Sales Final

Question 1

Key elements of initial training

Answer 1

1. On-boarding
2. Product knowledge (yours and competitors)
3. Sales skills
4. Sales Activity

Question 2

Inadequate sales training is not viewed as a very significant problem by most sales executives and purchasing managers.

Answer 2

True

Question 3

According to purchasing agents, one of the most common problems they encounter is that salespeople are inadequately trained.

Answer 3

True

Question 4

Sales managers should schedule periodic retraining sessions for even the most highly successful, experienced salespeople.

Answer 4

True

Question 5

Highly successful experienced sales people will resist attending trainings because they take time away from their selling activities and are boring.

Answer 5

True

Question 6

Highly successful and experienced sales people may be attracted to trainings if they deliver those parts of it that they are particularly skilled at performing.

Answer 6

True

Question 7

Training salespeople seldom reduces turnover.

Answer 7

False

Question 8

Trainees who understand their customers’ needs, wants and pains are in a better position to talk with them about total business solutions that can help them.

Answer 8

True

Question 9

Time management is not a critical factor in managing the sales force.

Answer 9

False

Question 10

The first step in planning for sales training involves assessing sales training needs.

Answer 10

True

Question 11

Training should really only focus on improving the performance of below average salespeople.

Answer 11

False

Question 12

Observing salespeople and comparing the actions of the superstars with the lower performing salespeople is especially useful in assessing sales training needs.

Answer 12

True

Question 13

Customer input into sales training can offer interesting insights into advanced sales training programs.

Answer 13

True

Question 14

Most new salesperson training time is devoted to improving the salesperson’s selling techniques.

Answer 14

False

Question 15

The five major subjects included in training most often include product knowledge, market orientation, company orientation, teamwork and selling techniques.

Answer 15

True

Question 16

If a firm can afford the cost, centralized sales training is always more effective than decentralized training.

Answer 16

True

Question 17

Training salespeople on a decentralized basis moves the learning process closer to the customer and introduces a higher measure of realism.

Answer 17

True

Question 18

The three most popular sales trainers are regular line executives, staff personnel, and outside specialists.

Answer 18

True

Question 19

The main attraction of outside training specialists is their complete familiarity with a company’s selling situation.

Answer 19

False

Question 20

The main attraction of outside specialists is their variety, inspiration and excitement they can bring to a training program.

Answer 20

True

Question 21

Organizations are able to accurately and objectively measure the bottom-line effects of sales training.

Answer 21

False

Question 22

Regardless of management’s philosophy towards training, it is always a mistake not to follow-up on the training after it is completed.

Answer 22

True

Question 23

As the sales manager you are solely responsible for the sales training for your 10 salespeople. When developing a training program, you would be responsible for all of the following training issues except:

a. where to train
b. who should train
c. what methods to use
d. when to retrain
e. none of the above – all are involved in the training program.

Answer 23

E

Question 24

A sales manager who is responsible for developing and implementing a sales training program should conduct a number of steps in sequence. According to the text, which of the following activities would you complete first in developing a new training program?

a. determine the content of the sales training program
b. determine the training methods to be used.
c. evaluate the content of the sales training program.
d. assess training needs of the sales force.
e. determine were to conduct the training program.

Answer 24

D

Question 25

As the sales manager of a Fortune 500 branch office, you understand there are different outcomes for different sales training programs. However, you know that the ultimate objective of any training program is to:

a. build enthusiasm and confidence.
b. reduce turnover.
c. increase sales and profits of the firm.
d. teach salespeople how to manage their time.
e. improve selling skills of sales representatives.

Answer 25

C

Question 26

Individual sales training programs may be designed to accomplish which of these specific objectives?

a. Improved time management
b. Improved territory management
c. Improved product knowledge (yours and your competitors’)
d. Improved sales skills
e. all of the above

Answer 26

E

Question 27

You have just been promoted to sales manager at your sales consulting firm. One of your first tasks is to re-design the sales training program. You realize that a well-designed sales training program typically begins with:

a. determining the training objectives
b. an analysis of what the sales force needs
c. the development of a job description for the sales position
d. the development of an evaluation system that will provide feedback on the effectiveness of each step of the training process
e. establishing a control group that will not undergo training

Answer 27

B

Question 28

A complete training needs analysis includes which of the following?

a. observation and questioning of salespeople
b. profiling sales people to make certain that the right people are in the right jobs
c. customer input
d. analysis of the composition of pipelines, yields from stage of sale to stage of sale
e. all of the above

Answer 28

E

Question 29

According to your text, which of the following is often cited as one of the major reasons why sales training fails to produce meaningful results?

a. Lack of top management commitment.
b. The attitudes toward training of some of the salespeople.
c. The inability to connect with salespeople by sales trainers.
d. The costs are always so exorbitant that training never pays for itself in the long run.
e. All of the above are reasons cited in the text

Answer 29

A

Question 30

The subjects covered in a formal sales training program depend on:

a. The products being sold
b. The sales trainer
c. The backgrounds of the people being hired
d. All of the above
e. Both a and c of the above

Answer 30

D

Question 31

With respect to companies training their salespeople, they usually devote the most time in the area of:

a. Product knowledge
b. Marketing orientation
c. Company orientation
d. Selling skills and techniques
e. time management

Answer 31

A

Question 32

To enhance product knowledge and teamwork among its new sales recruits, Whirlpool developed a program where all of the recruits would live together in a house (prior to being deployed in the field) to learn about the company’s products by actually using them on a daily basis. This type of training can be classified as:

a. Centralized training
b. Decentralized training
c. Hands-on training
d. Consultative training
e. Both a and c of the above

Answer 32

E

Question 33

The main advantage of centralized training is that:

a. Top level managers are available
b. It has a relative lower cost that decentralized training
c. The quality of the training is his higher and it is more consistent
d. It moves the learning process closer to customers
e. It reduces travel expenses

Answer 33

C

Question 34

As the new sales manager of Dan-Dee Toys, you must decide whether to continue funding a centralized (in-house) training program or change to a decentralized one. Which of the following is/are NOT an advantage to decentralization?

a. Dan-Dee’s sales managers will do the instruction, and trainees can pick up useful ideas on local selling conditions.
b. Dan-Dee’s commission override system, which introduces a measure of realism for trainees.
c. Decentralization will move the learning process closer to Dan-Dee’s customers.
d. New recruits get to observe top salespeople selling to customers similar to those they will encounter in their own nearby territories.
e. None of the above. That is, all are advantages.

Answer 34

B

Question 35

A disadvantage of decentralized sales training is:

a. Increased travel expenses.
b. Inconsistency in sales training.
c. Instructional expenses.
d. Lack of realism.
e. Both b and d of the above.

Answer 35

B

Question 36

According to the text, Xerox uses which of the following types of sales training programs?

a. Decentralized
b. Centralized
c. No training program
d. A mix of decentralized and centralized training
e. None of the above

Answer 36

D

Question 37

‘Ride-along’ training refers to:

a. Having a sales trainer or experienced sales person critique your last sales call while riding down in the elevator with you
b. Traveling with an experienced sales person on visits to customers
c. On line sales simulators which allow a sales person to learn from successes and failures
d. None of the above
e. A, B and C of the above

Answer 37

E

Question 38

The main problem with ‘ride-alongs’ is that:

a. Consistency and quality are variable
b. It costs the sales manager too much time
c. Trainees usually don’t like it
d. It can’t be used as a tax deduction
e. Both A and B of the above

Answer 38

E

Question 39

"
 Using \_\_\_\_\_\_\_ \_\_\_\_\_\_\_\_\_\_as sales trainers lends credibility to a sales training program because these people have successful sales backgrounds.  "									
a.	staff specialists								
b.	line executives								
c.	outside specialists								
d.	sales specialists								
e.	none of the above

Answer 39

B

Question 40

Line executives are not as popular as staff trainers in industrial and consumer products companies because:

a. They are often unable to communicate information to others.
b. They are usually preoccupied with current sales problems.
c. They may not take the time to do a good job.
d. All of the above
e. None of the above

Answer 40

D

Question 41

Sales training seminars should be followed by 8 - 16 weeks of reinforcement training for which of the following reasons:

a. Most of the primary instruction contained in the seminar will be forgotten unless reinforced
b. Many of the important elements in the primary instruction were never learned at the time they were delivered
c. Reinforcement training can presented via the Internet in short 5 - 10 minute pulses, allowing for greater focus and retention
d. Reinforcement training when delivered via the internet is usually far less expensive than centralized primary training.
e. All of the above

Answer 41

D

Question 42

The most common method of evaluating training programs is by:

a. Subsequent sales performance.
b. Field attitude and performance evaluations.
c. A written critique of its contents by group participants.
d. Subsequent profit analysis.
e. Customer reactions.

