Question

What is the most appropriate compensation plan for a sales professional when the company's first priority is increasing sales even at the risk of poor customer service?

A. Low base salary plus commission
B. Commission only
C. High base salary plus commission
D. Base salary only

Answer 1

The best compensation plan for a sales professional focused on increasing sales volume is a commission-only structure, despite potential risks to customer service quality.

Step-by-step explanation:

The most appropriate compensation plan for a sales professional when the company's first priority is increasing sales, even at the risk of poor customer service, is B. Commission only. This plan highly incentivizes the sales professionals to prioritize making sales and can potentially lead to a higher sales volume. They can focus solely on the quantity of sales without the safety net of a base salary. However, this approach may result in a trade-off with customer service quality, as the primary motivation is to close as many sales as possible.

Answer 2

The most appropriate compensation plan for a sales professional when the company's first priority is increasing sales even at the risk of poor customer service is Option C: High base salary plus commission.

Step-by-step explanation:

The most appropriate compensation plan for a sales professional when the company's first priority is increasing sales even at the risk of poor customer service would be Option C: High base salary plus commission.

This compensation plan provides a strong incentive for the sales professional to focus on increasing sales, as they have a high base salary to rely on. This helps to mitigate the risk of poor customer service, as the sales professional still has a stable income regardless of the level of service provided.

Additionally, the commission component provides further motivation for the sales professional to achieve higher sales, helping the company to achieve its primary goal. It creates a win-win situation where both the sales professional and the company benefit.