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Multiple Choice Quiz
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1
When determining which types of incentives to offer the sales force, a sales manager's two basic choices are:
A)Benefits or costs.
B)Commissions or bonuses.
C)Benefits or bonuses.
D)Commissions or quotas.
2
Sales commissions are usually based on:
A)Draws; Expense account allowances
B)Quotas or contests.
C)dollar amount or sales volume.
D)Sales volume and profit margins.
3
____________ can be used to meet salespeople's security needs, while _____________ can be used to stimulate additional effort targeted at short-term objectives.
A)Salary; commissions.
B)Bonuses; benefits.
C)Benefits; contests.
D)Contests; commissions.
4
When developing a __________________, a sales manager's goal is create a system that pays for performance.
A)Cost-containment system.
B)Compensation plan.
C)CRM
D)Benefits plan
5
In combination sales compensation plans, as the relationship selling requirements decrease, the incentive pay portion of the plan should ______________
A)Increase.
B)Remain constant in.
C)Reduce.
D)Have no impact on.
6
_____________ are designed to motivate sales reps to accomplish specific sales objectives.
A)Salaries.
B)Nonfinancial incentives.
C)Increased benefits.
D)Contests.
7
Sales contests that provide rewards to everyone who meets his or her quota are desirable because they:
A)Can reward many salespeople.
B)Allow salespeople to compete against each other.
C)Reduce the selling cost.
D)All of the above.
8
Which of the following expense reimbursement plans typically accompanies straight commission compensation plans?
A)Indirect reimbursement.
B)Direct reimbursement.
C)Limited reimbursement.
D)No reimbursement.
9
Sales rewards tied to numerous aspects of performance:
A)Can lead to confusion among the sales force.
B)Provide incentives for salespeople to do everything right.
C)Allow managers to target salespeople's efforts.
D)Can be used to improve the focused attention to detail needed for success.
10
Sales managers are reluctant to base rewards on customer satisfaction because they worry about:
A)Disincentives it might provide to short-tem sales goals.
B)Regulatory oversight of non-quantitative systems of rewards.
C)Possibility it might lead to increased relationship selling rather than transactional selling.
D)Customer's reaction if they hear rewards are based on satisfying them.







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