Answer 42

C

Question 43

As an outside sales training specialist, it is in your best interest to show a strong relationship between your program and subsequent performance. Which of the following factors would you suggest your clients measure to see if their investments have “paid off”?

a. Improvements in salesperson morale
b. Improved customer relations
c. Reduced salesperson turnover rates
d. Improvements in sales activity levels, sales and profits
e. All of the above

Answer 43

E

Question 44

The most common method of evaluating training programs is by:

a. Subsequent sales performance.
b. Field attitude and performance evaluations.
c. A written critique of its contents by group participants.
d. Subsequent profit analysis.
e. Customer reactions.

Answer 44

C

Question 45

Which of the following is the most effective method for determining whether your sales training program affected sales force behaviors?

a. Conduct a study of the salespeople to determine satisfaction levels of the training content.
b. Measure before and after sales activity levels, closed sales and margins.
c. Have the salespeople take a skills-based test to determine retention of the selling skills that were covered.
d. Observe salespeople in front of customers.
e. b’ and ‘d’ above

Answer 45

E

Question 46

As a veteran sales manager you recognize that one problem with using sales as a performance measure for evaluating a training program is that sales may change as a result of factors outside of salespeople’s control. One method of evaluating sales training that may potentially overcome this problem is to:

a. Compare the results of people who have gone through a training program with those of people who have not but who are in otherwise similar situations.
b. Compare the results of high and low performing salespeople to see if anything has changed.
c. Compare the before and after results of just high performers, because these are the people who will provide the best evaluation indicator.
d. Compare the before and after results of just low performers, because these are the people who will provide the best evaluation indicator.
e. None of the above.

Answer 46

A

Question 47

Sales training may provide all of the following benefits to a salesperson except:

a. Increases product knowledge.
b. Improves selling skills.
c. Builds self confidence and enthusiasm.
d. Reduce role stress
e. All of the above.

Answer 47

E

Question 48

Memory is enhanced by which of the following:

a. Reviewing information to be memorized before sleeping
b. Reviewing to be memorized upon awakening
c. Using the information during sales interactions
d. Testing yourself regularly
e. All of the above

Answer 48

E

Question 49

Practice Makes Perfect T/F

Answer 49

False, perfect and deliberate practice makes perfect

Question 50

The part of the brain that supports emotion, behavior, motivation, short and long term memory and olfaction (sense of smell) is called the Limbic System.

Answer 50

True

Question 51

The lymbic system contains several structures that are essential for the formation and recall of memories. Three of the most important are (list):

Answer 51

The Amygdala (greek for 'almond')									
The Hypocampus (greek for 'sea horse')									
The olfactory bulbs (for the sense of smell)

Question 52

The primary functions of the two Amygdalae are often referred to as the four F’s. They are (list)

Answer 52

Food, Fight, Flight, Sexual Reproduction

Question 53

Neil Rackham’s classic book on consultitative selling skills, ‘SPIN Selling,’ documents that sales professionals with the highest closing rates help develop in their Prospects the personal concequences of not fixing a problem, that is, doing nothing. He refers to the negative personal concequences as ‘pain.’ Which part of the limbic system does this stimulate?

a. The amygdala
b. The cerebellum
c. The reticular activation formation
d. None of the above
e. All of the above

Answer 53

A

Question 54

The human brain weighs about 2.2 pounds but consumes a disproportionate amount, about 20%, of the body’s oxygen and glucose.

Answer 54

True

Question 55

The organelles contained in our brain cells that consume oxygen and glucose and convert them into Adenosine Triphosphate (ATP), the body’s main source of energy, are called Mitochondria.

Answer 55

True

Question 56

Are these organelles are inherited from our Mothers, Fathers or both?

Answer 56

Mothers

Question 57

The more energy a cell is required to generate (through exercise of practice, for example) the more mitochondria it will produce through a process called ‘budding.’

Answer 57

True

Question 58

Neurons have three main external parts known as axons, the nucleus or cell body and dendrites.

Answer 58

True

Question 59

Dendrites receive signals from the axons of other neurons. Axons transmit signals to the dendrites of other neurons.

Answer 59

True

Question 60

Axons are wrapped and insulated with layers of a fatty substance made mostly of cholesterol called the Myelin Sheath.

Answer 60

True

Question 61

The Myelin Sheath prevents signals from ‘leaking’ from axons and significantly increases their speed along axons.

Answer 61

True

Question 62

Dendrites and axons don’t actually come into physical contact with each other. Very thin gaps between called synapses separate the two.

Answer 62

True

Question 63

Small bubbles called synaptic vesicles release neurotransmitters from the bulbs of axons that cross over the gaps and to excite the dendrites of the other neurons they they almost touch.

Answer 63

True

Question 64

The more often this process occurs between specific sets of synapses, the stronger the link between them and the greater the amount of mylenization of the axons. This is the ‘practice’ that ‘burns in’ memories and behavior.

Answer 64

True

Question 65

Memories can be strenghthened without significant amounts of practice by means of triggering emotions (the ‘4 Fs’) contained in the Amygdala.

Answer 65

True

Question 66

Memory (recall) of a new word or concept will rapidly degrade and soon be forgotten if only a single exposure is provided.

Answer 66

True

Question 67

Memory of a new word or concept will persist if reinforced with repeated exposure to it (practice).

Answer 67

True

Question 68

Memory of a new word or concept can persist when it is reinforced with emotions created in the Amygdala.

Answer 68

True

Question 69

Short-term memories are first procesed in the Amygdala and stored in the Hippocampus to be consolidated with sleep and practice over time in the cerebral cortex.

Answer 69

True

Question 70

Famed French author Marcel Proust wrote about how the scent of tea and madeleine cookies evoked vivid mories in his epic book “In Search of Lost Time /À la Recherche du Temps Perdu” (4,300 pages and 2,000 chracters!).

Answer 70

True

Question 71

Many complex, consultative sales contain more steps than there are items on the preflight checklists of military fighter jets.

Answer 71

True

Question 72

For this reason constant reinforcement training in the field is needed to remind sales executives of what must be accomplished in order to advance and to win sales opportunties.

Answer 72

True

Question 73

Rewarding people who give you referrals or business with foods that smell good (coffee, tea, chocolate) can provide powerful refoncement for them to repeat those behaviors that benefit you.

Answer 73

True

Question 74

Leadership is the ability to influence and inspire actions of people to accomplish worthwhile goals.

Answer 74

True

Question 75

A good leader does not necessarily possess good managerial skills.

Answer 75

True

Question 76

Salespeople with a good self understanding are more open to receiving feedback than other professionals.

Answer 76

True

Question 77

‘Legitimate power’ is based on a manager’s position in the organization.

Answer 77

True

Question 78

A sales manager’s power is not absolute, but based on the willingness of salespeople to grant the manager power.

Answer 78

True

Question 79

Coercive power refers to an ability to convince a person to act in favor of your proposal.

Answer 79

False

Question 80

An example of a sales manager’s ‘expertise power’ is his/her product knowledge.

Answer 80

True

Question 81

Reliance on financial rewards may not instill long-term commitment to an organization.

Answer 81

True

Question 82

The ‘assessment phase’ of a change management project is where sales managers engage in reexamining the customer operating environment.

Answer 82

True

Question 83

One method that has been proven effective to speed implementation of a change management project is a pilot test.

Answer 83

True

Question 84

The ‘transformational leadership’ style motivates salespeople by relying on rewards and punishment to maintain control.

Answer 84

False

Question 85

A manager who is able to articulate a compelling vision for the organization which makes the sales force more accepting of organizational goals is using a transformational leadership style.

Answer 85

True

Question 86

Each of the four leadership styles in the Situational Leadership Model results from a combination of high or low supportive and responsive behavior.

Answer 86

False

Question 87

A manager establishing a call ‘script’ for all customers in a salesperson’s territory is an example of the ‘telling’ leadership style.

Answer 87

True

Question 88

A “delegating” leadership style involves high supportive behavior and low directive behavior.

Answer 88

False

Question 89

Coaching involves the use of positive feedback, role modeling and trust.

Answer 89

True

Question 90

The best time for providing feedback to improve the selling skills of salespeople is just prior to and following a sales call.

Answer 90

True

Question 91

Prior to a sales call, coaching should include a sales manager suggesting ways to close the sale.

Answer 91

False

Question 92

When accompanying a salesperson on a sales call, a sales manager should control the sales call to provide an example of how it should be done.

Answer 92

False

Question 93

Telling a salesperson where he or she went wrong provide both information and motivation to the salesperson.

Answer 93

False

Question 94

Sales Managers can build Trust with members of their sales teams by following the Trust Formula: Trust = (Reputation, Reliability, Rapport) divided by (Apparent Self Interest)

Answer 94

True

Question 95

Using DISC to determine the behavioral styles of the individuals in your sales team and to match and mirror and paying close attention to the ‘do’s’ and ‘don’ts’ of working with their styles will help you build rapport and trust and improve your effectiveness in coaching them.

