SMS

In SMS, teams offer two product models, base and premium. The manufacturing cost of the premium model is:

$4,000

If your production forecast is less than what you could sell:

The factory makes up the shortfall; overtime costs are $40 per extra unit

If your forecast (and production) exceeds demand, you pay inventory carrying costs per unit of:

$25

In SMS, teams offer two product models, base and premium. The manufacturing cost of the base model is:

$3,000

Customers initially believe a fair price for the base model is:

$3,500

Potential salesperson recruits reject offers that are less than expectations by:

$5,000 or more

Customers initially believe a fair price for the premium model is:

$5,500

The price of the most expensive market research study is:

$8,000

In period 1, you can deploy:

5 trained salespeople

Your firm can direct the amount of time salespeople spend on:

Both internal versus external selling, and the base versus the premium product

When a firm recruits more than one salesperson in a period, it can offer:

Different salaries, same commission rate

Previous management commissioned three research studies to assess potential demand. Results were:

Each study predicts a different growth pattern - developing, saturated, and stagnant

Company reputation (a better place to work) grows when:

In addition to spending time selling to external customers, salespeople spend significant effort selling internally

The United States market is divided into 10 regions. Included in region 1 is the state of:

New York

The calculation of Net Promoter Score (NPS) requires answers to the following question: "How likely is it that you would recommend our company/product/service to a friend or colleague?" - on a "0" to "10" scale. "10" is the highest likelihood; "9" and "10" are promoters; "7" and "8" are passives; "6" and less are detractors. NPS is:

Number of promoters less number of detractors, divided by the sum of promoters and detractors

In period 0, you incur start-up costs. Not included are:

Opportunity costs relating to offers rejected by potential recruits

Previous management hired five salespeople (period 0). In period 1, you may hire another five salespeople. Which salespeople can you attempt to hire?

Resumes 6 to 10

The Industry Employee Compensation (Market) research study does NOT report:

Sales contest amounts

Other than product manufacturing cost, the largest SMS costs are:

Sales expenses: Salesperson salaries and commissions, plus sales office expenses

Net Promoter Score (positive word of mouth) grows:

When the firm achieves high salesperson density in sales regions it addresses

The Industry Employee Expectation (Market) research study does NOT report:

Future compensation expectations - four periods ahead