You Are the Sales Manager of a Company That Manufactures

question 107

Essay

You are the sales manager of a company that manufactures and markets server computers. The company's products require high-involvement from the sellers and require salespeople to provide complex and technical information. What kind of a compensation structure do you select for your sales representatives?

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Definitions:

Negative Externalities

Costs suffered by a third party as a result of an economic transaction they were not involved in, such as pollution.

Unethical And Illegal Behavior

Actions that are morally wrong and prohibited by law, ranging from fraud and corruption to violations of human rights.

Paradox Of Voting

The situation where the individual incentive to vote (given the small chance of influencing the outcome) contrasts with the collective benefit of everyone voting.

Rent-Seeking Behavior

Rent-seeking behavior occurs when individuals or firms seek to increase their own wealth without contributing to productivity, often through political manipulation or monopolistic practices.