Answer 95

True

Question 96

Most research shows that it is easy to develop a highly effective selling team and that a majority of sales teams today are highly effective.

Answer 96

False

Question 97

Effective selling teams are typically comprised of highly skilled salespeople who can close the sales.

Answer 97

False

Question 98

Effective selling teams have the ability to work within their own company and champion new ideas for customized customer solutions

Answer 98

True

Question 99

The most popular (common) topic at sales meetings is “sales force feedback” rather than “sales training” or “motivational talks.”

Answer 99

True

Question 100

A common complaint about sales meetings is that salespeople spend most of their time listening rather than participating.

Answer 100

True

Question 101

When a manager senses a salesperson is plateauing, s/he should look for ways to enrich the salesperson’s current sales position.

Answer 101

True

Question 102

An important step in dealing with sexual harassment is to have written procedures on how employees should deal with such behavior.

Answer 102

True

Question 103

A sales manager who learns about a customer’s sexual harassment behaviors toward one of his or her salespeople, but does nothing about it could be held personally liable for damages.

Answer 103

True

Question 104

Alcohol abuse is much more prevalent among salespeople than among people in other industries.

Answer 104

False

Question 105

If you are alone with a fellow employee or a client who initiates an inappropriate discussion that constitutes sexual harassment or solicitation of unethical or illegal behavior, consider taking the following actions: 1) activate the recording feature on you phone 2) ask the person to repeat what s/he just said 3) while still recording, reply that you are uncomfortable with their remark or suggestion 4) politely excuse yourself and leave 5) immediately report the matter to your supervisor and / or to an HR executive.

Answer 105

True

Question 106

Leadership involves a number of skills. However, you realize that there are certain skills that the best leaders develop. Which of the following is one of those skills?

a. Rationally analyzing situations.
b. Coordinating employees
c. Developing an overall vision in which people can believe
d. Setting goals
e. Selecting employees

Answer 106

C

Question 107

As a first-line sales manager, which of the following activities best describes your attempts to enhance your self-understanding?

a. Share power with others by involving them in setting objectives and planning.
b. Conduct an anonymous survey asking the sales force and upper management to rate your effectiveness.
c. Be more proactive in delegating authority to others.
d. Communicate your beliefs throughout the organization.
e. Seek information from your salespeople about their satisfaction levels with their customers.

Answer 107

B

Question 108

Which of the following is a source of leadership power?

a. Legitimate
b. Expertise
c. Referent
d. Coercive
e. all of the above

Answer 108

E

Question 109

A salesperson complying with a sales manager’s request because the sales manager said “Don’t ask me why, just do it please” is an example of which kind of power?

a. Legitimate
b. Expertise
c. Referent
d. Coercive
e. Reward

Answer 109

A

Question 110

Any of the five power bases can lead to desired behavior by subordinates, but salespeople are generally more satisfied with a leader when he or she uses which types of power?

a. Legitimate and coercive
b. Expert and referent
c. Expert and competent
d. Competent and coercive
e. Enigmatic and petulant

Answer 110

B

Question 111

A salesperson complying with a sales manager’s request because he likes the sales manager is an example of which kind of power?

a. Reward
b. Competence
c. Referent
d. Legitimate
e. Expertise

Answer 111

C

Question 112

Too much reliance on _________ power could lead to a mercenary attitude among salespeople rather than a commitment to the overall vision of the organization.

a. Legitimate
b. Reward
c. Referent
d. Coercive
e. Expertise

Answer 112

B

Question 113

You are contemplating a significant change in your business that will affect how the salespeople will do their job. Which of the following is true regarding people’s basic tolerance for change?

a. All salespeople thrive on change
b. All salespeople will resist change
c. Salespeople with greater trust in their sales manager will be more accepting of change.
d. All salespeople have the same basic tolerance for change, regardless of trust in the sales manager.
e. None of the above is true.

Answer 113

C

Question 114

You are in the redesign phase of a change initiative. You have just finished learning how customers conduct business effectively. Based on the change initiative process discussed in the text, you now need to:

a. Develop a sales strategy that defines how the company deploys its sales resources.
b. Redesign the tactics used in selling the different type of customer base.
c. Implement the changes immediately.
d. Both a and b above.
e. All of the above.

Answer 114

D

Question 115

You have just implemented significant change initiatives in three areas: (a) customer orientation, (b) sales strategy, and (c) selling processes. Your next step in the change management process is:

a. Assess the customer environment(s) in which the company operates.
b. Measure indicators of successful change such as revenue growth in new strategic areas.
c. Immediately implement a number of supporting programs to energize and direct continued performance
d. Immediately roll out the change initiate to all sales people in the company.
e. None of the above. Nothing further needs to be done.

Answer 115

B

Question 116

Which of the following is most representative of the ‘transactional’ leadership style?

a. Transforming the salesperson to accept the goals of the organization.
b. The ability to get the sales force to focus on the short-term day-to-day operations.
c. Transforming the salesperson to appeal higher-order needs.
d. The ability to arouse strong emotions from others.
e. The ability to get the sales force to work toward a common goal.

Answer 116

B

Question 117

Which of the following is not a leadership style of the Situational Leadership Model?

a. Supporting
b. Authoritative
c. Telling
d. Delegating
e. Selling

Answer 117

B

Question 118

After getting a salesperson to agree that sales to a large customer must increase, the sales manager asks the salesperson to develop a plan of action for achieving this objective. This is an example of which leadership style?

a. Telling
b. Supporting
c. Delegating
d. Selling
e. Authoritative

Answer 118

C

Question 119

“Before we go in to this account what is your objective for this call?” This question is primarily asked to observe a salesperson’s development in which area?

a. Planning
b. Attitude
c. Knowledge
d. Selling skills
e. Probing skills

Answer 119

A

Question 120

The most likely time for coaching to take place is:

a. Before year-end quotas are required.
b. During a training session.
c. During a sales call.
d. Following a sales call.
e. During quarterly reviews.

Answer 120

D

Question 121

An important factor to consider when deciding on the type of feedback to give to a salesperson in the post-sales call phase of coaching is the salesperson’s:

a. Maturity level
b. Relationship with the customer in question
c. Listening ability
d. Ability to close the sale
e. Ability to read your nonverbal cues in the sales call

Answer 121

A

Question 122

As a sales manager, you go out of your way to personally demonstrate proper selling technique to salespeople, show up on time to meetings and appointments and always presenting a professional image through appropriate dress and grooming. Your actions are likely seen by your sales staff as:

a. Consistent with those behaviors from a boss.
b. A part of coaching called role modeling.
c. A part of feedback called mirroring.
d. A part of image management to get a promotion.
e. None of the above.

Answer 122

B

Question 123

You are well aware that your salespeople look up to you for advice and guidance. In a sense you are a constant role model. However, you also know that without _________, role modeling has no effect on salesperson job satisfaction or performance.

a. Trust
b. Humor
c. Fear
d. Personality
e. Ego.

Answer 123

A

Question 124

According to the text, which of the following is not commonly discussed during sales meetings?

a. New product information
b. Advanced selling methods
c. Explain new marketing programs
d. Sales force feedback about field conditions
e. All of the above are considered common meeting topics or objectives

Answer 124

E

Question 125

“Which of the following do sales managers feel is not a primary cause of plateauing among salespeople?
“
a. An interest in taking on different assignments
b. Lack of a clear career path
c. Not being adequately managed
d. Burn out from the job
e. Economic needs met

Answer 125

A

Question 126

If you were a sales manager, which of the following would you consider to be a signal of plateauing among your salespeople?

a. A loss of interest in prospecting.
b. A lack of follow through in customer service.
c. A reduction in working hours.
d. None of the above would be considered a signal of plateauing.
e. All of the above would be considered a signal of plateauing.

Answer 126

E

Question 127

Some of your salespeople have been selling for your company for over 15 years. You are somewhat concerned about plateauing. Which of the following actions will help to avoid a loss of salespeople because of plateauing?

a. Provide encouragement to continue using their own successful methods of selling.
b. Reinforce current job attributes.
c. Introduce job-enrichment opportunities such as increased responsibilities in gathering competitive intelligence.
d. Introduce large financial incentives to go into management
e. All of the above

Answer 127

C

Question 128

You need to let go a consistent poor performer who is influencing others with his bad attitude. Which of the following is not recommended when firing an employee?

a. The firing session should be brief
b. Never fire over the phone
c. The firing session should be done at the end of the week
d. Use of outplacement services whenever possible
e. Offer attractive termination benefit package

Answer 128

C

Question 129

Which of the following is not one of the suggested approaches to sexual harassment?

a. The direct approach by saying “no”
b. The retaliatory approach by defending yourself with physical force
c. The humorous approach
d. The avoidance approach by leaving without confrontation
e. The consequence approach

Answer 129

B

Question 130

Which of the following is not one of the suggested ways to avoid sexual harassment before it occurs?

a. Dressing appropriately
b. Using independent transportation when attending social and business functions.
c. Listening attentively to sob stories in a one-on-one situation while drinking massive quantities of alcohol.
d. Drinking cautiously at business and social functions
e. Conduct yourself professionally

Answer 130

C

Question 131

Providing entertainment for potential customers is standard practice in American business and it rarely leads to ethical problems.

