly to the company for payment by the accounting department.
Advantages of straight-salary compensation plans include all of the following except
the working capital requirements are lessened with the straight-salary compensation plan.
Perhaps the most serious shortcoming of straight-commission plans is that
they contribute little to company loyalty, resulting in potential salesforce control problems.
What change in the firm's salesforce reward system might be in response to customer's needs?
A change from straight commission to straight salary
Which of the following is not a factor to be considered when developing a commission-only plan?
Commission margin
Which one of the following statements regarding global compensation is false?
Companies are increasing incentives for foreign-based employment.
___________ rewards are those that are given in return for acceptable performance or effort.
Compensation
Which of the following is not an advantage of the commission compensation plan?
Customer loyalty is enhanced.
Which of the following is not true regarding the design of a global salesforce compensation system?
Design the plan centrally and dictate to local countries.
Which of the following is not mentioned in the text as a challenge to sales managers attempting to adjust their compensation plans to recognize team performance?
Overall compensation and rewards increase with the use of team selling.
Which of the following is not one of the desired outcomes of an optimal reward system?
Provide a mix of both compensation and noncompensation rewards comparable to other firms.
Which of the following conditions would indicate to the sales manager that the proportion of the salesperson's total pay that is salary should be relatively low?
The importance of the salesperson's personal skills in making sales is considerable.
Which of the following conditions would indicate to the sales manager that the proportion of the salesperson's total pay that is salary should be relatively high?
The importance of the salesperson's personal skills in making sales is slight.
Which of the following statements regarding changes in the reward system is false?
They should be made during recessionary periods.
An example of a selling situation requiring a commission split would be
a large company purchases products from a company and ships them to its affiliates in several cities, with the selling firm's salespeople in these cities required to provide follow-up and service.
Noncompensation rewards include
a supportive sales management leadership style.
According to a survey of sales executives reported in the text, the most popular sales incentive is
cash.
The motivation task is incomplete unless salespeople's efforts are
channeled in directions consistent with the overall strategic role of the salesforce within the firm.
Flexibility has been cited as both an advantage and a disadvantage of this compensation pay plan:
combination pay plans.
Industries that have traditionally used a straight-commission-based compensation pay plan include all of the following except
computers.
Lavish formal recognition programs can provide all of the following benefits to a salesforce except
costing little and reinforcing desirable behavior immediately after it occurs.
When determining the financial compensation mix, the sales manager must
determine the relative amounts to be paid in salary, commission, and bonus.
Reward system management involves the selection and utilization of organizational rewards to
direct salespeople's behavior toward the attainment of organizational objectives.
This form of nonfinancial reward is generally considered to be more desirable to younger salespeople than to older salespeople:
opportunity for promotion.
The most commonly used definitions of motivation include these three dimensions:
persistence, intensity, direction.
The salesperson's choice to expend effort over a period of time, especially when faced with adverse conditions is referred to as
persistence.
This form of commission rate may actually result in overselling and higher selling costs to the company:
progressive.
All of the following are steps suggested for facilitating a sense of accomplishment in the salesforce except
provide salespeople with trips and other rewards.
The Million Dollar Roundtable designation in the insurance industry is an example of this type of nonfinancial reward:
recognition for achievement.
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:
regressive.
The importance of matching the abilities and needs of sales recruits to the ____ cannot be overstated.
requirements and rewards of the job
Current spendable income includes
salaries, commissions, and bonuses.
The reward system practiced by the majority of consumer and industrial firms is
salary plus incentives.
