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Ed works for Lanier Business Products as a sales representative.He receives a straight commission.In weeks when his earned commission is less than $600,the company loans him enough money against future commissions to allow him to receive $600.In future weeks,when Ed earns more than $600,the extra is used for repaying the previous loan.For Ed the guaranteed $600 is his:


A) sales quota.
B) activity quota.
C) draw.
D) bonus.
E) straight salary.

F) A) and E)
G) D) and E)

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What is the difference between a house account and a key account?

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A house account is one handled by a sale...

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Lennie's sales manager expects him to make at least 5 calls per day and give at least 15 full presentations per week.These expectations best exemplify:


A) activity quotas.
B) revenue quotas.
C) gross margin quotas.
D) sales commission rate.
E) sales quotas.

F) A) and B)
G) None of the above

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Marie has been hired to sell sound systems for arenas,stadiums,and other large venues.During her orientation,she was told that if her manager was doing something that seemed unethical to Marie or simply made her uncomfortable,she could take her problem to upper management.What kind of a policy is Marie's new company using?

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The company is using an open-door policy...

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Lee,the sales rep for GE CT scan systems,is required to call on four hospitals per month.Which type of quota does Lee have?

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Lee has an activity quota.Acti...

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Which of the following is an example of an inside salesperson?


A) A salesperson who calls on farmers' cooperative groups
B) A distributor who visits a customer's home to sell cosmetics
C) A retail clerk at a local hardware store
D) A pharmaceutical salesperson who regularly calls on physicians
E) A salesperson who trains a customer's employees on how to use the new copier he just sold them

F) A) and E)
G) None of the above

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Rather than complain about poor marketing programs,proactive salespeople and sales managers prefer to participate in marketing decisions and keep communication lines open.

A) True
B) False

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Kristen wants her sales force to concentrate its efforts on selling the most profitable products and on selling to most profitable accounts.To achieve this target,she can institute profit quotas.

A) True
B) False

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Alcium Aluminum has one sales force for handling tubing and extruded products,another for handling cans and rolled products.This best exemplifies a sales force that is organized on the basis of _____.


A) activity quota
B) sales quota
C) customer types
D) geographic location
E) product specialization

F) B) and D)
G) B) and C)

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The _____,which determines the amount a salesperson is paid,is expressed as a percentage of the commission base.


A) activity quota
B) straight salary
C) bonus point
D) straight commission
E) commission rate

F) B) and E)
G) C) and D)

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A commission plan is likely to be used when:


A) the sales force includes many part-timers.
B) the earnings of part-time salespeople are required to be tied to their performance.
C) a company does not emphasize on service to customers.
D) a company does not anticipate long-term customer relationships.
E) any of the above situations arises.

F) A) and B)
G) A) and C)

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For field sales managers,the easiest method of evaluating performance is to determine the salesperson's product knowledge.

A) True
B) False

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Salespeople can help customer service by setting very high expectations for product performance with customers so that the customer service representatives receive extended service calls.

A) True
B) False

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Which of the following is an example of an outbound salesperson?


A) LaVerne responds to a customer who called with a billing complaint.
B) Anet uses her telephone to solicit new business from a list of prospects.
C) Orlando calls a company's toll-free number to complain about his malfunctioning lawnmower.
D) Millie, as the CEO of her company, handles two house accounts.
E) Morris takes a telephone order for a medium pizza.

F) B) and C)
G) A) and B)

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Kelly receives a draw each week.This best exemplifies a straight salary.

A) True
B) False

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Which of the following is an example of an inbound salesperson?


A) Bettina makes cold calls for her field sales representative.
B) Marjorie is a telemarketer who sells aluminum siding to key accounts.
C) Al calls to see if the Yelverton family wants to renew its subscription to the "Nashville Tennessean."
D) Burt receives a phone call from a customer in BellSouth who wants to check the availability of a particular watch.
E) Tracey sits at the customer service section and provides product information to her clients.

F) A) and C)
G) B) and E)

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How has technology facilitated the growth of sales teams?

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Technology has played a key role in prom...

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The field sales manager typically determines the types of salespeople needed in a sales force.

A) True
B) False

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When conflicts arise between a salesperson and an internal employee,personalizing the conflict will make it easier to resolve.

A) True
B) False

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SPIN and active listening are just as important to understanding the needs of colleagues as they are to satisfying customer needs.

A) True
B) False

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