Answer 131

True

Question 132

Ethical problems are usually the result of poor decisions by individual salespeople or company policies that encourage wrong doing.

Answer 132

True

Question 133

Kickbacks are ethical if the amount is small (less than $500) and the company awarded the contract offered the best price anyway.

Answer 133

False

Question 134

The definition of a ‘kickback’ is “The seller’s return of part of the purchase price of an item to a buyer or buyer’s representative for the purpose of inducing a purchase or improperly influencing future purchases.”

Answer 134

True

Question 135

” ‘Bribery’ is an act of giving money or gift giving that alters the behavior of the recipient. Bribery constitutes a crime and is defined by Black’s Law Dictionary as the offering, giving, receiving, or soliciting of any item of value to influence the actions of an official or other person in charge of a public or legal duty.

The ‘bribe’ is the gift bestowed to influence the recipient’s conduct. It may be any money, good, right in action, property, preferment, privilege, emolument, object of value, advantage, or merely a promise or undertaking to induce or influence the action, vote, or influence of a person in an official or public capacity.
“

Answer 135

True

Question 136

A ‘Marketing Fee’ is neither a ‘kickback’ nor a ‘bribe’ when it is paid by the seller to the buyer’s company to compensate the buyer’s company for promoting the ‘sell through’ of the seller’s products or services.

Answer 136

True

Question 137

A ‘Marketing Fee’ is most likely to be regarded as a ‘bribe’ or a ‘kickback’ if it is paid by the seller to the buyer and not to the buyer’s company, if there is no written agreement between the seller and the buyer and if no Form 1099 is prepared for the buyer by the seller.

Answer 137

True

Question 138

Another legal way to offer a ‘Marketing Fee’ is to discount the price of the goods or services that the buyer purchases from the seller according to the terms contained in a written agreement.

Answer 138

True

Question 139

The most frequent area for ethical abuse in a sales organization is with expense accounts.

Answer 139

True

Question 140

One way to keep your sales force straight is to encourage employees to call for help when they face an ethically troublesome sale.

Answer 140

True

Question 141

A good way to keep your sales force straight is to develop and circulate a sales ethics policy and to train them in its meaning and use.

Answer 141

True

Question 142

Both the employee and employee’s company are responsible for compliance with federal regulations.

Answer 142

True

Question 143

“Whether you think you can, or you think you can’t–you’re right,” is a quote from Henry Ford.

Answer 143

True

Question 144

“Anyone who stops learning is old, whether at twenty or eighty. Anyone who keeps learning stays young,” was said by Helen Keller.

Answer 144

False

Question 145

“Failure is simply an opportunity to begin again, this time more intelligently,” was said by Gen. and former CIA Director David Petraeus.

Answer 145

False

Question 146

Every successful salesperson knows how to handle rejection.

Answer 146

True

Question 147

Motivation is defined as an individual’s willingness to exert effort to achieve the organization’s goals while satisfying individual needs.

Answer 147

True

Question 148

Salespeople often require extra motivation because of the environment in which they operate.

Answer 148

True

Question 149

Motivation refers not only to the willingness to take action, but also the intensity with which activities are performed.

Answer 149

True

Question 150

Helping to motivate salespeople requires only an in depth understanding of their needs.

Answer 150

True

Question 151

According to Maslow’s Hierarchy, a sales manager’s habit of giving fancier automobiles to his/ her senior salespeople is an example of an attempt to satisfy their “belongingness and social needs.”

Answer 151

False

Question 152

The four stages of a sales career described in the text are Exploration, Establishment, Maintenance and Disengagement.

Answer 152

True

Question 153

During the Establishment stage, salespeople focus on getting ahead in their current occupation.

Answer 153

True

Question 154

The motivational needs of maintenance-stage people include working with greater autonomy.

Answer 154

False

Question 155

Studies indicate that sales performance is usually highest during the maintenance career stage.

Answer 155

True

Question 156

“Working smarter” refers to the understanding that an increase in the right kind of efforts will produce greater performance.

Answer 156

True

Question 157

According to Expectancy Theory a salesperson will be motivated to work harder when they believe that greater effort will lead to greater performance.

Answer 157

True

Question 158

“Working smarter” refers to the understanding that an increase in the right kind of effort will produce greater performance.

Answer 158

True

Question 159

No amount of motivation and incentives will produce a desired level of performance if the salesperson lacks the skills necessary for higher performance.

Answer 159

True

Question 160

While quotas are useful for average and below average performing salespeople, high performers do not want or need specific and challenging goals.

Answer 160

False

Question 161

Quotas lend themselves to management by exception where managers can focus attention on salespeople who are exceptionally below quota.

Answer 161

True

Question 162

Unit volume quotas not only state sales objectives in terms of number of units of each product to be sold, but also eliminate the effects of inflation from the pay system.

Answer 162

True

Question 163

A potential drawback of performance-based quotas is that non-selling activities may be neglected.

Answer 163

True

Question 164

According to goal theory, a quota system will work as long as management sets a specific, achievable, and difficult goal.

Answer 164

False

Question 165

Providing frequent opportunities for feedback is recommended for goal setting to be effective.

Answer 165

True

Question 166

A generally accepted performance standard for incentive programs is to produce $4 for each $1 put into them.

Answer 166

True

Question 167

A good rule of thumb is to set the qualifications and rewards at a level that will motivate the middle sixty percent of the sales force.

Answer 167

True

Question 168

‘Honor awards’ appeal to the highest of Maslow’s needs, self-actualization, and often produces a standard of performance that salespeople will work to maintain for years.

Answer 168

True

Question 169

In sales management the concern is that salespeople are (or can be) sufficiently motivated to reach the sales objectives of the firm. Which of the following is (are) reasons why salespeople need stimulation?

a. Field salespeople are continually going from the exhilaration of making a sale to the depression associated with being turned down.
b. Salespeople tend to spend long hours on the road away from direct supervision and support.
c. To maintain a salesperson’s high level of enthusiasm and conviction that a product or service is best for the customer.
d. All of the above.
e. None of the above.

Answer 169

D

Question 170

Getting a salesperson to prospect for new business, call on those potential customers that fit your marketing strategy, and provide the drive to maintain a regular prospecting schedule describes which characteristic of effort?

a. The drive to initiate action on a task.
b. The quality of effort expended on a task.
c. The persistence to expend effort over a period of time.
d. All of the above are characteristics of effort
e. None of the above is a characteristic of effort because a person’s effort level ultimately cannot be affected by outside factors.

Answer 170

D

Question 171

The drive to initiate action on a task, the quality of effort on a task and the persistence to expend effort over a period of time sufficient to meet or exceed objectives most closely describes a salesperson who:

a. Understands the organization’s goals
b. Is motivated
c. Is a good corporate citizen in the company
d. Has no innate selling skills
e. Does not complete all required paperwork on time

Answer 171

B

Question 172

There are three characteristics of efforts put forth by people as described by sales managers. Which of the following is not one of these characteristics?

a. A drive to initiate action on a task
b. A constant expression of a positive attitude
c. A high quality of effort on a task
d. A persistence in giving the effort needed to complete objective
e. All of the above

Answer 172

B

Question 173

A number of actions can be taken to motivate a sales force. If the sales manager allows salespeople to help plan sales quotas and the sequence of calls (a task normally completed by the sales manager), the manager is attempting to satisfy which sales force need:								
	Routine							
	Accomplishment							
	Control							
	Status							
	Honesty

Answer 173

Control

Question 174

Herzberg’s Motivation Theory referred to the desire for unfulfilled needs as:

a. Deficiency factors
b. Motivation factors
c. Achievement factors
d. Hygiene factors
e. Ego factors

Answer 174

E

Question 175

According to research by the Gallup Management Consulting Group, high performing salespeople are likely to exhibit which of the following personality types?

a. Someone who only wants to win
b. Someone who is not interested in beating specific competitors, but just wants to win
c. Someone who is motivated by building and cultivating relationships
d. Someone who likes accomplishment, regardless of who receives the credit
e. All of the above

