Studies of Sales Force Compensation Indicate

question 10

Multiple Choice

Studies of sales force compensation indicate:

• A) Straight commissions work best
• B) Straight salary plus bonuses is most effective
• C) Everything from salary to commission to various nonfinancial factors motivate salespeople
• D) Carefully designed sales compensation plans requires years to develop but once designed will work indefinitely
• E) When people want to work, the compensation does not matter

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Definitions:

Payoff Matrix

A payoff matrix is a table that shows the potential outcomes of different decisions made by one or more participants in a strategic situation, often used in game theory.

Credibility

The quality of being trusted and believed in, often based on a history of accuracy and reliability.

Dominant Strategy

In game theory, a strategy that is best for a player in a game regardless of the strategies chosen by the other players.

Game Trees

A graphical representation used to depict the outcomes of a game or decision-making process, showing different choices and their possible outcomes.