Test Bank For Sales Management Analysis and Decision Making 11th Edition By Thomas N. Ingram, Raymon

Test Bank For Sales Management Analysis and Decision Making 11e By Thomas N. Ingram, Raymond W. LaForge, Ramon A. Avila, Charles H. Schwepker Jr, Michael R. Williams Chapter 2-10 CHAPTER 2—OVERVIEW OF PERSONAL SELLING MULTIPLE CHOICE 1. All of the following are types of personal selling jobs EXCEPT a. order-getters. b. order-takers. c. missionary salespeople. d. complementary salespeople. e. merchandisers.

ANS: D

REF: pg. 17

2. Salespeople who focus on gaining new customers are sometimes referred to as a. hunters. b. farmers. c. missionary salespeople. d. detailers. e. merchandisers.

ANS: A

REF: pg. 17

3. Salespeople who focus on gaining new customers are sometimes referred to as a. order-takers b. missionary salespeople c. detailers d. merchandisers e. pioneers ANS: E

REF: pg. 17

4. Salespeople who focus on gaining new customers are sometimes referred to as a. farmers b. order-takers c. missionary salespeople d. order-getters e. merchandisers ANS: D

REF: pg. 17

5. New customers may be turned over to account-servicing salespeople referred to as a. order-getters. b. order-takers. c. pioneers. d. hunters. e. tacticians.

ANS: B

REF: pg. 17

6. New customers may be turned over to account servicing salespeople referred to as a. hunters b. merchandisers c. missionary salespeople d. pioneers e. farmers ANS: E

REF: pg. 17

7. The generation of new business for the selling firm is associated with which type of salespeople? a. Order-takers and cold canvassers b. Order-getters and order-takers c. Pioneers and franchisers d. Order-getters and pioneers e. Missionaries and detail salespeople ANS: D

REF: pg. 17

8. In this selling position, the salesperson, sometimes referred to as a pioneer, is responsible for a. deciding which new territories to enter. b. handling existing customer accounts. c. answering routine customer inquiries. d. discovering which products should be dropped. e. adding new customers.

ANS: E

REF: pg. 17

9. The generation of new business for the selling firm is associated with which type of salespeople? a. Order-takers and cold canvassers b. Order-getters and order takers c. Pioneers and franchisers d. Order getters and pioneers e. Missionaries and detail salespeople ANS: D

REF: pg.17

10. A (n) __________ is a salesperson who provides physicians, nurses, and other medical professionals with pertinent information about drugs to support the overall sales effort. a. hunter b. pioneer c. order-taker d. detailer e. merchandiser ANS: D

REF: pg. 17

11. __________ are salespeople who support the sales effort by providing information and performing other supplemental services. a. Hunters b. Pioneers c. Order-takers d. Order-getters e. Missionary salespeople

ANS: E

REF: pg. 17

12. A (n) __________ is a salesperson who supports the overall sales effort by “spreading the gospel” at the grassroots level. a. hunter b. pioneer c. order-taker d. missionary salesperson e. merchandiser ANS: D

REF: pg. 17

13. ________ support the sales effort by setting up point-of-purchase displays, rotating stock, and keeping store personnel informed about new products and sales promotions. a. order-getters. b. order-takers. c. missionary salespeople. d. complementary salespeople. e. merchandisers.

ANS: E

REF: pg. 17

14. Which of the following is not one of the four key roles expected of salespeople? a. Financial contributor b. Change agent c. Product agent d. Communications agent e. Customer value agent ANS: C

REF: pg. 18

15. As _____________, salespeople assume a key role in revenue production for their firms. a. financial contributors b. product managers c. change agents d. communications agents e. customer value agents ANS: A

REF: pg. 18

16. As _____________, salespeople stimulate sales cycles and help customers reach buying decisions as soon as reasonably possible. a. financial contributors b. economic agents c. change agents d. communications agents e. customer value agents ANS: C

REF: pg. 18

17. In their role as a communications agent, salespeople do all of the following EXCEPT a. serve as a communications link between customers and their employers. b. provide product and marketplace information to customers. c. report back to their company on competitive activity. d. report back to their company on buyer preferences and ideas for new products.

e. stimulate sales cycles and help customers reach buying decisions.

ANS: E

REF: pg. 18

18. Which of the following best describes what salespeople do in their role as a customer value agent? a. serve as a communications link between customers and their employers. b. provide product and marketplace information to customers. c. report back to their company on competitive activity. d. help create, communicate, deliver, and continually increase customer value. e. stimulate sales cycles and help customers reach buying decisions.

ANS: D

REF: pg. 18

19. Salespeople can add to or detract from customer value depending on criteria such as a. customer and market knowledge. b. efficiency. c. strategic alignment. d. trustworthiness. e. all of the above.

ANS: E

REF: pg. 18

20. Which of the following is not true regarding transactional selling? a. Salespeople focus on maximizing the outcomes of individual transactions. b. Salespeople focus on developing long-term relationships. c. Salespeople have little regard for the customer’s unique needs or priorities. d. Salespeople are typically not very engaged in the service aspects that follow the sale. e. Salespeople try to make a sale on every call.

ANS: B

REF: pg. 19

21. Which of the following is not one of the characteristics of trust-based relationship selling? a. Seeks to maximize outcomes of individual transactions. b. Focuses on customer needs. c. Seeks to earn customer trust. d. Relies on questioning and listening to establish dialogue with customers. e. Involves two-way collaborative communication between buyers and sellers.

ANS: A

REF: pg. 19

22. Which of these is not one of the steps in the sales process outlined in the textbook? a. Locating qualified prospects. b. Making an appointment to visit a prospect. c. Preparing a sales presentation. d. Checking with management to approve a new customer. e. Completing the sale.

ANS: D

REF: pg. 20

23. According to the trust-based relationship selling process framework, “enhancing customer commitment” is a part of which component of the framework? a. Selling foundations b. Selling strategy based on customer needs and value c. Initiating customer relationships d. Developing customer relationships

e. Enhancing customer relationships ANS: D

REF: pg. 20

24. According to the trust-based relationship selling process framework, “discovering prospect’s needs” is a part of which component of the framework? a. Selling foundations b. Selling strategy based on customer needs and value c. Initiating customer relationships d. Developing customer relationships e. Enhancing customer relationships ANS: C

REF: pg. 20

25. According to the trust-based relationship selling process framework, “assessing value and relationship performance ” is a part of which component of the framework? a. Selling foundations b. Selling strategy based on customer needs and value c. Initiating customer relationships d. Developing customer relationships e. Enhancing customer relationships ANS: E

REF: pg. 20

26. According to the trust-based relationship selling process framework, “activating the buying process ” is a part of which component of the framework? a. Selling foundations b. Selling strategy based on customer needs and value c. Initiating customer relationships d. Developing customer relationships e. Enhancing customer relationships ANS: C

REF: pg. 20

27. All of the following were mentioned in the text as skills important in the sales process EXCEPT a. listening. b. writing. c. questioning. d. sales dialogue. e. sales presentation.

ANS: B

REF: pg. 20

28. Which of the following is not one of the steps of the ADAPT questioning methodology? a. Assess the buyer’s situation. b. Discover the buyer’s needs. c. Activate the buying process. d. Project the impact of solving a problem or realizing an opportunity. e. Transition to the close.

ANS: E

REF: pg. 20

29. Key presentation skills include all of the following EXCEPT a. explaining the features and benefits of the product. b. demonstrating the product. c. producing additional information to reinforce claims made.

d. using audiovisual sales aides. e. coordinating activities within the selling firm to deliver value to the customer.

ANS: E

REF: pg. 21

30. Which of the following is not considered a common sales dialogue? a. Assessing the prospective customer’s situation and buying processes. b. Speaking with competitors about potential customers. c. Confirming the prospective customer’s strategic priorities. d. Negotiating an agreement to do business. e. Building customer value by providing additional opportunities.

ANS: B

REF: pg. 21

31. Which of the following is considered a common sales dialogue? a. Assessing the prospective customer’s situation and buying processes. b. Building customer value by providing additional opportunities. c. Confirming the prospective customer’s strategic priorities. d. Negotiating an agreement to do business. e. All of the above are common sales dialogue?

ANS: E

REF: pg. 21

32. Salespeople who are customer oriented, honest, dependable, competent, and compatible are in a good position to establish a. rapport. b. trust. c. commitment. d. customer feedback. e. source credibility.

ANS: B

REF: pg. 21

33. To be successful at trust building, research indicates that salespeople should demonstrate all of the following characteristics EXCEPT a. salesperson orientation. b. competence. c. dependability. d. honesty. e. compatibility.

ANS: A

REF: pg. 21

34. According to H.R. Chally findings, customers appreciate salespeople who a. are personally accountable for the customer’s desired results. b. understand the customer’s business. c. will be a business consultant who thinks beyond the current transaction. d. will solve customer problems. e. do all of the above.

ANS: E

REF: pg. 21

35. ____________ involves doing what you say you will do. a. Competence b. Dependability c. Candor

d. Customer comparability e. Customer orientation ANS: B

REF: pg. 22

36. Which of the following is not one of the personal selling approaches outlined in the text? a. Stimulus-response b. Needs satisfaction c. Contingency selling d. Mental states e. Problem-solving ANS: C

REF: pg. 23

37. According to the text, when salespeople alter their sales messages and behavior during a sales presentation or as they encounter unique sales situations and customers they are using a. value based selling. b. response selling. c. contingency selling. d. situational selling. e. adaptive selling.

ANS: E

REF: pg. 23

38. Which of the five personal selling approaches is the least flexible and least focused on the buyer’s unique needs? a. Stimulus response b. Need satisfaction c. Contingency selling d. Mental states e. Problem solving ANS: A

REF: pg. 24

39. ____________ is a method in which salespeople furnish the stimuli (words and actions) to produce the desired response (a customer purchase). a. Stimulus response selling b. Mental states selling c. Need satisfaction selling d. Problem solving selling e. Continued acclamation ANS: A

REF: pg. 24

40. The mental states approach to personal selling assumes that buyers must be led through four mental states, which occur in this order: a. interest, attention, desire, action. b. attention, desire, interest, action. c. curiosity, interest, conviction, purchase. d. attention, interest, desire, action. e. listening, considering, aspiring, deciding.

ANS: D

REF: pg. 24

41. Which of the following statements pertaining to the stimulus response form of personal selling is true?

a. The buyer takes a dominant role in the sales dialogue. b. The stimulus-response sales strategy cannot be used with a canned sales presentation. c. The stimulus-response sales strategy must be conducted in person because of the necessity for visual aids. d. Key selling points can be sequenced in a logical order and likely questions and objections can be addressed before they are voiced by the buyer. e. The stimulus-response sales strategy has the advantage of flexibility.

ANS: D

REF: pg. 24

42. ___________________ is essentially a sequential approach to selling in which the salesperson leads the customer through stages in the buying process. a. Stimulus response selling b. Mental states selling c. Need satisfaction selling d. Problem solving selling e. Consultancy selling ANS: B

REF: pg. 24

43. All of the following regarding the mental states approach to personal selling are TRUE except a. It is largely a one-way presentation with the salesperson doing most of the talking. b. It requires that salespeople listen carefully to the customer to determine what stage they are in. c. Tailoring of the presentation is based on mental states rather than customer needs. d. It is customer oriented. e. It may be difficult to determine in which stage a customer resides.

ANS: D

REF: pg. 24

44. All of the following are negative aspects of the mental states approach to personal selling EXCEPT a. It is largely a one-way presentation with the salesperson doing most of the talking. b. It requires that salespeople listen carefully to the customer to determine what stage they are in. c. Tailoring of the presentation is based on mental states rather than customer needs. d. It is not customer oriented. e. It may be difficult to determine in which stage a customer resides.

ANS: B

REF: pg. 24

45. Need satisfaction personal selling is based on the notion that a. customers need to be told what they want. b. the customer needs to know what products the firm offers. c. salespeople should be friendly because customers need to feel that they are appreciated. d. customers will be motivated to buy to satisfy particular needs. e. customers have only one need at a time and it must be met before the salesperson can interest them in any other product.

ANS: D

REF: pg. 25

46. All of the following statements accurately reflect factors that pertain to need satisfaction selling except a. this method focuses on the salesperson and how to effectively make a sales presentation. b. the salesperson utilizes questioning, probing tactics to uncover important buyer needs. c. the salesperson waits until relevant needs have been established before discussing product offerings.

d. the customer dominates the early portion of the sales interaction. e. it is the salesperson's duty to identify the need to be met and then help the buyer in meeting that need.

ANS: A

REF: pg. 25

47. The problem-solving view of personal selling is an extension of a. need satisfaction selling. b. stimulus response selling. c. contingency selling. d. mental states selling. e. consultative selling.

ANS: A

REF: pg. 25

48. Which one of the following is not a stage in the SPIN selling technique? a. Investigate the customer’s situation. b. Determine the customer’s problem. c. Discuss implications of the problem if it is left unattended. d. Show how the salesperson’s offering can solve the problem. e. Follow up the sale with additional product offerings.

ANS: E

REF: pg. 25

49. __________________is the process of helping customers reach their strategic goals by using the products, services, and expertise of the sales organization. a. Need satisfaction selling b. Stimulus response selling c. Contingency selling d. Mental states selling e. Consultative selling ANS: E

REF: pg. 26

50. Which of the following personal selling approaches focuses most on the buyer’s needs and strategic priorities? a. Stimulus response b. Need satisfaction c. Mental states d. Consultative selling e. Problem solving ANS: D

REF: pg. 26

51. Which of the five personal selling approaches involves the highest level of adaptive selling? a. Stimulus response b. Need satisfaction c. Consultative selling d. Mental states e. Problem solving ANS: C

REF: pg. 26

52. Which one of the following is not true regarding consultative selling? a. It requires the salesperson be an expert on the customer’s business, competitors, and market developments.

b. It is appropriate for all sales situations. c. It focuses on achieving strategic goals of customers. d. It often requires that the salesperson be a coordinator, arranging for others in the selling company to play a role in the sales process. e. It requires a commitment to being partners with customers over a long time horizon rather than being focused on making short-term sales.

ANS: B

REF: pg. 26

53. Salespeople must be a. capable of working in an increasingly complex business environment. b. strong collaborators, both within their organizations and with their customers. c. accountable for their actions and results from an ethical and fiscal responsibility point of view. d. all of the above. e. only answers "a" and "b".

ANS: D

REF: pg. 27

54. Which of the following are characteristics of sales professionalism? a. It requires a customer orientation. b. It involves the use of truthful, non-manipulative sales strategies. c. It requires that salespeople work from a dynamic, ever-changing knowledge base. d. It focuses on satisfying the long-term needs of customers and the selling firm. e. All of the above are characteristics of sales professionalism.

ANS: E

REF: pg. 27

55. To improve collaboration between sales and marketing, the two parties should agree on critical customer issues such as a. identification of customer segments and the related needs. b. buying motives. c. purchasing processes. d. relevant value dimensions with customer segments. e. all of the above.

ANS: E

REF: pg. 27

56. Recruiting and developing salespeople who understand diverse cultures, languages, and business practices is a salesforce response to which of the following issues? a. Complexity issues b. Adaptability issues c. Collaboration issues d. Commitment issues e. Accountability issues ANS: A

REF: pg. 29

57. Increasing customer diversity and globalization is a (an) a. complexity issue. b. adaptability issue. c. collaboration issue. d. commitment issue. e. accountability issue.

ANS: A

REF: pg. 29

58. Implementing cross-functional programs to foster communication and cooperation is a salesforce response to which of the following issues? a. Complexity issues b. Adaptability issues c. Collaboration issues d. Commitment issues e. Accountability issues ANS: C

REF: pg. 29

59. Ensuring that salespeople know the ethical and legal framework for their markets, including cultural and global market variations, is a salesforce response to which of the following issues? a. Complexity issues b. Adaptability issues c. Collaboration issues d. Commitment issues e. Accountability issues ANS: E

REF: pg. 29

60. Increasing the efficiency and effectiveness of sales operations is a (an) a. complexity issue. b. accountability issue. c. adaptability issue. d. collaboration issue. e. commitment issue.

ANS: B

REF: pg. 29

61. Need for more customer-oriented selling is a (an) a. complexity issue. b. adaptability issue. c. collaboration issue. d. commitment issue. e. accountability issue.

ANS: C

REF: pg. 29

62. Salespeople are typically accountable for all of the following except a. meeting production deadlines. b. generating sales revenue. c. controlling sales costs. d. careful travel planning. e. ethical selling.

ANS: A

REF: pg. 30

63. All of the following are characteristics of personal selling except a. the pay is good. b. salespeople work independently. c. sales positions offer little job variety. d. selling helps prepare individuals for management positions. e. salespeople get immediate feedback in terms of job performance.

ANS: C

REF: pg. 30

TRUE/FALSE 1. Personal selling involves interpersonal communications between buyers and sellers to initiate, develop, and enhance customer relationships.

ANS: T

REF: pg. 16

2. In the best sales organizations, salespeople earn the trust of their customers and utilize selling strategies that satisfy customer needs.

ANS: T

REF: pg. 16

3. Consumer goods companies typically do not employ professional salespeople.

ANS: F

REF: pg. 16

4. Salespeople who focus on gaining new customers are sometimes referred to as farmers.

ANS: F

REF: pg.17

5. A pioneer's task involves adding new customers.

ANS: T

REF: pg. 17

6. Salespeople who focus on gaining new customers are sometimes referred to as pioneers.

ANS: T

REF: pg. 17

7. Salespeople working with existing customers are referred to as order-getters.

ANS: F

REF: pg. 17

8. Order-takers are actively involved in adding new customers.

ANS: F

REF: pg. 17

9. Sales-support personnel are generally involved in the direct solicitation of purchase orders.

ANS: F

REF: pg. 17

10. The expectations of salespeople can be viewed as achieving four key roles: management contributor, change agent, communications agent and customer value agent.

ANS: F

REF: pg. 17

11. Salesperson compensation is often tied to the achievement of quotas.

ANS: T

REF: pg. 18

12. In their change agent role, salespeople are heavily involved in the diffusion of innovation.

ANS: T

REF: pg. 18

13. As product agents, salespeople help to create, communicate, deliver and continually increase customer value.

ANS: F

REF: pg. 18

14. As a communications agent, salespeople provide valuable information back to the company.

ANS: T

REF: pg. 18

15. As customer value agents, salespeople stimulate sales cycles and help customers reach buying decisions as soon as reasonably possible.

ANS: F

REF: pg. 18

16. Customer value is essentially defined as the customer’s perception of what they receive in exchange for what they give up.

ANS: T

REF: pg. 18

17. As a customer value agent, salespeople help create, communicate, deliver, and continually increase customer value.

ANS: T

REF: pg. 18

18. Salespeople can add to or detract from customer value depending on criteria such as efficiency.

ANS: T

REF: pg. 18

19. Salespeople can add to or detract from customer value depending on criteria such as efficiency and trustworthiness.

ANS: T

REF: pg. 18

20. The sales process has generally been conceptualized as a series of interrelated steps that start with locating prospective customers, referred to as qualified prospects.

ANS: T

REF: pg. 19

21. With transactional selling, salespeople focus on long-term relationships with customers rather than maximizing the outcomes of individual transactions.

ANS: F

REF: pg. 19

22. Transactional selling focuses more on one-way sales presentations.

ANS: T

REF: pg. 19

23. Transactional selling focuses on maximizing the outcomes of individual transactions.

ANS: T

REF: pg. 19

24. Trust-based relationship selling seeks to initiate, develop and enhance long-term customer relationships.

ANS: T

REF: pg. 19

25. Trust-based relationship selling requires salespeople whose actions are based on strategies that focus on customer needs and customer value.

ANS: T

REF: pg. 19

26. The primary role of a salesperson practicing trust-based relationship selling is to make calls and close sales.

ANS: F

REF: pg. 20

27. The same sales knowledge and skills are required of salespeople regardless of the situation.

ANS: F

REF: pg. 20

28. The particular knowledge and skill components required for successful selling will be somewhat dependent on the sales situation.

ANS: T

REF: pg. 20

29. One purpose of the ADAPT method is to develop an efficient, relevant line of questioning that will help both the salesperson and the buyer find common ground for sales dialogue and sales presentations.

ANS: T

REF: pg. 20

30. Sales dialogue involves business conversations that take place exclusively during a sales presentation.

ANS: F

REF: pg. 21

31. Sales dialogue involves business conversations that take place over time as salespeople attempt to initiate, develop, and enhance relationships with customers.

ANS: T

REF: pg. 21

32. A common sales dialogue might include assessing the prospective customer’s situation and buying processes.

ANS: T

REF: pg. 21

33. A common sales dialogue might include negotiating an agreement to do business.

ANS: T

REF: pg. 21

34. A common sales dialogue might include confirming the prospective customer's strategic priorities.

ANS: T REF: pg. 21 35. A common sales dialogue might include building customer value by providing additional opportunities.

ANS: T REF: pg. 21 36. A customer orientation can be demonstrated, in part, by preventing and correcting customer problems.

ANS: T

REF: pg. 21

37. Salespeople’s trustworthiness and overall reputation is easily shared within buyers’ networks of professional acquaintances.

ANS: T

REF: pg. 21

38. With communications technology making salespeople’s actions more transparent, being trustworthy is more important than ever for sales success.

ANS: T

REF: pg. 21

39. Customers report that they appreciate salespeople who are creative in responding to customer needs.

ANS: T

REF: pg. 22

40. Dependability is about the salesperson being viewed as a good person with whom to do business.

ANS: F

REF: pg. 22

41. Candor involves the salesperson being honest with the customer.

ANS: T

REF: pg. 22

42. Customer compatibility can help build trust.

ANS: T

REF: pg. 22

43. Selling strategy involves the planning of internal messages and interactions with customers.

ANS: F

REF: pg. 22

44. Although written contracts are binding, promises and verbal agreements generally are not.

ANS: F

REF: pg. 22

45. Salespeople should only overpromise if it will help them to obtain the sale.

ANS: F

REF: pg. 22

46. Salespeople should obtain competitive information by any means possible.

ANS: F

REF: pg. 22

47. Salespeople should observe the need for confidentiality with sensitive information provided by customers and employers.

ANS: T

REF: pg. 22

48. Because salespeople often encounter buyers with different personalities, communications styles, and needs and goals, adaptive selling is an important concept.

ANS: T

REF: pg. 23

49. In stimulus response selling, salespeople listen for "cues" from the buyer and adjust their presentation to match those "cues."

ANS: F

REF: pg. 24

50. Stimulus response selling is the most flexible and most focused on the buyer’s unique needs and strategic priorities.

ANS: F

REF: pg. 24

51. Stimulus response selling is essentially a sequential approach to selling in which the salesperson leads the customer through stages in the buying process.

ANS: F

REF: pg. 24

52. Stimulus response selling methods can be an efficient sales approach.

ANS: T

REF: pg. 24

53. Stimulus response selling is most effective in situations involving important purchase decisions and when time is not critical.

ANS: F

REF: pg. 24

54. Professional buyers like stimulus response selling.

ANS: F

REF: pg. 24

55. Mental states selling is largely a two-way interaction between salesperson and customer.

ANS: F

REF: pg. 24

56. Careful listening is required when using the mental states selling approach to determine which stage the buyer is in at a given point in time.

ANS: T

REF: pg. 24

57. A problem with the mental states approach to selling is that it forces salespeople to listen very carefully when using this approach.

ANS: F

REF: pg. 24

58. If you were a salesperson using the mental states approach and your customer was in the action state, you would attempt to close the deal.

ANS: T

REF: pg. 24

59. Customers appreciate the need satisfaction selling approach as they feel that their point of view and unique circumstances are being addressed.

ANS: T

REF: pg. 25

60. Unfortunately, the need satisfaction selling approach tends to increase the defensiveness of some prospects because the salesperson rapidly moves to the persuasive part of the sales message.

ANS: F

REF: pg. 25

61. Problem solving selling has been popularized by the commercial success of SPIN selling.

ANS: T

REF: pg. 25

62. Problem solving selling is differentiated from other sales approaches because it focuses on achieving strategic goals of customers.

ANS: F

REF: pg. 25

63. In consultative selling, salespeople only need to be experts on the customer’s business.

ANS: F

REF: pg. 26

64. Consultative selling often requires that the salesperson be a coordinator, arranging for others in the selling company to play a role in the sales process.

ANS: T

REF: pg. 26

65. Consultative selling focuses on making short-term sales.

ANS: F

REF: pg. 26

66. Consultative selling is appropriate for all sales situations.

ANS: F

REF: pg. 26

67. Sales professionalism has not been widely embraced.

ANS: F

REF: pg. 27

68. Sales professionals must be strong collaborators, both within their own organizations and with their customers.

ANS: T

REF: pg. 27

69. To deal with the complex business environment, sales must become a “smarter” business function.

ANS: T

REF: pg. 27

70. With vast amounts of data, productive salesforces must learn to utilize predictive analytics to determine the best sales opportunities to pursue.

ANS: T

REF: pg. 27

71. To deal with complexity, salespeople should learn how to incorporate innovative technologies such as artificial intelligence and virtual selling to help them efficiently and effectively execute various aspects of their job.

ANS: T

REF: pg. 27

72. To deal with complexity, sales strategies will increasingly need to be developed to meet the needs of micromarkets, or more niche customer segments ANS: T REF: pg. 27 73. It is important for the sales function to collaborate with other functional areas within their companies, but not with customers.

ANS: F

REF: pg. 27

74. Sales and marketing are always clearly aligned in understanding what customers want and need.

ANS: F

REF: pg. 27

75. Greater collaboration is needed between sales managers and salespeople.

ANS: T

REF: pg. 27

76. To be effective, the problem solving approach typically requires that salespeople clearly illustrate the significance of the existing problem.

ANS: T

REF: pg. 28

77. Companies and salespeople who do not practice ethical selling are increasingly subject to extreme criticism, customer dissatisfaction, and in some cases, legal sanctions.

ANS: T

REF: pg. 28

78. The U.S. Department of Labor projects no growth over the next decade in the number of sales and sales management occupations.

ANS: F

REF: pg. 28

79. For many newly minted college graduates, professional selling is one of the most popular entry-level jobs.

ANS: T

REF: pg. 28

80. Selling helps prepare individuals for management positions.

ANS: T

REF: pg. 29

81. For people who aspire to be entrepreneurs, selling experience can be indispensable.

ANS: T

REF: pg. 30

82. Personal selling careers offer little in terms of job variety.

ANS: F

REF: pg. 30

83. Salespeople get immediate feedback on every sales call.

ANS: T

REF: pg. 30

CHAPTER 3—ORGANIZATIONAL STRATEGIES AND THE SALES FUNCTION MULTIPLE CHOICE 1. Which of the following is not a key decision area of corporate strategy? a. Corporate mission b. Strategic business unit definition c. Target market selection d. Strategic business unit objectives e. Corporate growth orientation ANS: C

REF: pg. 40

2. All of the following are key decision areas in sales strategy except a. account targeting strategy. b. relationship strategy. c. marketing mix strategy. d. selling strategy. e. sales channel strategy.

ANS: C

REF: pg. 41

3. Which of the following is one of the steps in corporate strategy development? a. Developing a marketing mix to serve a target market. b. The development of an account management strategy. c. Developing a corporate strategy for each of the SBUs. d. Determining the amount to spend on the personal selling function. e. Analyzing the corporate situation to identify potential opportunities and threats.

ANS: E

REF: pg. 41

4. Which of the following is a key decision area for marketing strategy? a. account targeting strategy. b. relationship strategy. c. selling strategy. d. marketing mix development. e. sales channel strategy.

ANS: D

REF: pg. 41

5. Which of the following is not one of the steps in corporate strategy development as outlined in the text? a. Determining corporate mission and objectives. b. The development of an account management strategy. c. Defining strategic business units. d. Setting objectives and resource allocations for each strategic business unit. e. Analyzing the corporate situation to identify potential opportunities and threats.

ANS: B

REF: pg. 41

6. The ________ provides direction for strategy development and execution throughout the organization. a. mission statement b. strategy statement

c. corporate plan d. business unit portfolio e. goal statement ANS: A

REF: pg. 41

7. The most successful mission statements are a. simple. b. complete. c. communicated directly to salespeople. d. all of the above.

ANS: D

REF: pg. 42

8. The basic purpose of defining strategic business units is to a. divide the corporation into parts to facilitate strategic analysis and planning. b. provide management opportunities in different regions. c. allow for a more focused market perspective. d. reorganize the personal selling operations of the firm. e. allow maximum support of each product or line of products and to avoid expensive duplication within the corporation.

ANS: A

REF: pg. 42

9. One definition of an SBU is a. a qualitative description of the firm's strategic orientation in relation to customers and markets, products and services, geographic scope, and technology. b. the method by which corporate management implements, evaluates, and controls the corporate strategic plan. c. the corporate growth orientation of the firm. d. a designated unit within a corporation that is operated like an individual business. e. the firm's decision regarding market share objectives for different product lines.

ANS: D

REF: pg. 42

10. Changes in the definition of SBUs can affect the personal selling function in all of the following ways except a. salesforces may have to be merged. b. existing salesforces may have to perform different activities. c. the type of salespeople to be hired may change. d. new salesforces may have to be established. e. more sales managers will always have to be hired.

ANS: E

REF: pg. 42

11. The strategic business unit portfolio can be defined as a. the different product lines making up the SBU. b. the SBU's investments, made with excess working capital. c. all of the corporation's strategic business units. d. the stocks and bonds held by the stockholders. e. the markets served by each strategic business unit.

ANS: C

REF: pg. 42

12. If the sales organization objective is to increase sales volume and expand distribution outlets, then the recommended compensation system is a. salary plus commission or bonus. b. salary plus sales-based incentives. c. salary plus bonus. d. salary. e. commission.

ANS: B

REF: pg. 43

13. If the sales organization objective is to maintain sales volume then the SBU objective is likely to be a. hold market share. b. build market share. c. develop market share. d. establish market share. e. harvest market share.

ANS: A

REF: pg. 43

14. If the sales organization objective is to increase sales volume and expand distribution outlets, then the SBU objective is likely to be a. hold market share. b. build market share. c. develop market share. d. establish market share. e. harvest market share.

ANS: B

REF: pg. 43

15. If the sales organization objective is to reduce selling costs and target profitable accounts, then the SBU objective is likely to be a. hold market share. b. build market share. c. develop market share. d. establish market share. e. harvest market share.

ANS: E

REF: pg. 43

16. If the sales organization objective is to minimize selling costs and clear out inventory, then the SBU objective is likely to be a. hold market share. b. build market share. c. divest/liquidate market share. d. establish market share. e. harvest market share.

ANS: C

REF: pg. 43

17. If the sales organization objective is to minimize selling costs and clear out inventory, then the recommended compensation system is likely to be a. salary plus commission or bonus. b. salary plus sales-based incentives. c. salary plus bonus. d. salary.

e. commission.

ANS: D

REF: pg. 43

18. If the SBU objective is harvest market share, the primary sales tasks include all of the following except a. provide product/market feedback. b. service the most profitable accounts. c. eliminate unprofitable accounts. d. reduce service levels. e. reduce inventories.

ANS: A

REF: pg. 43

19. When the SBU objective is to “hold market share,” which of the following is the primary sales task? a. Service the most profitable accounts. b. Replace lost sales with new accounts. c. Eliminate unprofitable accounts. d. Reduce service levels. e. Reduce inventory.

ANS: B

REF: pg. 43

20. When the SBU objective is to “harvest market share,” which of the following is NOT a primary sales task? a. Service the most profitable accounts. b. Eliminate unprofitable accounts. c. Replace lost sales with new accounts. d. Reduce service levels. e. Reduce inventory.

ANS: C

REF: pg. 43

21. Porter's classification scheme for business unit strategies is referred to as a. target marketing. b. generic business strategies. c. differentiation strategies. d. universal product strategies. e. product/market evaluation.

ANS: B

REF: pg. 44

22. By creating something perceived industry wide as being unique, a company is employing the ___________ business unit strategy. a. generic b. differentiation c. low-cost d. segmentation e. niche ANS: B

REF: pg. 45

23. A company that strives for tight cost and overhead control and maintains a high market share is probably using this business unit strategy: a. low cost. b. niche. c. differentiation.

d. segmentation. e. generic.

ANS: A

REF: pg. 45

24. A low overall market share with domination in a particular region or segment is usually indicative of a company employing this business unit strategy: a. segmenting. b. regional. c. differentiation. d. niche. e. low cost.

ANS: D

REF: pg. 45

25. Which of the following likely is not one of the roles of the salesforce if the firm is using a low-cost supplier strategy? a. Servicing large current customers. b. Pursuing large prospects. c. Selling nonprice benefits. d. Minimizing costs. e. Assuming significant order-taking responsibilities.