Answer 175

E

Question 176

“A salesperson who has the following characteristics is can be labeled as having which motivational drive? • Has a desire to be the best salesperson in the company, but is not interested in outperforming specific people
• Likes to be considered an expert, but are prone to feeling slighted
• Changes jobs frequently
• Takes things personally
“
a. The Competitor (High D)
b. The Ego-driven (High I)
c. The Achiever (High D and High S)
d. The Service Oriented (High S)
e. None of the above

Answer 176

B

Question 177

As a new first-line sales manager, you would like to understand what motivates each salesperson. Joe, one of your salespeople, is a person who is almost completely self-motivated – you don’t need to do much of anything to keep this person going. Joe always sets high goals for himself and likes it when the branch achieves its monthly quota, regardless of who sold the most to make that possible. Based on this information, you determine that Joe has which motivational drive?

a. The Competitor (High D)
b. The Ego-driven (High I)
c. The Achiever (High D and High S)
d. The Service Oriented (High S)
e. None of the above

Answer 177

C

Question 178

Which is the correct order of the four career stages a person in the sales profession will experience?

a. Exploration, establishment, maintenance, disengagement
b. Exploration, establishment, disengagement, maintenance
c. Exploration, maintenance, establishment, disengagement
d. Exploration, maintenance, establishment, disengagement
e. Disengagement, exploration, maintenance, establishment

Answer 178

A

Question 179

The psychological need for autonomy and competition is likely to be strongest for people in which career stage?

a. Establishment
b. Disengagement
c. Exploration
d. Maintenance
e. Needs do not apply to any individual career stage

Answer 179

A

Question 180

George is the senior salesperson on your staff who is in the maintenance career stage. Which of the following is least likely to motivate George?

a. Introduce significant rewards other than money (i.e., more vacation time).
b. Expand his role as a sales specialist in group decision making.
c. Encourage him to use his knowledge in new and creative ways.
d. Promotion him to sales manager.

Answer 180

D

Question 181

Liz has been a salesperson with your company for 15 years. Lately, she has been having some doubts about her career choice and has been thinking about taking a new direction with the company. The _____________ stage best describes her career stage.

a. Establishment
b. Disengagement
c. Exploration
d. Maintenance
e. None of the above

Answer 181

D

Question 182

Which of the following are characteristics of sales executives in the disengagement phase?

a. Feeling a loss of focus
b. Less satisfied with their job
c. A decrease in sales performance
d. a and b
e. All of the above

Answer 182

E

Question 183

Behavioral Self-Management (BSM) is a process where:

a. A salesperson implements his or her own performance objectives
b. A sales manager sets an individual salesperson’s objectives
c. The need for a sales manager is eliminated
d. The salesperson focuses on behaviors, not outcomes

Answer 183

A

Question 184

As a part of Behavioral Self-Management, salespeople should:

a. Observe and record their behavior
b. Modify the consequences of their behaviors
c. Systematically practice desired behaviors
d. All of the above

Answer 184

A

Question 185

An example of applying Behavioral Self-Management (BSM) to increase the number of sales calls made each week is:

a. Using daily tally sheets to record success and failures
b. Setting cold calling goals for each of your salespeople
c. Making mental notes of previous actions
d. Sales management evaluation of performance

Answer 185

A

Question 186

_______________ are more optimistic goals used to stimulate the sales force, whereas _______________ are the maximum share of demand in each product market that a multi-product firm can attain under ideal conditions, and are generally unrealistic objectives.

a. Sales forecasts, quotas
b. Quotas, sales forecasts
c. Quotas, sales potentials
d. Sales potentials, quotas

Answer 186

C

Question 187

_______________ based programs are most often used for motivating salespeople, directing salesperson effort and providing a performance standard:

a. Quota
b. Salary
c. Recognition
d. Non-financial
e. Esteem

Answer 187

A

Question 188

Quotas:

a. Are often used as a basis for compensation and performance evaluation
b. Are goals assigned for individual salespeople for a particular time period
c. Are equivalent to asking you to “do your best.”
d. Both a and b of the above.
e. All of the above

Answer 188

D

Question 189

Quota levels should typically be:

a. Set at the sales forecast level
b. Set at the sales potential level
c. Set between the sales forecast and sales potential levels
d. Set below the sales potential levels
e. Based only on historical sales.

Answer 189

D

Question 190

As the sales manager of WGASA Corporation, a major West Coast wholesaler, it’s up to you to set quotas for each of WGASA’s territories. The veteran sales force tends to work autonomously with minimal supervision or required paperwork on activities. Also, salespeople have no opportunity to set prices or margins. With this type of situation you are most likely to use:

a. Expense report quotas
b. Dollar volume quotas
c. Activity quotas
d. All of the above
e. None of the above

Answer 190

B

Question 191

On which of the following are profit-based quotas most likely to be based?

a. Net income
b. Retained earnings
c. Gross margin
d. Accounts receivable
e. Accounts payable

Answer 191

C

Question 192

The most frequently used type of quota by sales organizations is:

a. Number of sales calls
b. Total direct selling expense
c. Net profits before taxes
d. Sales volume
e. Point-of-purchase display

Answer 192

D

Question 193

You would like to use sales activity quotas, but one of the serious disadvantages of activity quotas that keeps you from using this type of quota is:

a. They will lower sales force morale
b. The additional information you need to collect to track activities.
c. They are not under the control of the salesperson
d. The lack of objectivity measuring what is successful activity performance

Answer 193

B

Question 194

Profit-based quotas will be most likely used when

a. Prices are set at headquarters and are non-negotiable
b. Selling a single product or product line.
c. Salespeople have some pricing flexibility
d. Salespeople are restricted to selling within a defined geographic territory.
e. All of the above

Answer 194

C

Question 195

Which of the following are examples of activity quotas?

a. Calls on new accounts
b. Product demonstrations
c. Number of calls per day
d. Proposals submitted
e. All of the above

Answer 195

E

Question 196

As a sales manager responsible for setting quotas, which of the following would you be least likely to use as a benchmark when establishing individual sales volume quotas?

a. Past sales
b. New product development
c. Territory reorganization
d. Forecasted company sales
e. Forecasted competitive actions

Answer 196

E

Question 197

Incentive programs can be best described as:

a. Fairly long term promotional events
b. A breakeven affair — sales increases equal contest costs.
c. Inspiring people to a greater than usual performance level and rewarding them as a result.
d. Occurring very infrequently, maybe once a year to inspire high performance.
e. A poor motivation device for most salespeople.

Answer 197

C

Question 198

According to the text, the qualifications and rewards of an effective sales incentive program should be set with the following objective in mind:

a. Set the reward level so that all salespeople having an opportunity to win the top prize.
b. Set the reward level so that only the top ten percent have a legitimate chance to win something.
c. Set the reward level to have one or two grand prizes that the top salespeople will have an opportunity to win.
d. Set the reward level that will motivate the middle 70 percent of the sales force.
e. Set the reward level so that the contest lasts for at least one full year.

Answer 198

D

Question 199

Which type of incentive award is used the most because it has the greatest perceived effectiveness?

a. Cash
b. Merchandise
c. Trips
d. Promotion
e. Fringe benefits

Answer 199

A

Question 200

For the majority of sales representatives to commit to achieving the level of performance required by a sales contest, the sales manager must communicate that the contest goals are:

a. Focused on meeting the needs of the customer.
b. Complex but financially rewarding.
c. Reasonable and attainable by the average salesperson
d. Developed enhance closing customers quickly.
e. Developed to make salespeople aware that selling requires effort.

Answer 200

C

Question 201

As a sales manager, it may well be up to you to select the prizes for a sales contest. Which of the following is (are) TRUE about prizes?

a. You should set up the contest so that most of the sales force (more than 50%) will be motivated to win something.
b. Merchandise is the most frequently given award because tangible items can be displayed to the sales force, featured in promotional material, and purchased at wholesale prices.
c. The incentive sales meeting, in an exotic location, is decreasing in popularity. This is largely due to increased cost and the fact that the very people who need exposure to such meetings often fail to qualify for the award.
d. All of the above
e. None of the above

Answer 201

A

Question 202

According to the text, which of the following is the most effective way to build enthusiasm to kick off a sales contest is to:

a. Send an email to the sales force describing the contest rules.
b. Announce the contest at a sales meeting.
c. Have a personal meeting with each individual member of the sales force.
d. Leave a telephone voice mail message for each member of the sales force.
e. Send an email to each salesperson’s home computer describing the rules.

Answer 202

B

Question 203

Which is true of recognition programs?

a. They focus on effort characteristics
b. They focus on overall performance
c. They have lasting value
d. All of the above
e. None of the above

Answer 203

D

Question 204

Extroverted leaders may wish to adopt a more reserved, quiet style…They may want to sit down so that others might stand up.

