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Why Would a Company Choose to Compensate Its Sales Force

question 63

Essay

Why would a company choose to compensate its sales force using a salary plan or a commission plan? Describe the circumstances that would lead a company to choose one or the other type of sales compensation plan.


Definitions:

Signal-Detection Theory

A theory that explains how individuals differentiate between important stimuli and background noise in the environment.

Hits

In the context of information retrieval, it refers to the results returned by a search engine that matches the search criteria.

False Alarms

Occurrences in signal detection theory where a signal is indicated to be present when it is not, leading to a mistaken response.

Subliminal Perception

The processing of information by sensory systems without conscious awareness of the stimuli.

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