ANS: C

REF: pg. 45

26. Which of the following likely is not one of the roles of the salesforce if the firm is using a differentiation strategy? a. Providing high quality of customer service and responsiveness. b. Generating orders. c. Selling nonprice benefits. d. Selecting customers based on high price sensitivity. e. Significant prospecting in high growth industry.

ANS: D

REF: pg. 45

27. Which of the following is false with regards to customer relationship management (CRM)? a. Effective implementation of a CRM strategy requires an appropriate business philosophy. b. CRM requires a customer-centric business philosophy. c. CRM applications can enable effective customer relationship management. d. Effective implementation of a CRM strategy requires integrated cross-functional business processes. e. Successful firms tend to focus on the CRM technology first and then try to adapt their strategy, philosophy, process and capability to fit the technology.

ANS: E

REF: pg. 45

28. A target market can be defined as a. a market that is being used to test a new product. b. a key component of the SBU definition. c. the specific market segment to be served by a particular product. d. the market to which all personal selling effort will be targeted. e. a competitor’s stronghold, where they hold the dominant market share.

ANS: C

REF: pg. 46

29. The company's marketing strategy includes a marketing mix, which is a mixture of all of the following except a. price strategies. b. distribution strategies. c. marketing communications strategies. d. production strategies. e. product strategies.

ANS: D

REF: pg. 46

30. A company's marketing communications strategy consists of a mixture that includes all of the following except a. publicity. b. distribution intensity. c. advertising. d. personal selling. e. sales promotion.

ANS: B

REF: pg. 46

31. Personal selling, advertising, sales promotion and publicity comprise what is referred to as a. marketing strategy. b. selling strategy. c. marketing mix strategy. d. marketing communications strategy. e. sales promotion strategy.

ANS: D

REF: pg. 46

32. For most marketing communications strategies, the main communication tools are a. sales promotion or advertising. b. publicity or public relations. c. personal selling or sales promotion. d. advertising or personal selling. e. publicity or personal selling.

ANS: D

REF: pg. 46

33. ___ _ is the only promotional tool that consists of personal communication between seller and buyer. a. Sales promotion b. Personal selling c. Advertising d. Public relations e. Publicity ANS: B

REF: pg. 46

34. Major advantages of personal selling include all of the following except a. ability to close the sale. b. increased credibility. c. better timing of message delivery. d. more flexibility. e. low cost-per-contact.

ANS: E

REF: pg. 46

35. What is the major disadvantage of personal selling? a. It costs a lot to reach each member of the audience. b. It lacks flexibility. c. It is low in impact. d. It is difficult to reach large audiences. e. It is hard to achieve message repetition.

ANS: A

REF: pg. 47

36. Personal-selling driven marketing communications strategies are most appropriate when a. low cost per contact is important. b. size of the audience is large. c. message flexibility is important. d. repetitive contact is important. e. control of the message is important.

ANS: C

REF: pg. 48

37. The preferred marketing communications tool for business marketing is a. public relations. b. advertising. c. personal selling. d. publicity. e. sales promotion.

ANS: C

REF: pg. 48

38. Which of the following statements regarding the marketing communications mix is false? a. The marketing communications mix should be consistent with the other elements of the marketing mix. b. An effective marketing communications mix must capitalize on the advantages of each marketing communications tool. c. In consumer marketing situations, the preferred marketing communications tool is personal selling. d. The benefits of personal selling may outweigh the costs in certain types of product/market situations. e. Firms in the direct selling industry, such as Avon and Mary Kay, use an atypical marketing communications strategy.

ANS: C

REF: pg. 48

39. All of the following would suggest the use of advertising-driven marketing communications strategies except when a. low cost per contact is important. b. size of the audience is large. c. message flexibility is important. d. repetitive contact is important. e. control of the message is important.

ANS: C

REF: pg. 49

40. Advertising driven marketing communications strategies are most appropriate when

a. b. c. d. e.

trying to close the sale. the message timing is important. message flexibility is important. repetitive contact is important. reaction speed is important.

ANS: D

REF: pg. 49

41. All of the following would suggest the use of personal selling-driven marketing communications strategies except when a. trying to close the sale. b. the message timing is important. c. message flexibility is important. d. repetitive contact is important. e. reaction speed is important.

ANS: D

REF: pg. 49

42. Advertising-driven marketing communications strategies are best when all of the following characteristics exist except a. There are many buyers. b. Buyers are concentrated geographically. c. Purchase information needs are low. d. Purchases are not important. e. Products being purchased are low in complexity.

ANS: B

REF: pg. 49

43. _______________ is typically the preferred marketing communications tool for business marketing, whereas ______________ is normally emphasized in consumer marketing situations. a. Personal selling, advertising b. Advertising, personal selling c. Personal selling, publicity d. Sales promotion, advertising e. Personal selling, sales promotion ANS: A

REF: pg. 49

44. Which of the following marketing mix situations would not indicate that an emphasis in personal selling would be appropriate? a. The channel system is relatively short and direct to the end users. b. The final price is negotiated between the buyer and seller. c. The product is complex and requires customer application assistance. d. The product needs to be "pulled" through the channel of distribution. e. The selling price or quantity purchased allows an adequate margin to support the selling expenses.

ANS: D

REF: pg. 49

45. Personal selling driven strategies are appropriate when a. the market consists of only a few buyers scattered rather thinly over an area. b. a professional buyer is involved and does not need much information. c. the product is complex. d. the purchase is relatively unimportant.

e. service after the sale is not necessary.

ANS: C

REF: pg. 49

46. An example of one effect of integration of advertising and personal selling would be a. salespeople cold canvass to find interested prospects, then ask them to watch a videotape advertising their product. b. an advertisement gives a toll-free number where customers can call to place their order. c. a commercial on television promises a satisfaction guarantee on their product to potential customers. d. advertising is used to generate sales leads, which are then turned over to the salesforce to close the sale. e. qualified customers are located through the company's directories and then called on by the salesforce.

ANS: D

REF: pg. 50

47. According to the text, which of the following is not one of the activities that require the marketing and the sales functions to work closely together? a. Sales forecasting b. Target marketing c. Value proposition development/customer messaging d. Customer account selection e. Merchandising ANS: E

REF: pg. 50

48. Sales and marketing often focus on different activities. Which of the following is not one of the activities on which sales focuses? a. Distributor management b. Account management c. Merchandising d. After-sales service e. Product positioning ANS: E

REF: pg. 50

49. The buying situation that poses the most problems for the buyer is the a. modified rebuy buying situation. b. similar task buying situation c. new task buying situation. d. ongoing-project buying situation e. straight rebuy buying situation.

ANS: C

REF: pg. 53

50. Which of the following statements regarding organizational buying situations is true? a. There are no similarities in the types of buying situations facing different accounts. b. Buyers facing a new-task buying situation will typically use a lengthy process to collect and evaluate purchase information. c. Selling organizations can use the same sales strategy for each type of buying situation if they change their sales coverage strategy. d. In a modified-rebuy buying situation, the buyer has not previously purchased or used the product, but has used similar products. e. When buyers are merely reordering from the current supplier, they are in an ongoing-

project buying situation.

ANS: B

REF: pg. 53

51. Which of the following statements regarding the straight-rebuy buying situation is false? a. The buyer is merely reordering from the current supplier and engaging in routinized response behavior. b. The account has considerable experience in using the product. c. The organization wants to collect additional information and may make a change when purchasing a replacement product. d. The account is satisfied with the current purchase arrangements. e. This is the least complex buying situation.

ANS: C

REF: pg. 53

52. The decision-making process in a new task buying situation is often referred to as a. extensive problem solving. b. excessive problem solving. c. routinized response behavior. d. limited problem solving.

ANS: A

REF: pg. 53

53. The decision-making process in modified rebuy buying situation is often referred to as a. extensive problem solving. b. routinized response behavior. c. minimal problem solving. d. limited problem solving.

ANS: D

REF: pg. 53

54. The decision-making process in straight rebuy buying situation is often referred to as a. extensive problem solving. b. routinized response behavior. c. rapid response behavior. d. limited problem solving.

ANS: B

REF: pg. 53

55. Sales strategy should be based on an understanding of all of the following critical elements of organizational buyer behavior except a. buying needs. b. buying discrimination. c. buying process. d. buying situation. e. buying center.

ANS: B

REF: pg. 53

56. When selling to a prospect, tasks facing the sales organization are a. to identify all the buying center members. b. determine the specific role buying center members serve. c. communicate with each buying center member via the channel they prefer. d. do none of the above. e. do all (i.e., a, b, c) of the above.

ANS: E

REF: pg. 53

57. The concept buying center can be defined as a. the physical location of the purchasing agent's office. b. the division that handles the purchasing for the entire company. c. all individuals from a firm that participate in any selling operation. d. all individuals from a firm that participate in any particular buying decision. e. those individuals designated on the organization chart that have the authority to instigate purchases.

ANS: D

REF: pg. 53

58. Roles that buying-center members might play in a particular purchasing decision include all of the following except a. purchasers. b. producers. c. influencers. d. users. e. deciders.

ANS: B

REF: pg. 53

59. The buying center member who starts the organizational purchasing process is referred to as the a. initiator. b. user. c. influencer. d. decider. e. purchaser.

ANS: A

REF: pg. 53

60. The buying center member who controls the flow of information between buying center members is referred to as the a. initiator. b. gatekeeper. c. influencer. d. decider. e. purchaser.

ANS: B

REF: pg. 53

61. The buying center member who provides input for the purchasing decision is referred to as the a. initiator. b. gatekeeper. c. influencer. d. decider. e. purchaser.

ANS: C

REF: pg. 53

62. The buying center member who makes the final purchase decision is referred to as the a. boss. b. gatekeeper. c. influencer. d. decider.

e. purchaser.

ANS: D

REF: pg. 53

63. Which of the following statements regarding a buying center is true? a. The roles of buying-center members are generally pointed out to the seller ahead of time. b. Each individual may perform more than one buying center role. c. The purchasers buying role always includes making the final purchase decision. d. Each buying role is performed by only one individual at a time. e. The buying center is always formally designated on the company's organization chart.

ANS: B

REF: pg. 53

64. Which of the following is the first phase in the buying process? a. Description of the characteristics of the item and the quantity needed. b. Recognition of problem or need. c. Description of the characteristics of the item and quantity needed. d. Search for and qualification of potential sources. e. Acquisition and analysis of proposals.

ANS: B

REF: pg. 54

65. The individual needs that come into play in an organizational-buying situation tend to be a. the result of insecurity. b. related to the use of the product. c. entirely objective. d. career related. e. driven by a need to keep costs within a budget limit.

ANS: D

REF: pg. 55

66. If buying-center members want to reduce purchase risk and protect job security, they might a. buy the lowest-priced alternative offered. b. buy the product with the record of fewest breakdowns. c. buy the product with the lowest operating costs. d. buy a product that they are told uses state-of-the-art technology. e. buy the product with the most well-known brand name.

ANS: E

REF: pg. 55

67. Which of the following is not an example of an organizational need that might be important in a purchase situation? a. Desire for job security. b. Control cost in product use situation. c. Few breakdowns of product. d. Adequate supply of product. e. Cost within budget limit.

ANS: A

REF: pg. 55

68. __ __ and __ __ are typically responsible for strategic decisions at the account level. a. Salespeople, SBU managers b. Corporate management, sales managers c. SBU managers, marketing managers d. Sales managers, salespeople e. Salespeople, marketing managers

ANS: D

REF: pg. 55

69. A(n) __________________ strategy is the classification of accounts within a target market into categories for the purpose of developing strategic approaches for selling to each account or account group. a. relationship b. account targeting c. selling d. sales channel e. marketing ANS: B

REF: pg. 56

70. Which of the following is not one of the characteristics of collaborative relationships? a. focus on selling products b. provide a customized offering c. serve a limited number of customers d. involve a long-term perspective e. center on adding value ANS: A

REF: pg. 57

71. Both costs to serve the customer and commitment between buyer and seller are highest with this type of relationship strategy. a. Solutions Relationship b. Supplier Relationship c. Transaction Relationship d. Collaborative Relationship e. Partnership Relationship ANS: D

REF: pg. 57

72. Both costs to serve the customer and commitment between buyer and seller are lowest with this type of relationship strategy. a. Solutions Relationship b. Supplier Relationship c. Transaction Relationship d. Collaborative Relationship e. Partnership Relationship ANS: C

REF: pg. 57

71. A(n) __________________ is the planned selling approach for each relationship strategy. a. relationship b. account targeting c. selling strategy d. sales channel e. marketing ANS: C

REF: pg. 58

74. A __________ selling strategy is the most appropriate strategy to use with a partnership relationship strategy. a. problem solving

b. c. d. e.

consultative need satisfaction mental states stimulus response

ANS: B

REF: pg. 58

75. A sales channel strategy can be defined as a. the type of relationship the selling firm desires to develop and maintain with the account. b. the decision to build either a relationship or transaction marketing type of salesforce. c. the number of accounts per field representative for a certain area. d. the methods by which accounts receive selling effort. e. decisions made by marketing management that determine whether sales will be personal selling or advertising driven.

ANS: D

REF: pg. 58

76. A(n) __________________ strategy ensures that accounts receive selling effort coverage in an effective and efficient manner. a. relationship b. account targeting c. selling d. sales channel e. marketing ANS: D

REF: pg.58

77. Which of the following is not a type of sales channel strategy outlined in the text? a. Internet b. Distributors c. Independent representatives d. Team selling e. Door-to-door selling ANS: E

REF: pg. 58

78. ___________ are channel middlemen that take title to the goods that they market to end users. a. Distributors b. Manufacturers' reps c. Independent representatives d. Telemarketing sales representatives e. Company sales reps ANS: A

REF: pg. 59

79. Distributors can be characterized as a. the company's salesforce for industrial products. b. the end users for a company's product. c. independent sales organizations that sell complementary, but noncompeting, products from different manufacturers. d. channel middlemen that take title to the goods that they market to end users. e. channel middlemen that do not take title to the goods.

ANS: D

REF: pg. 59

80. Which of the following statements relating to distributors is false?

a. b. c. d. e.

They typically employ their own field salesforce.

They may carry competing products from different manufacturers.

Firms that use distributors normally have a relatively small company salesforce.

Distributors should not be treated as customers.

They may carry the products of only one manufacturer.

ANS: D

REF: pg. 59

81. The importance of developing a partnership with distributors has been emphasized in the text. Which of the following situations would strengthen this relationship? a. Commissions on sales to direct salespeople are lowered for sales made jointly with distributors. b. Direct salespeople call on the most profitable accounts and ask the distributor's salesforce to handle all other accounts. c. The manufacturer provides its distributors with market information to help them succeed. d. When new models for equipment are available, ask the distributors to take care of selling out the old models and allow the company's salesforce to begin offering the new model. e. Company salespeople have first choice of the new leads generated by a shared booth at a trade show.

ANS: C

REF: pg. 59

82. Independent representatives can be characterized as a. the company's salesforce for industrial products. b. the end users for a company's product. c. independent sales organizations that sell complementary, but noncompeting, products from different manufacturers. d. channel middlemen that take title to the goods. e. channel middlemen that sell only in certain industries.

ANS: C REF: pg. 60 3 83. Which of the following statements regarding independent representatives is false? a. They normally do not take title to the products they sell. b. Independent representatives are compensated on a straight salary basis. c. Manufacturers typically develop contractual agreements with several rep organizations. d. They are independent sales organizations that sell complementary, but noncompeting, products from different manufacturers. e. Each rep organization is assigned a geographical territory.

ANS: B

REF: pg. 60

84. Which of the following is not an advantage of using independent sales representatives over company salesforces? a. The use of independent reps provides improved cash flow since payments to reps are typically not made until customers have paid for their purchases. b. The use of independent reps can provide greater territory coverage since companies can employ more reps than company salespeople for the same cost. c. Companies can usually penetrate new markets faster using reps because of their established customer relationships. d. Companies can maintain better control over the rep's selling activities than they can over a company salesforce. e. Independent reps provide a professional selling capability that is difficult to match with company salespeople.

ANS: D

REF: pg. 60

85. The biggest complaint that manufacturers have about independent representatives is a. they are too expensive at lower levels of sales. b. they spend too much time on customer service. c. they do not spend enough time selling the manufacturer’s products. d. they handle too few different manufacturers' products. e. they handle a competing manufacturer's product.

ANS: C

REF: pg. 61

86. According to the text, which of the following is not one of the exchange processes occurring between a selling firm and a buying firm? a. reciprocity b. empathy c. information d. friendship, trust e. negotiation ANS: B

REF: pg. 62

87. Which of the following statements regarding telemarketing is false? a. Telemarketing is more effective than field selling. b. One of the important benefits from telemarketing is the ability to gather, combine, and disseminate a great deal of useful information. c. Telemarketing can provide a cost-effective way to support or substitute for expensive personal sales calls. d. Training programs for the telemarketing salesforce should include knowledge and skills that will enable them to work effectively with the field salesforce. e. Telemarketing can be used both to prospect for customers and qualify customer leads.

ANS: A

REF: pg. 63

88. All of the following are nonselling trade show objectives except a. service current customers. b. gather competitive information. c. identify new prospects. d. introduce new products. e. enhance corporate image.

ANS: D

REF: pg. 64

89. ______________ occurs when the interests of different channels are not consistent. a. Channel ambiguity b. Channel conflict c. Role conflict d. Inconsistency e. Corporate conflict ANS: B

REF: pg. 64

TRUE/FALSE 1. The different strategies at different levels of the organization must be consistent and integrated for the firm to perform successfully.

ANS: T

REF: pg. 40

2. A separate corporate strategy must be developed for each SBU. ANS: F

REF: pg. 40

3. An SBU always consists of one product serving one market.

ANS: F

REF: pg. 40

4. Key decision makers in developing business level strategy are corporate management.

ANS: F

REF: pg. 41

5. Key decision area for sales strategy is the account targeting strategy.

ANS: T

REF: pg. 41

6. Key decision area for corporate strategy is target marketing selection.

ANS: F

REF: pg. 41

7. The corporate mission statement has a direct effect on sales management activities.

ANS: T

REF: pg. 41

8. After developing corporate strategy, a corporate mission statement should be developed.

ANS: F

REF: pg. 41

9. The first step in developing a corporate strategy is to define strategic business units.

ANS: F

REF: pg. 41

10. One step in the process of developing a corporate strategy is the determination of the corporate mission and objectives.

ANS: T

REF: pg. 41

11. Most companies have a clear mission statement that is articulated to salespeople by sales managers.

ANS: F

REF: pg. 41

12. The most successful approach to utilizing the mission statement appears to be when the complete corporate mission statement is simplified and communicated directly to salespeople.

ANS: T

REF: pg. 42

13. The definition of SBUs must be consistent with the strategic orientation of the corporation.

ANS: T

REF: pg. 42

14. SBUs typically consist of several products or line of unrelated products marketed to defined market segments.

ANS: F

REF: pg. 42

15. An SBU usually has its own sales organization with sales managers and salespeople.

ANS: T

REF: pg. 42

16. Changes in the definition of SBUs typically increase the number of SBUs. ANS: F

REF: pg. 42

17. Each strategic business unit faces a different competitive situation and plays a different role in the business unit portfolio.

ANS: T

REF: pg. 42

18. Sales management has ultimate responsibility for establishing strategic objectives for each strategic business unit.

ANS: F

REF: pg. 42

19. The recommended compensation system for the SBU objective "build market share" would be a straight salary.

ANS: F

REF: pg. 43

20. If the SBU's objective is to “hold market share,” then its sales organization objectives would be to reduce selling costs and target profitable accounts.

ANS: F

REF: pg. 43

21. If the SBU's objective is to “harvest market share,” then its sales organization objectives would be to reduce selling costs and target profitable accounts.

ANS: T

REF: pg. 43

22. If the SBU's objective is to “divest/liquidate market share,” then its primary sales tasks would be to dump inventory and eliminate service.

ANS: T

REF: pg. 43

23. The corporate mission has little effect on sales organization operations.

ANS: F

REF: pg. 44

24. Determination of SBU objectives affects sales organization operations.

ANS: T

REF: pg. 44

4

25. Each of Porter’s generic business strategies emphasizes a different competitive advantage.

ANS: T REF: pg. 44 26. Each of the generic business strategies emphasizes a different type of competitive advantage that can be achieved using one certain form of personal selling.

ANS: F

REF: pg. 44

27. The sales function plays an important role in executing a generic business strategy.

ANS: T

REF: pg. 44

28. Many companies are emphasizing customer experience (CX) strategies and adopting customer relationship management (CRM) as a business strategy.

ANS: T

REF: pg. 45

29. Marketers operating in an SBU with a differentiation business strategy would typically develop marketing strategies that emphasize low price.

ANS: F

REF: pg. 45

30. Marketers operating in an SBU with a low-cost supplier business strategy would typically develop marketing strategies that emphasize low price.

ANS: T

REF: pg. 45

31. Salespeople operating in a niche business strategy become experts in the operations and opportunities associated with the target market.

ANS: T

REF: pg. 45

32. Customer relationship management (CRM) is a strategy resulting in developing the most appropriate relationship with the customer.

ANS: T

REF: pg. 45

33. CRM is primarily a technology strategy.

ANS: F

REF: pg. 45

34. Successful firms implement CRM technology and then develop a CRM strategy to fit it.

ANS: F

REF: pg. 45

35. The key components of any marketing strategy are the selection of the marketing mix and the marketing offer.

ANS: F

REF: pg. 46

36. Marketing communications strategy consists of advertising, publicity, sales promotion and personal selling strategies.

ANS: T

REF: pg. 46

37. A marketing strategy can be defined in terms of target market and marketing mix components.

ANS: T

REF: pg. 46

38. The critical task for the marketing strategist is to develop a marketing mix that satisfies the needs of the target market better than competitive offerings.

ANS: T

REF: pg. 46

39. Personal selling may be an important element of a marketing communications strategy.

ANS: T

REF: pg. 46

40. Sales promotion and publicity are typically viewed as supplemental marketing communications tools.

ANS: T

REF: pg. 46

41. The personal communication between buyer and seller is typically viewed as less credible because of the negative image many consumers have of salespeople.

ANS: F

REF: pg. 46

42. Personal selling has the advantage of allowing a sale to be closed.

ANS: T

REF: pg. 46

43. The major disadvantage of personal selling is the high cost to reach each member of the audience.

ANS: T

REF: pg. 47

44. Advertising-driven marketing communication strategies are most appropriate when message flexibility is important.

ANS: F

REF: pg. 48

45. Advertising-driven marketing communication strategies are most appropriate when there are many buyers dispersed geographically.

ANS: T

REF: pg. 48

46. Personal selling-driven marketing communication strategies are appropriate when complex products are being purchased.

ANS: T

REF: pg. 48

47. Personal selling-driven marketing communication strategies are appropriate when message credibility is important.

ANS: T

REF: pg. 48

48. The product market characteristics that favor personal selling are similar to those found in most consumer marketing situations.

ANS: F

REF: pg. 48

49. Personal selling is typically the preferred marketing communications tool in consumer marketing, while advertising is normally emphasized in industrial marketing situations.

ANS: T

REF: pg. 48

50. The marketing communications mix must be consistent with the other elements of the marketing mix to ensure a coordinated marketing offer.

ANS: T

REF: pg. 48

51. A product such as a private aircraft would typically be sold using personal selling.

ANS: T

REF: pg. 49

52. Companies using an integrated advertising and personal selling effort might use advertising as a low cost-per-contact way to identify potential customers.

ANS: T

REF: pg. 50

53. One of the keys to integrating marketing communications successfully is greater coordination between the marketing and sales functions.

ANS: T

REF: pg. 50

54. The sales function emphasizes customers, personal relationships, daily activity, results, the field, and a short-term perspective.

ANS: T

REF: pg. 51

55. A sales strategy is designed to execute an organization’s marketing strategy for various market segments.

ANS: F

REF: pg. 51

56. Customer account selection is one area in which sales and marketing must work closely together.

ANS: T

REF: pg. 51

57. Distributor management is one area in which sales and marketing must work closely together.

ANS: F

REF: pg. 51

58. Sales strategy is important because it has a major impact on a firm's sales and profit performance.

ANS: T

REF: pg. 51

59. The unique aspects of organizational buyer behavior revolve around the buying situation, buying center, buying process, and buying needs.

ANS: T

REF: pg. 52

60. Original equipment manufacturers (OEM) purchase products to incorporate into products.

ANS: T

REF: pg. 53

61. As organizations move from new-task buying situations to straight-rebuy buying situations, more members of the organization are usually involved in the buying process.

ANS: F

REF: pg. 53

62. The decision-making process in new task buying situations is referred to as limited problem solving.

ANS: F

REF: pg. 53

63. The buying center consists of a formal network of purchasing participants.

ANS: F

REF: pg. 53

64. One task of salespeople is to identify buying-center members and determine the specific role of each member.

ANS: T

REF: pg. 53

65. The organizational buying center member who starts the organizational purchasing process is the purchaser.

ANS: F

REF: pg. 53

66. Each buying role may be performed by more than one individual, and each individual may perform more than one buying-center role.

ANS: T

REF: pg. 53

67. The members of the buying center are often from different functional areas and desire different benefits from a purchasing agent.

ANS: T

REF: pg. 53

68. Knowing the functional area of buying center members can help determine the relevant benefits.

ANS: T

REF: pg. 53

69. Individual buying needs tend to be related to the use of the product.

ANS: F

REF: pg. 55

70. The first element of a sales strategy is defining a relationship strategy.

ANS: F

REF: pg. 55

71. An account targeting strategy is a determination of the type of relationship to be developed with different account groups.

ANS: F

REF: pg. 56

72. A relationship strategy is a determination of the type of relationship to be developed with different account groups.

ANS: T

REF: pg. 56

73. A solutions relationship emphasizes solving customer problems.

ANS: T

REF: pg. 57

74. A selling strategy is the planned selling approach for each relationship strategy.

ANS: T

REF: pg. 58

75. Matching selling strategies and relationship strategies is an important upper-level management task.

ANS: F

REF: pg. 58

76. Sales channel strategy determines the type of relationship to be developed with different account groups.

ANS: F

REF: pg.58

77. Companies are using the Internet in a way that meets customer needs and reduces selling costs.

ANS: T

REF: pg. 59

78. Most companies are replacing their field salesforce with the Internet.

ANS: F

REF: pg. 59

79. Most sales organizations do not integrate the Internet with other sales channels.

ANS: F

REF: pg. 59

80. The use of distributors adds another member to the distribution channel.

ANS: T

REF: pg.59

81. Independent representatives are channel middlemen that take title to the goods that they market to end users.

ANS: F

REF: pg. 60

82. Most independent rep agencies are small.

ANS: T

REF: pg. 60

83. Most independent rep agencies have close to 100 salespeople and support staff.

ANS: F

REF: pg. 60

84. At lower sales levels, using a company salesforce will normally be more cost-effective than using a rep organization.

ANS: F

REF: pg. 61

85. When servicing of accounts is an important activity, the firm may need to employ a company salesforce.

ANS: T

REF: pg. 61

86. A promotions manager typically coordinates the activities of the sales team.

ANS: F

REF: pg. 61

87. In outbound telemarketing, the account calls the seller to check on the status of an expected order.

ANS: F

REF: pg. 63

88. Firms typically use telemarketing to replace field selling for specific accounts or integrate telemarketing with field selling to the same accounts.

ANS: T

REF: pg. 63

89. The major reason for replacing field selling with telemarketing at specific accounts is its ease of implementation.

ANS: F

REF: pg. 63

90. Telemarketing salespeople are often involved in prospecting for customers and qualifying customer leads.

ANS: T

REF: pg. 63

91. Trade shows are typically viewed as one of the primary sales channels.

ANS: F

REF: pg. 64

92. Trade shows should be viewed as supplemental methods for account coverage.

ANS: T

REF: pg. 64

93. One trade show objective could be to identify new prospects.

ANS: T

REF: pg. 64

94. Channel conflict occurs when the interests of different channels are not consistent.

ANS: T REF: pg. 64

8

CHAPTER 4—SALES ORGANIZATION STRUCTURE AND SALESFORCE DEPLOYMENT MULTIPLE CHOICE 1. Which of the following statements regarding sales organization structure is false? a. The sales organization structure helps salespeople and sales managers perform required activities in an effective and efficient manner. b. Sales organization structures are the vehicle through which strategic plans are translated

into selling operations in the marketplace. c. Strategic changes almost always necessitate adjustments in sales organization structure. d. Sales organization structures can be extremely complex with many boxes and arrows. e. Developing a sales organization structure is typically more difficult than implementing a change in sales organization structure.

ANS: E

REF: pg. 72

2. In the simplest type of sales organization structure, the following situation would exist: a. Each salesperson is responsible for selling one particular product. b. Each sales manager is responsible for only a few key accounts. c. One sales manager concentrates on training activities and another concentrates on planning activities. d. Each salesperson is responsible for selling all the company's products to all types of accounts. e. Each salesperson calls on only certain designated customers.

ANS: D

REF: pg. 72

3. An organizational structure concept where individuals concentrate on performing some of the required activities to the exclusion of other tasks is a. concentration. b. customer-oriented. c. market-oriented. d. strategic account-orientated e. specialization.

ANS: E

REF: pg. 73

4. The basic idea behind specialization is that a. certain individuals are more ideally suited for some types of jobs than others. b. if individuals can concentrate on a limited number of activities, they can become experts on those tasks. c. division of labor will lead to the most cost-effective selling effort possible. d. when salespeople become experts on certain products, integrating the efforts of different salesforces becomes easier. e. customers would rather speak with a salesperson that specializes in selling one product.

ANS: B

REF: pg. 73

5. Centralization within the management structure can be best described as a. the degree to which important decisions and tasks are performed at higher levels in the management hierarchy. b. definitive in nature, as organizations are either totally centralized or totally decentralized. c. the extent to which lower-level managers have become responsible for important decisions and tasks. d. the amount of task specialization that takes place within the major branches of the sales organization structure. e. characterized by the decision to divide sales efforts on the basis of products or related lines of products.

ANS: A

REF: pg. 74

6. Trends from transactions to relations, individuals to teams, and management to leadership are producing a more ______ organization in many sales organizations.

a. b. c. d. e.

specialized decentralized generalized centralized functional

ANS: B

REF: pg. 74

7. A _________ structure facilitates decision making in the field and encourages the development of relationships with customers. a. specialized b. centralized c. decentralized d. generalized e. functional ANS: C

REF: pg. 74

8. Span of control refers to a. the frequency with which subordinates are required to report to their immediate supervisor. b. the number of different hierarchical levels of sales management within the organization. c. the number of individuals that report to each sales manager. d. the actual structure of the sales organization, whether it is considered flat or tall. e. the amount of decision-making responsibility that each sales manager holds.

ANS: C

REF: pg. 74

9. Typically, span of control is _________ related to the number of sales management levels. a. directly b. not c. indirectly d. only sometimes e. inversely ANS: E

REF: pg. 74

10. In a flat sales management structure a. there are more sales management levels and smaller spans of control. b. there would be more district sales managers and less use of regional sales managers. c. there are few sales management levels with each sales manager having a relatively large span of control. d. there is a tendency for the organization to have a decentralization orientation. e. the span of control tends to increase at higher sales management levels.

ANS: C

REF: pg. 74

11. In a tall sales management structure a. there are more sales management levels and smaller spans of control. b. there would be more district sales managers and less use of regional sales managers. c. there are few sales management levels with each sales manager having a relatively large span of control. d. there is a tendency for the organization to have a decentralization orientation. e. the span of control tends to increase at higher sales management levels.

ANS: A

REF: pg. 74

12. Which of the following statements regarding a line sales management position is false? a. It is part of the direct management hierarchy within the sales organization. b. Line sales managers have direct responsibility for a certain number of subordinates. c. Line sales managers report directly to management at the next highest level in the sales organization. d. Line sales managers are responsible for only certain sales management functions (e.g., recruiting and selecting, training, etc.). e. Line sales managers are directly involved in the sales-generating activities of the firm.

ANS: D

REF: pg. 74

13. Which of the following statements regarding a staff sales management position is false? a. Staff sales management positions are more specialized than line sales management positions. b. Staff sales management positions are not in the direct chain of command in the sales organization structure. c. Those is staff sales management positions are directly involved in the sales-generating activities of the firm. d. Those is staff sales management positions are responsible for only certain sales management functions (e.g., recruiting and selecting, training, etc.).