Answer 204

True

Question 205

Motivators for those with High D’s (Dominant DISC trait) include:
Money, power, direction of others, opportuinties to make unilateral decisions

Answer 205

True

Question 206

Motivators for those with High I’s (Dominant DISC trait) include:
Public recognition and praise

Answer 206

True

Question 207

Motivators for those with High S’s (Dominant DISC trait) include:
Interaction and affiliation with others, harmony, team results

Answer 207

True

Question 208

Motivators for those with High C’s (Dominant DISC trait) include:
Safety and security, steady income, job security, benefits

Answer 208

True

Question 209

Motivators for those with high Utiliarian traits (PIAV) include:
Money, prizes

Answer 209

True

Question 210

Motivators for those wit high Theoretical traits (PIAV) include:
Solving problems

Answer 210

True

Question 211

Motivators for those with high Aesthetic traits (PIAV) include:
Inner fulfillment

Answer 211

True

Question 212

Motivators for those wit high Social traits (PIAV) include:
Helping others, praise

Answer 212

True

Question 213

Motivators for those wit high Individualistic traits (PIAV) include:
Power, promotions, control

Answer 213

True

Question 214

Motivators for those wit high Traditional traits (PIAV) include:
Searching, practicing highest values in life

Answer 214

True

Question 215

Salesperson compensation has been an issued marked by trial and error to discover the right formula.

Answer 215

True

Question 216

Sales force compensation should not only meet the goals of the firm, but should also communicate to the sales force what is important.

Answer 216

True

Question 217

The ideal compensation plan motivates salespeople to achieve their own and the company’s objectives.

Answer 217

True

Question 218

It is usually easy to design pay plans that fully meet the goals and needs of the firm, customers, and salespeople.

Answer 218

False

Question 219

In designing plans one must balance the goals of the firm, as well as the needs of the sales force and customers.

Answer 219

True

Question 220

The goal of the compensation package is to reward employees for their efforts without putting the firm’s profitability in jeopardy.

Answer 220

True

Question 221

Although many customers expect after-sale service on repair parts and delivery, compensation programs based on straight salary are not likely to encourage these important follow-up activities.

Answer 221

False

Question 222

According to the Customer-Product Matrix, sales positions that focus primarily on new business development require a greater proportion of salary than incentive.

Answer 222

False

Question 223

Selling situations that require salespeople to perform special services for customers are more likely to be performed when salespeople are on salary.

Answer 223

True

Question 224

Salary programs are most appropriate when it is difficult to relate the efforts of individual salespeople to the size or timing of a sale.

Answer 224

True

Question 225

Straight salary plans often do not provide strong incentive for extra effort.

Answer 225

True

Question 226

A valid objective in creating commission-based pay programs is to devise a system that encourages salespeople to sell items that maximize profits of the firm

Answer 226

True

Question 227

Under a straight commission plan, sales managers usually have less control over their reps.

Answer 227

True

Question 228

With regard to compensation programs, most firms just use a draw against commission.

Answer 228

False

Question 229

The primary benefit of salary-plus-commission plans is they allow the compensation program to be tailored to the needs of a particular firm.

Answer 229

True

Question 230

The major drawback to salary plus commission plans is that they are more expensive and more costly to administer.

Answer 230

True

Question 231

Wage caps are used by some firms to prevent salespeople from making too much money.

Answer 231

True

Question 232

A commission plus bonus plan is particularly suited to a company that uses brokers or independent sales reps.

Answer 232

True

Question 233

Companies wanting to exert some longer term behavioral control using incentives should make sure that the incentive component is between 15 and 30 percent of total compensation.

Answer 233

True

Question 234

One of the advantages of the gross margin commission plan is the firm and salesperson share the same pool of money so both are interested in maximizing that amount.

Answer 234

True

Question 235

Travel and entertainment costs are a relatively insignificant portion of a salesperson’s compensation package.

Answer 235

False

Question 236

A per diem expense plan pays the salesperson for all reported expenses.

Answer 236

False

Question 237

The net result of setting limits on sales expenses is that salespeople spend their valuable time juggling expenses from one category to another or from one time period to another to make sure they cover their costs

Answer 237

True

Question 238

Benefit packages amount to a negligible portion of the cost of keeping a salesperson in the field.

Answer 238

False

Question 239

According to compensation surveys, ales managers typically earn less than the top reps in their district when sales reps are on an incentive-based plan.

Answer 239

True

Question 240

It is not clear that offering unlimited opportunities to earn higher pay will always be an effective method for continued salesperson motivation.

Answer 240

True

Question 241

Compensation plans, once set, do not need to be evaluated to determine if it will negatively affect salespeople’s wages and total costs.

Answer 241

False

Question 242

A major objective of a well-designed compensation package is to:

a. Provide equal pay to all employees at the same level.
b. Increase sales and revenues.
c. Provide extensive benefits.
d. Encourage a “hard sell” attitude among the sales force.
e. Micromanage salesperson behaviors.

Answer 242

A,B

Question 243

Building an effective sales force compensation plan boils down to:

a. Finding the right combination of salary and incentive pay.
b. Determining a targeted level of compensation that is competitive and fair and will encourage good sales executives to remain with your company
c. Making certain that roughly 70% of your sales force can achieve targeted levels
d. All of the above
e. None of the above

Answer 243

D

Question 244

When establishing goals for the compensation plan, a sales manager must consider:

a. Competitive compensation packages in the marketplace.
b. The needs of firm and customers.
c. Motivation considerations of the sales force (Hunters, Farmers, Administrators, Technical Sales Reps)
d. Costs of the plan.
e. All of the above.

Answer 244

A

Question 245

According to the Customer-Product Matrix, sales positions which focus primarily on New Business Development require a greater proportion of __________ in the compensation plan than those sales jobs in the lower left-hand quadrant (Account Management). Sales jobs consisting primarily of Account Management involve a greater account servicing component and are therefore better suited to a primarily __________

a. Salary, commission
b. Salary, bonus
c. Commission, salary
d. Commission, commission
e. None of the above

Answer 245

C

Question 246

As the Vice President of Sales for a new startup company, you decide to hire and train your own field sales force. You also decide to pay your salespeople with the most common type of compensation plan among companies. This pay plan is the:

a. Salary plan
b. Incentive plan
c. Combination plan (Base salary + performance based commission)
d. Straight commission
e. None of the above

Answer 246

C

Question 247

____________ is the easiest plan to administer and budget for.

a. Salary plus commission
b. Salary plus bonus
c. Straight commission
d. Straight salary
e. Salary plus commission plus bonus

Answer 247

C

Question 248

In your job analysis of the salesperson’s activities, you discover that a significant level of activity of a successful salesperson includes taking orders for inventory replenishment, equipment installation and maintenance, and shelf-management programs. Based on this analysis you know that a larger percentage of the salesperson’s pay should be _____________ as compared to ______________ for the best results.

a. Incentive, salary
b. Commission, bonus
c. Salary, commission
d. Commission, salary
e. None of the above

Answer 248

C

Question 249

Straight salary plans are not popular with salespeople because:

a. Salaries are stable
b. Salaries are predictable
c. They run the risk of having little or no income
d. They don’t provide strong incentives for extra effort
e. None of the above - straight salary plans are always popular with salespeople.

Answer 249

D

Question 250

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

a. Straight salary compensation plans are more complex to administer than straight commission compensation plans.
b. A major limitation of straight salary compensation plans is that financial rewards are not directly tied to any specific aspect of job performance.
c. Straight salary compensation is more commonly used with experienced salespeople than with newly hired sales recruits.
d. Straight salary compensation plans are most useful when sales managers want to motivate its sales force to achieve short-run sales volume increases.
e. It is inappropriate to use straight salary compensation for industries where missionary selling is commonplace.

Answer 250

B

Question 251

Straight salary compensation is typically used in industries where:

a. Missionary selling (i.e. pharmaceutical sales) is the most common type of sales process used.
b. Team selling is seldom, if ever, used.
c. Personal selling is more important to the overall marketing program than other push strategies such as advertising.
d. A great deal of selling skill is required to close sales.
e. Few, if any, trade promotions are used.

