Having a Budget That Directly Links Employee Bonuses with Sales

question 16

Multiple Choice

Having a budget that directly links employee bonuses with sales targets may lead to:

• A) a culture among sales staff where sales targets are to be achieved regardless of the consequences.
• B) a change of focus of sales staff away from that of customer satisfaction.
• C) unfavourable variances in budgeted expenses.
• D) all of the above.

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Definitions:

Secondary Data

Information that was collected for a purpose other than the current research interest, often used in analysis or study.

Market Segmentation

The process of dividing a broad consumer or business market into sub-groups of consumers based on some type of shared characteristics.

Standardization

Standardization is the process of implementing and developing technical standards based on the consensus of different parties to ensure safety, quality, and interoperability.

Pricing Strategy

The method companies use to price their products or services, often designed to maximize profitability, market share, or other objectives.