ANS: C

REF: pg. 74

14. A staff sales management position is a. less specialized than a line sales management position. b. part of the direct management hierarchy within the sales organization. c. responsible for only certain sales management functions (e.g., recruiting and selecting, training, etc.) and are not directly involved in sales generating activities. d. directly involved in the sales generation activities of the firm. e. directly responsible for a certain number of subordinates.

ANS: C

REF: pg. 74

15. With regards to designing the sales organization, which one of the following is not an emerging trend? a. Many sales organizations are moving to some type of specialization. b. Sales organization structures are flatter. c. Sales managers typically have larger spans of control. d. Sales management levels have been added. e. Some staff positions have been eliminated.

ANS: D

REF: pg. 75

16. When selling effort is considered to be more important than selling skill, the salesforce should be a. specialized. b. expanded. c. centralized. d. decentralized. e. generalized.

ANS: E

REF: pg. 76

17. When sales management wants to focus on specific skills within each selling contact the salesforce should be a. specialized. b. expanded.

c. centralized. d. decentralized. e. generalized.

ANS: A

REF: pg. 76

18. A specialized structure is best when all of the following exist except a. environmental uncertainty is low. b. environmental uncertainty is high. c. salespeople and sales managers must perform creative and nonroutine activities. d. adaptability is critical to achieving performance objectives.

ANS: A

REF: pg. 77

19. Centralization is most appropriate when all of the following exist except a. environmental uncertainty is low. b. environmental uncertainty is high. c. sales organization activities are routine and repetitive. d. performance emphasis is on effectiveness.

ANS: B

REF: pg.77

20. When there is a high level of environmental uncertainty and when adaptability is critical to achieving performance objectives, a ___________ sales organization structure is suggested. a. decentralized b. generalized c. specialized d. centralized e. flat ANS: C

REF: pg. 77

21. The appropriate type of salesforce specialization depends on all of the following except a. the similarity of customer needs. b. the professionalism of the salesforce. c. whether the economy is growing or not. d. the complexity of products offered by the firm. e. characteristics of the market environment.

ANS: C

REF: pg.77

22. When the firm has a simple product offering but customers have different needs a ________ salesforce is recommended. a. market specialized b. product specialized c. geographically specialized d. product-market specialized e. functionally specialized ANS: A

REF: pg. 77

23. When the firm has a simple product offering and customers have similar needs a ________ salesforce is recommended. a. market specialized b. product specialized c. geographically specialized

d. product-market specialized e. functionally specialized ANS: C

REF: pg. 77

24. When the firm offers a complex range of products and customers have similar needs a ________ salesforce is recommended. a. market specialized b. product specialized c. geographically specialized d. product-market specialized e. functionally specialized ANS: B

REF: pg. 77

25. When the firm offers a complex range of products and customers have different needs a ________ salesforce is recommended. a. market specialized b. product specialized c. geographically specialized d. product-market specialized e. functionally specialized ANS: D

REF: pg. 78

26. The least specialized and most generalized type of salesforce is one that is a. product specialized. b. market specialized. c. geographically specialized. d. functionally specialized. e. strategic account specialized.

ANS: C

REF: pg. 78

27. Which type of salesforce specialization does not result in any duplication of sales effort to an account or geographic area? a. Product specialized b. Market specialized c. Geographically specialized d. Functionally specialized e. Strategic account specialized ANS: C

REF: pg. 78

28. Cooper Tire and Rubber's use of separate salesforces for Cooper brands, Falls brands, and house brands of tires is an example of a. market specialization. b. functional specialization c. strategic account specialization. d. geographical specialization. e. product specialization.

ANS: E

REF: pg. 79

29. A company has one salesforce selling office equipment and another selling office supplies. They are organized according to geographic area and perform all selling activities to all types of accounts. They are considered to be a. market specialized. b. functionally specialized. c. strategic account specialized. d. product specialized. e. geographically specialized.

ANS: D

REF: pg. 79

30 When salespeople are assigned specific types of customers and are required to satisfy all needs of these customers, this is referred to as a. product specialization. b. functional specialization. c. market specialization. d. geographic specialization. e. strategic account specialization.

ANS: C

REF: pg. 80

31. The basic objective of market specialization is a. for salespeople to become experts in the assigned product category. b. to guarantee that there will be no duplication of selling effort. c. to ensure that salespeople understand how customers use and purchase their products. d. to more cost effectively serve the different needs of the customer. e. to make sure the needs of the large-volume customers are identified and met.

ANS: C

REF: pg. 80

32. An arrangement in which there is geographic duplication, but the salespeople call on different accounts, would be specialization by a. geography. b. market. c. product. d. function. e. districts.

ANS: B

REF: pg. 80

33. Using a field salesforce to perform sales-generating activities and a telemarketing salesforce to perform account servicing activities is an example of a. specialization by product. b. specialization by geographic area. c. specialization by function. d. specialization by market. e. specialization by strategic accounts.

ANS: C

REF: pg. 81

34. Which of the following statements regarding strategic accounts is false? a. For many firms, a large percentage of their total sales come from a relatively few accounts. b. National account management focuses on meeting the needs of specific accounts with multiple locations throughout a large region or country. c. All accounts that generate a large volume of sales should be identified as strategic accounts.

d. All firms must determine how to identify their strategic accounts and how to organize for effective strategic account coverage. e. Many firms are expanding their strategic account management programs into international markets.

ANS: C

REF: pg. 82

35. According to the textbook, a strategic account may also be referred to as a a. key account. b. major account. c. both a key account and major account. d. significant account. e. prime account.

ANS: C

REF: pg. 82

36. A ____________________ represents a type of market specialization based on account size and complexity. a. product sales organization b. functional sales organization c. market sales organization d. geographic sales organization e. strategic account organization ANS: E

REF: pg. 82

37. To be considered as strategic, an account should be both ________ and ________. a. high in volume sales, high in total dollar sales b. large, buy large amounts of one product c. complex, small d. profitable, large e. large, complex ANS: E

REF: pg. 82

38. ________ serves the needs of strategic customers with locations around the world. a. National account management b. International account management c. Geographic account management d. Specialized account management e. Global account management ANS: E

REF: pg. 82

39. A _____________ increases customer growth, nurtures customer loyalty, supports innovative and scalable service solutions, and improves profits. a. product sales organization b. functional sales organization c. market sales organization d. geographic sales organization e. strategic account organization ANS: E

REF: pg. 82

40. An account can be considered complex under any of the following circumstances except when a. it has multiple buying locations.

b. c. d. e.

top management heavily influences its purchasing decisions. multiple functions are involved in buying decisions. it requires special services. it purchases standardized products.

ANS: E

REF: pg. 82

41. The different ways in which strategic accounts can be served typically include all of the following except a. establishing a separate strategic accounts salesforce. b. assigning strategic accounts to service managers. c. assigning strategic accounts to sales managers. d. assigning strategic accounts to salespeople along with other accounts. e. establishing formal sales teams to serve specific strategic accounts.

ANS: B

REF: pg. 83

42. Research indicates that the effectiveness of the strategic account salesforce depends upon all of the following except a. the esprit de corps of those serving the strategic account. b. access to sales and marketing resources. c. the number of activities performed with the strategic account. d. top management involvement. e. formalization of the strategic account salesforce approach.

ANS: E

REF: pg. 83-84

43. A hybrid sales organization structure is a. generally composed of a combination of the strategic account and geographic sales organization structures. b. based on the premise that a mix of the different sales organization structures is always much better than any one. c. easier to implement than other sales organization structures. d. a complex structure that might include elements of geographic, product, market, function, and strategic account organizations. e. able to reduce geographic and customer duplication by using elements of a functional sales organization.

ANS: D

REF: pg. 84

44. One main advantage of the functional sales organization structure is a. no geographic duplication. b. no customer duplication. c. sales efforts do not have to be coordinated. d. low cost to the firm. e. efficiency in performing specific selling activities.

ANS: E

REF: pg. 84

45. Advantages of the geographic sales organization structure include all of the following except a. fewer management levels. b. no geographic duplication. c. salespeople develop better understanding of unique customer needs. d. low cost. e. no customer duplication.

ANS: C

REF: pg. 84

46. Which of the following is a disadvantage of a product sales organization structure? a. Limited specialization b. Customer duplication c. Need for coordination d. Lack of management control over product emphasis e. Fewer management levels ANS: B

REF: pg. 84

47. Decisions regarding the allocation of selling effort, salesforce size, and design of territories are referred to as a. salesforce distribution. b. salesforce allocation. c. salesforce deployment. d. territorial apportionment. e. coverage decisions.

ANS: C

REF: pg. 85

48. Decisions regarding the allocation of selling effort, salesforce size, and design of territories should be addressed a. independently. b. prior to determining the organizational structure. c. as being completely unrelated decisions. d. in an interrelated manner. e. as different parts of the puzzle.

ANS: D

REF: pg. 86

49. Which of the following decisions can be regarded as the starting point in a comprehensive salesforce deployment approach? a. Deciding how many salespeople are required to provide the desired amount of selling effort. b. Deciding how territories should be designed to ensure proper coverage of accounts. c. Deciding how much selling effort is needed to cover accounts and prospects so that sales and profit objectives will be achieved. d. Deciding how to provide each salesperson with a reasonable opportunity for success. e. Deciding how many sales calls each salesperson should make on an annual basis.

ANS: C

REF: pg. 86

50. Which of the following statements concerning the allocation of selling effort to accounts is false? a. It is one of the most important deployment decisions. b. Salesforce size and territory decisions are based on this allocation decision. c. Determining how much selling effort to allocate to individual accounts is an extremely important strategic decision. d. Selling effort is a major determinant of account sales and a major element of account selling costs. e. Territories are always assigned an equal number of sales calls.

ANS: E

REF: pg. 86

51. The three basic analytical approaches used in selling effort allocation decisions are the a. single factor model, multiple factor model, portfolio model. b. multiple factor model, decision model, historical model.

c. portfolio model, single factor model, decision model. d. single factor model, cost based model, decision model. e. multiple factor model, portfolio model, historical model.

ANS: C

REF: pg. 87

52. The analytical method for allocating selling effort that is the easiest to develop and use is the a. multiple factor model. b. decision model. c. historical model. d. single factor model. e. portfolio model.

ANS: D

REF: pg. 87

53. If the company evaluates the market potential of each account, classifies all accounts into A, B, C, and D market potential categories, and then calculates and evaluates the average number of sales calls to make to an account in each category, they are using this analytical method: a. multiple factor model. b. decision model. c. historical model. d. single factor model. e. portfolio model.

ANS: D

REF: pg. 88

54. Which of the following statements regarding the use of the portfolio model to allocate selling effort is false? a. More attractive accounts receive more selling effort. b. It can be a valuable tool for helping sales managers improve their account effort allocation strategy. c. All accounts are classified into categories of similar size to determine the level of sales effort needed. d. Each account served by a firm is considered as part of an overall portfolio of accounts. e. Each account segment represents a different situation and should receive a different level of selling effort.

ANS: C

REF: pg. 88

55. Use of this analytical method requires that account opportunity and competitive position be measured for each account: a. multiple factor model. b. decision model. c. historical model. d. single factor model. e. portfolio model.

ANS: E

REF: pg. 88

56. Account opportunity is defined as a. an account's basic desire for the firm's brand of products. b. the ability of the firm to service the account. c. an account's location within the firm’s geographic distribution area. d. an account's forecasted potential for growth. e. an account's need for and ability to purchase products of the type sold by the firm.

ANS: E

REF: pg. 88

57. Competitive position is defined as a. the strength of the relationship between the selling firm and an account. b. the number of active competitors for the account. c. the strength of the relationship between an account and each competing firm. d. a measure of the competitive strength of the firm in an area. e. a rank order of account desirability determining to what extent selling effort should be expended to win it.

ANS: C

REF: pg. 88

58. When a firm's competitive position is weak, but account opportunity is high, the selling effort strategy should be to: a. perform additional analysis to identify accounts where the sales organization's competitive position can be strengthened and invest heavy selling effort in these accounts. b. provide minimal selling effort to accounts and replace the personal selling effort with advertising. c. invest heavy selling effort in accounts. d. invest sufficient selling effort in accounts to maintain current competitive position. e. provide minimal selling effort to accounts and use less costly forms of marketing to replace selling efforts on a selective basis.

ANS: A

REF: pg. 89

59. When a firm's competitive position is weak, and account opportunity is low, the selling effort strategy should be to: a. perform additional analysis to identify accounts where the sales organization's competitive position can be strengthened and invest heavy selling effort in these accounts. b. provide minimal selling effort to accounts and replace the personal selling effort with advertising. c. invest heavy selling effort in accounts. d. invest sufficient selling effort in accounts to maintain current competitive position. e. provide minimal selling effort to accounts and use less costly forms of marketing to replace selling efforts on a selective basis.

ANS: E

REF: pg. 89

60. When a firm's competitive position is strong, but account opportunity is low, the selling effort strategy should be to: a. perform additional analysis to identify accounts where the sales organization's competitive position can be strengthened and invest heavy selling effort in these accounts. b. provide minimal selling effort to accounts and replace the personal selling effort with advertising. c. invest heavy selling effort in accounts. d. invest sufficient selling effort in accounts to maintain current competitive position. e. provide minimal selling effort to accounts and use less costly forms of marketing to replace selling efforts on a selective basis.

ANS: D

REF: pg. 89

61. When a firm's competitive position is strong, and account opportunity is high, the selling effort strategy should be to: a. perform additional analysis to identify accounts where the sales organization's competitive position can be strengthened and invest heavy selling effort in these accounts.

b. provide minimal selling effort to accounts and replace the personal selling effort with advertising. c. invest heavy selling effort in accounts to take advantage of opportunity and maintain/improve competitive position. d. invest sufficient selling effort in accounts to maintain current competitive position. e. provide minimal selling effort to accounts and use less costly forms of marketing to replace selling efforts on a selective basis.

ANS: C

REF: pg. 89

62 The analytical method for allocating selling effort that is the most difficult to develop and use is the a. multiple factor model. b. decision model. c. historical model. d. single factor model. e. portfolio model.

ANS: B

REF: pg. 89

63. This sales effort allocation model calculates the optimal allocation of sales calls to accounts that will maximize total firm sales: a. multiple factor model. b. decision model. c. historical model. d. single factor model. e. portfolio model.

ANS: B

REF: pg. 89

64. When determining salesforce size, it is important to consider a. productivity. b. turnover. c. organizational strategy. d. all of the above. e. none of the above.

ANS: D

REF: pg. 90

65. Productivity is normally defined as a. a ratio between outputs and inputs. b. the number of salespeople in the field. c. a ratio of selling effort employed to number of salespeople. d. a ratio of sales generated to number of accounts. e. a ratio of accounts to salespeople.

ANS: A

REF: pg. 90

66. Sales generally increase in a ________ manner with the addition of salespeople, while costs typically increase in a ________ manner. a. direct, indirect b. linear, nonlinear c. step-wise, linear d. nonlinear, linear e. nonlinear, step-wise ANS: D

REF: pg. 91

67. The profit maximization point is when a. the total possible sales effort has been achieved. b. the marginal costs of adding a salesperson are equal to the marginal profits generated by that salesperson. c. the marginal profits for a salesperson are maximized by assigning them to a certain territory. d. the incremental profits of a salesperson provide a return over and above the cost to employ him or her. e. the optimal account to salesperson ratio has been determined.

ANS: B

REF: pg. 91

68. Because of the existence of salesforce turnover, a. firms should scale down their sales efforts to a level that the current salesforce can manage. b. firms should redesign their compensation programs if they are losing substantial salespeople each year. c. firms should have alternative sales allocation plans based on both a full strength and reduced salesforce. d. firms should determine the desired salesforce size and then adjust this figure to reflect expected turnover. e. firms should solicit their competitor's best salespeople to offset the opportunity costs of turnover.

ANS: D

REF: pg. 91

69. All of the following make salesforce size a difficult decision except a. sales b. costs c. productivity d. profitability e. turnover ANS: D

REF: pg. 91

70. The different types of salesforce size decisions include all of the following except a. number of salespeople assigned to districts or zones. b. size of each specialized salesforce. c. number of specialized salesforces. d. total size of a generalized salesforce. e. total size of all specialized salesforces.

ANS: C

REF: pg. 91

71. Three different analytical methods that can be used to determine the appropriate salesforce size are as follows: a. incremental, decision, single factor. b. productivity, breakdown, incremental. c. territory, workload, zone. d. breakdown, decision, workload. e. workload, breakdown, incremental.

ANS: E

REF: pgs. 92-93

72. The following formula is used to calculate salesforce size for this approach: Salesforce size = Forecasted sales/Average sales per salesperson

a. b. c. d. e.

incremental method. decision method. workload method. productivity method. breakdown method.

ANS: E

REF: pg. 92

73. Likely the most often used approach for determining salesforce size is the a. incremental method. b. breakdown method. c. productivity method. d. workload method. e. decision method.

ANS: B

REF: pg. 92

74. This approach to determining salesforce size is best suited for relatively stable selling environments where sales change in slow and predictable ways and no major strategic changes are planned: a. incremental method. b. decision method. c. workload method. d. productivity method. e. breakdown method.

ANS: E

REF: pg. 92

75. The following formula is used to calculate salesforce size for this approach: Number of salespeople =

a. b. c. d. e.

Total Selling Effort Needed Average Selling Effort Per Salesperson

incremental method. decision method workload method. productivity method. breakdown method.

ANS: C

REF: pg. 93

76. The most rigorous approach for calculating salesforce size is the a. incremental method. b. breakdown method. c. productivity method. d. workload method. e. decision method.

ANS: A

REF: pg. 93

77. This approach to determining salesforce size cannot normally be used for a new salesforce because it requires historical data or accurate management judgments: a. incremental method. b. decision method. c. workload method. d. productivity method. e. breakdown method.

ANS: A

REF: pg. 94

78. Evidence suggests that many firms may lose as much as ____ percent in sales productivity due to the loss in sales from vacant territories or low initial sales when a new salesperson is assigned to a territory. a. 5 b. 10 c. 15 d. 20 e. 25 ANS: B

REF: pg.94

79. A company may want to ______________ the salesforce in situations where they need salespeople quickly, for short periods of time, for smaller customers, or for other reasons, but when they do not want to hire additional salespeople. a. source b. outsource c. source out d. increase e. motivate ANS: B

REF: pg. 94

80. A territory is considered to be a. a geographical area in which the company has not previously prospected for accounts. b. the amount of geographical area that any one salesperson can cover effectively. c. all of the firm's accounts that do business within a certain area. d. the geographical area in which a salesperson resides. e. the assignment of specific accounts to a specific salesperson.

ANS: E

REF: pg. 94

81. The overall objective of territory design is to a. motivate salespeople to their fullest potential. b. ensure that all accounts are assigned salesperson responsibility and that each salesperson can adequately cover the assigned accounts. c. evaluate the workload for each territory. d. group the planning and control units into territories that are as equal as possible in opportunity. e. assess the potential sales that the firm might achieve in each planning and control unit.

ANS: B

REF: pg. 94

82. All of the following are consequences of ineffective territory design except a. a salesperson might get frustrated because there is little potential for generating additional sales in his or her territory. b. the firm could lose sales opportunities because of a lack of selling attention. c. a salesperson may not be motivated to develop the potential of the territory and instead merely “skim the cream” from the best accounts. d. all salespeople have equal opportunities for generating sales and profits. e. too much sales effort being expended for the level of sales opportunity that exists.

ANS: D

REF: pg. 95

83. The concept “planning and control unit” can be defined as

a. the division of the total market area of the firm into geographic areas with an equal number of accounts. b. the division of the total market area of the firm into geographic areas containing the same approximate square miles. c. the division of the total market area of the firm into geographic areas with an equal number of road miles. d. some entity smaller than a territory into which the total market area of the firm is divided. e. the division of the total market area of the firm into geographic areas called territories.

ANS: D

REF: pg. 96

84. The most often used measure of opportunity in planning and control units is a. the number of accounts. b. the number of sales calls required to cover the accounts. c. the total number of customers and prospects. d. market potential. e. last year's total sales.

ANS: D

REF: pg. 96

85. According to the text, when designing territories, after analyzing the planning and control unit opportunity, which step should be taken? a. Select planning and control unit. b. Form initial territories. c. Assess territory workload. d. Finalize territory design. e. None of the above.

ANS: B

REF: pg. 96

86. When designing territories, the workload of each territory should be evaluated by a. the number of sales calls required to cover the accounts in the territory. b. the amount of travel time in the territory. c. the total number of accounts. d. any factors that measure the amount of work required by a salesperson assigned to the territory. e. all of the above.

ANS: E

REF: pg. 97

87. According to the text, sales managers should integrate the results from salesforce deployment analysis with ________ considerations before implementing changes in sales call allocation, salesforce size, or territory design. a. people b. marketing c. production d. finance e. accounting ANS: A

REF: pg. 100

88. According to the text, salesforce size decisions require consideration of _________ issues. a. marketing b. production c. finance

d. accounting e. people ANS: E

REF: pg. 100

TRUE/FALSE 1. The sales organization structure provides a framework for sales organization operations by indicating what specific activities are performed by whom in the sales organization.

ANS: T

REF: pg. 72

2. The basic idea behind centralization is that by concentrating on a limited number of activities, individuals become experts on those tasks.

ANS: F

REF: pg. 74

3. Centralization refers to the degree to which important decisions and tasks are performed at higher levels in the management hierarchy.

ANS: T

REF: pg. 74

4. A decentralized organization structure is one where authority and responsibility are placed at higher management levels.

ANS: F

REF: pg. 74

5. No organization is totally centralized or totally decentralized.

ANS: T

REF: pg. 74

6. Most organizations tend to have either a centralized or decentralized orientation.

ANS: T

REF: pg. 74

7. There is no single greater influence over the success of the sales organization than how the sales leadership creates the sales culture and environment for the people who will work for them.

ANS: T

REF: pg. 74

8. The senior leadership team typically micromanages their sales teams below.

ANS: F

REF: pg. 74

9. The trends from transactions to relationships, individuals to teams, and management to leadership are producing a more centralized orientation in many sales organizations.

ANS: F

REF: pg. 74

10. The smaller the span of control, the more subordinates that a sales manager must supervise.

ANS: F

REF: pg. 74

11. Management levels refer to the number of individuals that report to each level of management.

ANS: F

REF: pg. 74

12. In a tall organization structure, there are more sales management levels and smaller spans of control.

ANS: T

REF: pg. 74

13. Tall structures are most appropriate for decentralized organizations.

ANS: F

REF: pg. 74

14. As one moves down the organizational chart from national sales manager to district sales manager, the number of individuals to be supervised directly decreases.

ANS: F

REF: pg. 74

15. Line managers are directly involved in the sales-generation activities of the firm.

ANS: T

REF: pg. 74

16. Staff sales management positions are part of the direct management hierarchy within the sales organization.

ANS: F

REF: pg. 74

17. Staff sales management positions are less specialized than line sales management positions.

ANS: F

REF: pg. 74

18. An emerging trend affecting the design of sales organizations is the move toward smaller spans of control for sales managers.

ANS: F

REF: pg. 75

19. There is a trend towards more decentralized sales organizations.

ANS: T

REF: pg. 76

20. The sales organization structure may have to be changed as the selling situation changes.

ANS: T

REF: pg. 76

21. Sales management can focus on selling skill rather than selling effort by employing a generalized salesforce.

ANS: F

REF: pg. 76

22. Centralization is most appropriate when sales organization activities are routine and repetitive.

ANS: T

REF: pg. 77

23. One of the most important factors in determining the appropriate type of specialization is the complexity of products offered by the firm.

ANS: T

REF: pg. 77

24. One of the most important factors in determining the appropriate type of specialization is the similarity of customer needs.

ANS: T

REF: pg. 77

25. Although the appropriate sales organization structure depends on the specific characteristics of a firm’s selling situation, research evidence suggests that the structures remain steady as a business goes through its life cycle.

ANS: F

REF: pg. 77

26. The appropriate salesforce specialization depends upon the specific characteristics of a firm's selling situation.

ANS: T

REF: pg. 77

27. If the firm has customers with similar needs and the firm sells a complex range of products, a product-specialized salesforce is recommended.

ANS: T

REF: pg. 77

28. If the firm has customers with similar needs and the firm sells a simple product offering, geography-driven specialization is recommended.

ANS: T

REF: pg. 77

29. In a firm with geographic specialization, there is no attempt to specialize by product, market, or function.

ANS: T

REF: pg. 78

30. In product specialization, salespeople are assigned specific types of customers and required to satisfy all needs of these customers.

ANS: F

REF: pg. 79

31. In product specialization, salespeople are assigned to sell specific products or product lines.

ANS: T

REF: pg. 79

32. With product specialization, there may be duplication in the coverage of geographic areas.

ANS: T

REF: pg. 79

33. Product specialization works well in highly technical fields, such as medical equipment.

ANS: T

REF: pg. 79

34. With market specialization, salespeople are assigned specific types of customers or industries and are required to satisfy all needs of these customers.

ANS: T

REF: pg. 80

35. The basic objective of market specialization is to ensure that salespeople understand how customers use and purchase their products.

ANS: T

REF: pg. 80

36. Market specialization will result in customer duplication, but not geographic duplication.

ANS: F

REF: pg. 80

37. A company that operates a separate salesforce to call on government accounts is practicing strategic-account management.

ANS: F

REF: pg. 80

38. Specialized salesforces within the same sales organization must be structured in the same manner.

ANS: F

REF: pg. 80

0

39. A sales organization with both a field and a telemarketing salesforce serving the same accounts to meet the needs of their customers is specializing by function.

ANS: T

REF: pg. 81

40. A sales organization with both a field and a telemarketing salesforce serving the same accounts is using market specialization to meet the needs of their customers.

ANS: F

REF: pg. 81

41. When organizing by function, if the scope of the functions are too narrow, multiple salespeople may end up serving the same account at the same time.

ANS: T

REF: pg. 81

42. The terms strategic account, key account and major account can be used interchangeably.

ANS: T

REF: pg. 82

43. A strategic account is generally considered as one yielding a large amount of sales dollars and having a complex buying process.

ANS: T

REF: pg. 82

44. National account management serves the needs of strategic customers with locations around the world.

ANS: F

REF: pg. 82

45. Global account management focuses on meeting the needs of specific accounts with multiple locations throughout a large region or entire country.

ANS: F

REF: pg. 82

46. Global account management serves the needs of strategic customers with locations around the world.

ANS: T

REF: pg. 82

47. According to the text, research indicates that global account management programs can improve customer satisfaction by 50% and increase sales and profits by 75% or more.

ANS: F

REF: pg. 82

48. A complex account requires multiple buying locations.

ANS: T

REF: pg. 82

47. Accounts that are not both large and complex are typically served adequately through the basic sales organization structure.

ANS: T

REF: pg. 82

49. Strategic accounts can be served in only one of two ways: have the regular salespeople handle the account along with their other accounts or assign these accounts to sales executives along with their regular duties.

ANS: F

REF: pg. 83

50. Research indicates that the effectiveness of the strategic account salesforce depends upon the formalization of the strategic account salesforce approach.

ANS: F

REF: pgs. 83-84

51. Research indicates that the effectiveness of the strategic account salesforce depends upon, in part, access to sales and marketing resources.

ANS: T 52. Research indicates that the effectiveness of the strategic account salesforce depends upon, in part, the number of activities performed with the strategic account.

ANS: T

REF: pgs. 83-84

53. Research indicates that the effectiveness of the strategic account salesforce depends upon, in part, top management involvement.

ANS: T

REF: pgs. 83-84

54. No one best way exists to structure a sales organization.

ANS: T

REF: pg. 84

55. High cost is one disadvantage of the market specialization sales organization structure.

ANS: T

REF: pg. 84

56. A hybrid form of sales organization structure is one in which the disadvantages have begun to outweigh the advantages and a new structure should be developed.

ANS: F

REF: pg. 84

57. Geographic duplication is a disadvantage of a functional organization structure.

ANS: T

REF: pg. 84

58. Low cost is an advantage of a geographic organization structure.

ANS: T

REF: pg. 84

59. One advantage of a market organization structure is that there is no geographic duplication, ANS: F

REF: pg.84

60. Decisions in one salesforce deployment area do not affect decisions in other areas.

ANS: F

REF: pg. 86

61. The allocation of selling effort is one of the most important salesforce deployment decisions.

ANS: T

REF: pg. 86

62. Sales managers are likely to make just as good sales effort allocation decisions relying totally on judgment and intuition as they would make with the single factor model.

ANS: F

REF: pg. 87

63. The most widely used analytical approach for making selling effort allocation decisions is the portfolio model.

ANS: F

REF: pg. 88

64. The basic concept of the portfolio model is that each account served by a firm can be considered as part of an overall portfolio of accounts.

ANS: T

REF: pg. 88

65. Accounts are more attractive the higher the account opportunity and the weaker the competitive position.

ANS: F

REF: pg. 88

66. The portfolio approach to allocating sales effort provides a comprehensive account analysis that can be adapted to the specific selling situation faced by any firm.

ANS: T

REF: pg. 88

67. Four account opportunity categories mentioned in the text are: repurchase, redesign, expansion and innovation.

ANS: F

REF: pg. 88

68. The portfolio method is the most rigorous and comprehensive method for an account effort allocation strategy.

ANS: F

REF: pg. 88

69. The basic objective of a decision model is to allocate sales calls to accounts that promise the highest sales return from sales calls.

ANS: T

REF: pg. 89

70. Research shows that many firms could improve their performance by changing the size of their salesforce.

ANS: T

REF: pg. 90

71. The size of a firm’s salesforce determines the total amount of selling effort that is available to call on accounts and prospects.

ANS: T

REF: pg. 90

72. Because sales increase with the addition of salespeople in a linear manner, the increases in sales tend to remain fairly stable as more salespeople are added.

ANS: F

REF: pg. 91

73. It is typically more difficult to maintain high sales productivity at smaller salesforce sizes.

ANS: F

REF: pg. 91

74. If the salesforce size needs to be decreased, more salespeople than desired should be in the recruiting-selecting-training pipeline.

ANS: F

REF: pg. 91

75. Salesforce size decisions must also be consistent with the organizational strategy being implemented by a firm.

ANS: T

REF: pg. 91

76. Companies that are focusing on serving current customers and achieving limited growth during slow economic times might increase salesforce size as a way to lower costs.

ANS: F

REF: pg. 91

77. Increasing salesforce size at the right time can provide a firm with a competitive advantage.

ANS: T

REF: pg. 91

78. According to the text, the need to consider sales, costs, profitability and turnover makes salesforce size a difficult decision.

ANS: T

REF: pg. 91

79. The breakdown method for determining salesforce size assumes that an accurate sales forecast is available.

ANS: T

REF: pg. 92

80. The basic breakdown approach first determines how much selling effort is needed to adequately cover the firm's market and then calculates the number of salespeople required to provide this amount of selling effort.

ANS: F

REF: pg. 92

81. Sales organizations that use commission compensation plans and keep their fixed costs low would benefit most from the incremental approach to determining salesforce size.

ANS: F

REF: pgs. 92-93

82. The workload method for determining salesforce size is very weak conceptually as it lets forecasted sales determine the number of salespeople needed.

ANS: F

REF: pg. 93

83. The major advantage of the incremental approach is that it quantifies the important relationships between salesforce size, sales, and costs.

ANS: T

REF: pg. 93

84. Outsourcing the salesforce is an attractive option if a company needs salespeople quickly.

ANS: T

REF: pg. 94

85. Studies suggest that properly designed territories can increase sales by as much as 30 percent.

ANS: F

REF: pg. 94

86. One key consideration in territory design is the productive deployment of selling effort within each territory.

ANS: T

REF: pg. 95

87. Research suggests that salespeople who are satisfied with the design of their sales territory work harder.

ANS: T

REF: pg. 96

88. The first step in territory design is to analyze the planning and control unit opportunity.

ANS: F

REF: pg. 96

89. The planning and control unit is some entity larger than a territory into which the firm's total market area is divided.

ANS: F

REF: pg. 96

90. In general, management should use the largest planning and control unit that is feasible.

ANS: F

REF: pg. 96

91. The selection of the appropriate planning and control unit represents a tradeoff between what is desired and what is possible under given data or computational considerations.

ANS: T

REF: pg. 96

92. Everything else being equal, the higher the market potential, the more opportunity available from a planning and control unit.

ANS: T

REF: pg. 96

93. Territory workload can be assessed by a variety of methods that measure the amount of work required by a salesperson assigned to the territory.

ANS: T

REF: pg. 97

94. When finalizing territory design, the objective is to achieve the best possible balance between opportunity and workload for each territory.

ANS: T

REF: pg. 98

95. “Farmers” and “hunters” are both designations for salespeople that are good at uncovering prospects and establishing new accounts.