Answer 251

A

Question 252

The advantages of straight salary compensation include which of the following?

a. Salaries are a fixed cost to the firm and thus tend to decrease proportionally as sales increase.
b. It allows maximum control over salespeople’s activities.
c. It makes the division of territories an easier task.
d. It tends to generate more loyalty from salespeople.
e. All of the above

Answer 252

E

Question 253

Although quite popular, salary compensation plans have some disadvantages. For example, since the pay of salaried salespeople is not directly related to performance, some of them may not make all of their calls or give the firm “a full day’s work for a day’s pay.” Nevertheless, salary compensation plans are appropriate in a number of situations. Which of the following is/are most likely to be among them?

a. Salespeople selling complex aerospace products to the airlines
b. Missionary sales people for pharmaceutical companies
c. Wholesale salespeople selling building materials
d. All of the above
e. Both a and b of the above

Answer 253

E

Question 254

You are the sales manager of a large, multi-product company. Your national sales force is divided into eight regions, though the Mid-Atlantic region is currently understaffed (sales volume there has always been low). Your salespeople are paid on commission. The economy has entered a period of recession, and even the Administration’s economists predict that it will remain so for at least three more quarters. In order to “weather the storm,” the best course of action among those presented below is to:

a. Withdraw from the Mid-Atlantic region in order to reduce fixed costs.
b. Shift from commission to salary in all regions in order to cut expenses.
c. Raise commission rates on higher margin products in all regions in order to boost sales.
d. All of the above
e. None of the above

Answer 254

C

Question 255

A straight commission is a(an):

a. Fixed cost
b. Variable cost
c. Semi-fixed cost
d. Intermediate cost
e. Material cost

Answer 255

B

Question 256

__________ tends to help give the sales force the needed push to sell complex products or services and can be used to redirect salesperson efforts toward specific product lines; under this plan administrative costs tend to be high.

a. Straight commission
b. Straight salary
c. Salary plus commission
d. Salary plus commission plus bonus
e. None of the above

Answer 256

D

Question 257

As a sales manager, you liked the advantages that salary plus bonus plans offer yet you were very concerned about some of the following serious problems associated with it:

a. The size of individual payments are set arbitrarily.
b. Bonus payments are too small to have any impact on the activities of salespeople.
c. Payments are received so long after goals are achieved they provide little incentive.
d. Both a and c of the above.
e. All of the above

Answer 257

D

Question 258

You have decided to change your commission structure to enhance market penetration. You now require the sales force to sell $35,000 worth of product each month to make a commission. Those who sell below $35,000 will not receive commissions. This $35,000 level is called:

a. Commission threshold
b. Wage cap
c. Progressive incentive plan.
d. Fringe benefit stage.
e. None of the above

Answer 258

A

Question 259

Your customer’s buying cycle is approximately 2 years and your reps need to invest significant amounts of time understanding their customers. Your ultimate goal is to control selling expense and provide extra rewards for added results. Based on this information, which salesperson compensation plan would work best?

a. Salary only
b. Salary plus monthly commission
c. Salary plus year-end bonus
d. Commission only
e. Commission plus bonus

Answer 259

C

Question 260

The compensation plan in which virtually every type of sales activity is rewarded, is called a:

a. Progressive incentive rate plan.
b. Salary plus commission plus bonus plan.
c. Straight commission.
d. Fringe benefit plan
e. None of the above

Answer 260

B

Question 261

Your boss thinks you should implement a salary plus commission plan with an incentive ceiling. You have a meeting with her to outline the drawback(s) of this type of plan. Among the drawback(s) you will discuss include:

a. More complicated to explain to salespeople.
b. More costly to administer.
c. Sales managers lose control in direct proportion to the amount of commissions paid.
d. If an incentive ceiling is put in place, it could dampen some salespeople’s motivation.
e. All of the above

Answer 261

E

Question 262

You have read a “want ad” in the latest edition of Marketing News. The firm is looking for a Vice President for sales and promotion. The company uses a combination of brokers and independent sales reps. What kind of a compensation program would they most likely to use for their salespeople?

a. Straight salary
b. Straight commission
c. Salary plus bonus
d. Commission plus bonus
e. Salary plus commission plus bonus

Answer 262

D

Question 263

When more than one individual works together to make a sale, the selling process is described as:

a. Networked commissions
b. Grouped commissions
c. Team selling
d. Cross-functional selling
e. None of the above

Answer 263

C

Question 264

Which of the following plans allows the salesperson and company to share the same pool of money so that both are interested in maximizing the pool?

a. Combination plans
b. Gross margin contributions
c. Group bonus plans
d. Expense accounts
e. Social security plans

Answer 264

B

Question 265

You have just been promoted to the position of sales manager. One of your first tasks is to evaluate the level of compensation for your sales force. Which, if any, of the following sources available will help you in your task?

a. Conference Board reports on pay levels
b. Trade association reports on pay levels
c. Darnell Corporation reports on pay levels
d. Salary.com
e. All of the above

Answer 265

E

Question 266

Which of the following accurately describe per diem expense plans?

a. A floating rate of reimbursement is used depending on the situation.
b. Expenses come from commissions
c. A fixed dollar amount is paid for each day or week in the field.
d. A ceiling amount is set for payment in all circumstances.
e. None of the above

Answer 266

C

Question 267

According to your text, which benefit is offered by the greatest percentage of companies?

a. Medical
b. Dental
c. Pension plan
d. Profit sharing
e. Educational assistance

Answer 267

A

Question 268

You were given the mandate by your boss to change the compensation plan so that the total salesperson compensation (salary plus commission) is lowered. You think you have finally selected a compensation method and wage level that meets your boss’s requirements. According to your text, what would you do next?

a. Implement the plan immediately because it fits the requirement of lowering overall salesperson compensation.
b. Get salesperson feedback about your ideas
c. Check to see how the salespeople would fare under the new plan by using sales figures from the previous year and calculating expecting compensation.
d. Make sure that the accounting department can implement the new plan.
e. Tell the salespeople that they have been overpaid and now you are bringing them back to reality.

Answer 268

C

Question 269

Ed Cain is the 2nd highest revenue producer on the team , but his Gross Margins are almost the same as those of Angelica, who sales are $40k less than Ed’s. Why is this?

a. Angelica s selling those products and services that have the highest margins.
b. Ed is winnig new and retaining old customers by discounting his prices.
c. Ed is being commissioned based on gross revenues, not on gross margin.
d. a, b and c of the above
e. none of the above

Answer 269

D

Question 270

The first step in designing a sales force evaluation model is to set goals and objectives for the sales force.

Answer 270

True

Question 271

Evaluation is essentially a comparison of sales force goals and objectives with actual achievements in the field.

Answer 271

True

Question 272

The most common objectives are the attainment of specific revenues, contribution profits, market shares, and expense levels.

Answer 272

True

Question 273

A sales force evaluation model does not include taking corrective action.

Answer 273

False

Question 274

Once performance standards are set, the next step is to create key indicators of key success variables.

Answer 274

True

Question 275

Industry sales figures and standards are useful when evaluating sales by product lines.

Answer 275

True

Question 276

In analyzing sales figures to evaluate performance, unit sales are useful when inflation, deflation, and other price changes distort dollar figures.

Answer 276

True

Question 277

Another way to identify problem areas from performance data is to look at sales by product line.

Answer 277

True

Question 278

National advertising and production costs are typically directly controlled by sales managers.

Answer 278

False

Question 279

The 80-20 principle suggests that marketing efforts should be concentrated on a majority of customers.

Answer 279

False

Question 280

When 20 percent of the sales come from 80 percent of the buyers, sales managers should suspect that they are losing money serving small accounts.

Answer 280

True

Question 281

Both controllable and uncontrollable costs are figures that are directly relevant to field sales managers.

Answer 281

False

Question 282

Another analysis that is particularly useful to sales managers is to break sales down by customer.

Answer 282

True

Question 283

Cost-of-goods-sold figures should not be used in a sales analysis because sales managers have no control of them.

Answer 283

False

Question 284

Behavioral measures of performance are usually more effective for salaried work forces.

Answer 284

True

Question 285

Outcome evaluation systems are recommended in industries where the salesperson has a substantial influence on the results.

Answer 285

True

Question 286

Detailed call reports allow sales managers to set activity objectives for individual salespeople and then measure results.

Answer 286

True

Question 287

A call report that shows the relationship between some predetermined plan and actual performance is an example of Management by Objectives.

Answer 287

True

Question 288

The primary disadvantage of MBO systems is that considerable time is required to fill out the necessary call reports.

Answer 288

True

Question 289

The development of Behavioral Observation Scales (BOS) requires specific job dimensions and critical incidents for each level and type of sales job.

Answer 289

True

Question 290

One can look at sales results by breaking them out by territories.

Answer 290

True

Question 291

Although a sales analysis provides managers with useful data, it does not reveal the effects of price-cutting or the differences in selling costs, potential, and saturation that exist across products or territories.

Answer 291

True

Question 292

Once sales managers have reliable measures of sales potential, the next step is to convert these numbers into planned sales figures for each territory.

Answer 292

True

Question 293

One problem with using sales results exclusively to evaluate salespeople is that they do not adequately measure conditions faced by salespeople in the field.

Answer 293

True

Question 294

Contribution margin minus selling costs equals variable cost.

Answer 294

False

Question 295

Analyzing a territory’s contribution margin is an example of a profit-based evaluation.

