Which of the following are the disadvantage of straight salary sales compensation plan? a) Sales volume…
A straight salary sales compensation plan provides financial security to salespeople but suffers from low motivational impact (c), makes it difficult to attract or retain…
Choose your answer
Which of the following are the disadvantage of straight salary sales compensation plan?
a) Sales volume is emphasized over profits
b) Sales representative may overstock the customer
c) Low motivational impact
d) Difficult to attract or retain top sales performers
e) Sales representative may focus on products that require least effort to sell Choose the most appropriate answer from the options given below:
Answer and explanation
Correct answer A
A straight salary sales compensation plan provides financial security to salespeople but suffers from low motivational impact (c), makes it difficult to attract or retain high-performing sales talent (d), and encourages representatives to focus on items requiring the least selling effort (e). Over-emphasizing volume over profitability and overstocking customers are drawbacks of straight commission plans.
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UGC NET Commerce