ANS: F

REF: pg. 99

96. Advances in computer hardware and software have made the task of territory design much simpler and less time consuming than in the past.

ANS: T

REF: pg. 99

97. Software is available that allows sales managers to evaluate many possible territory designs and to assess the impact of territory design changes easily.

ANS: T

REF: pg. 99

98. Salespeople are generally equal in abilities and will perform in a similar fashion with different types of accounts or prospects.

ANS: F

REF: pg. 100

99. “People considerations” should have little influence in making salesforce deployment decisions.

ANS: F

REF: pg. 100

100. Salesforce deployment changes should be made that are likely to have the least disruptive effect on existing personal relationships.

ANS: T

REF: pg. 101

CHAPTER 5—ACQUIRING SALES TALENT: RECRUITMENT AND SELECTION MULTIPLE CHOICE 1. Which of the following is not one of the changes expected to impact salesforces today? a. Salesforces will contain more elderly salespeople. b. Sales managers will face challenges associated with acquiring talent for an international salesforce. c. Sales managers will be involved with recruiting and selecting for team selling. d. Salesforces will be reduced or eliminated as companies continue to search for ways to cut costs. e. Salesforces will contain a higher proportion of women.

ANS: D

REF: pg. 126

2. In most sales organizations, __________ have the ultimate responsibility for recruiting and selection. a. district sales managers b. regional sales managers c. sales managers with direct supervisory responsibility d. SBU managers e. vice presidents of sales ANS: C

REF: pg. 126

3. Potential problems associated with inadequate recruitment and selection include all of the following except a. inadequate sales coverage and lack of customer follow up. b. higher turnover rates. c. difficulty in establishing enduring relationships with customers. d. increased training costs to overcome deficiencies. e. reduced capability to evaluate sales performance.

ANS: E

REF: pg. 126

4. Perhaps the most significant managerial problem that can arise from improper recruiting and selection of salespeople is a. total salesforce performance is suboptimal. b. a higher turnover rate. c. inadequate sales coverage and lack of customer follow up. d. increased training costs to overcome deficiencies. e. difficulty in establishing good customer relationships.

ANS: A

REF: pg. 126

5. Salesforce socialization refers to a. the encouragement salespeople get to socialize with their colleagues after work hours. b. the process by which salespeople acquire the knowledge, skills, and values essential to perform in their role as salespeople. c. the overall social values held by the firm about contemporary issues affecting the firm. d. the salesperson's education concerning the ways other salespeople handle role conflict and role ambiguity. e. the process by which all new members of a firm's salesforce learn to coordinate their efforts with those of other employees in an effective manner.

ANS: B

REF: pg. 127

6. ____________ is giving the recruit an accurate portrayal of the job. a. Achieving congruence b. Achieving realism c. Achieving self-esteem d. Achieving accuracy e. Initiation to task ANS: B

REF: pg. 127

7. ____________ is matching the capabilities of the recruit with the needs of the organization. a. Achieving congruence b. Achieving realism c. Achieving self-esteem d. Achieving accuracy e. Initiation to task ANS: A

REF: pg. 127

8. A job preview can be used to help achieve ____________. a. congruence b. realism c. self-esteem d. accuracy e. initiation to task ANS: B

REF: pg. 127

9. One suggested way of achieving realism in the recruiting and selection process is to a. ask the job candidate to participate in a stress interview. b. conduct extensive role playing during the interview process. c. offer a job preview through a field visit with a salesperson. d. use a multiple, sequential interview process. e. use the computer for matchmaking.

ANS: C

REF: pg. 127

10. The first step of the recruitment and selection process for salespeople involves all of the following activities except a. establishing job qualifications. b. setting recruiting and selection objectives. c. conducting a job analysis. d. locating prospective candidates. e. developing a recruiting and selection strategy.

ANS: D

REF: pg. 128

11. The first step in the process of recruiting and selecting salespeople is a. selection. b. prospecting. c. recruitment. d. planning. e. hiring.

ANS: D

REF: pg. 128

12. The second step in the process of recruiting and selecting salespeople is a. selection. b. prospecting. c. recruitment. d. planning. e. hiring.

ANS: C

REF: pg. 128

13. All of the following are elements of the third and final step of the recruiting and selection process, except a. background investigation. b. physical exam. c. screening resumes and job applications. d. locating prospective job candidates. e. testing.

ANS: D

REF: pg. 128

14. The third step in the process of recruiting and selecting salespeople is a. selection. b. prospecting. c. recruiting. d. planning. e. hiring.

ANS: A

REF: pg. 128

15. A job analysis is a. an investigation of the tasks, duties, and responsibilities of the job. b. an analysis of the amount of stress inherent in the job. c. a rating assigned to a particular job, indicating what grade and salary is appropriate. d. an investigation into the job history of the applicant to uncover any fraud or incompetence. e. a breakdown of the job into specific tasks, enumerating the times that each task is performed during a certain time period.

ANS: A

REF: pg. 129

16. Determining whether or not the job's selling tasks will include responsibilities for opening new accounts as well as maintaining existing accounts is part of this step of the recruiting and selection process: a. determining job qualifications. b. writing the job description. c. setting objectives. d. conducting a job analysis. e. formulating strategies.

ANS: D

REF: pg. 129

17. __________ refers to the aptitude, skills, knowledge, personal traits, and willingness to accept occupational conditions necessary to perform the job. a. Job analysis b. Job qualifications c. Job description d. Job title

e. Congruence ANS: B

REF: pg. 129

18. Common sales job qualifications address all of the following except a. sales experience. b. ability to manage others. c. educational level. d. willingness to travel. e. willingness to relocate.

ANS: B

REF: pg. 129

19. Today's salesperson is expected to a. analyze data. b. think strategically. c. learn the business. d. work independently. e. all of the above.

ANS: E

REF: pg. 129

20. The Miller Heiman Group, a sales consultancy firm, believes salespeople of the future will need to possess all of the following except a. production management skills. b. business and commercial insight. c. analytical thinking skills. d. financial analysis skills. e. project management skills.

ANS: A

REF: pg. 130

21. Research shows that more successful salespeople have all the following characteristics except a. are more motivated. b. the ability to build trust quickly. c. a willingness to ask for commitments. d. more acute problem solving and organizational skills. e. a desire to avoid teamwork.

ANS: E

REF: pg. 130

22. In general, when sending salespeople on international assignments, it is helpful if they are a. patient. b. flexible. c. confident. d. persistent. e. all of the above.

ANS: E

REF: pg. 130

23. The __________ for salespeople is likely to contain the job title, duties, tasks and responsibilities of the salesperson. a. job analysis b. job qualifications c. job description d. job title

e. job outline ANS: C

REF: pg. 130

24. A written job description might include all of the following, except a. job title. b. customer types. c. significant job related demands (e.g., mental stress). d. job related benefits (e.g., insurance, retirement). e. types of products to be sold.

ANS: D

REF: pg. 130

25. Which of the following is not a general objective of recruitment and selection? a. Determining present and future needs in terms of numbers and types of salespeople. b. Reducing the number of underqualified or overqualified candidates. c. Determining the accounts to which salespeople will be assigned. d. Evaluating the effectiveness of recruiting sources and evaluation techniques. e. Increasing the number of qualified applicants at a specified cost.

ANS: C

REF: pg. 130

26. Which of the following is not an issue in recruiting and selection strategy formulation? a. How the recruiting and selection will be done. b. How long will be allowed for the candidate to accept or reject an offer. c. Who is responsible for writing the job description. d. How efforts with intermediaries such as employment agencies and college placement centers will be optimized. e. What the most likely sources for qualified applicants are.

ANS: C

REF: pg. 132

27. According to the text, with regards to recruiting and selection strategy, which of the following is false? a. Recruitment and selection activities occur only when a job vacancy occurs. b. A decision must be made regarding how the job will be portrayed, particularly in advertisements. c. Recruiting needs and activities must be coordinated with employment agencies and college placement centers. d. When developing an international salesforce, the sales manager must consider the type of salesperson best suited for selling outside the home country. e. The length of time a candidate will be given to accept a job offer must be considered.

ANS: A

REF: pg. 132

28. Compared with other means of recruiting, employee referrals generally a. have the highest applicant to hire conversion rate. b. begin their position more quickly. c. have greater job satisfaction and longer tenure. d. are hired more quickly and less expensively. e. all of the above are true.

ANS: D

REF: pg. 133

29. Employees, such as salespeople, are a good source of job referrals because a. if they like someone they are probably going to be able to work effectively with them. b. they meet many other salespeople while making sales calls.

c. most salespeople have a natural talent for recruiting and selection. d. they have a good understanding of the type of person sought for a sales position. e. they appreciate an opportunity to help a friend get a job.

ANS: D

REF: pg. 133

30. According to the text, all of the following are methods for enhancing employee referral programs except a. publicly recognizing successful referrals. b. making the referral process a mandatory part of one's job. c. regularly providing incentives and promptly rewarding successful referrals. d. offering a proactive program that encourages employee participation. e. providing feedback concerning the status of referrals to those making them.

ANS: B

REF: pg. 133

31. Internal sources of sales recruits include all of the following except a. announcing sales job openings through newsletters. b. use of a private employment agency. c. posting sales job openings on bulletin boards. d. announcing sales job openings in meetings. e. use of an employee referral program.

ANS: B

REF: pg. 133 & 135

32. According to the text, advantages of using expatriates to staff the international salesforce include all of the following except a. provides training for promotion b. greater home-country control c. high product knowledge d. low turnover rates e. ability to provide good follow-up service ANS: D

REF: pg. 136

33. According to the text, advantages of using host-country nationals to staff the international salesforce include all of the following except a. easy and inexpensive to hire b. greater home-country control c. significant market knowledge d. speak the native language e. cultural understanding ANS: B

REF: pg. 136

34. According to the text, which of the following is a disadvantage of using host-country nationals to staff the international salesforce? a. They need extensive product training. b. They involve the highest maintenance costs. c. There is low promotion potential for salespeople. d. It is potentially difficult for salespeople to adapt to new environments. e. There is high turnover.

ANS: A

REF: pg. 136

35. External sources of sales recruits include all of the following except a. advertisements.

b. c. d. e.

private employment agencies. colleges and universities. company newsletters. professional societies.

ANS: D

REF: pgs. 135-140

36. Which of the following is not a recommendation when writing for an online recruitment ad? a. Keep it brief. b. Include key words and phrases. c. Avoid using crossheadings and bullet points. d. Use plain English and avoid long sentences. e. Make use of a link to give additional information to keep your word count down.

ANS: C

REF: pg. 137

37. Which of the following is not a benefit of recruiting online? a. potential for fast turnaround b. potential cost savings relative to newspaper c. many job seekers use the Internet d. it reaches all demographics on an equally proportional basis e. all of the above are advantages of recruiting online ANS: D

REF: pg. 138

38. Research suggests that printed advertising material should a. provide important information regarding the job. b. be distinctive and stand out from others through physical representation or the presentation of unusual information. c. focus on job candidates’ needs and interests. d. emphasize unique aspects of the job. e. do all of the above.

ANS: E

REF: pg. 138

39. The fee charged by a private employment agency is typically a. 50 percent of the first year earnings of the person hired. b. 100 percent of the first month earnings of the person hired. c. 5 to 10 percent of the first year earnings of the person hired. d. 15 to 30 percent of the first year earnings of the person hired. e. 20 to 30 percent of the first year earnings of the person hired.

ANS: D

REF: pg. 138

40. Which of the following is not an advantage of a company specific job application form? a. The form can be designed to meet antidiscriminatory legal requirements. b. Personal information, such as age and marital status that applicants have not included in their resumes can be requested. c. The comparison of multiple candidates is facilitated since the information on each is presented in the same sequence. d. The form can be designed to gather all pertinent information and exclude unnecessary information.

ANS: B

REF: pg. 140

41. Unlike a static application form, this method has the advantage of actively reminding candidates to finish answering the questions and to collect incomplete information. a. Phone call b. Email c. Text message d. Chatbot e. Online application form ANS: D

REF: pg. 141

42 During the initial interview, sales managers should not: a. forget to emphasize the earnings potential of the job. b. oversell the job to candidates. c. let the candidate dominate the conversation. d. forget to emphasize job advancement opportunities. e. ask open ended questions.

ANS: B

REF: pg. 142

43. The __________ is usually designed to get an in-depth look at the candidate. a. intensive interview b. resume review c. job application d. letter of reference e. selection test ANS: A

REF: pg. 142

44. The most often encountered form of intensive interviewing is the a. multiple, sequential method. b. group interview of a single job candidate. c. group interview of several job candidates. d. stress interview. e. assessment center.

ANS: A

REF: pg. 142

45. When different interviewers rate the same applicant differently, this is an example of a. multiple personalities. b. applicant misrepresentation. c. interviewer bias. d. incompetent interviewers. e. assessment incongruence.

ANS: C

REF:

pg. 142

46. In order to assess a sales candidate’s follow-up skills, which of the following selection tools would be most appropriate? a. Assessment center exercises or simulations b. Individual interviews c. Panel interview in a social setting d. Job sampling activities

e. Reference checks ANS: B

REF: pg. 144

47. Asking candidates to tell you about their strengths and weaknesses will provide information about their a. social skills. b. insight. c. motivation. d. stability. e. initiative.

ANS: B

REF: pg. 144

48. ___________ questions are phrased in the form of a job-related problem and presented to the applicant for a solution. a. Competency-based b. Open-ended c. Hypothetical d. Probing e. Close-ended ANS: C

REF: pg. 145

49. ____________ questions are follow-up questions to dig deeper for information. a. Competency-based b. Open-ended c. Hypothetical d. Probing e. Close-ended ANS: D

REF: pg. 145

50. ____________ questions are generally answered with a single word, such as yes or no. a. Competency-based b. Open-ended c. Hypothetical d. Probing e. Close-ended ANS: E

REF: pg. 145

51. ____________ questions ask the candidate to explain previous experiences that relate to job-specific competencies. a. Competency-based b. Open-ended c. Hypothetical d. Probing e. Close-ended ANS: A

REF: pg. 145

52. According to the text, which of the following is not one of the key questions asked by those reluctant to use selection tests? a. Can selection tests really predict future job performance? b. Can selection tests give an accurate, job-related profile of the candidate? c. Are selection tests affordable?

d. What are the legal liabilities arising from using selection tests? e. None of the above.

ANS: B

REF: pg. 146

53. To improve the usefulness of tests as selection tools, sales managers should follow this suggestion: a. Sales managers should construct the tests since they have the most in-depth understanding about the position. b. Sales managers should utilize tests that are based on a compilation of several sales jobs so that it is not too narrow in its focus. c. Sales managers should base the hiring decision on the test results. d. Sales managers should select tests that allow the applicant to anticipate the desired responses. e. Sales managers should, in psychological testing, adhere to the standards of the American Psychological Association.

ANS: E

REF: pg. 146

54. Which of the following is not a recommended suggestion for improving the usefulness of tests to sales managers as selection tools? a. Sales managers should construct tests for the purpose of selecting salespeople. b. If psychological tests are used, the standards of the American Psychological Association should be met. c. Utilize tests that have been based on a job analysis for the particular job in question. d. Select a test that minimizes the applicant's ability to anticipate desired responses. e. Do not base the hiring decision solely on test results.

ANS: A

REF: pg. 146

55. A company that asks candidates to engage in group discussions, business game simulations, presentations, and role play exercises, so that members of management may evaluate their performance capabilities is probably using this method of selection: a. selection testing. b. stress interview. c. assessment center. d. group interviewing. e. evaluation center.

ANS: C

REF: pg. 147

56. A background investigation is generally performed a. after the initial interview. b. before the intensive interview. c. after the intensive interview. d. after resume screening, but before any interviewing. e. after the job has been accepted by the candidate.

ANS: C

REF: pg. 147

57. When questioning references, questions concerning all of the following should be avoided except a. age. b. arrests. c. religion. d. education. e. marital status.

ANS: D

REF: pg. 148

58. All of the following are true concerning drug testing as a condition for employment except a. the company should first develop a written policy stating when and how the testing will be performed. b. the need for drug testing should be related to potential job functions. c. only select applicants should be tested. d. applicants should be informed of the test before taking it. e. results of the drug test should be kept confidential.

ANS: C

REF: pgs. 148-149

59. Which of the following is not recommended as a technique for getting valid information in a background check? a. Identify an individual’s worst job. b. Use information provided by the candidate during the interview to gather

information from references. c. Avoid showing negativity toward the candidate when speaking to references. d. Carefully listen to references rather than interjecting what you want to hear. e. Obtain the candidate’s consent to contact their references.

ANS: A

REF: pg. 148

60. Which of the following statements is true regarding the market bonus? a. Firms offering a market bonus receive twice as many applicants for job openings. b. Bonuses offered for relocation are not necessary, especially since there seems to be a current sentiment for a more mobile lifestyle. c. Experienced salespeople will not accept a job offer unless they receive a market bonus. d. The market bonus is most effective when hiring college graduates straight off the campus. e. Using the market bonus could be a reasonable alternative if the supply-demand imbalance is thought to be temporary.

ANS: E

REF: pg. 150

61. All of the following topics are open to charges of discrimination except a. age or date of birth. b. previous job experience. c. marital status. d. person to notify in case of an emergency. e. type of military discharge.

ANS: B

REF: pg. 151

62. Which of the following statements regarding the stress interview is false? a. It is designed to put job candidates under extreme, unexpected psychological duress for the purpose of seeing how they will react. b. It may create an unfavorable image of the company. c. It may alienate some of the better candidates. d. It appears to be a risky and ethically questionable approach. e. It may be a form of discrimination in some cases, in which its use would make it illegal.

ANS: E

REF: pg. 151

63. The purpose of the Fair Employment Opportunity Act of 1972 was to

a. prohibit discrimination based on age, race, color, religion, sex, or national origin. b. require that men and women be paid the same amount for performing similar job duties. c. require firms to hire and promote handicapped persons if the firm employs 50 or more employees. d. prohibit discrimination against people of ages 40 and older. e. found the Equal Employment Opportunity Commission to ensure compliance with the Civil Rights Act. ANS: E

REF: pg. 152

64. The purpose of the Civil Rights Act of 1964 was to a. prohibit discrimination based on age, race, color, religion, sex, or national origin. b. require that men and women be paid the same amount for performing similar job duties. c. require firms to hire and promote handicapped persons if the firm employs 50 or more employees. d. prohibit discrimination against people of ages 40 and older. e. found the Equal Employment Opportunity Commission to ensure compliance with the Civil Rights Act. ANS: A

REF: pg. 152

65. The fifth and fourteenth amendments to the U.S. constitution a. prohibit discrimination based on age, race, color, religion, sex, or national origin. b. require that men and women be paid the same amount for performing similar job duties. c. require firms to hire and promote handicapped persons if the firm employs 50 or more employees. d. prohibit discrimination against people of ages 40 and older. e. provide equal protection standards to prevent irrational or unreasonable selection methods.

ANS: E

REF: pg. 152

66. The Immigration and Reform Control Act (IRCA) of 1986 a. prohibits discrimination based on age, race, color, religion, sex, or national origin. b. prohibits the employment of illegal aliens. c. requires firms to hire and promote handicapped persons if the firm employs 50 or more employees. d. prohibits discrimination against people of ages 40 and older. e. found the Equal Employment Opportunity Commission to ensure compliance with the Civil Rights Act. ANS: B

REF: pg. 152

67. Which of the following is not considered one of the basic rules of the job interview? a. Questions should focus on job-related topics, such as job requirements and applicant qualifications and credentials. b. You must ask every applicant the same questions. c. Good questions are based on the job description and advertised position requirements. d. Good questions are understandable and succinct. e. With regards to religion and disability, reasonable accommodations must be made to the interviewee, even at the pre-employment stage.

ANS: B

TRUE/FALSE

REF: pg. 153

1. Salesforces today are likely to contain a higher proportion of minorities.

ANS: T

REF: pg. 126

2. One potential problem associated with inadequate recruiting and selection is higher turnover rates.

ANS: T

REF: pg. 126

3. Salesforce performance will suffer if recruitment and selection are poorly executed.

ANS: T

REF: pg. 126

4. Estimates suggest that it costs a firm one third of a worker’s annual salary to replace a bad hire.

ANS: T

REF: pg. 126

5. Salesforce socialization begins when the sales recruit is hired by the firm and extends for as long as one month.

ANS: F

REF: pg. 127

6. Job satisfaction and performance are related to the realism and congruence achieved during the recruiting and selection process.

ANS: T

REF: pg. 127

7. Misaligned expectations and a poor fit are two commonly cited reasons for job failure.

ANS: T

REF: pg. 127

8. Firms may provide recruits with an informational video during recruiting efforts to help them achieve realism and congruence.

ANS: T

REF: pg. 128

9. According to the text, about seventy five percent of new hires will fail within 18 months.

ANS: F

REF: pg. 129

10. A job analysis is a written summary of the job.

ANS: F

REF: pg. 129

11. A job analysis defines the expected behavior of salespeople.

ANS: T

REF: pg. 129

12. Sales managers generally have no input into the job analysis.

ANS: F

REF: pg. 129

13. Job qualifications define the expected behavior of salespeople.

ANS: F

REF: pg. 129

14. One common sales job qualification is the ability to work well under close supervision.

ANS: F

REF: pg. 129

16. Research has found that more successful salespeople tend to have a strong ego drive.

ANS: T

REF: pg. 129

15. Salespeople should be emotionally intelligent, possessing the capacity to identify and manage their own emotions as well as others’.

ANS: T

REF: pg. 130

17. A job description can be used to clarify duties and thereby reduce role ambiguity.

ANS: T

REF: pg. 130

18. In general, when sending salespeople on international assignments it is helpful if they are culturally empathetic.

ANS: T

REF: pg. 130

19. A job description may be used to aid in evaluating performance.

ANS: T

REF: pg. 130

20. One general recruitment and selection objective might be to reduce the number of underqualified or overqualified applicants.

ANS: T

REF: pg. 130

21. By setting specific objectives for recruiting and selection, sales managers can channel resources into priority areas and improve organizational and salesforce effectiveness.

ANS: T

REF: pg. 132

22. Job recruitment and selection is a perpetual activity in all sales organizations.

ANS: F

REF: pg. 132

23. Expatriate salespeople are salespeople hired from the host country in which they will sell.

ANS: F

REF: pg. 132

24. Compared with other means of recruiting, employee referrals have a higher applicant to hire

conversion rate.

ANS: T

REF: pg. 133

25. Individuals hired as a result of an employee referral tend to stay in their position longer than those hired from other sources.

ANS: T

REF: pg. 133

26. An advantage of using host-country nationals to staff the international salesforce is that they are relatively inexpensive to hire.

ANS: T

REF: pg. 136

27. An advantage of hiring expatriates when developing an international salesforce is their significant market knowledge.

ANS: F

REF: pg. 136

28. An advantage of hiring expatriates when developing an international salesforce is greater home country control.

ANS: T

REF: pg. 136

29. Be sure not to rely solely on an employee referral program when recruiting as doing so could be discriminatory according to the Anti-Discrimination Act of 1964.

ANS: F

REF: pg. 133

30. Many companies are using their Web site to advertise job openings.

ANS: T

REF: pg. 136

31. Recruiting software makes it possible to automate much of the recruiting process.

ANS: T

REF: pg. 137

32. According to the text, less than 50 percent of companies use social media to recruit.

ANS: F

REF: pg. 137

33. When developing an online recruitment ad be sure to include key words and phrases.

ANS: T

REF: pg. 138

34. There are several tools (e.g., SignalHire, Seekout) for engaging candidates online that can be used to send them email sequences and text them.

ANS: T

REF: pg. 137

35. A disadvantage of recruiting online is its relatively high cost.

ANS: F

REF: pg. 138

36. Ads posted on national job Web sites tend to run significantly more than similar offline classified ads.

ANS: F

REF: pg. 138

37. One benefit of recruiting online is that it reaches all demographics on an equally proportional basis.

ANS: F

REF: pg. 138

38. Strictly relying on online sources to recruit may result in violating anti-discrimination laws.

ANS: T

REF: pg. 138

39. Employment agencies such as Sales Talent Inc. specialize in the placement of salespeople.

ANS: T

REF: pg. 138

40. One college campus recruiting method is to offer a sales internship.

ANS: T

REF: pg. 139

41. Several employers are brought together in one location for recruiting purposes by career fairs.

ANS: T

REF: pg. 139

42. Professional organizations are a viable source of sales recruits.

ANS: T

REF: pg. 140

43. Predictive analytics allow companies to use information on currently employed salespeople to develop a profile of the most successful job candidate.

ANS: T

REF: pg. 140

44. Sales recruits are often first screened on the basis of a review of a resume or a job application.

ANS: T

REF: pg. 140

45. Valuable clues about the recruit may be gathered from the appearance and completeness of the resume.

ANS: T

REF: pg. 140

46. Software makes it possible to screen resumes electronically.

ANS: T

REF: pg. 140

47. Screening software is useful for eliminating groups of people from various protected categories.

ANS: F

REF: pg. 140

48. An accurate job description helps from eliminating eligible candidates during the resume screening process.

ANS: T

REF: pg. 140

49. Recruiters explore personal Web sites, blogs, message boards and social networking sites to determine if a candidate is a good fit.

ANS: T

REF: pg. 140

50. A problem with the job application form is that it tends to be discriminatory.

ANS: F

REF: pg. 140

51. In the initial interview, sales managers should be sure to get the candidates interested by over selling them on the job.

ANS: F

REF: pg. 141

52. An initial interview is conducted to get an in-depth look at the job candidate.

ANS: F

REF: pg. 141

53. Facial and speech recognition software can be used to analyze a job candidate’s body language.

ANS: T

REF: pg. 142

54. An intensive interview is conducted to get an in-depth look at the job candidate.

ANS: T

REF: pg. 142

55. Interview bias related to race, attractiveness and gender are potential problems in the interview process.

ANS: T

REF: pg. 142

56. Different interviewers will rate the same applicant differently unless there is a commonly accepted stereotype of the ideal applicant.

ANS: T

REF: pg. 142

57. Selection tests can often be completed online at relatively little expense.

ANS: T

REF: pg. 146

58. Selection tests today are a valid and proven method of accurately predicting future job performance.

ANS: F

REF: pg. 146

59. Although selection tests can be useful, they do a poor job of identifying a candidate’s strengths and weaknesses.

ANS: F

REF: pg. 147

60. When selection tests are used, the hiring decision should be based solely on the test results.

ANS: F

REF: pg. 147

61. The members of a firm's assessment center are generally outside directors who perform this service for a fee.

ANS: F

REF: pg. 147

62. The assessment center provides an efficient, low cost means for evaluating job candidates.

ANS: F

REF: pg. 147

63. Moving forward, technology is in place that will allow for virtual assessment centers.

ANS: T

REF: pg. 147

64. References need not be checked because as one sales manager puts it, “Even the losers have three good references so I don't bother checking them.”

ANS: F

REF: pg. 148

65. A valid reference check may be useful in helping a company prevent a lawsuit resulting from a negligent hire.

ANS: T

REF: pg. 148

66. When questioning references, avoid questions concerning arrests.

ANS: T

REF: pg. 148

67. Requiring the job candidate to pass a physical examination is often a formal condition of employment.

ANS: T

REF: pg. 148

68. Drug testing may be required as a condition for employment.

ANS: T

REF: pg. 148

69. A company can test for drug use if the applicant is informed of the test prior to taking it, if the results are kept confidential, and drug testing is reasonably related to potential job functions.

ANS: T

REF: pgs. 148-149

70. When questioning references pay attention to what is not being said.

ANS: T

REF: pg. 148

71. When questioning references carefully listen to references rather than interjecting what you want to

hear.

ANS: T

REF: pg. 148

72. Some candidates may be “put on hold” until the top candidates have made their decisions about accepting the position.

ANS: T

REF: pg. 150

73. In communicating with those offered jobs, it is now appropriate for the sales manager to “sell” the prospective salesperson on joining the firm.

ANS: T

REF: pg. 150

74. A market bonus is a one-time payment to highly qualified salespeople that recognizes an existing imbalance in supply and demand in a given labor market.

ANS: T

REF: pg. 150

75. The specific reason for not hiring a candidate must be given, if requested.

ANS: F

REF: pg. 150

76. Although questions related to age, height, and weight should not be asked on a job application, it is perfectly acceptable to request information related to a military discharge and which holidays are observed by candidates.

ANS: F

REF: pg. 151

77. In the selection process, all job applicants should be treated equally.

ANS: T

REF: pg. 151

78. Earnings potential of a job should be stated in terms of what the top producer earns in order to give applicants a feasible figure for which to shoot.

ANS: F

REF: pg. 151

79. Misrepresenting the job may lead to later problems from those recruited under false pretenses.

ANS: T

REF: pg. 151

80. Demanding an impromptu sales presentation for a convenient item such as a ballpoint pen seems reasonable to a professional salesperson that is accustomed to having to make unplanned presentations.

ANS: F

REF: pg. 151

81. Sales managers that use stress interviewing justify its use, saying that salespeople must be able to think on their feet and react quickly to unanticipated questions from customers.

ANS: T

REF: pg. 151

82. The stress interview may paint an unfavorable image of the company.

ANS: T

REF: pg. 151

83. The stress interview may alienate some of the better candidates.

ANS: T

REF: pg. 151

84. It is illegal to use protected-status information (e.g., age, ethnicity, religion) uncovered through social media against an applicant.

ANS: T

REF: pg. 151

85. Recruiters should create fake social media profiles in order to access and mine private information of applicants.

ANS: F

REF: pg. 151

86. One should be able to independently verify information found on social media accounts or it lacks credibility, making the information risky to use in hiring decisions.

ANS: T

REF: pg. 151

87. The Civil Rights Act of 1991 prohibits discrimination against people of ages 40 and older.

ANS: F

REF: pg. 152

88. The Equal Pay Act (1963) requires that men and women are paid the same amount for performing similar job duties.

ANS: T

REF: pg. 152

89. When interviewing, you do not have to ask every applicant the same questions.

ANS: T

REF: pg. 153

CHAPTER 6—CONTINUAL DEVELOPMENT OF THE SALESFORCE: SALES TRAINING MULTIPLE CHOICE 1. Initiation to task is the degree a. to which the salesperson has managed to prioritize tasks in a way that will ensure success. b. of personal satisfaction that the sales trainee feels in his or her job. c. to which a sales trainee feels competent and accepted as a working partner. d. of training that the sales trainee has received. e. of the sales trainee's understanding of how time should be allocated among tasks.

ANS: C

REF: pg. 162

2. With regards to salesforce socialization, role definition is a. the degree to which the salesperson has managed to prioritize tasks in a way that will ensure success. b. personal satisfaction that the sales trainee feels in his or her job. c. the degree to which a sales trainee feels competent and accepted as a working partner. d. the degree of training that the sales trainee has received. e. an understanding of what tasks are to be performed, what the priorities of the tasks are, and how time should be allocated among tasks.

ANS: E

REF: pg. 162

3. A study of manufacturers' salespeople found ___________ relationship between job satisfaction and salespeople's commitment to the organization. a. no direct b. a positive

c. very little d. a negative e. a parallel ANS: B

REF: pg. 163

4. Activities that sales managers might spend time on during the planning and implementation of sales training include all of the following except a. arranging for salespeople to work with key personnel in various departments in the firm to become familiar with their functions. b. enrolling salespeople in professional workshops or training programs. c. accompanying salespeople in the field to critique their sales behavior and reinforce other training. d. selecting literature, sales aids, software and materials for study. e. managing the recruitment and selection of new salespeople.

ANS: E

REF: pg. 164

5. The sales training process includes all of the following interrelated steps except a. follow-up and evaluation. b. designing the sales training program. c. assessing sales training needs. d. performing a salesforce audit. e. evaluating training alternatives.

ANS: D

REF: pg. 164

6. The final step in the sales training process is a. design sales training program. b. assess sales training needs. c. perform sales training. d. conduct follow-up and evaluation. e. evaluate training alternatives.

ANS: D

REF: pg. 164

7. The purpose of sales training needs assessment is to compare the specific performance-related skills, attitudes, perceptions, and behaviors required for salesforce success to the a. salesforce rating results of a customer survey. b. performance test results of each salesperson. c. job analysis of each sales position. d. state of readiness of the salesforce. e. personal observations of various salespeople recorded by sales managers.

ANS: D

REF: pg. 164

8. All of the following are methods of needs assessment except a. salesforce audit. b. performance testing. c. observation. d. salesforce survey. e. job description.

ANS: E

REF: pg. 165

9. Methods of needs assessment include all of the following except

a. b. c. d. e.

performance audit. observation. salesforce survey. customer survey. job analysis.