Answer 295

True

Question 296

The gross margin percentage achieved by salespeople shows a salesperson’s ability to increase revenue.

Answer 296

False

Question 297

Aggregate performance measures include sales, days worked, calls, orders, and expenses.

Answer 297

True

Question 298

The data used in ranking procedures can be used to provide a relative and an overall measure of salesperson efficiency.

Answer 298

True

Question 299

You were asked to develop a sales force evaluation system by your boss. The first step in this process is:

a. Decide how the goals will be achieved.
b. Set performance standards for different levels of salespeople.
c. Set performance standards for individual products.
d. Decide what you want the sales force to accomplish.
e. Look at the differences between performance standards and hypothetical results from future sales.

Answer 299

D

Question 300

Each of the following is a part of the sales force evaluation model except:

a. Setting goals and objectives.
b. Designing sales plans.
c. Measuring results against standards.
d. Evaluating corrective actions.
e. Create indices of key success variables

Answer 300

D

Question 301

Sales performance evaluation is essentially a comparison of:

a. Sales force goals and objectives to actual achievements in the field.
b. Sales force goals to actual objectives in the field.
c. Sales force goals and objectives to anticipated achievements in the field.
d. Sales force goals and objectives to past achievements in the field.
e. Sales force goals to past objectives in the field.

Answer 301

A

Question 302

Which of the following is generally not a useful task performed by the sales manager or someone in the sales department.

a. Sales performance analysis.
b. Cost and profit analysis of sales calls.
c. Behavioral control analysis (BCA).
d. An analysis of controllable expenses.
e. None of the above (all are useful).

Answer 302

E

Question 303

What can cause a company’s market share to decrease when its sales are increasing?

a. Product deficiencies relative to the competition in terms of performance or reliability
b. Sales force may not be calling on the right prospects
c. Aggressive selling by competitors
d. Not enough salespeople or sales offices
e. All of the above

Answer 303

E

Question 304

The concept that sales figures reveal just a small fraction of the larger problem is best known as:

a. Micro theory.
b. “Blinder” principle.
c. 80 - 20 rule.
d. Experience principle.
e. Iceberg principle

Answer 304

E

Question 305

The idea that marketing efforts should be concentrated on few of the biggest customers and the best products is best known as:

a. The oligarchy principle.
b. The oligopoly principle.
c. The 20-20 principle.
d. The 80-20 principle.
e. The Westinghouse principle.

Answer 305

D

Question 306

ABC Corp. operates in an industry where prices for their products are rapidly falling due to aggressive discounting. One strategy to compare results from last year to this year is to analyze:

a. Sales in terms of units.
b. Sales by territory.
c. Growth in number of distributors.
d. Expense ratios.
e. None of the above would help in the analysis.

Answer 306

A

Question 307

As a sales manager, you will be expected to respond quickly and correctly to problems and opportunities as they arise. Let’s assume that you’ve recently been hired by such a company and that your analyses reveal the firm to be suffering from the “80-20” problem. Which of the following is/are not an acceptable response on your part?

a. Switch the large-volume accounts to the Internet.
b. Give the small accounts to independent distributors
c. Provide extra service to the large accounts.
d. Shift low-volume accounts to a telephone reorder system.
e. None of the above (all are acceptable)

Answer 307

A

Question 308

Controllable costs often interest sales managers most because:

a. They are convenient due to their fixed nature.
b. They are the only costs that can be calculated.
c. They are the only costs that a sales manager can influence.
d. They always account for the most costs.
e. All of the above.

Answer 308

C

Question 309

An example of controllable costs would be:

a. Overhead and depreciation.
b. Wages and depreciation.
c. Wages and travel.
d. Travel and depreciation.
e. Travel and overhead.

Answer 309

C

Question 310

All of the following are popular ways of evaluating sales results, as discussed in the text, except

a. Checking total sales revenues.
b. Sales by territories.
c. Sales by products.
d. Sales by customer type.
e. All of the above are popular ways of evaluating sales results.

Answer 310

E

Question 311

Sales force evaluations are important to a sales manager because they provide:

a. Evidence for disciplinary action.
b. Opportunities to motivate salespeople
c. Determine raises.
d. Determine adjustments to territories.
e. All of the above.

Answer 311

E

Question 312

Behavioral based control systems are primarily concerned with:

a. Minimizing expenses.
b. Increasing sales volume.
c. Controlling profit margins.
d. Tracking steps in the selling process.
e. None of the above.

Answer 312

D

Question 313

Focusing on the different types of activities carried out by field representatives is an inherent part of:

a. Behavioral control systems.
b. Outcome control systems.
c. Output management.
d. Territorial management.
e. Portfolio management.

Answer 313

A

Question 314

If you, the sales manager, were given the task of implementing a method of keeping track of field representative activities, which of the following would be best course of action? “I would institute…”

a. Quotas
b. Daily call reports
c. Spot checks
d. Management by Objectives
e. Online customer buying capabilities.

Answer 314

B

Question 315

You are the sales manager of a large company that produces and distributes fresh baked bread to grocery stores. You have a sales staff of 83 field reps. Which of the following methods would be best suited to maximize your information gathering process?

a. Review of the expense accounts (gasoline receipts and so forth) submitted by your field reps.
b. Initiate a system of daily call reports.
c. Use the bakery department records to monitor the sampling activities of the sales force.
d. Periodically travel with the field reps.
e. Capital market structure.

Answer 315

B

Question 316

Which of the following is/are possible reasons why a manager may institute behavior based control procedures?

a. It leads to more knowledgeable and skilled salespeople.
b. It encourages and assists salespeople to achieve company goals.
c. It greatly reduces the amount of time salespeople are expected to spend planning their calls and on sales support activities.
d. a and b of the above
e. All of the above

Answer 316

D

Question 317

“MBO” stands for:

a. Manager of operations.
b. Manager of business objectives.
c. Management by objectives.
d. Management by opinions.
e. None of the above.

Answer 317

C

Question 318

With this method, salespeople and sales managers jointly set personal development targets for the subordinate to be completed within a specific time period. This method is called:

a. TOM
b. BOS
c. MBO
d. MIS
e. QED

Answer 318

C

Question 319

The biggest drawback to MBO programs is that:

a. They require a lot of sales manager’s time.
b. There is little understanding of how to implement the program.
c. There is little agreement on which managers should be included in the evaluation process.
d. Most goals do not lend themselves to quantitative measurement.
e. All of the above

Answer 319

A

Question 320

Net sales revenue minus variable cost equals:

a. Variable cost.
b. Contribution margin.
c. Direct selling costs.
d. Contribution profit.
e. Income after tax.

Answer 320

B

Question 321

Contribution margins are usually expressed as:

a. Percent of sales
b. Percent of company profit
c. Percent of controllable expenses
d. Percent of indirect expenses
e. all of the above

Answer 321

A

Question 322

Which of the following equations is correct? $ Sales =

a. (# days employed) x (# calls per day worked) x (# orders per sale) x ($ sales per order)
b. (# days worked) x (# calls per day worked) x (# orders per call x ($ sales per order)
c. (# days employed) x (# calls per day worked) x (# orders per call) x ($ sales per order)
d. (# days worked) x (# calls per order) x (# orders per call x ($ sales per order)
e. None of the above

Answer 322

B

Question 323

The four-factor model for sales force evaluation indicates that sales cannot be increased by:

a. Making more calls per day.
b. Closing more customers.
c. Increasing the size of the average order.
d. By working fewer days.
e. Increasing one’s “batting average” (orders per calls).

Answer 323

D

Question 324

Although ranking procedures are an effective efficiency measurement tool, they:

a. Do not measure input and output factors simultaneously.
b. Do not allow comparison of individual salespeople.
c. Assume that all ranking criteria are of equal importance.
d. allow sales volume to rank higher than batting average.
e. None of the above.

Answer 324

C

Question 325

The advantage a performance matrix is:

a. Its ability to explain the activities of sales representatives.
b. Its ability to clarify accomplishments of the sales force on one clear-cut dimension.
c. It directs the sales manager to which performance measures are most appropriate for the review process.
d. a and c of the above.
e. b and c of the above.

Answer 325

A

Question 326

Performance matrices can provide a useful way to review behavior and results achieved by salespeople, but:

a. The matrices are difficult to construct.
b. The matrices can only illustrate one dimension at a time.
c. The matrices are not easily read and understood.
d. The matrices cannot be used to make career path recommendations.
e. None of the above.

Answer 326

E

Question 327

In sales analysis the iceberg principle means:

a. You cannot evaluate most of your sales until the sale is closed.
b. Another name for the 80-20 principle.
c. Sales figures reveal only a little of the story.
d. You are competing in tough territories where evaluation may be inappropriate.
e. Daily call reports are not going to be very reliable.

Answer 327

C