ANS: A

REF: pg. 165

10. A systematic, diagnostic, prescriptive tool that can be employed on a periodic basis to identify and address sales department problems and to prevent or reduce the impact of future problems is a. a performance test. b. sales management observation. c. a salesforce survey. d. an anonymous questionnaire sent to customers. e. a salesforce audit.

ANS: E

REF: pg. 165

11. According to the text, in the sales training area, the audit examines questions such as the following except a. Is the training program adequate in light of objectives and resources? b. Does the training program need revision? c. Is there an ongoing training program for senior salespeople? d. Does the training program contribute in a positive manner to the socialization, of sales trainees? e. Should the training program be conducted internally or externally?

ANS: E

REF: pg. 165

12. An example of a performance test would be a. asking first-level sales managers to critique the performance of the salespersons with whom they work. b. giving salespeople a written exam over product knowledge to check their retention rate. c. appraising the salesforce activities and the environment in which the salesforce operates. d. checking the results of a customer survey to see if the performance of the salesforce is rated as good as or better than a competitor’s. e. asking the salesperson to give an impromptu sales presentation for a convenient item, such as a ballpoint pen.

ANS: B

REF: pg. 165

13. A ____________ asks salespeople to indicate areas of need that could be addressed by sales training. a. customer survey b. job analysis c. competitor survey d. salesforce survey e. salesforce audit ANS: D

REF: pg. 166

14. If personal selling is prominent in the firm's marketing strategy, some sort of _________ to help determine sales training needs is highly recommended. a. customer survey b. job analysis c. competitor survey

d. performance testing e. salesforce audit ANS: A

REF: pg. 166

15. A ____________ helps determine how competitive the salesforce is compared with other salesforces in the industry. a. customer survey b. job analysis c. competitor survey d. performance testing e. salesforce audit ANS: A

REF: pg. 166

16. A ______________ defines expected behavior for salespeople. a. customer survey b. job analysis c. competitor survey d. performance testing e. salesforce audit ANS: A

REF: pg. 166

17. A ______________ is an investigation of the task, duties, and responsibilities of the sales job. a. customer survey b. job analysis c. competitor survey d. performance testing e. salesforce audit ANS: B

REF: pg. 166

18. According to the text, common mistakes made by salespeople who need training on sales techniques include all of the following except a. over-controlling the sales call. b. lack of preplanning of sales calls. c. not spending enough time with old customers. d. failure to effectively confirm the sale. e. ineffective listening and questioning.

ANS: C

REF: pg. 166

19. According to the text, a common mistake made by salespeople who need training on sales techniques is a. under-controlling the sales call. b. too much preplanning of sales calls. c. not spending enough time with old customers. d. failing to effectively confirm the sale. e. spending too much time building rapport and trust with customers.

ANS: D

REF: pg. 166

20. According to the text, common mistakes made by salespeople who need training on sales techniques include all of the following except a. ineffective listening and questioning. b. failure to build rapport and trust.

c. not spending enough time with old customers. d. lack of sales strategies for different accounts. e. Incapacity to tell effective stories.

ANS: C

REF: pg. 166

21. Among the following, which is one of the most popular sales training topics? a. Salesperson etiquette b. Product knowledge c. How to file expense reimbursement vouchers d. How to handle the replacement of defective products e. How to handle rejection ANS: B

REF: pg. 167

22. According to research on relationship building characteristics, customers want salespeople who do all of the following except a. personally manage their desired results. b. offer them the best discounts. c. understand their business. d. act as a customer advocate. e. are easily accessible.

ANS: B

REF: pg. 168

23. Sales training covering aspects of customer knowledge may include information on all of the following subjects except a. buying motives. b. customer needs. c. buyer personalities. d. buyers’ competitors. e. buying procedures.

ANS: D

REF: pg. 169

24. For sales training purposes, some firms use classification methods to categorize buyers according to a. personality and the buying situation. b. the buyer’s expertise and ease of making sales. c. the firm’s account size and products purchased. d. their interest in trying new product lines. e. their level of input to the sales decision.

ANS: A

REF: pg. 169

25. A sales training workshop devoted to teaching salespeople how to facilitate the buyer to execute a purchase in-person or online would be aimed at teaching salespeople how to work with this type of buyer a. serve me b. show me c. guide me d. enlighten me e. sell me ANS: A

REF: pg. 170

26. A sales training workshop devoted to teaching how to assist the prospect in collecting and understanding information to evaluate and choose among alternatives would be aimed at teaching salespeople how to work with this type of buyer a. serve me b. show me c. guide me d. enlighten me e. sell me ANS: B

REF: pg. 170

27. A sales training workshop devoted to teaching salespeople political skill to help the buyer navigate various internal stakeholders and/or acquire budget resources would be aimed at teaching salespeople how to work with this type of buyer a. serve me b. show me c. guide me d. enlighten me e. sell me ANS: C

REF: pg. 170

28. A sales training workshop devoted to teaching salespeople consultative selling would be aimed at teaching salespeople how to work with this type of buyer a. serve me b. show me c. guide me d. enlighten me e. sell me ANS: D

REF: pg. 170

29. Which of the following is not one of the self-management behaviors mentioned in the text? a. self-assessment b. self-direction c. self-control d. self-monitoring e. self-reinforcement ANS: C

REF: pg. 172

30. According to the text, in general, sales training objectives are set to support one or more of the following with the exception of a. increasing sales or profits. b. teaching administrative procedures. c. minimizing salesforce turnover rates. d. developing salespeople for future management positions. e. increasing the observation powers of first-level sales managers.

ANS: E

REF: pg. 172

31. Which of the following statements regarding the benefits of setting objectives for sales training is false? a. Specific training objectives provide a standard for measuring the effectiveness of training. b. Top management is responsive to well-written, specific objectives and may be more willing to provide budget support for the training.

c. Training simply for training's sake is a good doctrine for most companies to follow because it keeps salesforce product knowledge current. d. Sales managers are forced to define the reasonable expectations of sales training rather than to view training as a quick-fix panacea for all the problems faced by the salesforce. e. Written objectives become a good communications vehicle to inform the salesforce and other interested parties about upcoming training.

ANS: B

REF: pg. 173

32. In the evaluation of sales training alternatives, the following criteria should be considered: a. the popularity of that form of training. b. the reputation of the sales trainer. c. the location of the training. d. the intensity of the training. e. the level of interest among salespeople in that form of training.

ANS: C

REF: pg. 174

33. When critiquing training alternatives, all the following criteria should be established for preliminary screening except the: a. cost of the training. b. location of the training. c. flexibility of prepackaged training materials. d. popularity of the form of training. e. time required to implement an alternative training method.

ANS: D

REF: pg. 174

34. One of the key questions to be asked when evaluating alternatives for training is a. Which method (or methods) and media are best suited for conducting the training? b. Which method will require the least amount of time away from active selling? c. Which method is the least expensive? d. Which media is the most attractive to upper-management levels? e. Which method requires the least amount of preplanning on the part of the sales manager?

ANS: A

REF: pg. 174

35. In general, companies rely most heavily on ____________ to conduct sales training. a. outside training consultants b. specialized schools c. mass-produced videotapes d. their own personnel e. industry association conferences ANS: D

REF: pg. 174

36. Sales training is conducted in a. home offices. b. central training facilities. c. manufacturing plants. d. hotels. e. any of the above.

ANS: E

REF: pg. 174

37. Questions to consider when choosing an outside training program include all of the following except:

a. Is the training company willing to invest time in learning about your business? b. How cutting-edge is the training company? c. Does the content of the training program align with your training priorities or can it be customized for your business? d. Will the training program fit into your schedule? e. How flexible is the delivery of the training (e.g., virtual? In-person?)?

ANS: B

REF: pg. 175

38. Questions to consider when choosing an outside training program include all of the following except: a. Is the training company willing to invest time in learning about your business? b. Who will actually manage the training and do the work? c. Does the content of the training program align with your training priorities or can it be customized for your business? d. Will the training program fit into your schedule? e. All of the above questions should be considered when choosing an outside training program.

ANS: E

REF: pg. 175

39. Which of the following is not one of the four categories of training methods discussed in the text? a. On-the-job b. Behavioral simulations c. Case studies d. Classroom/conference e. Absorption ANS: C

REF: pg. 175

40. This training method features lectures, demonstrations, and group discussion with expert trainers serving as instructors: a. on-the-job b. behavioral simulations c. absorption d. classroom/conference e. none of the above ANS: D

REF: pg. 175

41. This training method is frequently used for training on basic product knowledge, new product introductions, and legal issues: a. on-the-job b. behavioral simulations c. absorption d. classroom/conference e. none of the above ANS: D

REF: pg. 175

42. Which of the following are true regarding mentoring? a. Salespeople with mentors have higher performance and less intent to leave than those with no mentors. b. Manager mentors inside the organization are superior to peer mentors or those outside of the organization. c. Mentoring tends to work best when the protégé makes clear to the mentor what he or she

expects from the relationship d. Mentoring tends to work best when the mentor “shows” rather than “tells” the protégé how to do something. e. All of the above are true regarding mentoring.

ANS: E

REF: pg. 176

43. This form of on-the-job training is often used to groom salespeople for management positions: a. filling in for vacationing salespeople b. job rotation c. working with a senior salesperson d. working with a sales manager who acts as a "coach" e. a "sink or swim" form of on-the-job training ANS: B

REF: pg. 177

44. This training method includes business games and simulations, case studies, and role playing: a. on-the-job b. behavioral simulations c. absorption d. classroom/conference e. none of the above ANS: B

REF: pg. 177

45. Which of the following statements regarding role play as a training technique is false? a. The role play is often videotaped for critique by a group of salespeople. b. Typically one trainee plays the role of the salesperson, and another trainee acts as the buyer. c. This can be an extremely effective means of teaching personal selling, without the risk of a poor performance in the presence of a live customer. d. Properly conducted role play includes a prompt critique emphasizing the negative points of the performance that need improvement. e. A good way to maximize the critique is to have the person who has played the role of salesperson offer opinions first and then solicit opinions from observers.

ANS: D

REF: pg. 178

46. This category of sales training methods involves furnishing trainees or salespeople with materials that they peruse without opportunity for immediate feedback and questioning: a. on-the-job b. behavioral simulations c. absorption d. classroom/conference e. none of the above ANS: C

REF: pg. 178

47. These training methods are best used as supplemental training to update the salesforce, reinforce previous training, or to provide basic materials to be covered in more detail at a later date: a. on-the-job. b. behavioral simulations. c. ease studies. d. classroom/conference. e. absorption.

ANS: E

REF: pg. 178

48. Which of the following media can be used to train the salesforce? a. Internet b. telephone conferencing c. videoconferencing d. satellite television e. any or all of the above may be used ANS: E

REF: pg. 179

49. According to the text, which of the following is not one of the recommended tips for designing mobile learning content? a. Limit content to ten minutes. b. Invite users to help design content to encourage participation. c. Offer customized content in a conversational style. d. Offer information to make the user better, smarter or faster. e. Focus on areas of work that are done incorrectly or lack compliance.

ANS: A

REF: pg. 179

50. During this step in the sales training process, sales managers may have to seek budget approval from upper management: a. assess sales training needs b. perform sales training c. design sales training program d. follow-up and evaluation e. evaluate training alternatives ANS: C

REF: pg. 180

51. Answers to what, when, where, and how questions are finalized during this step in the sales training process: a. assess sales training needs b. perform sales training c. design sales training program d. follow-up and evaluation e. evaluate training alternatives ANS: C

REF: pg. 181

52. The primary responsibility of the sales manager while the training is being conducted is to a. perform a final exam to measure the level of retention. b. monitor the progress of the trainees and ensure adequate presentation of the training topics. c. determine if the training facility is meeting the needs of the trainees adequately. d. make sure that the training session does not exceed budgetary limits. e. make travel arrangements for the trainees and external trainers.

ANS: B

REF: pg. 181

53. With a self-directed training program, salespeople are responsible for a. diagnosing their individual training needs. b. formulating learning goals. c. identifying, choosing and implementing learning strategies. d. assessing learning outcomes. e. all of the above.

ANS: E

REF: pg. 182

54. The problem with an evaluation of sales training effectiveness is a. it is hard to attribute future performance variations strictly to sales training. b. an evaluation can only be made after the training has occurred. c. a final exam may not be predictive of the salesperson's actual learning ability. d. sales volume per salesperson is hard to measure accurately. e. salespeople generally overestimate the good they get from sales training sessions in the post-training self-assessment questionnaires.

ANS: A

REF: pg. 182

55. Which of the following is not one of the steps in evaluating training and development programs? a. Assess changes in job behavior resulting from training. b. Assess participant satisfaction with training. c. Determine outcomes resulting from using what was learned. d. Determine principles, techniques and facts that were learned. e. Determine changes needed in training.

ANS: E

REF: pg. 182

56. Which of the following is not one of the tips for reinforcing sales training? a. Include refresher training throughout the year. b. Provide short (five minutes or less) learning modules that are easily accessible. c. Provide coaching and mentoring to reinforce what was learned. d. Use gamification to motivate and reinforce learned information. e. Review learner progress each week to determine if material is sticking.

ANS: E

REF: pgs. 184

57. According to a study of buyers, which of the following was considered the most unethical sales practice? a. Giving physical gifts such as free sales promotion prizes. b. Using the firm's economic power to obtain premium prices or other concessions from buyers. c. Making statements to an existing purchaser that exaggerates the seriousness of the problem in order to obtain a bigger order or other concessions. d. Exaggerating how quickly orders will be delivered to get a sale. e. Giving preferential treatment to customers who are also good suppliers.

ANS: D

REF: pg. 185

58. Important legal reminders that should be included in a sales training program include all of the following except a. use factual data rather than general statements of praise during the sales presentation. b. do not overstep authority, as the salesperson's actions can be binding to the selling firm. c. discuss only these topics with competitors: sales territories or markets to be served, and the rejection or termination of customers. d. offer the same price and support to all buyers who purchase under the same set of circumstances. e. do not tamper with a competitor’s product.

ANS: C TRUE/FALSE

REF: pg. 185

1. Initiation to task is the degree to which a sales trainee feels competent and accepted as a working partner.

ANS: T

REF: pg. 162

2. Role definition is the degree to which a sales trainee feels competent and accepted as a working partner.

ANS: F

REF: pg. 162

3. Role definition is an understanding of what tasks need to be performed, what the priorities of the tasks are, and how time should be allocated among the tasks.

ANS: T

REF: pg. 162

4. Trainees who have been properly recruited and trained tend to be more confident on the job.

ANS: T

REF: pgs. 162-163

5. When salespeople believe their company is taking action to reduce the difficulties associated with their position, they are more committed and satisfied with the job.

ANS: T

REF: pg. 163

6. The need for salesforce socialization to extend past the initial training period is unnecessary for salesforce members with limited personal contact with peers, managers, and other company personnel.

ANS: F

REF: pg. 163

7. There is an ongoing need to conduct sales training to improve salesforce performance.

ANS: T

REF: pg. 163

8. A study of world class sales practices found organizational cultural support for the continuous development of salespeople to be one of the top ten world-class sales practices.

ANS: T

REF: pg. 163

9. The average cost to train a new salesperson runs more than $70,000 a year.

ANS: F

REF: pg. 164

10. Sales organizations consider decreasing the time it takes to bring new sales hires to full productivity to be an important productivity goals.

ANS: T

REF: pg. 164

11. When properly applied, sales training tends to produce a positive return on investment.

ANS: T

REF: pg. 164

12. According to our text, some research indicates companies spend approximately $2,000 per salesperson per year on sales training ANS: T

REF: pg. 164

13. Sales managers may spend considerable time conducting periodic training meetings and professional training conferences.

ANS: T

REF: pg. 164

14. Sales managers typically are not involved in selecting literature, sales aids, software, and materials for training.

ANS: F

REF: pg. 164

15. When assessing training needs, it is important to consider the knowledge, skills and abilities salespeople must have to fulfill both organizational level and salesforce level goals and objectives.

ANS: T

REF: pg. 164

16. The preferred role of sales training is to prevent problems and improve salesforce productivity on a reactive basis.

ANS: F

REF: pg. 165

17. The training needs of an experienced salesperson might include training in advanced negotiation skills.

ANS: T

REF: pg. 165

18. The salesforce audit might examine the question, “Do we have an ongoing training program for senior salespeople?”

ANS: T

REF: pg. 165

19. Performance testing specifies the evaluation of particular tasks or skills of the salesforce.

ANS: T

REF: pg. 165

20. Sales managers using observation techniques to assess sales training needs sometimes address the need instantaneously by critiquing the salesperson's performance after the sales call has been completed.

ANS: T

REF: pg. 165

21. The salesforce survey can be particularly useful in defining customer expectations and determining how competitive the salesforce is compared to other salesforces in the industry.

ANS: F

REF: pg. 166

22. The customer survey can be particularly useful in defining customer expectations and determining how competitive the salesforce is compared to other salesforces in the industry.

ANS: T

REF: pg. 166

23. Online services such as QuestionPro.com make it easy to design, deliver and analyze Web-based customer surveys.

ANS: T

REF: pg. 166

24. A sales job analysis is an investigation of the task, duties, and responsibilities of the sales job.

ANS: T

REF: pg. 166

25. A common mistake salespeople make in their sales technique is failing to match call frequency with account potential.

ANS: T

REF: pg. 167

26. Most formal sales training programs spend little time on sales techniques since most salespeople who are hired have some sales experience or have taken a personal selling course in college.

ANS: F

REF: pg. 167

27. More emphasis is being placed on developing trusting, enduring relationships with customers.

ANS: T

REF: pg. 167

28. Many buyers claim they are more likely to consider a brand if it challenges their way of thinking.

ANS: T

REF: pg. 167

29. As buyers spend more time online, social selling skills have become increasingly important.

ANS: T

REF: pg. 167

30. Salespeople's product knowledge should include product benefits, applications, competitive strengths, and limitations.

ANS: T

REF: pg. 167

31. Product knowledge is one of the most commonly covered topics in sales training programs.

ANS: T

REF: pg. 167

32. Customers want salespeople who understand their business.

ANS: T

REF: pg. 168

33. High-performing salespeople typically have significantly greater product knowledge than moderate performers.

ANS: F

REF: pg. 169

34. A buyer persona is a character created to represent the personality and characteristics of the buyer to enable a better understanding of how to deal with them.

ANS: T

REF: pg. 169

35. Training programs should address multicultural differences and business protocol within different subcultures and countries.

ANS: T

REF: pg. 169

36. Salespeople who will be sent on a foreign assignment should be trained in intercultural communication.

ANS: T

REF: pg. 169

37. The buyer described as “serve me” would be featured in a sales training workshop stressing how to facilitate the buyer to execute a purchase in-person or online.

ANS: T

REF: pg. 170

38. The buyer described as a “guide me” needs training in political skill to help the buyer navigate various internal stakeholders and/or acquire budget resources.

ANS: F

REF: pg. 170

39. Because devout male Muslims avoid touching members of the opposite sex who are not relatives, women should wait for the male businessman in Saudi Arabia to initiate a handshake.

ANS: T

REF: pg. 171

40. Customers may exploit a new salesperson's lack of competitive knowledge by negotiating terms of sale that may be costly to the selling firm.

ANS: T

REF: pg. 171

41. Although important, training in time and territory management general is not included in formal sales training programs.

ANS: F

REF: pg. 171

42. The purpose of sales orientation training is to teach salespeople how to use time and effort for maximum work efficiency.

ANS: F

REF: pg. 171

43. Self-management refers to an individual’s effort to control certain aspects of others’ decision making and behavior.

ANS: F

REF: pg. 172

44. Salespeople trained in self-management are likely to increase their short-term performance, but not their long-term performance.

ANS: F

REF: pg. 172

45. A common sales training objective might be to reduce role conflict and ambiguity.

ANS: T

REF: pg. 172

46. A common sales training objective might be to minimize the salesforce turnover rate.

ANS: T

REF: pg. 172

47. By setting specific sales training objectives, the sales manager finds it easier to prioritize various training needs.

ANS: T

REF: pg. 173

48. Today's sales manager has more alternatives for training the salesforce than the sales managers of the past.

ANS: T

REF: pg. 173

49. In order to consider as many sales training alternatives as possible, it is recommended that the criteria used in screening them be fairly relaxed.

ANS: F

REF: pg. 174

50. Senior salespeople are often involved as sales trainers.

ANS: T

REF: pg. 174

51. Internal sources are rarely used as sales trainers.

ANS: F

REF: pg. 174

52. Training in the field is best conducted by external sales consultants.

ANS: F

REF: pg. 174

53. When the sales manager does the training, or arranges for other company personnel to do it, it is easier to control the content of the program and to coordinate the training for maximum impact.

ANS: T

REF: pg. 174

54. Most training occurs in a location away from company premises.

ANS: F

REF: pg. 174

55. Manufacturing plants are a popular training site.

ANS: T

REF: pg. 174

56. When onboarding novice salespeople, using a decentralized approach to training may be most beneficial.

ANS: F

REF: pg. 175

57. Video broadcasting and teleconferencing generally increase the costs of sales training.

ANS: F

REF: pg. 175

58. It is recommended that only one training method be used in the course of a training program in order to ensure continuity and avoid confusing the participants.

ANS: F

REF: pg. 175

59. A good mentor represents the organization’s values and norms.

ANS: T

REF: pg. 176

60. A good mentor is a good communicator.

ANS: T

REF: pg. 176

61. Mentors provide help and support to trainees to help them learn while on-the-job.

ANS: T

REF: pg. 176

62. Some research indicates that many salespeople prefer to learn by doing.

ANS: T

REF: pg. 176

63. A salesperson involved in job rotation might work for a while as a customer service representative and then work as a distribution clerk.

ANS: T

REF: pg. 177

64. Training methods that focus on learning by means of business games and simulations, case studies and role playing are call cognitive simulations.

ANS: F

REF: pg. 177

65. Although useful, behavioral simulations are not widely used by top performing sales organizations.

ANS: F

REF: pg. 177

66. Virtual reality provides another opportunity to use behavioral simulation.

ANS: T

REF: pg. 177

67. Role playing is a good way to bolster an individual's self-confidence and improve his/her future performance.

ANS: T

REF: pg. 178

68. Absorption training methods often include regularly scheduled exams and overnight homework assignments.

ANS: F

REF: pg. 178

69. Absorption training involves furnishing trainees or salespeople with materials that they peruse (or “absorb”) without opportunity for immediate feedback and questioning.

ANS: T

REF: pg. 178

70. Some electronic media allow trainees to learn at their own pace in a risk-free environment.

ANS: T

REF: pg. 179

71. Although the Internet offers an effective media for sales training, it is very costly.

ANS: F

REF: pg. 179

72. Research indicates that only a small percent of learning occurs visually.

ANS: F

REF: pg. 179

73. One benefit of using virtual media is that adoption is often enhanced as electronically communicated information can be quickly put to use.

ANS: T

REF: pg. 180

74. Training may take a blended approach in which a variety of methods and media are used.

ANS: T

REF: pg. 181

75. Technology provides opportunities for ongoing training in which bite-sized modular pieces of content are made available for access on-demand, providing a more personalized approach to training.

ANS: T

REF: pg. 181

76. Motivation to learn can be increased by making sure that salespeople understand how they will benefit from the training prior to conducting it.

ANS: T

REF: pgs. 181-182

77. It is relatively easy to measure the effectiveness of sales training.

ANS: F

REF: pg. 182

78. Poor sales training can negatively impact sales team morale.

ANS: T

REF: pg. 182

79. Evaluations can be made before, during, and after the sales training occurs.

ANS: T

REF: pg. 182

80. Microtraining involves offering bite-sized, quick and easily digestible bits of information that can be conveniently accessed and processed in three to seven minutes.

ANS: T

REF: pg. 182

81. It is difficult to measure the effectiveness of sales training.

ANS: T

REF: pg. 182

82. Some research indicates that trainees who are satisfied with their training are more likely to retain and use what they learned.

ANS: T

REF: pg. 183

83. Salespeople can lose as much as 60 percent of the skills they were taught within a few days.

ANS: T

REF: pg. 183

84. Coaching and mentoring help to reinforce new sales skills.

ANS: T

REF: pg. 183

85. Salespeople would prefer to handle any ethical dilemmas on the job by themselves without having to consult their managers.

ANS: F

REF: pg. 184

86. One catalyst for sales training concerning ethical and legal issues is product liability litigation.

ANS: T

REF: pg. 184

87. Firms who train employees on compliance and ethics can lessen fines due to violations.

ANS: T

REF: pg. 184

88. Gamification can be used to motivate and reinforce learned information.

ANS: T

REF: pg. 184

89. It is legally permissible to use one product as bait to sell another product as long as the customer ends up satisfied.

ANS: F

REF: pg. 185

90. As part of a list of legal reminders, salespeople are asked to avoid making promises that will be difficult or impossible to honor.

ANS: T

REF: pg. 186

CHAPTER 7—SALES LEADERSHIP, MANAGEMENT, AND SUPERVISION MULTIPLE CHOICE 1. Which of the following statements regarding sales leadership is false? a. Typical senior sales leadership titles are chief sales executive, national sales manager vice president of sales or director of sales. b. Senior sales leadership influences the entire sales organization or a large subunit. c. Sales leadership is the day-to-day control of the salesforce under routine operating conditions. d. Sales leadership involves activities that influence others to achieve common goals for the collective good of the sales organization and the company. e. For field sales managers, leadership involves influencing assigned salespeople by creating a climate that inspires salespeople.

ANS: C

REF: pg. 197

2. Which of the following statements regarding sales supervision is true? a. Typical senior sales supervisor titles are chief sales executive, national sales manager or regional sales manager. b. Sales supervisors influence the entire sales organization or a large subunit. c. Sales supervision involves working with subordinates on a day-to-day basis. d. Sales supervision involves activities that influence others to achieve common goals for the collective good of the sales organization and the company. e. For field sales managers, supervision involves influencing assigned salespeople by creating a climate that inspires salespeople.

ANS: C

REF: pg. 197

4. Researchers have tried to determine the personality characteristics an effective leader should have by using this method: a. behavior approach. b. properties method. c. contingency approach. d. attribute theory. e. trait approach.

ANS: E

REF: pg. 197

3. This approach to leadership seeks to catalog behaviors associated with effective leadership: a. b. c. d. e.

behavior approach. attribute theory. contingency approach. state of nature approach. trait approach.

ANS: A

REF: pg. 198

5. This approach to leadership considers situational factors such as the firm’s marketing orientation in determining which leadership methods would be appropriate: a. behavior approach. b. attribute theory. c. contingency approach. d. state of nature approach. e. trait approach.

ANS: C

REF: pg. 198

6. Which of the following is not one of the skills of high performing sales leaders? a. Manage both one’s own and others’ emotions (i.e., high emotional intelligence). b. Communicate effectively by listening and sharing information. c. Control behavior through coercive tactics. d. Work one-on-one with salespeople to help them improve (i.e., coaching skill). e. Set clear performance expectations and hold salespeople accountable.

ANS: C

REF: pg. 198

7. A __________________ is characterized as a contingent reward on contingent punishment orientation. a. transactional leadership style b. transformational leadership style c. leader-member exchange leadership style

d. supervisory leadership style ANS: A

REF: pg. 198

8. A __________________ is represented by an orientation toward inspiring subordinates to engage in desired behavior and perform at high levels. a. transactional leadership style b. transformational leadership style c. leader-member exchange leadership style d. supervisory leadership style ANS: B

REF: pg. 198

9. Which of the following is not a specific aspect of a transformational leadership style? a. Articulates a vision. b. Provides an appropriate model. c. Fosters the acceptance of group goals. d. Is dictatorial. e. Provides intellectual stimulation.

ANS: D

REF: pg. 198

10. By using servant leadership, leaders can improve the positive outcomes of transformational leadership by incrementally increasing a. salesperson job satisfaction. b. sales performance. c. extra-role behaviors toward coworkers and customers d. attitudes toward helping communities and society. e. all of the above.

ANS: E

REF: pg. 199

11. The __________ model proposes that sales managers interact uniquely with individual salespeople rather than employing a specific leadership style for different situations. a. leader-member exchange b. transformational leadership c. behavioral self-management d. theory X e. trait ANS: A

REF: pg. 199

12. A positive LMX relationship between sales manager and salespeople can a. influence salespeople’s commitment to providing superior customer value. b. increase their workgroup socialization. c. decrease salespeople's ethical ambiguity. d. diminish salespeople's intent to behave unethically. e. do all of the above.

ANS: E

REF: pg. 199

13. Studies have shown that reciprocal trust between sales managers and salespeople has a positive effect on the salesperson-sales manager relationship. The research indicates positive relationships between trust and all of the following except a. job satisfaction. b. role conflict.

c. satisfaction with the manager. d. a willingness to change. e. goal commitment.

ANS: B

REF: pg. 199

14. When other salespeople believe that a sales manager has valuable knowledge or skills in a given area, the sales manager is able to use a. expert power. b. referent power. c. legitimate power. d. reward power. e. coercive power.

ANS: A

REF: pg. 200

15. If a salesperson made this statement regarding his sales manager, “I like him personally and regard him as a friend,” the manager is likely exercising what type of power? a. Expert power b. Referent power c. Legitimate power d. Reward power e. Coercive power ANS: B

REF: pg. 200

16. __________ is associated with the right to be a leader, usually as a result of designated organizational roles. a. Expert power b. Referent power c. Legitimate power d. Reward power e. Coercive power ANS: C

REF: pg. 200

17. If a salesperson made this statement regarding his/her sales manager, "He is in a good position to recommend promotions or permit special privileges for me," the manager is probably using what type of power? a. Expert power b. Referent power c. Legitimate power d. Reward power e. Informational power ANS: D

REF: pg. 200

18. __________ is based on the belief that one party can remove rewards and provide punishment to affect behavior. a. Expert power b. Referent power c. Legitimate power d. Reward power e. Coercive power ANS: E

REF: pg. 201

19. __________ is based on the belief that an individual has control over valuable information that others need or want. a. Expert power b. Referent power c. Legitimate power d. Reward power e. Informational power ANS: E

REF: pg. 201

20. Which of the following statements regarding the power held by an individual in an interpersonal relationship is false? a. The possession and use of power will have a major impact on the quality of leadership achieved by a sales manager. b. The power held by an individual in an interpersonal relationship can be one or more of five types. c. An individual's objective assessment of where the power lies will determine the effects of power in that interpersonal relationship. d. Sales managers who wish to become effective leaders should develop referent and expert power bases. e. Coercive power is based on a belief that one party can remove rewards and provide punishment to affect behavior.

ANS: C

REF: pg. 201

21. In their dealings with salespeople, sales managers have been criticized for placing too much emphasis on a. reward and coercive power. b. legitimate and reward power. c. coercive and referent power. d. expert and referent power. e. referent and coercive power.

ANS: A

REF: pg. 201

22. These types of power bases have been found to be positively related to salespeople's satisfaction with their sales manager: a. reward and coercive power. b. legitimate and reward power. c. coercive and referent power. d. expert and referent power. e. referent and coercive power.

ANS: D

REF: pg. 201

23. Which of the following is not a suggestion offered to sales managers for developing their power bases? a. Learn what invigorates other people and adapt how you work with them to influence that energy. b. Develop strong relationships with important people in your organization. c. Demonstrate empathy towards others. d. Exhibit energy and enthusiasm. e. Become friends with powerful people.

ANS: E

REF: pg. 202

24. Which of the following is not a suggestion offered to sales managers for developing their power bases? a. Listen to your sales team's wants, needs, and dreams and help them achieve them. b. Be versatile and adapt to different situations. c. Earn others’ trust by being authentic. d. Use sales contests to motivate salespeople. e. Increase your knowledge to become an expert.

ANS: D

REF: pg. 202

25. Sales managers may use different influence strategies according to the situational demands. Influence strategies may be based on all of the following except a. relationships. b. domination. c. persuasion. d. threats. e. promises.

ANS: B

REF: pg. 202

26. “If you do not call on your accounts at least once a week, you will lose your job,” is an example of which influence strategy? a. relationships b. domination c. persuasion d. threats. e. promises ANS: D

REF: pg. 202

27. According to the text, sales managers can use reward power as a basis for developing influence strategies based on a. relationships. b. domination. c. persuasion. d. threats. e. promises.

ANS: E

REF: pg. 202

28. This type of influence strategy works by first changing the attitudes and intentions of the target of influence, with the expectation that a subsequent change in behavior will follow: a. relationships. b. domination. c. persuasion. d. threats. e. promises.

ANS: C

REF: pg. 202

29. The expert and referent power bases are extremely critical in the use of this type of influence strategy: a. relationships. b. domination. c. persuasion. d. threats. e. promises.

ANS: C

REF: pg. 202

30. The two types of relationships that can affect influence processes are based on which two power bases? a. Referent and legitimate b. Legitimate and reward c. Coercive and referent d. Expert and referent e. Referent and coercive ANS: A

REF: pg. 202

31. This type of influence strategy is the only one that does not involve direct communication with the target of influence: a. threats. b. persuasion. c. manipulation. d. domination. e. relationships.

ANS: C

REF: pg. 203

32. With this type of influence strategy, circumstances are controlled to influence behavior. a. threats b. persuasion c. manipulation d. domination e. relationships ANS: C

REF: pg. 203

33. This influence strategy might involve “office politics” and the use of third parties to influence others. a. threats b. persuasion c. manipulation d. domination e. relationships ANS: C

REF: pg. 203

34. With this type of influence strategy, one behaves in a friendly and sociable way to influence one to act. a. Rational persuasion b. Socializing c. Personal appeals d. Exchanging e. Consultation ANS: B

REF: pg. 204

35. With this type of influence strategy, the leader appeals to one’s values and ideals to stimulate their emotions to influence action. a. Rational persuasion b. Socializing c. Personal appeals d. Exchanging e. Inspirational appeals

ANS: E

REF: pg. 204

36. According to the text, research suggests that more frequent and informal communication between a sales manager and salespeople is likely to result in better _______________ and greater ____________________. a. organizational commitment, job satisfaction b. customer satisfaction, job performance c. job performance, organizational commitment d. job performance, job satisfaction e. job performance, job commitment ANS: D

REF: pg. 205

37. Which of the following is not a tip provided in the text for being a more effective communicator? a. Be an attentive listener. b. Be consistent in your tone across your communications. c. Take a helpful approach when communicating by asking the receiver how you can help him or her. d. Be authentic in your communication e. Only communicate with one individual at a time.

ANS: E

REF: pg. 205

38. Which of the following is not one of the key dimensions of effective sales coaching? a. Effective sales coaches must be able to adapt to each salesperson’s characteristics and needs. b. Effective sales coaches must be actively involved with salespeople. c. Effective sales coaches build rapport with salespeople by developing personal and trusting relationships. d. All of the above are key dimensions of effective sales coaching. e. None of the above are key dimensions of effective sales coaching.

ANS: D

REF: pg. 206

39. ____________ coaching focuses on understanding the customer, their business challenges and goals, your company’s value proposition, the customer’s buying center members and planned sales call objectives. a. Lead and opportunity b. Funnel or pipeline c. Skills and behaviors d. Account e. Territory ANS: A

REF: pg. 206

40. ____________ coaching focuses on aligning the sales conversation with the customer’s path, uncovering customer needs, communicating and demonstrating value to the customer, and sales call skills such as rapport building, communication, use of visuals, closing, etc. a. Lead and opportunity b. Funnel or pipeline c. Skills and behaviors d. Account e. Territory ANS: C

REF: pg. 206

41. ____________ coaching focuses on identifying appropriate industries, verticals and customer segments, identifying important buyer roles within these, and planning how to improve and evaluate presence in these industries, verticals and segments. a. Lead and opportunity b. Funnel or pipeline c. Skills and behaviors d. Account e. Territory ANS: E

REF: pg. 206

42. Which of the following statements regarding a sales manager's use of coaching is false? a. Coaching can occur during short meetings of the entire sales team. b. Coaching sessions may take place in the office or during the sales manager's field visits with salespeople. c. The essence of coaching is providing guidance and feedback as soon as possible after an appropriate event. d. The boundary role demands of sales jobs makes coaching the salesforce a significant management activity. e. Coaching is most effective during scheduled team meetings with salespeople.

ANS: E

REF: pgs. 206-207

43. The principle of recency suggests that a. as soon as possible after a sales training meeting, the sales manager should attempt to visit with each salesperson individually to reinforce what he/she has learned. b. by focusing on information related to the most recent sales call the salesperson has made, a self-evaluation of his/her performance can result in improved future performance. c. if a salesperson can draw on the enthusiasm generated by a recent successful sales call, he/she will be more effective. d. learning is facilitated when the salesperson is asked to apply a coaching suggestion soon after receiving it. e. sales managers should make a practice of holding coaching sessions after each sales call to help reinforce the suggestions given.

ANS: D

REF: pg. 207

44. In coaching the salesforce, the sales manager may use all of the following learning tools or concepts except a. outcome feedback. b. principle of recency. c. absorption training. d. repetition. e. cognitive feedback.

ANS: C

REF: pg. 207

45. The concept of repetition suggests that a. as soon as possible after a sales training meeting, the sales manager should attempt to visit with each salesperson individually to reinforce what he/she has learned. b. by focusing on information related to the most recent sales call the salesperson has made, a self-evaluation of his/her performance can result in improved future performance. c. if a salesperson can draw on the enthusiasm generated by a recent successful sales call, he/she will be more effective.

d. learning is facilitated when the salesperson is asked to apply a coaching suggestion soon after receiving it. e. sales managers should make a practice of holding coaching sessions after each sales call to help reinforce the suggestions given.

ANS: E

REF: pg. 207

46. When a sales manager provides the salesperson with information about whether a desired outcome was achieved, he/she is using this coaching technique: a. outcome feedback. b. repetition. c. cognitive feedback. d. sharing information. e. referent power.

ANS: A

REF: pg. 207

47. When a sales manager provides the salesperson with information on how and why, the desired outcome is achieved, he/she is using this coaching technique: a. outcome feedback. b. repetition. c. cognitive feedback. d. sharing information. e. referent power.

ANS: C

REF: pg. 207

48. All of the following are suggestions for coaching except a. Take a “we” approach instead of a “you” approach. b. Instead of criticizing salespeople during coaching, help them improve by giving how-to advice. c. Conversations should be interactive. d. Whenever possible, replace formal training with coaching. e. Recognize differences in individual learning and communication styles among salespeople, be flexible, and respond appropriately.

ANS: D

REF: pg. 207

49. Which of the following is not one of the coaching suggestions mentioned in our textbook? a. Take a “we” approach instead of a “you” approach. b. Address only one or two problems at a time. c. Provide clear expectations regarding behavior change and explain the consequences of failing to make a change d. Use coaching in place of formal training. e. Instead of criticizing salespeople during coaching, help them improve by giving how-to advice.

ANS: D

REF: pg. 207

50. The ultimate success of sales meetings depends on the planning and execution of activities such as a. communicating with all parties before the meeting. b. checking site arrangements. c. preparing materials for the meeting. d. arranging for audiovisual support. e. all of the above.

ANS: E

REF: pg. 209

51. When conducting sales meetings, sales managers should do all of the following except a. interject some humor. b. ask questions specifically related to the task at hand. c. always answer all questions directly. d. encourage questions. e. ignore off-target remarks.

ANS: C

REF: pg. 209

52. An immoral manager would most likely follow this orientation in meeting his/her organizational goals: a. profitability within the confines of legal obedience and ethical standards. b. profitability is not important, since the firm's purpose is to serve the public's needs. c. profitability only, with no other goals considered. d. profitability within the letter of the law. e. profitability and organizational success at any price.

ANS: E

REF: pg. 211

53. Organizational strategy that promotes giving managers free rein with personal ethics applied only on an individual basis, is part of this type of ethical management: a. immoral management. b. incorruptible management. c. moral management. d. amoral management. e. unethical management.

ANS: D

REF: pg. 211

54. Moral management would have what orientation toward the law? a. Obedience to the letter and the spirit of the law; the law represents minimal ethical behavior. b. Law is the ethical guide; obedience to the letter of the law. c. The central question is, “What can be done legally?” d. Legal standards are barriers that management must overcome to accomplish what it wants. e. Prefer to operate within what the law mandates, if possible.

ANS: A

REF: pg. 211

55. In an effort to increase salespeople's ethical standards, Certified Professional Salespeople are asked to pledge to all of the following except: a. to respect and protect proprietary and confidential information entrusted to them by their company. b. to maintain honesty and integrity in their relationships with customers and prospective customers. c. to avoid obtaining information about competitors that could assist in making sales presentations. d. to keep abreast of all pertinent information that would assist their customers in achieving goals related to their product(s) or service(s). e. to portray their competitors and their products and services only in a manner that is honest and truthful.

ANS: C TRUE/FALSE

REF: pg. 212

1. Sales leadership involves activities that influence others to achieve common goals for the collective good of the sales organization and the company.

ANS: T

REF: pg. 197

2. Field sales managers address the broader aspects of the sales management process, while senior sales leaders are more involved in implementing the process with their assigned salespeople.

ANS: F

REF: pg. 197

3. Senior sales leadership and salespeople are normally not as involved with supervision as field sales managers.

ANS: T

REF: pg. 197

4. Sales managers primarily use control over others to achieve sales objectives.

ANS: F

REF: pg. 197

5. Sales management activities are related to the planning, implementation, and control of the sales management process.

ANS: T

REF: pg. 197

6. Sales supervision refers to working with subordinates on a day-to-day basis.

ANS: T

REF: pg. 197

7. Sales leadership refers to working with subordinates on a day-to-day basis.

ANS: F

REF: pg. 197

8. Sales supervision activities are related to the planning, implementation, and control of the sales management process.

ANS: F

REF: pg. 197

9. A trait that appears to be associated with effective leadership is trustworthiness.

ANS: T

REF: pg. 197

10. Empathetic sales leaders can create greater follower engagement.

ANS: T

REF: pg. 198

11. The firm’s market orientation and sales organization culture are situational contingency factors influencing sales leadership.

ANS: T

REF: pg. 198

12. The firm’s sales organization culture and company policies and procedures are situational contingency factors influencing sales leadership.

ANS: T

REF: pg. 198

13. High performing sales leaders build trust with salespeople through honesty and integrity.

ANS: T

REF: pg. 198

14. High performing sales leaders solve problems and resolve conflicts.

ANS: T

REF: pg. 198

15. Leadership style is the general orientation toward leadership activities.

ANS: T

REF: pg. 198

16. A transformational leadership style is characterized as a contingent reward or contingent punishment orientation.

ANS: F

REF: pg. 198

17. A transactional leadership style is represented by an orientation toward inspiring subordinates to engage in desired behaviors and perform at high levels.

ANS: F

REF: pg. 198

18. A transformational leadership style is represented by an orientation toward inspiring subordinates to engage in desired behaviors and perform at high levels.

ANS: T

REF: pg. 198

19. Transformational leadership focuses on the salesperson-sales manager dyad as a reciprocal influence process.

ANS: F

REF: pg. 198

20. Transactional leadership can be used to reduce the role stress of highly self-efficacious salespeople operating in demanding markets with complex customers.

ANS: T

REF: pg. 198

21. In low competitive environments, the effects of transactional leadership on the sales strategy implementation behaviors of salespeople become stronger.

ANS: F

REF: pg. 198

22. Research suggests that transformational leadership positively affects salespeople’s sense of empowerment and self-efficacy.

ANS: T

REF: pg. 198

23. Some research indicates that effective leaders employ multiple leadership styles, depending upon the situation.

ANS: T

REF: pg. 199

24. A country’s cultural values can impact the effectiveness of different leadership styles.

ANS: T

REF: pg. 199

25. A positive LMX relationship between sales manager and salespeople can influence salespeople’s commitment to providing superior customer value.

ANS: T

REF: pg. 199

26. The leader-member exchange model involves self-imposed planning, behavior, evaluation, rewards, and punishment.

ANS: F

REF: pg. 199

27. Reciprocal trust between sales managers and salespeople has a positive effect on the salesperson-sales manager relationship.

ANS: T

REF: pg. 199

28. Both the sales manager and salesperson are responsible for the sales leadership activities required to develop an effective relationship.

ANS: T

REF: pg. 199

29. Expert power is associated with the right to be a leader, usually as a result of designated organizational roles.

ANS: F

REF: pg. 200

30. Reward power is based on the attractiveness of one party to another.

ANS: F

REF: pg. 200

31. Coercive power is associated with the right to be a leader.

ANS: F

REF: pg. 200

32. Informational power is based on the belief that an individual has control over valuable information that others need or want.

ANS: T

REF: pg. 201

33. Differences in perceptions regarding the nature and balance of power are frequently at the root of sales managers' problems.

ANS: T

REF: pg. 201

34. Actions based on the use of reward power are likely to create strife in the salesforce and may encourage turnover among high-performing salespeople.

ANS: F

REF: pg. 201

35. It is possible for the salesperson to have more power in a situation than does the sales manager.

ANS: T

REF: pg. 201

36. When a sales manager perceives that the salesperson has more sales knowledge and experience than he/she does, there is a strong tendency to rely on referent and expert power to gain control of the situation.

ANS: F

REF: pg. 201

37. Securing support of salespeople for sales management programs and activities is one suggestion for helping sales managers to develop power.

ANS: F

REF: pg. 202

38. Sales managers can help develop their power base by listening to their sales team’s wants, needs and dreams and helping them achieve them.

ANS: T

REF: pg. 202

39. Sales managers can help develop their power base by using one-on-one meetings to motivate salespeople.

ANS: T

REF: pg. 202

40. Sales managers can help develop their power base by developing their political skill.

ANS: T

REF: pg. 202

41. It is appropriate for the sales manager to use all of the influence strategies on salespeople, superiors, and peers.

ANS: F

REF: pg. 202

42. Threats should be eliminated as they are not a viable influence strategy.

ANS: F

REF: pg. 202

43. Threats typically produce better compliance than can be gained by promises.

ANS: F

REF: pg. 202

44. To be effective in influencing others, persuasive messages must be rational and reasonable.

ANS: T

REF: pg. 202

45. As an influence strategy, persuasion is preferred to threats and promises because it takes less time and skill to use.

ANS: F

REF: pg. 202

46. Because sales managers have legitimate power in dealing with salespeople, they can influence them in many situations.

ANS: T

REF: pg. 202

47. Assigning a salesperson lacking self-confidence to work temporarily with a confident senior salesperson is one way of using the relationships influence strategy.

ANS: F

REF: pg. 203

48. As an influence strategy, manipulation specifies a desired behavior and explicitly indicates that punishment will follow if the behavior is not achieved.

ANS: F

REF: pg. 203

49. When a sales manager attempts to control the circumstances surrounding a salesperson in order to influence his/her behavior, the sales manager is practicing manipulation as an influence strategy.

ANS: T

REF: pg. 203

50. The influence strategy “coalition” involves enlisting others’ help or using their support as a means for influencing one to action ANS: T

REF: pg. 203

51. Influencing through a “personal appeal” involves behaving in a friendly and sociable way to influence one to act.

ANS: F

REF: pg. 204

52. When using the “consultation” influence strategy the leader involves the target of influence in suggesting improvements or in the planning of an action for which he or she want their support.

ANS: T

REF: pg. 204

53. All communication with the salesforce must be carefully planned to ensure accuracy and clarity.

ANS: T

REF: pg. 204

54. More frequent and formal communication between sales manager and salespeople is likely to result in greater salesperson performance and job satisfaction.

ANS: F

REF: pg. 204

55. On tip suggested in the textbook for being a more effective communicator is to know your audience.

ANS: t

REF: pg. 205

56. Both front-line sales managers and salespeople believe that coaching is important.

ANS: T

REF: pg. 205

57. In the coaching role, sales managers concentrate on establishing their power base and opening communications with each salesperson.

ANS: F

REF: pg. 206

58. By holding coaching sessions after each sales call, sales managers are using repetition.

ANS: T

REF: pg. 207

59. Researchers have suggested that the use of outcome feedback can be helpful to salespeople and that cognitive feedback can be dysfunctional in the complex dynamic environments faced by many salespeople.

ANS: F

REF: pg. 207

60. In coaching, the sales manager should take a “we” approach instead of a “you” approach..

ANS: T

REF: pg. 207

61. One suggestion for coaching is to address only one or two problems at a time.

ANS: T

REF: pg. 207

62. Self-evaluation helps develop salespeople into critical thinkers regarding their work habits and performance.

ANS: T

REF: pg. 208

63. Coaching conversations should be interactive.

ANS: T

REF: pg. 208

64. Sales meetings typically have one purpose but include a variety of activities.

ANS: F

REF: pg. 209

65. With the emergence of new communications technology, face-to-face meetings are a less important sales leadership activity.

ANS: F

REF: pg. 210

66. Immoral management disregards the morality or ethical implications of management decisions and behavior.

ANS: T

REF: pg. 211

67. Amoral management actively incorporates moral considerations into all aspects of management.

ANS: F

REF: pg. 211

68. Moral management actively incorporates moral considerations into all aspects of management.

ANS: T

REF: pg. 211

69. An organization whose motives are well-intentioned but selfish, in the sense that the impact on others is not considered, has immoral management.

ANS: F

REF: pg. 211

70. Professional associations often have a code of ethics to which members must adhere.

ANS: T

REF: pg. 211

71. Sales leaders can have little influence on salespeople’s ethical behavior.

ANS: F

REF: pg. 211

72. An organization whose strategies include exploiting any opportunity for corporate gain and cutting corners when it appears useful is an example of moral management.

ANS: F

REF: pg. 211

73. By practicing ethical leadership, sales managers can positively influence salespeople’s customer orientation.

ANS: T

REF: pg. 213

74. Ethical leaders develop employee trust.

ANS: T

REF: pg. 213

CHAPTER 8—MOTIVATION AND REWARD SYSTEM MANAGEMENT MULTIPLE CHOICE 1. According to the text, all of the following can impact salespeople’s motivation except a. job design b. interaction with others on the job c. personal goals and preferences d. company turnover rate e. work related rewards ANS: D

REF: pg. 223

2. The most commonly used definitions of motivation include these three dimensions: a. intensity, degree, persistence. b. severity, direction, perseverance. c. persistence, intensity, direction. d. instruction, degree, tenacity. e. tenacity, persistence, direction.

ANS: C

REF: pg. 223

3. The amount of mental and physical effort put forth by the salesperson is referring to a. degree. b. persistence. c. tenacity. d. intensity. e. direction.

ANS: D

REF: pg. 223

4. __________ implies that salespeople choose where their effort will be spent among various job activities. a. Degree. b. Persistence. c. Tenacity. d. Intensity. e. Direction.

ANS: E

REF: pg. 223

5. The salesperson's choice to expend effort over a period of time, especially when faced with adverse conditions is referred to as a. intensity. b. persistence. c. tenacity. d. determination. e. degree.

ANS: B

REF: pg. 223

6. The motivation task is incomplete unless salespeople's efforts are a. aimed at improving overall salesforce sales. b. channeled in directions consistent with the overall strategic role of the salesforce within the firm. c. channeled into profitable activities. d. concentrated on sales quotas and ineffective activities are eliminated. e. motivated towards activities that improve the company's bottom line as well as the corporate image.

ANS: B

REF: pg. 223

7. A salesperson who is intrinsically motivated a. is motivated by the rewards that the job provides. b. is motivated by the need for love and belongingness. c. finds the job to be inherently rewarding. d. finds that the job's fringe benefits, pay, and generous vacation policy provide motivation. e. works for the feeling of security offered by the job.

ANS: C

REF: pg. 223

8. A salesperson who is extrinsically motivated a. would work for the pure pleasure of working. b. doesn't need or desire formal recognition for outstanding achievements. c. is motivated by personal growth needs. d. finds the job to be inherently rewarding. e. is motivated by the rewards that the job provides.

ANS: E

REF: pg. 223

9. Reward system management involves the selection and utilization of organizational rewards to a. direct salespeople's behavior toward the attainment of organizational objectives. b. reward salespeople for outstanding sales achievements. c. direct effort toward the attainment of short-term goals (e.g., a sales contest during a seasonal slump).

d. compensate salespeople, with either financial or nonfinancial rewards, depending on those desired most by the individual salesperson. e. compensate salespeople according to the profitability of their total sales to customers.

ANS: A

REF: pg. 223

10. Compensation rewards might include all of the following except a. recognition. b. bonus. c. promotion. d. task significance. e. opportunity for personal growth.

ANS: D

REF: pg. 223

11. Noncompensation rewards include a. opportunities for promotion. b. those rewards given for acceptable performance or effort. c. any current spendable income. d. insurance policies and/or retirement programs. e. a supportive sales management leadership style.

ANS: E

REF: pg. 223

12. ___________ rewards are those that are given in return for acceptable performance or effort. a. Sales b. Intrinsic c. Noncompensation d. Compensatory e. Compensation ANS: E

REF: pg. 223

13. Which of the following is not one of the desired outcomes of an optimal reward system? a. Encourage specific activities which are consistent with the firm's overall marketing and salesforce objectives and strategies. b. Provide a mix of both compensation and noncompensation rewards comparable to other firms. c. Attract and retain competent salespeople, thereby enhancing long-term customer relationships. d. Be clear and flexible enough to allow the kind of adjustments that facilitate administration of the reward system. e. Provide an acceptable ratio of costs and salesforce output in volume, profit, or other objectives.

ANS: B

REF: pg. 224

14. According to the text, the most commonly used sales incentive is a. plaques/rewards. b. merchandise/gifts. c. recognition dinners. d. cash. e. leisure trips/travel.

ANS: D

REF: pg. 224

15. What change in the firm’s salesforce reward system might be in response to customers’ needs? a. A pay freeze b. A change from straight commission to straight salary c. The introduction of a sales contest d. A change from straight salary to straight commission e. A pay raise ANS: B

REF: pg. 224

16. According to the text, which of the following is not one of the reward categories typically offered to salespeople? a. social interaction opportunities b. recognition c. sense of accomplishment d. pay e. promotion ANS: A

REF: pg. 224

17. Current spendable income includes a. salaries and commissions, but not bonuses. b. salaries only. c. salaries, commissions, and bonuses. d. any cash award, but not bonuses such as merchandise or free trips. e. weekly or monthly income, but not rewards made only annually.

ANS: C

REF: pg. 225

18. The most widely used type of financial pay plan is a. straight salary. b. salary plus a bonus. c. a combination pay plan. d. straight salary plus expenses. e. straight commission.

ANS: C

REF: pg. 225

19. This compensation plan provides no financial incentive to improve performance. a. straight salary. b. salary plus a bonus. c. a combination pay plan. d. straight salary plus expenses. e. straight commission.

ANS: A

REF: pg. 225

20. With this compensation plan, it is difficult to build loyalty of the salesforce to the company. a. straight salary. b. salary plus a bonus. c. a combination pay plan. d. straight salary plus expenses. e. straight commission.

ANS: E

REF: pg. 225

21. This compensation plan offers less control over nonselling activities.

a. b. c. d. e.

straight salary. salary plus a bonus. a combination pay plan. straight salary plus expenses. straight commission.

ANS: E

REF: pg. 225

22. Advantages of straight-salary compensation plans include all of the following except a. salaries can provide control over salespeople's activities, especially nonselling activities. b. the working capital requirements are lessened with the straight-salary compensation plan. c. reassigning salespeople and changing sales territories is less of a problem than with other financial compensation plans. d. they are the simplest plans to administer, with adjustments usually occurring only once a year. e. planned earnings for the salesforce are easy to project, which facilitates the salesforce budgeting process.

ANS: B

REF: pg. 226

23. If the nonselling administrative duties of the salesperson are of major importance, this compensation plan is recommended: a. straight salary. b. salary plus bonuses. c. straight commission. d. salary plus commission. e. straight commission plus bonuses.

ANS: A

REF: pg. 226

24. The most serious disadvantage of a straight-salary compensation plan is a. that it builds little in the way of salesforce loyalty or commitment to the company. b. that differences in salary levels among salespeople are often a function of seniority on the job instead of true merit. c. that they offer little financial incentive to perform past a merely acceptable level. d. the financial burden the firm suffers if the market declines or stagnates. e. that high-pressure, non-customer-oriented sales techniques are often used to boost total sales.

ANS: C

REF: pg. 226

25. Industries that have traditionally used a straight-commission-based compensation pay plan include all of the following except a. real estate. b. securities. c. automobiles. d. wholesalers. e. computers.

ANS: E

REF: pg. 226

26. A large direct sales company such as Avon would most likely compensate their salespeople in this manner a. straight salary. b. salary plus bonuses.

c. straight commission. d. salary plus commission. e. straight commission plus bonuses.

ANS: C

REF: pg. 227

27. Which of the following is not a factor to be considered when developing a commission-only plan? a. Commission base b. Commission rate c. Commission margin d. Commission splits e. Commission payout event ANS: C

REF: pg. 227

28. This form of commission rate may actually result in overselling and higher selling costs to the company: a. regressive. b. incremental. c. a combination of constant and regressive rates. d. constant. e. progressive.

ANS: E

REF: pg. 227

29. 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: a. regressive. b. incremental. c. a combination of constant and progressive rates. d. constant. e. progressive.

ANS: A

REF: pg. 227

30 An example of a selling situation requiring a commission split would be a. a field salesperson sells a computer to a customer and some time after this it requires a service call from a company service technician. b. a salesperson needs help from a salaried technical expert in order to provide a potential customer with certain information. c. 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 are required to provide follow-up and service. d. a salesperson provides a list of referrals that are not in his/her territory to the salesperson covering that territory. e. a sales manager is in the process of training a new recruit and accompanies him/her on sales calls.

ANS: C

REF: pg. 227

31. Which of the following is not an advantage of the commission compensation plan? a. Income is linked to results. b. There is a strong financial incentive to improve results. c. Costs are reduced during slow sales periods. d. Less operating capital is required. e. Customer loyalty is enhanced.

ANS: E

REF: pg. 228

32. Which of the following is an advantage of a straight-commission compensation plan? a. Operating costs are minimized during slack selling periods. b. They are highly flexible, allowing frequent changes in compensation practices to achieve short-term objectives. c. They are attractive to college graduates desiring an opportunity to earn while they train. d. The salesforce's loyalty to the company is enhanced. e. Salespeople often adopt high-pressure, non-customer-oriented sales techniques which increase total sales.

ANS: A

REF: pg. 228

33. Perhaps the most serious shortcoming of straight-commission plans is that a. salespeople may earn more than their managers. b. they contribute little to company loyalty, resulting in potential salesforce control problems. c. the firm suffers financially if the market declines or stagnates. d. they link compensation to actual sales. e. they are difficult to administer.

ANS: B

REF: pg. 228

34. A(n) ___________ is typically used to direct effort toward relatively short-term objectives, such as introducing new products, adding new accounts, or reducing accounts receivable. a. constant commission b. incremental commission c. performance bonus d. regressive commission e. salary ANS: C

REF: pg. 228

35. When determining the financial compensation mix, the sales manager must a. decide what the commission payout event will be. b. determine what percentage in commission is to be paid to salespeople. c. determine the relative amounts to be paid in salary, commission, and bonus. d. decide on what type of benefits package to offer. e. review the compensation plans offered by other firms in the industry.

ANS: C

REF: pg. 229

36. A company that expects its salespeople to perform a variety of activities such as gain new customers, retain key customers, establish new product in the marketplace and maintain a balance between sales volume and profitability might use a a. combination pay plan. b. straight commission pay plan. c. straight salary pay plan. d. none of the above.

ANS: A

REF: pg. 229

37. All of the following are advantages of combination pay plans except a. They are flexible. b. They are fairly simple to administer. c. Sales behavior can be rewarded frequently.

d. Specific sales behaviors can be reinforced or stimulated quickly. e. They are attractive to high-potential, but unproven, candidates for sales jobs.

ANS: B

REF: pg. 229

38. Flexibility has been cited as both an advantage and a disadvantage of this compensation pay plan: a. straight salary. b. combination pay plans. c. straight commission. d. straight commission with bonuses. e. straight salary with bonuses.

ANS: B

REF: pg. 229

39. A common criticism of combination pay plans is that they a. cost the firm more in total pay to salespeople. b. do not provide equitable treatment of high-performing salespeople. c. tend to produce too many salesforce objectives which are of the crisis-resolution variety. d. are unattractive to high-potential, but unproven college graduates. e. may often lead to salespeople earning more than their managers, which leads to resentment and other managerial problems.

ANS: C

REF: pg. 230

40. Which of the following regarding determining appropriate financial compensation levels is not true? a. In general, sales positions that are more complicated and require more skills are compensated at a higher level. b. Salespeople with the most experience should always receive the highest wages. c. Information about competitive salaries and the requirements for attracting and keeping qualified salespeople is necessary. d. Information on competitive salaries can be obtained by benchmarking earnings levels of salespeople through a variety of methods. e. Determining the appropriate financial compensation level depends upon an understanding of the duties expected for a particular sales position.

ANS: B

REF: pg. 230

41. All of the following are forms of nonfinancial compensation except a. Career advancement through promotion b. Job redesign c. Opportunities for personal growth d. Recognition of achievement e. A sense of accomplishment on the job ANS: B

REF: pg. 230

42. All of the following conditions are typically associated with higher pay levels except a. Job experience. b. The importance of personal selling in the overall marketing effort. c. Higher skill levels. d. The extent to which there is an expectation that salespeople will service current customers. e. Highly competitive markets where an intense personal selling effort is important for customer retention and growth.

ANS: D

REF: pg. 230

43. This form of nonfinancial reward is generally considered to be more desirable to younger salespeople than to older salespeople: a. opportunity for personal growth. b. opportunity for promotion. c. job security. d. sense of accomplishment. e. recognition for achievement.

ANS: B

REF: pg. 231

44. 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: a. opportunity for personal growth. b. recognition for achievement. c. sense of accomplishment. d. job security. e. job redesign.

ANS: C

REF: pg. 231

45. All of the following are steps suggested for facilitating a sense of accomplishment in the salesforce except a. ensure that salespeople know the critical role they play in sales revenue production. b. personalize the causes and effects of salesperson performance. c. consider the practice of management by objectives. d. reinforce feeling of worthwhile accomplishment in communication with the salesforce. e. provide salespeople with trips and other rewards.

ANS: E

REF: pg. 231

46. A firm offering a college tuition reimbursement program has made a commitment to providing this nonfinancial reward: a. opportunity for personal growth. b. recognition for achievement. c. sense of accomplishment. d. opportunity for promotion. e. job redesign.

ANS: A

REF: pg. 231

47. The Million Dollar Roundtable designation in the insurance industry is an example of this type of nonfinancial reward: a. opportunity for promotion. b. sense of accomplishment. c. personal growth. d. recognition for achievement. e. job security.

ANS: D

REF: pg. 232

48. Formal recognition programs can provide all of the following benefits to a salesforce except a. providing for public recognition for accomplishments in the presence of peers and superiors in the organization. b. making the winners feel special. c. enthusiasm inspired by the program carrying over into any related business or training

sessions. d. costing little and reinforcing desirable behavior immediately after it occurs. e. providing the recipient with a symbolic award of lasting psychological value.

ANS: D

REF: pg. 232

49. Formal recognition programs have a better chance of success if sales managers do all of the following except: a. publicize the program before it is implemented. b. make it easy enough to allow for a majority of the salesforce to win. c. ensure that the celebration for winners is well-conceived and executed. d. arrange for individual salespeople or sales teams to acknowledge the support of others who helped them win the award. e. remember that the program should make sense from a return-on-investment perspective.

ANS: B

REF: pg. 232

50. All of the following are typical reimbursable expense items except a. automobile. b. mileage allowance. c. home. d. telephone. e. entertainment.

ANS: C

REF: pg. 233

51. Which of the following is not a typical reimbursable expense item? a. Product samples b. Local promotions c. Life insurance d. Office and/or clerical expenses e. Computer and related equipment ANS: C

REF: pg. 233

52. According to the text, controls typically used by companies to ensure judicious spending by the salesforce include all of the following except a. the use of allowances for certain expenditures. b. the requirement of documentation for expenses to be reimbursed. c. the requirement that expenses be charged and the bills sent directly to the company for payment by the accounting department. d. a definition of which expenses are reimbursable. e. the establishment of expense budgets.

ANS: C

REF: pg. 233

53. Expense account padding a. is an expected activity and is generally ignored unless it is very blatant. b. occurs very rarely as most salespeople are quite honest. c. is considered a serious offense, which, if detected, often leads to termination of employment. d. is so difficult to uncover that most companies simply do not try. e. is viewed as a fringe benefit by most salespeople.

ANS: C

REF: pg. 235

54. Which of the following does not help deter expense account abuse? a. Tight financial controls. b. Well-publicized and enforce requirements for documentation of expenditures. c. An anonymous tip program. d. Periodic visits by highly trained financial auditors. e. All of the above help deter expense account abuse.

ANS: E

REF: pg. 235

55. Which of the following is not a guideline for optimizing the use of sales contests? a. Recognize that contests will concentrate efforts in specific areas, often at the temporary neglect of other areas so plan accordingly. b. Consider the positive effects of including nonselling personnel in sales contests. c. Use variety as a basic element of sales contests by varying timing, duration, themes, and rewards. d. Ensure that sales contest objectives are clear, realistically attainable, and quantifiable to allow performance assessment. e. Salespeople should compete in teams with each member of the team contributing to the group's total goal.

ANS: E

REF: pg. 236

56. Research suggests that salespeople’s enthusiasm for participating in contests and their design preferences for goal type, number of winners, contest duration, and award value may vary by a. individual characteristics. b. supervisory characteristics. c. sales setting characteristics. d. all of the above.

ANS: D

REF: pg. 237

57 Which of the following statements regarding sales contests is true? a. A sales contest is a temporary program that is used to accomplish a specified long-term objective. b. The optimum duration for a sales contest has been determined to include this range--longer than three months but less than six months. c. The most effective sales contest prize is a cash award. d. Sales contests will continue to be an important tool for achieving expedient results. e. Researchers have not yet been able to find any positive relationship between sales contests and sales and profitability.

ANS: D

REF: pg. 238

58. 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? a. Existing reward systems for individual salespeople are not easy to adapt to team selling situations. b. Salespeople who are accustomed to earning commissions based on their individual efforts may not respond enthusiastically to team-based compensation. c. There is concern that rewards for high performers may be diminished by lower-performing team members. d. It is difficult to determine an individual salesperson's contribution to overall team performance. e. Overall compensation and rewards increase with the use of team selling.

ANS: E

REF: pg. 238

59. Which one of the following statements regarding global compensation is false? a. The compensation of native salespeople is difficult. b. In many countries, political or cultural factors may have a strong influence on salesforce pay practices. c. Overseas assignments can enhance career opportunities. d. Companies are increasing incentives for foreign-based employment. e. Sales managers often rely on human resource professionals to assist in global compensation planning.

ANS: D

REF: pg. 239

60. Which of the following is not true regarding the design of a global salesforce compensation system? a. Design the plan centrally and dictate to local countries. b. Involve reps from key countries. c. Allow local countries flexibility in implementation. d. Use consistent communication and training themes worldwide. e. Allow local managers to decide the mix between base an incentive pay.

ANS: A

REF: pg. 239

61. Which of the following is true regarding the design of a global salesforce compensation system? a. Design the plan centrally and dictate to local countries. b. Involve reps from key countries. c. Do not allow local countries flexibility in implementation. d. Vary communication and training themes worldwide. e. Do not allow local managers to decide the mix between base an incentive pay.

ANS: B

REF: pg. 239

62. Which of the following is something sales managers do not need to do to implement a new or modified reward system? a. clearly communicate details of the plan to the salesforce prior to its implementation. b. encourage salesforce feedback. c. promptly answer questions. d. detail any expected changes in job activities. e. issue a press release detailing the company’s changes.

ANS: E

REF: pg. 240

63. Which of the following is not a guideline recommended in the management of motivation? a. Recruit and select salespeople whose personal motives match the requirements and rewards of the job. b. Provide adequate job information and assure proper skill development for the salesforce. c. Take a reactive approach to seeking out motivational problems and sources of frustration in the salesforce. d. Concentrate on building the self-esteem of salespeople. e. Use job design and redesign as motivational tools.

ANS: C

REF: pg. 241

64. The importance of matching the abilities and needs of sales recruits to the ________ cannot be overstated. a. abilities and needs of the customer

b. c. d. e.

requirements and desires of the company requirements and rewards of the job skills and requirements of the job specifications and abilities of the company

ANS: C

REF: pg. 241

TRUE/FALSE 1. A salesforce reward system is one of the most important determinants of both short-and long-term sales performance.

ANS: T

REF: pg. 222

2. Salespersons' choices of which activities warrant action are less important than how hard they work or how well they persist in their efforts.

ANS: F

REF: pg. 223

3. A salesperson's overall motivation is either a function of extrinsic or intrinsic motivation, but cannot be both.

ANS: F

REF: pg. 223

4. Organizational rewards are classified as compensation rewards and reimbursement rewards.

ANS: F

REF: pg. 223

5. Noncompensation rewards include factors related to the work situation and well-being of each salesperson.

ANS: T

REF: pg. 223

6. Practicing a supportive leadership style is an example of a noncompensation reward.

ANS: T

REF: pg. 223

7. Job design factors such as skill variety and feedback are forms of nonfinancial compensation rewards.

ANS: F

REF: pg. 223

8. The optimal reward system would balance the needs of the organization, its salespeople, and its customers.

ANS: T

REF: pg. 223

9. From the organization’s perspective, the reward system should attract and retain competent salespeople.

ANS: T

REF: pg. 224

10. From the organization’s perspective, the reward system should reward salesperson performance based on measurable criteria that are easy to comprehend.

ANS: T

REF: pg. 224

11. Most salespeople prefer some stability in their reward system and care little about incentive rewards.

ANS: F

REF: pg. 224

12. The most productive salespeople have the best opportunities to leave the firm for more attractive work situations.

ANS: T

REF: pg. 224

13. In recent years, the needs of the salesforce have become more important than the needs of the customer in determining the structure of rewards systems in sales organizations.

ANS: F

REF: pg. 224

14. The motivational power of various rewards is dependent on individual salesperson preferences.

ANS: T

REF: pg. 225

15. The three basic types of salesforce financial compensation plans are straight salary, straight commission and bonus.

ANS: F

REF: pg. 225

16. A disadvantage of a salary compensation plan is that it provides no financial incentive to improve performance.

ANS: T

REF: pg. 225

17. Combination compensation plans may encourage crisis-oriented objectives.

ANS: T

REF: pg. 225

18. A straight-commission compensation plan is suggested for salespeople such as missionaries and detailers.

ANS: F

REF: pg. 226

19. A straight-commission compensation plan is appropriate for sales trainees who are involved in learning about the job rather than producing on the job.

ANS: F

REF: pg. 226

20. With straight-salary compensation plans, there is less chance that high-pressure, non-customer-oriented sales techniques will be used.

ANS: T

REF: pg. 226

21. With a straight-salary compensation plan, the least productive members of the salesforce tend to be the most rewarded salespeople.

ANS: T

REF: pg. 226

22. Industries that have traditionally paid salespeople by straight commission include insurance and securities.

ANS: T

REF: pg. 226

23. Straight commission compensation plans tend to limit control of the salesforce.

ANS: T

REF: pg. 226

24. The most popular commission base appears to be sales volume.

ANS: T

REF: pg. 227

25. A constant commission rate changes incrementally as salespeople reach prespecified target levels of sales.

ANS: F

REF: pg. 227

26. A progressive commission rate declines at some predetermined point of sales.

ANS: F

REF: pg. 227

27. Commission plans may attract competent results-oriented salespeople and eliminate incompetent reps.

ANS: T

REF: pg. 228

28. There is general agreement that salesforce loyalty to the company may be greater with straight-commission plans.

ANS: F

REF: pg. 228

29. One disadvantage of commission plans is that salespeople may neglect cultivating potentially profitable long-run customers in favor of easy sales.

ANS: T

REF: pg. 228

30. One disadvantage of commission plans is that when they are based on sales volume, salespeople may be encouraged to discount unnecessarily, resulting in lower profitability.

ANS: T

REF: pg. 228

31. Bonuses are typically used to direct effort toward relatively short-term objectives.

ANS: T

REF: pg. 228

32. Performance bonuses may be offered in the form of cash or income equivalents such as merchandise or free travel.

ANS: T

REF: pg. 228

33. An advantage of the performance bonus is that sales emphasis can be changed from period to period.

ANS: T

REF: pg. 228

34. One disadvantage of the performance bonus is that sales emphasis must be changed from period to period.

ANS: F

REF: pg. 229

35. Combination pay plans usually feature commission as the major source of salesperson income.

ANS: F

REF: pg. 229

36. A good combination compensation plan offers a balance of incentive, control, and enough flexibility to reward important salesforce activities.

ANS: T

REF: pg. 229

37. The primary advantage of combination pay plans is the flexibility they offer.

ANS: T

REF: pg. 229

38. As compared to a straight-salary or combination plan, the straight-commission compensation plan is more complex and difficult to administer.

ANS: F

REF: pg. 230

39. One disadvantage of a combination compensation plan is that mediocre salespeople are eliminated less rapidly than they would be under a straight commission plan.

ANS: T

REF: pg. 230

40. Determining the appropriate financial compensation level depends upon an understanding of the duties expected for a particular sales position.

ANS: T

REF: pg. 230

41. The value of nonfinancial compensation is illustrated by the considerable number of salespeople who knowingly take cuts in financial compensation to become sales managers.

ANS: T

REF: pg. 230

42. Salespeople highly value opportunity for promotion as a reward.

ANS: T

REF: pg. 231

43. Among older salespeople, opportunity for promotion often eclipses pay as the most valued reward.

ANS: F

REF: pg. 231

44. Opportunities for promotion are easily varied in the short run.

ANS: F

REF: pg. 231

45. One way to instill a sense of accomplishment among salespeople is to personalize the causes and effects of salesperson performance.

ANS: T

REF: pg. 231

46. Informal recognition awards are easy to administer and cost practically nothing.

ANS: T

REF: pg. 232

47. Employees typically find verbal or written praise to be of little importance.

ANS: F

REF: pg. 232

48. Most recognition programs are simply popularity contests and leave salespeople feeling let down and deceived.

ANS: F

REF: pg. 232

49. Salespeople appear to be fond of being recognized by their peers.

ANS: T

REF: pg. 232

50. Formal recognition programs have a better chance of succeeding if sales managers publicize the program before it is implemented.

ANS: T

REF: pg. 232

51. Many companies believe it is a good investment to spend money on recognition programs.

ANS: T

REF: pg. 232

52. The majority of sales organizations offer full reimbursement to their salespeople for legitimate sales expenses such as travel, lodging, and meals.

ANS: T

REF: pg. 233

53. Entertainment is a typical reimbursable sales expense item.

ANS: T

REF: pg. 233

54. Expense budgets may be used to maintain expenses as a specified percentage of overall sales volume or profit.

ANS: T

REF: pg. 234

55. Many firms use a per-diem allowance for meals and lodging to control salesforce expenditures.

ANS: T

REF: pg. 234

56. Expense-report software makes it easier to report and track sales expenses.

ANS: T

REF: pg. 235

57. Expense account padding is a common and acceptable practice.

ANS: F

REF: pg. 235

58. Common expense account padding tactics include seeking reimbursement for personal expenses and inventing purchases.

ANS: T

REF: pg. 235

59. Many sales contests are held to correct bad planning and poor sales performance.

ANS: T

REF: pg. 235

60. It is generally believed that sales contests have some positive effects on salesforce performance.

ANS: T

REF: pg. 236

61. Sales managers should minimize potential motivation and morale problems in sales contests by allowing multiple winners.

ANS: T

REF: pg. 236

62. Sales managers should encourage winners of sales contests to share their winning strategies with the salesforce.

ANS: T

REF: pg. 236

63. It is relatively easy to design a sales contest that will maximally motivate every member of the salesforce.

ANS: F

REF: pg. 237

64. It is difficult to determine an individual salesperson’s contribution to overall team performance.

ANS: T

REF: pg. 238

65. It is a good idea to reward both individual and team performance.

ANS: T

REF: pg. 238

66. Social media and business communications tools foster teamwork.

ANS: T

REF: pg. 238

67. Social media and business communications tools enable sales managers to monitor individual and team contributions.

ANS: T

REF: pg. 238

68. In many countries, political or cultural factors may have a strong influence on salesforce pay practices.

ANS: T

REF: pg. 239

69. What motivates salespeople does not vary from country to country.

ANS: F

REF: pg. 239

70. Professionals point out that expatriates should gain in spending power as a result of an international assignment.

ANS: F

REF: pg. 239

71. With regards to designing a global compensation system, don’t allow local managers to decide the mix between base and incentive pay.

ANS: F

REF: pg. 239

72. Any major change in financial compensation practices is likely to produce widespread concern among the salesforce that their earnings will decline.

ANS: T

REF: pg. 240

73. Management should consider how any change in compensation will affect the company’s top

performers and attempt to avoid a change that would hurt them.

ANS: T

REF: pg. 240

74. The best time to institute major changes in salesforce reward systems is during a recessionary period.

ANS: F

REF: pg. 240

75. A guideline for managing salesforce motivation would be to attempt to incorporate individual needs of salespeople into motivational programs.

ANS: T

REF: pg. 241

76. Investing more time in recruiting and selection will pay off later in terms of fewer motivational and other managerial problems.

ANS: T

REF: pg. 241

77. Online incentive programs provide an opportunity to meet the diverse needs of resellers when attempting to motivate them.

ANS: T

REF: pg. 241

78. Boredom is a typical problem with sales jobs.

ANS: F

REF: pg. 242

79. The motivational task is generally more difficult for sales managers than for other managers.

ANS: F

REF: pg. 242

80. The sales job itself can be a powerful motivator.

ANS: T

REF: pg. 242

81. Sales managers should be committed to uncovering potential problems in motivation and eliminating them before they develop.

ANS: T

REF: pg. 242

CHAPTER 9—EVALUATING THE EFFECTIVENESS OF THE ORGANIZATION MULTIPLE CHOICE 1. A definition for sales organization effectiveness would be a. an overall evaluation of how well each salesperson performed in his/her situation. b. an overall evaluation of how well the sales organization did in achieving its goals and objectives. c. an overall evaluation of how well the firm did in achieving its sales goals and objectives. d. an overall evaluation of how well the sales organization did in developing new accounts. e. a comprehensive approach toward evaluating the performance of the managerial component of the firm.

ANS: B

REF: pgs. 252-253

2. Sales organization effectiveness evaluations generally result in a. recommendations that are tactical in nature, such as specific actions designed to improve the performance of an individual salesperson. b. suggestions to cut back staff positions. c. the implementation of new cost containment procedures. d. general strategic or policy changes. e. a complete restructuring of the organization.

ANS: D

REF: pg. 253

3. Which of the following best describes a sales organization audit? a. a systematic and diagnostic tool that is used to determine the adequacy of a firm's advertising expenditures. b. a prescriptive device that is generally used in the redesign of territories or districts. c. a framework that can be used to assess salespeople for promotion potential. d. a tool that is used by all organizations to help them achieve their goals. e. a comprehensive, systematic, diagnostic and prescriptive tool used to assess the adequacy of a firm's sales management process.

ANS: E

REF: pg. 253

4. All of the following statements regarding the sales organization audit is true except a. It is an expensive and time-consuming process. b. It should be conducted by someone within the sales organization. c. It generates diagnostic information that can help management correct problems in early stages or eliminate potential problems before they become serious. d. It should be performed on some type of regular basis. e. Its purpose is to make a systematic and comprehensive investigation to identify problems, determine their causes, and take the necessary corrective action.

ANS: B

REF: pgs. 253-254

5. Each of the following is one of the four major areas covered by the sales organization audit framework except a. Sales management evaluation b. Sales organization history c. Sales organization environment d. Sales management functions e. Sales organization planning system ANS: B

REF: pg. 254

6. Extraorganizational factors including technological, political, legal, and economic-demographic factors are considered in this area of the sales organization audit framework: a. sales-management evaluation. b. sales-organization strategies. c. sales-organization environment. d. sales-management functions. e. sales-organization planning system.

ANS: C

REF: pg. 254

7. Recruitment, selection, and sales training are examples of factors considered in this area of the sales organization audit framework: a. sales-management evaluation. b. sales-organization strategies. c. sales-organization environment. d. sales-management functions. e. sales-organization planning system.

ANS: D

REF: pg. 254

8. The adequacy of sales managers and management practices is assessed under this area of the sales organization audit framework: a. sales-management evaluation. b. sales-organization strategies. c. sales-organization environment. d. sales-management functions. e. sales-organization planning system.

ANS: A

REF: pg. 254

9. Intraorganizational factors such as company organization are considered in this area of the sales organization audit framework: a. sales-management evaluation. b. sales-organization strategies. c. sales-organization environment. d. sales-management functions. e. sales-organization planning system.

ANS: C

REF: pg. 254

10. Which of the following is not one of the four types of analyses outlined in the text as a method for analyzing sales organization effectiveness? a. cost analysis. b. profitability analysis. c. productivity analysis.

d. sales analysis. e. market-share analysis.

ANS: E

REF: pg. 256

11. A “sale” is most often defined as a. paid order. b. shipped order. c. placed order. d. received order. e. delivered order.

ANS: B

REF: pg. 256

12. Salesforce effectiveness is most often measured by which of the following methods? a. return on investment of sales resources b. sales results versus goal c. sales employee feedback d. cost of sales e. market share ANS: B

REF: pg. 257

13. In a sales analysis, which of the following comparisons would not be made? a. Comparisons with forecasts b. Comparisons with previous period c. Comparisons between actual and budgeted costs d. Comparisons with industry/competitors e. Comparisons within the sales organization ANS: C

REF: pg. 258

14. An evaluation of sales results throughout the sales organization from a top-down perspective is a a. hierarchical sales analysis. b. scaled sales analysis. c. stepladder sales analysis. d. pyramid sales analysis. e. single stage sales analysis.

ANS: A

REF: pg. 258

15. All of these statements describing sales organization effectiveness is false except a. Most firms conduct annual assessments of cost, profit contribution, net profit, or return on assets. b. Sales analyses are performed only at the lowest level of the sales organization, typically by territory. c. The one summary measure of sales organization effectiveness is a productivity analysis. d. Sales analyses can be conducted in several ways, including by total sales or by sales to specific customers. e. Most firms employ the same type of sales analysis, an analysis of sales of specific products.

ANS: D

REF: pg. 259

16. When using a top-down perspective in sales analysis, the emphasis is on identifying potential problem areas at each level and then a. using analysis at the next highest level to pinpoint the specific problem.

b. c. d. e.

having that level's sales management analyze the problem and provide an explanation. using analysis at lower levels to pinpoint the specific problems. analyzing what impact that problem might have on the next level's performance. attempting to prevent these problems from occurring through effective sales management.

ANS: C

REF: pg. 259

17. A __________ represents an expected level of firm sales for defined products, markets, and time periods and for a specified strategy. a. sales forecast b. sales quota c. market forecast d. industry forecast e. sales budget ANS: A

REF: pg. 260

18. What is the effectiveness index of a salesperson whose previous year’s sales totaled $600,000 and whose sales quota for that period was $500,000? a. 83 b. 120 c. 97 d. 106 e. 69 ANS: B

REF: pg. 260

19. What is the effectiveness index of a salesperson whose previous year’s sales totaled $700,000 and whose sales quota for that period was $800,000? a. 88 b. 114 c. 97 d. 106 e. 72 ANS: A

REF: pg. 260

20. The sales growth experienced by different organizational levels can be determined by a. a comparison of actual sales results to those achieved by competitors. b. a comparison of actual sales results to sales forecasts. c. a comparison of actual sales results to sales quotas. d. a comparison of actual sales results to previous periods' sales. e. a comparison of the sales effectiveness index of the different organization levels.

ANS: D

REF: pg. 261

21. The most common type of sales organization assessment focuses on a. cost analysis. b. profitability analysis. c. productivity analysis. d. sales analysis. e. market-share analysis.

ANS: D

REF: pg. 262

22. What is the key sales management budgeting task? a. To develop sales forecasts that will provide the expected level of sales for the next planning period. b. To translate the sales forecasts into sales quotas for each territory, district, etc. c. To determine the amount of selling budget necessary to support the sales function. d. To determine the best way to allocate sales resources throughout the sales organization and across the different selling activities. e. To instill a sales consciousness throughout the sales organization.

ANS: B

REF: pg. 262

23. Which of the following provides a benchmark for the evaluation of selling costs? a. Sales quotas b. Selling budgets c. Cost quotas d. Variance analysis e. Sales forecasts ANS: B

REF: pg. 262

24. Which of the following would not be an expense category for a selling budget? a. Recruiting expenses b. Salespeople's lodging expenses c. Production expense d. Salespeople's salaries e. Sales office expense ANS: C

REF: pg. 262

25. A more centralized sales organization will place budget responsibility a. with the sales manager. b. with the salesperson. c. at lower sales management levels. d. at higher sales management levels. e. with the accounting personnel.

ANS: D

REF: pg. 263

26. In budgeting for each expense category, a sales manager should attempt to a. set the budget at the lowest possible level. b. determine the lowest expenditure level necessary to achieve the sales quotas. c. cut costs from last year's level of expenditure. d. justify the highest possible level of expenditure in order to have some flexibility in the budget. e. improve profitability in the short run by cutting unnecessary expenditures for training and travel.

ANS: B

REF: pg. 263

27. Probably the most often used method to establish selling budgets is a. objective and task method. b. profitability projections. c. cost-justification method. d. zero-based budgeting.

e. percentage-of-sales method.

ANS: E

REF: pg. 263

28. The ___________ method calculates an expenditure level for each category by multiplying an expenditure percentage times forecasted sales. a. objective and task b. expenditure projection c. cost-justification d. zero-based budgeting e. percentage-of-sales ANS: E

REF: pg. 263

29. Which method of determining expenditure levels for selling expense categories depends upon accurate sales forecasts? a. Objective and task method b. Zero-based budgeting c. Cost-justification method d. Profit margin budgeting e. Percentage-of-sales method ANS: E

REF: pg. 263

30. The basic form of this method for determining expenditure levels for selling expense categories could be called zero-based budgeting: a. objective and task method. b. profitability projections. c. cost-justification method. d. profit margin budgeting. e. percentage-of-sales method.

ANS: A

REF: pg. 263

31. Which of the following statements regarding the objective and task method of determining expenditure levels for selling expense categories is true? a. It is probably the most popular method for establishing selling budgets. b. This method calculates an expenditure level for each category by multiplying an expenditure percentage times forecasted sales. c. This method uses typical expenditure percentages provided by readily available published sources. d. Each sales manager prepares a separate budget request; these are reviewed and through an iterative process selling budgets are approved. e. This method separates out the major accounts, which are then budgeted for individually.

ANS: D

REF: pg. 263

32. When actual selling costs far exceed budgeted costs a. it is considered a bad situation, as the objective is to minimize selling costs. b. it is considered a good situation, as high selling costs automatically mean high sales. c. it is cause for concern, since costs are only allowed to exceed the budgeted amount by a small percentage. d. it is cause for concern since top management will cut future budgets to reduce costs. e. it is cause for further analysis to discover whether a specified relationship between sales and selling costs was maintained.

ANS: E

REF: pg. 263

33. Last year sales were $17,500,000 and compensation costs were $1,095,000. Compensation costs for the year were budgeted at 8% of sales. It appears that compensation costs were a. greater than budgeted. b. less than budgeted. c. exactly as budgeted. d. there is not enough information to tell.

ANS: B

REF: pg. 263

34. The two most direct approaches for evaluating sales organization effectiveness are a. sales analysis and income statement analysis. b. productivity analysis and cost analysis. c. sales analysis and cost analysis. d. residual income analysis and sales analysis. e. sales analysis and profitability analysis.

ANS: C

REF: pg. 264

35. Which of the following are types of profitability analysis? a. income statement analysis b. activity-based costing c. return on assets managed analysis d. all three of the above e. none of the above ANS: D

REF: pg. 265

36. One of the major difficulties in developing the income statement approach in profitability analysis is a. determining how to handle costs that are shared between organizational levels or sales types. b. determining the cost of goods sold for individual organizational levels or sales types. c. breaking down total sales into individual unit sales. d. explaining how to interpret the results to senior managers. e. figuring the investment in assets required to generate the net profit or profit contribution.

ANS: A

REF: pg. 265

37. In this type of profitability analysis, the shared selling costs are allocated to individual units based on some type of cost allocation procedure: a. the contribution approach to income statement analysis. b. the full-cost approach to residual income analysis. c. return on assets managed approach. d. the full-cost approach to income statement analysis. e. the contribution approach to residual income analysis.

ANS: D

REF: pg. 265

38. In this approach to profitability analysis, the indirect or shared costs are not included in the individual unit analysis: a. the contribution approach to income statement analysis. b. the full-cost approach to residual income analysis. c. return on assets managed approach. d. the full-cost approach to income statement analysis.

e. the contribution approach to residual income analysis.

ANS: A

REF: pg. 265

39. Though two approaches to income statement analysis have been used, there seems to be a trend toward a. the full-cost approach. b. the cost-allocation approach. c. the contribution approach. d. the gross-margin approach. e. the indirect-cost approach.

ANS: C

REF: pg. 266

40. The basic concept underlying the use of this analytical method is that costs are allocated to individual units on the basis of how the units actually expend or cause these costs. a. activity-based costing b. cost analysis c. profitability analysis d. hierarchical sales analysis e. productivity analysis ANS: A

REF: pg. 266

41. Please calculate the asset turnover rate if sales = $36,000,000; cost of goods sold = $20,000,000; and total assets managed = $20,000,000: a. 1.8. b. 0.67. c. 1.2. d. 1.5. e. 0.83.

ANS: A

REF: pg. 266

42. Please calculate the profit contribution as a percentage of sales to be used in the ROAM calculation, if sales = $40,000,000; accounts receivable = $16,000,000; and profit contribution = $10,000,000: a. 20 percent. b. 40 percent. c. 50 percent. d. 5 percent. e. 25 percent.

ANS: E

REF: pg. 266

43. The assets that are typically included in the formula for calculating return on assets managed (ROAM) are a. accounts payable and short-term loans. b. accounts receivable and notes payable. c. inventory and fixed assets. d. accounts payable and inventory. e. inventory and accounts receivable.

ANS: E

REF: pg. 266

44. District 1 has a poor level of ROAM. However, their profit contribution percentage is acceptable, but they have a very low asset turnover ratio. What might cause this? a. Selling too many low-margin products

b. c. d. e.

Problems with accounts payable Negotiating low selling prices Problems with accounts receivable Excessive selling expenses

ANS: D

REF: pgs. 266-267

45. Which of the following actions would improve future ROAM performance? a. Increasing selling expenses b. Reducing inventory levels c. Increasing accounts receivable d. Reducing total sales e. Reducing short-term notes ANS: B

REF: pg. 268

46. A major advantage of productivity ratios is a. the ability to integrate sales growth and productivity assessments into one analysis. b. the ability to compare total productivity to targeted productivity. c. the inclusion of asset investment considerations in the ratio analysis. d. that they can be compared directly across the entire sales organization and with other sales organizations. e. that they eliminate the need for allocation judgments and are therefore viewed as more objective.

ANS: D

REF: pg. 268

47. Which of the following statements regarding productivity analysis is false? a. The most useful input unit for productivity analysis is total sales per salesperson. b. Productivity is typically measured in terms of ratios between outputs and inputs. c. Sales productivity and profitability are highly interrelated. d. Productivity analysis is managerial oriented. e. Improvements in sales productivity should be achieved by an increase in output with the same level of input.

ANS: A

REF: pg. 268

48. The most useful input unit for productivity analysis is the a. product. b. salesperson. c. manufacturing worker. d. sales manager. e. sales call.

ANS: B

REF: pg. 268

49. Productivity improvements can be obtained by a. increasing output. b. increasing input. c. increasing output with the same level of input. d. increasing input with the same level of output. e. maintaining the same level of input but using less output.

ANS: C

REF: pg. 269

50. All of the following are characteristics of benchmarking except

a. It is an ongoing measurement and analysis process. b. It involves comparing an organization's current operating practices to average industry operating practices. c. It can lead to greater customer satisfaction. d. It may lead to lower operating costs. e. It may lead to improved operations.

ANS: B

REF: pg. 269

51. According to the text, which of the following is not included in the implementation and control phase of the benchmarking process? a. Communicate benchmark findings and gain acceptance. b. Establish functional goals. c. Develop action plans. d. Implement specific action plans and monitor progress. e. Recalibrate the benchmark.

ANS: A

REF: pg. 270

52. A benchmarking study should provide all of the following except a. a measure that compares performance for the benchmarked process relative to the organization studied. b. identification of the organization’s performance gap relative to benchmarked performance levels. c. identification of best practices and facilitators that produced the results observed during the study. d. performance goals for the process studied. e. a set of solutions to commonly encountered performance problems.

ANS: E

REF: pg. 270

53. Which of the following is not considered a key to successful benchmarking? a. Clearly identify critical activities that will improve quality or service or reduce cost. b. Properly prepare and benchmark only one activity at a time. c. Provide adequate resources--financial and personnel. d. Make sure that you clearly understand the processes of your benchmarking partner company first. e. Verify that your benchmarking partner company is the best in its class.

ANS: D

REF: pg. 270

54. ____________ is a data-driven methodology that attempts to eliminate defects in any process. a. Activity-based costing b. Benchmarking. c. Six Sigma d. Productivity analysis e. Sales analysis ANS: C

REF: pg. 270

55. Which is the correct order of the steps involved in the Six Sigma process? a. Define, measure, analyze, improve, control b. Define, analyze, measure, improve, control c. Define, measure, analyze, control, improve d. Define, analyze, measure, control, improve

e. Measure, define, analyze, improve, control ANS: A

REF: pg. 271

TRUE/FALSE 1. Assessing the success of a sales organization is difficult because so many factors must be considered.

ANS: T

REF: pg. 252

2. When assessing the sales organization, the success of the sales organization must be differentiated from the success of individual salespeople.

ANS: T

REF: pg. 252

3. Sales organization effectiveness and salesperson performance are essentially the same.

ANS: F

REF: pgs. 252-253

4. Salesperson performance contributes to but does not completely determine sales organization effectiveness.

ANS: T

REF: pg. 253

5. Results of salesperson performance evaluations are typically tactical.

ANS: T

REF: pg. 253

6. Evaluations of salesperson performance are confined to the individuals.

ANS: T

REF: pg. 253

7. The sales organization audit is a tool that needs to be used only by those firms that are not achieving their goals.

ANS: F

REF: pg. 253

8. The sales organization audit typically will provide an assessment of sales management functions.

ANS: T

REF: pg. 253

9. The sales organization audit is the most comprehensive approach for evaluating sales organization effectiveness.

ANS: T

REF: pg. 253

10. The sales organization audit should be performed just when problems are evident.

ANS: F

REF: pg. 254

11. Only outsiders should be involved in a sales organization audit.

ANS: F

REF: pg. 254

12. Much of the information collected in a sales organization audit comes from various sales managers and salespeople.

ANS: T

REF: pg. 254

13. The costs of a sales organization audit, in time and money, typically outweigh the benefits.

ANS: F

REF: pg. 254

14. Potential benefits resulting from an audit include, among others, increases in productivity, sales

and profits due to improvements and efficiencies in production operations.

ANS: F

REF: pgs. 254-255

15. The probability of identifying and correcting potential problems before they become troublesome increases with the regularity of the auditing process.

ANS: T

REF: pg. 255

16. A sales organization audit might ask a question such as “How is our sales training program developed?”

ANS: T

REF: pg. 255

17. There is no one summary measure of sales organization effectiveness.

ANS: T

REF: pg. 256

18. Separate sales analyses need to be performed for the different levels in the sales organization.

ANS: T

REF: pg. 256

19. Some firms use customer satisfaction surveys to help evaluate salesforce effectiveness.

ANS: T

REF: pg. 256

20. In sales analysis, the emphasis is on assessing the costs incurred by the sales organization to generate the achieved levels of sales.

ANS: F

REF: pg. 256

21. It is possible for sales volume to seem unchanged even though units sold increased.

ANS: T

REF: pg. 257

22. Analysis of sales dollars or sales units provides the same evaluative information.

ANS: F

REF: pg. 257

23. Sales managers at each level need sales analyses at their level and the next level above for evaluation and control purposes.

ANS: F

REF: pg. 258

24. One type of sales analysis involves comparisons with previous period.

ANS: T

REF: pg. 258

25. The hierarchical sales analysis begins with total sales for the sales organization and proceeds through each lower level in the sales organization.

ANS: T

REF: pg. 260

26. Using the hierarchical sales analysis, the identification of a major sales deviation in a territory would lead to an examination of the district of which it is a part.

ANS: F

REF: pg. 259

27. The hierarchical approach to sales analysis provides an efficient way to conduct a sales analysis and identify major areas of sales problems.

ANS: T

REF: pg. 259

28. A sales analysis might be conducted by type of distribution method.

ANS: T

REF: pg. 259

29. A sales analysis might be conducted by product type.

ANS: T

REF: pg. 259

30. A sales analysis might be conducted by order size.

ANS: T

REF: pg. 259

31. The analysis of different types of sales at different organizational levels increases management's ability to detect and define problem areas in sales performance.

ANS: T

REF: pg. 260

32. A sales forecast represents an expected level of firm sales for defined products, markets, and time periods and for a specified strategy.

ANS: T

REF: pg. 260

33. A sales forecast provides a basis for establishing specific sales quotas.

ANS: T

REF: pg. 260

34. Sales results in excess of the sales quota will have index values less than 100, while results lower than quota will have index values greater than 100.

ANS: F

REF: pg. 260

35. Sales results lower than quota will have index value greater than 100.

ANS: F

REF: pg. 260

36. Cost analysis is the most often-used approach for evaluating sales organization effectiveness.

ANS: F

REF: pg. 262

37. The general approach in sales organization cost analysis is to compare the costs incurred versus planned costs as defined by selling budgets.

ANS: T

REF: pg. 262

38. In corporate budgeting, the allocation of promotional resources to advertising represents the total selling budget.

ANS: F

REF: pg. 262

39. Profitability can be increased in the long run if expenses can be reduced by more effective or more efficient spending.

ANS: T

REF: pg. 263

40. Increases in field selling costs and extremely competitive markets have put tremendous pressure on firm profitability.

ANS: T

REF: pg. 263

41. The effectiveness of the percentage-of-sales method depends in part on the appropriateness of the expenditure percentages used.

ANS: T

REF: pg. 263

42. The objective and task method is probably the most often used method for establishing selling budgets.

ANS: F

REF: pg. 263

43. Large variations between budgeted selling costs and actual selling costs generally indicate that the salesperson is not meeting his/her sales quota.

ANS: F

REF: pg. 263

44. Translating budgeted and actual selling costs into percentages of sales achieved would provide a means for assessing whether the cost/sales relationship had been maintained.

ANS: T

REF: pg. 263

45. Sales and cost analyses are the two most direct approaches for evaluating sales organization effectiveness.

ANS: T

REF: pg. 264

46. Productivity and profitability analyses are the two most direct approaches for evaluating sales organization effectiveness.

ANS: F

REF: pg. 264

47. When using income statement analysis, the different levels in a sales organization are treated as separate businesses.

ANS: T

REF: pg. 265

48. The contribution approach to income statement analysis attempts to allocate the indirect or shared costs to individual units.

ANS: F

REF: pg. 265

49. The full cost approach to income statement analysis includes only direct costs in the profitability analysis.

ANS: F

REF: pg. 265

50. The full cost approach to income statement analysis is more popular than the contribution approach because firms feel that it is more objective.

ANS: F

REF: pg. 266

51. Activity based costing attempts to allocate shared costs to individual units based on some type of cost allocation procedure.

ANS: T

REF: pg. 266

52. The income statement approach to profitability does not incorporate any evaluation of the investment in assets required to generate the net profit or profit contribution.

ANS: T

REF: pg. 266

53. It is possible for District 1 and District 2 to produce the same ROAM, but with one having a relatively high-profit contribution percentage, the other with a relatively high asset turnover.

ANS: T

REF: pg. 266

54. ROAM is determined by both profit contribution percentage and asset turnover.

ANS: T

REF: pg. 266

55. A low-profit contribution percentage may be the result of selling low margin products or excessive selling expenses.

ANS: T

REF: pg. 267

56. Productivity is typically measured in terms of ratios between outputs and inputs.

ANS: T

REF: pg. 268

57. In productivity analysis, direct comparisons across the entire sales organization are possible because all of the ratios are expressed in terms of the same units.

ANS: T

REF: pg. 268

58. The most useful input for productivity analysis is sales dollars.

ANS: F

REF: pg. 268

59. Productivity analysis and profitability analysis are highly interrelated.

ANS: T

REF: pg. 269

60. Profitability analysis takes a financial perspective, while productivity analysis is more managerially oriented.

ANS: T

REF: pg. 269

61. Productivity improvements may be obtained by using more input to maintain the same level of output.

ANS: F

REF: pg. 269

62. Improvements in sales productivity should be achieved by an increase in output with the same level of input.

ANS: T

REF: pg. 269

63. Benchmarking is an ongoing measurement and analysis process that compares an organization’s current operating practices with average industry operating practices.

ANS: F

REF: pg. 269

64. Benchmarking is an ongoing measurement and analysis process that compares an organization’s current operating practices with the “best practices” used by world-class organizations.

ANS: T

REF: pg. 269

65. The first step in the benchmarking process is to gather data.

ANS: F

REF: pg. 270

66. A benchmarking study should identify the organization's performance gap relative to benchmarked performance levels.

ANS: T

REF: pg. 270

67. One of the keys to successful benchmarking is to be sure to properly prepare and benchmark at least two activities at a time.

ANS: F

REF: pg. 270

68. Six Sigma is a form of process improvement.

ANS: T

REF: pg. 270

69. Six Sigma can potentially be applied to any process involved in the sales organization (e.g., recruiting, selection, training, etc.) to make it better and improve salesforce effectiveness.

ANS: T

REF: pg. 270

70. The value of comparing actual expenses with budgeted expenses depends on the accuracy of the expense information provided by salespeople.

ANS: T

REF: pg. 271

71. According to the text, there is no easy way to evaluate the effectiveness of the sales organization.

ANS: T

REF: pg. 272

CHAPTER 10—EVALUATING THE PERFORMANCE OF SALESPEOPLE MULTIPLE CHOICE 1. The results of salesperson performance evaluations can be used for all these sales management purposes except to a. identify salespeople that might need to be terminated and to supply evidence to support the need for termination. b. identify salespeople that might be promoted. c. assess the adequacy of a firm's sales management process and to provide direction for improved performance and prescription for needed changes. d. ensure that compensation and other reward disbursements are consistent with actual salesperson performance. e. determine the specific training and counseling needs of individual salespeople and the overall salesforce.

ANS: C

REF: pg. 281

2. What should performance evaluations used for the purpose of determining compensation and special rewards focus on? a. activities and results related to the salesperson's current job and situation. b. criteria related to potential effectiveness as a sales manager. c. obtaining information for effective human resource planning. d. determining the future aspirations of the salesperson and appropriate career-development activities. e. measuring the salesperson's job satisfaction.

ANS: A

REF: pg. 281

3. The majority of sales organizations evaluate salesperson performance: a. on a semiannual basis. b. on a quarterly basis. c. on a monthly basis. d. on an annual basis. e. once every two years.

ANS: D

REF: pg. 281

4. All of the following approaches to salesperson performance evaluations are true except a. Most sales organizations employ combinations of input and output criteria that are evaluated by quantitative and qualitative measures. b. Sales organizations that set performance standards or quotas tend to enlist the aid of

salespeople in establishing these objectives. c. Most salesperson performance evaluations are conducted by the field sales manager who supervises the salesperson. d. Most sales organizations provide salespeople with a written copy of their performance review. e. Discussions of performance evaluations with salespeople are typically conducted in the field.

ANS: E

REF: pg. 282

5. An assessment technique that involves performance assessment from multiple raters including sales managers, internal and external customers, team members, and even oneself is a. performance management b. 360-degree feedback c. total quality management d. multiple feedback e. broad-based assessment ANS: B

REF: pg. 282

6. Which of the following is not a benefit of 360-degree feedback? a. it reduces assessment bias. b. it detects barriers to success. c. it eliminates sales manager involvement. d. it helps better understand customer needs. e. it helps assess developmental needs.

ANS: C

REF: pg. 283

7. When using a 360-degree feedback system, feedback may be obtained from a. oneself. b. one’s sales manager. c. customers. d. team members. e. any or all the above.

ANS: E

REF: pg. 283

8. All of the following statements concerning a 360-degree feedback system are true except a. Ensure that participants provide honest feedback by distributing the feedback instrument confidentially. b. Explain to all participants how the data will be used. c. Make sure those being rated know who did the rating. d. Verify that the data are accurate. e. Ensure that subjects can use the data to improve their performance.

ANS: C

REF: pg. 283

9. Which of the following statements concerning performance management is false? a. Salespeople are compensated on the value of their contributions to the organization's success. b. Salespeople assume responsibility for their careers. c. Sales managers act as partners in the performance appraisal process. d. Its goal is ultimately to improve organizational performance by finding new and better ways to satisfy customers.

e. Sales managers create development plans for salespeople to follow.

ANS: E

REF: pg. 284

10. Which of the following is not one of the four stages of the typical approach to performance evaluation? a. The salesperson and sales manager discuss the salesperson’s evaluation. b. The sales manager discusses the salesperson with others (e.g., customers, team members) who evaluated the salesperson. c. The sales manager rates the salesperson relative to predetermined criteria to determine whether he or she is above or below expectations. d. The salesperson’s performance is reviewed relative to his or her previous performance evaluation. e. The sales manager and salesperson work together to specify training and resources needed for improvement.

ANS: B

REF: pg. 284

11. A behavior-based perspective to evaluating and controlling salesperson performance a. focuses on objective measures of results. b. has very little monitoring or directing of salespersons by sales managers. c. incorporates complex and often subjective assessments of salesperson characteristics. d. may lead to a focus on short-term outcomes. e. minimizes activities related to customer relationships.

ANS: C

REF: pg. 284

12. Which of the following statements regarding the use of outcome-based and behavior-based perspectives in the evaluation of salesperson performance is false? a. A review of current practice indicates a tendency toward a behavior-based perspective. b. Most sales organizations operate somewhere between the two extreme positions. c. The relative emphasis on outcome-based and behavior-based measures depends upon environmental, firm, and salesperson considerations. d. A salesperson's performance on post-sale service is considered a behavior-based measure. e. Unethical activities that produce immediate sales may result from a totally outcome- based perspective.

ANS: A

REF: pg. 285

13. All of following are true regarding an outcome-based perspective to evaluating and controlling salesperson performance except that it a. focuses on objective measures of results. b. has very little monitoring or directing of salespersons by sales managers. c. incorporates complex and often subjective assessments of salesperson characteristics. d. may lead to a focus on short-term outcomes. e. minimizes activities related to customer relationships.

ANS: C

REF: pgs. 285

14. Which of the following is not one of the characteristics of a behavior-based performance evaluation perspective? a. Considerable monitoring of salespeople. b. High levels of managerial direction of salespeople. c. Subjective measures of salesperson characteristics, activities and strategies. d. Little monitoring of salespeople. e. All the above are characteristics of a behavior-based performance evaluation perspective.

ANS: D

REF: pg. 285

15. Complete this sentence. The more a salesperson performance evaluation system is behavior-based than outcome-based a. the less likely that risk-averse salespeople will be attracted, nurtured, and retained. b. the more salespeople will have reduced levels of intrinsic motivation. c. the less salespeople identify with and feel committed to the sales organization. d. the less the need for using pay as a control mechanism. e. the more likely salespeople will reject the authority of sales management.

ANS: D

REF: pg. 285

16. Limited research shows that behavior-based control appears to be used under all the following conditions except a. the selling environment is uncertain. b. the salesforce is large. c. outputs and the cost of measuring them are inadequate. d. products are less complex. e. salespeople are more educated.

ANS: B

REF: pg. 286

17. A comprehensive evaluation of salesperson performance should incorporate criteria from all the following dimensions except a. profitability. b. political. c. professional development. d. behavioral. e. results.

ANS: B

REF: pg. 287

18. Most sales organizations focus on this behavioral criterion in salesperson evaluation: a. number of demonstrations conducted. b. number of required reports submitted. c. number of customer calls. d. number of letters/phone calls to prospects. e. number of customer complaints.

ANS: C

REF: pg. 288

19. Which of the following is NOT a behavioral criterion used in salesperson evaluation? a. number of demonstrations conducted b. number of required reports submitted c. number of customer calls d. sales volume in dollars e. number of customer complaints ANS: D

REF: pg. 288

20. This type of criterion assesses improvements in certain characteristics of salespeople that are related to successful performance in the sales job: a. profitability. b. productivity. c. professional development.

d. behavioral. e. results.

ANS: C

REF: pg. 288

21. Which of the following statements regarding the use of professional development criteria in salesperson evaluation is false? a. Salespeople that are developing professionally are increasing their chances of successful performance over the long run. b. Salespeople have little control over the development of personal characteristics related to success in their selling situation. c. Professional-development criteria introduce a long-term perspective into the salesperson performance-evaluation process. d. Improving selling skills is an example of a professional development criterion. e. Many sales organizations incorporate multiple professional development criteria into their salesperson performance evaluations.

ANS: B

REF: pg. 288

22. Which of the following is not considered professional development criteria? a. communication skills b. product knowledge c. attitude d. selling skills e. number of customer complaints ANS: E

REF: pg. 289

23. All the following are considered results criteria except a. number of customer calls per account. b. sales volume in dollars. c. sales volume by customer. d. market share achieved. e. number of new accounts.

ANS: A

REF: pg. 290

24. Which of the following is considered a results criteria? a. number of calls per day b. net profit per sale c. sales volume by customer d. average cost per call e. order per call ratio ANS: C

REF: pg. 290

25. Most companies consider salespeople who make _____ percent or less of quota to be average performers. a. 26 b. 72 c. 90 d. 100 e. 110 ANS: C

REF: pg. 290

26. Salespeople can increase profitability in all the following ways except a. by selling more higher margin products. b. by reducing their travel and entertainment costs. c. by reducing their order-call ratio. d. by maintaining higher prices in sales negotiations. e. by reducing their average cost per sales call.

ANS: C

REF: pgs. 290-291

27. All the following are important in assigning sales quotas except a. the concentration of businesses within the sales representative's territory. b. the geographical size of a territory. c. commitment by top management to assist the sales representative. d. growth of businesses within the sales representative's territory. e. the complexity of products sold.

ANS: C

REF: pg. 291

28. All the following are considered profitability criteria except a. sales volume in dollars. b. gross margin per sales. c. return on sales cost. d. selling expense versus budget. e. average cost per call.

ANS: A

REF: pg. 292

29. Salesperson performance evaluation methods should possess all the following characteristics except a. usefulness. b. complexity. c. practicality. d. comparability. e. reliability.

ANS: B

REF: pg. 293

30. Validity in the salesperson evaluation method is necessary because it ensures that a. the measurement instruments and evaluation process will be similar throughout the sales organization. b. the performance evaluation method will be designed to meet the needs of the sales organization. c. the measures provide accurate assessments of the criteria they are intended to measure. d. the measures will be stable over time and exhibit internal consistency. e. the evaluation methods will be capable of detecting differences in the performance of individual salespeople.

ANS: C

REF: pg. 293

31. Standardization, as a characteristic of salesperson performance evaluation methods, can be defined as a. the need for the measurement instruments and evaluation process to be similar throughout the sales organization. b. the ability of the measure to provide accurate assessments of the criteria they are intended to measure. c. the ability of the measure to meet the needs of the sales organization. d. the need for the measures to be stable over time and exhibit internal consistency.

e. the need for both sales managers and salespeople to understand the entire performance-appraisal process and to be able to implement the process in a reasonable amount of time.

ANS: A

REF: pg. 293

32. Discriminability, as a characteristic of salesperson performance evaluation methods, can be defined as a. the need for the measurement instruments and evaluation process to be similar throughout the sales organization. b. the ability of the measure to provide accurate assessments of the criteria they are intended to measure. c. the ability of the measure to meet the needs of the sales organization. d. the need for the measures to be stable over time and exhibit internal consistency. e. the need for the evaluation method to be capable of detecting differences in the performance of individual salespeople.

ANS: E

REF: pg. 293

33. Reliability, as a characteristic of salesperson performance evaluation methods, can be defined as a. the need for the measurement instruments and evaluation process to be similar throughout the sales organization. b. the ability of the measure to provide accurate assessments of the criteria they are intended to measure. c. the ability of the measure to meet the needs of the sales organization. d. the need for the measures to be stable over time and exhibit internal consistency. e. the need for both sales managers and salespeople to understand the entire performance-appraisal process and to be able to implement the process in a reasonable amount of time.

ANS: D

REF: pg. 293

34. Practicality, as a characteristic of salesperson performance evaluation methods, can be defined as a. the need for the measurement instruments and evaluation process to be similar throughout the sales organization. b. the ability of the measure to provide accurate assessments of the criteria they are intended to measure. c. the ability of the measure to meet the needs of the sales organization. d. the need for the measures to be stable over time and exhibit internal consistency. e. the need for both sales managers and salespeople to understand the entire performance-appraisal process and to be able to implement the process in a reasonable amount of time.

ANS: E

REF: pg. 293

35. Usefulness, as a characteristic of salesperson performance evaluation methods, can be defined as a. the need for the measurement instruments and evaluation process to be similar throughout the sales organization. b. the ability of the measure to provide accurate assessments of the criteria they are intended to measure. c. the ability of the measure to provide information that is valuable to sales managers in making various decisions. d. the need for the measures to be stable over time and exhibit internal consistency. e. the need for both sales managers and salespeople to understand the entire performance-appraisal process and to be able to implement the process in a reasonable amount of time.

ANS: C

REF: pg. 293

36. Which of the following statements regarding the graphic rating/checklist method of performance evaluation is false? a. This method is very popular in many sales organizations. b. It consists of approaches where salespeople are evaluated using some type of performance evaluation form. c. This method involves ranking salespeople according to their relative performance on each performance criterion. d. It was rated poor on the discriminability criterion. e. With this method, some sales managers tend to give all ratings around the average.

ANS: C

REF: pg. 294

37. While other methods of performance evaluation were rated very good on job relatedness and reliability criteria, this method received a poor rating: a. graphic rating/checklist method. b. ranking methods. c. management by objectives (MBO). d. behaviorally anchored rating scales (BARS). e. team-evaluation consensus.

ANS: B

REF: pg. 294

38. Relative to the graphic rating, MBO and BARS performance evaluation methods, which of the following statements is false regarding the ranking method of performance evaluation? a. It is poor in job relatedness. b. It is poor in practicality. c. It is poor in reliability. d. It is poor in standardization. e. It is good in comparability.

ANS: D

REF: pg. 294

39. The following is an excerpt from this type of performance evaluation method: Delivers what he or she promises on time.

Almost Never 1 2 3 4 5 Almost Always NA a. b. c. d. e.

graphic rating/checklist method. ranking methods. management by objectives (MBO) behaviorally anchored rating scales (BARS). assessment-center method.

ANS: A

REF: pg. 294

40. This method of salesperson performance evaluation has been described as having problems related to the “halo effect”: a. graphic rating/checklist method. b. ranking methods. c. management by objectives (MBO). d. behaviorally anchored rating scales (BARS). e. assessment center method.

ANS: A

REF: pg. 295

41. The ___________ ranks all salespeople according to relative performance on each performance criterion. a. graphic rating/checklist method b. ranking method c. management by objectives (MBO) d. behaviorally anchored rating scale (BARS) e. team-evaluation consensus ANS: B

REF: pg. 295

42. The mutual setting of well-defined and measurable goals within a specified time period is a concept incorporated into this type of performance evaluation method: a. graphic rating/checklist method. b. ranking method. c. management by objectives (MBO). d. behaviorally anchored rating scale (BARS). e. team-evaluation consensus.

ANS: C

REF: pgs. 295, 297

43. Behaviorally anchored rating scales (BARS) are a unique evaluation procedure because they are the only method that a. tries to link salesperson behaviors with specific results. b. tries to link salesperson behaviors with promotability. c. attempts to correlate sales-training methods with sales results. d. uses behavior to predict a salesperson's level of motivation. e. tries to link salesperson attitudes with their performance.

ANS: A

REF: pg. 299

44. This evaluation procedure uses salespeople to identify important performance results and the critical activities and responses necessary to achieve these results: a. graphic rating/checklist method. b. team-evaluation consensus. c. management by objectives (MBO). d. behaviorally anchored rating scales(BARS). e. assessment-center method.

ANS: D

REF: pg. 299

45. The evaluation method indicated by the following example is the “Set up a scale from 1 to 10 with a rating of 2 suggesting that the salesperson can be expected to demonstrate little initiative in support of the team.” a. graphic rating/checklist method. b. ranking method. c. management by objectives (MBO). d. behaviorally anchored rating scale (BARS). e. team-evaluation consensus.

ANS: D

REF: pg. 299

46. When conducting performance appraisals, which of the following may lead to a discriminatory appraisal lawsuit?

a. b. c. d. e.

Observing salespeople performing their work.

Basing the appraisal system on behaviors or results.

Conducting reviews at least once a year.

Using different rating forms for rating different salespeople.

Bringing in a third party for sensitive evaluation meetings.

ANS: D

REF: pg. 301

47. According to the text, which of the following is not considered one of the factors most likely to influence a sales team's success? a. start-up support and training b. team quotas c. top management support d. cross-team communication e. accountability for team performance ANS: B

REF: pg. 301

48. Which of the following is not listed in the text as one of the steps for measuring team performance? a. Develop team and individual performance standards and measures that will be used to gauge the level of performance achieved. b. Map the standards and measures to relevant individual and team level activities that will contribute to the achievement of the team. c. Define the terminology precisely and review the criteria with team members to assure both awareness and understanding. d. Integrate inputs from human resources to develop relative importance weights for the performance standards. e. Decide how to collect the data and track performance of each standard and feed this information back to the team.

ANS: D

REF: pg. 303

49.The initial use of the information provided by the various salesperson performance evaluation methods is a. to identify potential problems in training. b. to determine the absolute and relative performance of each salesperson. c. to identify areas where salespeople need to improve for better performance in the future. d. to use the information to improve the overall operations of the sales organization. e. to determine which salespeople are eligible for reward disbursements, special recognition, promotions, etc.

ANS: B

REF: pg. 303

50. When attempting to use the diagnostic information provided by salesperson-evaluation methods the major difficulty is in a. reviewing the performance of each individual salesperson against each relevant criterion. b. attempting to summarize the results across all salespeople being supervised. c. isolating the specific causes of low performance. d. determining which salespeople are not meeting their sales quotas. e. making determinations as to the levels of performance that must be met to deserve special recognition and rewards.

ANS: C

REF: pg. 303

51. According to the text, all the following should be done when using performance information to identify potential problems where salespeople need to improve for better performance in the future except

a. b. c. d. e.

evaluate salespeople against relevant performance criteria. compare salesperson evaluations to identify problem areas. investigate problem areas to identify causes of performance problems. report problem areas to top management. determine sales management actions to eliminate causes of future problems and to solve existing problems.

ANS: D

REF: pg. 304

52. The potential cause of salesperson performance problems in meeting profitability quotas might be a. too little effort. b. poor account coverage. c. high selling expenses. d. high gross margins. e. poor quality of effort.

ANS: C

REF: pg. 305

53. Research results have consistently found __________ relationship between salesperson job satisfaction and turnover. a. no direct b. a positive c. very little d. a negative e. a parallel ANS: D

REF: pg. 305

54. The dimensions of job satisfaction that the INDSALES scale attempts to measure include all the following except a. company policy and support. b. the job. c. customers. d. fellow workers. e. competitor sales jobs.

ANS: E

REF: pg. 306

55. Which of the following statements regarding the use of the scale termed INDSALES is false? a. It is a scale for evaluating the job satisfaction of salespeople. b. In using the scale, salespeople indicate their level of agreement with a number of statements concerning their particular sales job. c. The scale uses statements designed to measure satisfaction in five general areas. d. The answers salespeople give to the scale statements are summed to form an overall salesperson satisfaction score. e. Sales managers can view the dimensional scores for each salesperson if they choose.

ANS: C

REF: pg. 306

56. The sample statement, “Management is progressive,” used in the INDSALES scale would be attempting to measure this dimension of job satisfaction: a. pay. b. promotion and advancement. c. customers. d. company policy and support.

e. the job.

ANS: D

REF: pg. 306

TRUE/FALSE 1. The results of salesperson-performance evaluations can be used to identify criteria that can be used to recruit and select salespeople in the future.

ANS: T

REF: pg. 281

2. The results of salesperson-performance evaluations can be used to advise salespeople of work expectations.

ANS: T

REF: pg. 281

3. The results of salesperson-performance evaluations can be used to motivate salespeople.

ANS: T

REF: pg. 281

4. The results of salesperson performance evaluations can be used to help salespeople set career goals.

ANS: T

REF: pg. 281

5. Performance evaluations for the purpose of identifying salespeople for promotion into sales management positions should focus on the activities and results related to the salesperson's current job and situation.

ANS: F

REF: pg. 281

6. Performance reviews should be tied to real-time selling activities.

ANS: T

REF: pg. 281

7. Most sales organizations evaluate salesperson performance on a quarterly basis.

ANS: F

REF: pg. 281

8. There is a growing trend toward the use of more frequent performance reviews.

ANS: T

REF: pg. 281

9. Evaluations of sales-volume results are the most popular form of output-performance evaluation.

ANS: T

REF: pg. 282

10. Many sales organizations assign weights to different performance objectives and incorporate territory data when establishing these objectives.

ANS: T

REF: pg. 282

11. Most firms generally use only one source of information in evaluating salesperson performance.

ANS: F

REF: pg. 282

12. The national sales manager conducts most salesperson performance evaluations.

ANS: F

REF: pg. 282

13. Using 360-degree feedback tends to make employees feel valued and thus they tend to stay with the organization for a longer period of time.

ANS: T

REF: pg. 283

14. Individuals may be less forthright in giving performance feedback if they believe it will have damaging consequences.

ANS: T

REF: pg. 283

15. When using 360-degree feedback, top salespeople tend to overestimate their performance, while bottom performers underestimate.

ANS: F

REF: pg. 283

16. Sales managers should not rely exclusively on 360-degree feedback when evaluating salespeople.

ANS: T

REF: pg. 283

17. An effective 360-degree feedback system requires that data sources remain confidential.

ANS: T

REF: pg. 283

18. An effective 360-degree feedback system requires that all participants understand how the data will be used.

ANS: T

REF: pg. 283

19. Performance management involves performance assessment from multiple raters.

ANS: F

REF: pg. 284

20. An outcome-based perspective for evaluating and controlling salespeople incorporates subjective assessments of salesperson characteristics and behaviors.

ANS: F

REF: pg. 284

21. Most sales organizations operate at the extremes by either using an outcome-based or a behavior-based perspective in their salesperson-performance evaluations.

ANS: F

REF: pg. 285

22. Research finds a positive relationship between behavior-based control and outcome performance and sales organization effectiveness.

ANS: T

REF: pg. 285

23. The behavior-based perspective to salesperson-performance evaluation involves high levels of managerial direction of salespeople.

ANS: T

REF: pg. 285

24. The behavior-based perspective to salesperson performance evaluation uses straightforward objective measures of results.

ANS: F

REF: pg. 285

25. A sales organization employing a behavior-based perspective in their performance-evaluation process would focus on results and expense criteria.

ANS: F

REF: pg. 285

26. The use of outcome-based criteria in the salesperson performance evaluation will facilitate the development of a professional, customer-oriented, committed, and motivated salesforce.

ANS: F

REF: pg. 285

27. The more a salesperson-performance evaluation system is behavior-based than outcome-based, the more professionally competent the salespeople are likely to be.

ANS: T

REF: pg. 285

28. The more a salesperson performance-evaluation system is outcome-based than behavior-based the more likely salespeople are to sell smarter rather than harder.

ANS: F

REF: pg. 285

29. The more a salesperson performance-evaluation system is behavior-based than outcome-based, the more committed to the sales organization salespeople will be.

ANS: T

REF: pg. 285

30. The more a salesperson performance-evaluation system is behavior-based than outcome-based, the less salespeople’s job satisfaction will be.

ANS: F

REF: pg. 285

31. Some research suggests that greater control leads to higher levels of salesperson job satisfaction, organizational commitment and job performance, and lower levels of role stress.

ANS: T

REF: pg. 286

32. Because the typical salesperson job is multidimensional, any comprehensive assessment of salesperson performance must include multiple criteria.

ANS: T

REF: pg. 286

33. Behavioral, professional development, results and profitability criteria should be considered when evaluating salesperson performance.

ANS: T

REF: pg. 287

34. When salespeople believe that the criteria upon which they are being evaluated is appropriate, they are likely to be more satisfied with their job.

ANS: T

REF: pg. 287

35. The behavioral dimension of salesperson performance evaluation consists of criteria related to activities performed by individual salespeople.

ANS: T

REF: pg. 287

36. Compensation has been found to be better than behavior-based systems at promoting selling techniques among salespeople in other cultures, particularly Europe.

ANS: F

REF: pg. 288

37. The salesperson's professional development should be considered in any comprehensive assessment of salesperson performance.

ANS: T

REF: pg. 288

38. A salesperson performance evaluation based solely on results criteria helps show that the salesperson with the highest level of sales is the best performer in generating sales.

ANS: F

REF: pg. 289

39. A sales quota represents a reasonable sales objective for a territory, district, region, or zone.

ANS: T

REF: pg. 289

40. A sales quota represents an expected level of firm sales for a defined geographic area, time period, and strategy.

ANS: F

REF: pg. 289

41. Adjustments should not be made to forecasts when developing individual sales quotas.

ANS: F

REF: pg. 290

42. Salesperson performance may be enhanced by setting fair, consistent, and realistic quotas.

ANS: T

REF: pg. 290

43. Most companies consider salespeople who make 70 percent or less of quota to be average performers.

ANS: F

REF: pg. 290

44. It is possible for two salespeople to generate the same number of sales dollars and achieve the same sales/sales quota evaluation, yet one produces more gross profits for the firm.

ANS: T

REF: pgs. 290-291

45. The selling expenses over which salespeople have the least control are their travel and entertainment expenses.

ANS: F

REF: pg. 291

46. Net profit dollars is a profitability criterion.

ANS: T

REF: pg. 292

47. "Number of orders secured" is a profitability criterion.

ANS: T

REF: pg. 292

48. The need to address profitability criteria in salesperson performance evaluation is especially important in periods of slow sales growth and high competitive pressure.

ANS: T

REF: pg. 292

49. The characteristic “job relatedness” means that the performance evaluation method should be designed to meet the needs of each specific sales organization.

ANS: T

REF: pg. 293

50. Performance evaluation methods should be designed to meet the needs of each specific sales organization.

ANS: T

REF: pg. 293

51. The characteristic “comparability” means that the results of the performance evaluation process should make it possible to compare the performance of individual salespeople directly.

ANS: T

REF: pg. 293

52. “Reliability” refers to the fact that measures should provide accurate assessments of the criteria they are intended to measure.

ANS: F

REF: pg. 293

53. The graphic rating/checklist evaluation method is popular in many sales organizations.

ANS: T

REF: pg. 295

54. A major disadvantage of the graphic rating/checklist method is in providing evaluations that discriminate sufficiently between the performance of individual salespeople.

ANS: T

REF: pg. 295

55. Advantages of the ranking method are that it provides a standardized evaluation approach and allows discrimination in the performance of individual salespeople for each criterion.

ANS: T

REF: pg. 295

56. The information obtained from the ranking method can be translated into graphic rating/checklist form, but the graphic rating/checklist information cannot be transformed into rankings.

ANS: F

REF: pg. 295

57. The appraisal of salesperson performance against previously set objectives is the final step in the behaviorally anchored rating scale (BARS) evaluation method.

ANS: F

REF: pg. 297

58. The effectiveness of the MBO evaluation method can be enhanced by assigning various weights to different performance indices to reflect their relative importance to the firm.

ANS: T

REF: pg. 298

59. The development of a BARS approach to salesperson performance evaluation is an iterative process that actively incorporates members of the salesforce.

ANS: T

REF: pg. 299

60. The really unique aspect of the objective-setting method of performance evaluation is the focus on linkages between behaviors and results.

ANS: F

REF: pg. 300

61. Outcome bias occurs when the appropriateness of a decision, rather than the outcome of a decision, influences an evaluator's ratings.

ANS: F

REF: pg. 300

62. Performance evaluation bias could result in legal action.

ANS: T

REF: pg. 300

63. It is not necessary to evaluate individual team members when evaluating team performance.

ANS: F

REF: pg. 300

64. The commitment and support of top management has significant support as a key determinant of a team’s achievement.

ANS: T

REF: pg. 302

65. Once the absolute and relative performance of each salesperson has been determined, this information provides the basis for reward disbursements, special recognition, promotions, etc.

ANS: T

REF: pg. 303

66. After identifying the potential causes of poor performance, the sales manager must reprimand the salesperson.

ANS: F

REF: pg. 303

67. Performance reviews provide a means for communicating the performance feedback that is so important to salespeople.

ANS: T

REF: pg. 305

68. Research has shown conclusively that high salesperson performance increases salesperson job satisfaction.

ANS: F

REF: pg. 305

69. Salesperson satisfaction with customers is just one of the general areas of job satisfaction that is measured by the INDSALES scale.

ANS: T

REF: pg. 306

70. Salespeople are not receptive to negative feedback from sales managers.

ANS: F

REF: pg. 307

70. Sales managers’ leadership and role modeling behaviors positively affect salespeople’s job satisfaction.

ANS: T

REF: pg. 307

70. Carefully evaluating salesperson performance and satisfaction, identifying problem areas, and solving these problems are critical aspects of sales management.

ANS: T

REF: pg. 307