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andrewjohn8
GMAT Focus 1: 645 Q80 V88 DI78 
Posts: 34
20 Jul 2024, 17:29
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Negative result: Increasing unethical selling behavior
Positive result: Increasing sales
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
5%
(low)
Question Stats:
92% (01:34) correct
8%
(01:43)
wrong
based on 614
sessions
History
Date
Time
Result
Not Attempted Yet
Research article: Among retail managers, the standard view is that financial incentives for their salespeople, such as providing a small percentage of each sale as remuneration (commission), have the positive effect of increasing sales and the negative effect of increasing unethical selling behavior (for example, exaggerating features of the product, or allowing bad credit risks). Our recent study, however, suggests that the standard view is mistaken. We found that salespeople in a single multinational corporation, with locations in five countries, showed no significant correlation between being offered commission and unethical selling behavior.
Select for Negative result the result that, according to the standard view, is identified as a negative result of providing financial incentives for sales, and select for Positive result the result that, according to the standard view, is identified as a positive result of providing financial incentives for sales. Make only two selections, one in each column.
Select for Negative result the result that, according to the standard view, is identified as a negative result of providing financial incentives for sales, and select for Positive result the result that, according to the standard view, is identified as a positive result of providing financial incentives for sales. Make only two selections, one in each column.
| Negative result | Positive result | |
| Increasing retention of sales staff | ||
| Increasing unethical selling behavior | ||
| Increasing sales | ||
| Decreasing retention of sales staff | ||
| Decreasing unethical selling behavior | ||
| Decreasing sales |
ShowHide Answer
Official Answer
Negative result: Increasing unethical selling behavior
Positive result: Increasing sales
26 Jul 2024, 11:38
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Research article: Among retail managers, the standard view is that financial incentives for their salespeople, such as providing a small percentage of each sale as remuneration (commission), have the positive effect of increasing sales and the negative effect of increasing unethical selling behavior (for example, exaggerating features of the product, or allowing bad credit risks). Our recent study, however, suggests that the standard view is mistaken. We found that salespeople in a single multinational corporation, with locations in five countries, showed no significant correlation between being offered commission and unethical selling behavior.
Select for Negative result the result that, according to the standard view, is identified as a negative result of providing financial incentives for sales, and select for Positive result the result that, according to the standard view, is identified as a positive result of providing financial incentives for sales. Make only two selections, one in each column.
The question is about "the standard view." So, the relevant information for answering the question is provided by the following sentence:
Among retail managers, the standard view is that financial incentives for their salespeople, such as providing a small percentage of each sale as remuneration (commission), have the positive effect of increasing sales and the negative effect of increasing unethical selling behavior (for example, exaggerating features of the product, or allowing bad credit risks).
Having located the relevant information, we can now go through the answer choices.
Increasing retention of sales staff
It's plausible that a postive effect of providing financial incentives for sales is increased retention of sales staff.
At the same time, the passage says nothing about "retention" of staff. So, even though it's plausible that increased retention of staff is a positive effect of providing financial incentives for sales, this choice is not correct.
Eliminate.
Increasing unethical selling behavior
Scanning the portion of the passage about "the standard view," we see that it says the following:
the standard view is that financial incentives for their salespeople ... have ... the negative effect of increasing unethical selling behavior
So, according to the standard view, a negative effect, or result, of providing financial incentives for sales is "increasing unethical selling behavior."
Select for Negative result.
Increasing sales
Scanning the portion of the passage about "the standard view," we see that it says the following:
the standard view is that financial incentives for their salespeople ... have the positive effect of increasing sales
So, according to the standard view, a positive effect, or result, of providing financial incentives for sales is "increasing sales."
Select for Positive result.
Decreasing retention of sales staff
The passage mentions nothing about retention of staff.
Eliminate.
Decreasing unethical selling behavior
Scanning the portion of the passage about "the standard view," we see that it says the following:
the standard view is that financial incentives for their salespeople ... have ... the negative effect of increasing unethical selling behavior
So, according to the standard view, a result of providing financial incentives for sales is increasing, rather than decreasing, unethical selling behavior.
So, this choice says the opposite of what's true according to the standard view.
Eliminate.
Decreasing sales
Scanning the portion of the passage about "the standard view," we see that it says the following:
the standard view is that financial incentives for their salespeople ... have the positive effect of increasing sales
So, according to the standard view, a result of providing financial incentives for sales is increasing, rather than decreasing, sales.
So, this choice says the opposite of what's true according to the standard view.
Eliminate.
Correct answer: Increasing unethical selling behavior, Increasing sales
Select for Negative result the result that, according to the standard view, is identified as a negative result of providing financial incentives for sales, and select for Positive result the result that, according to the standard view, is identified as a positive result of providing financial incentives for sales. Make only two selections, one in each column.
The question is about "the standard view." So, the relevant information for answering the question is provided by the following sentence:
Among retail managers, the standard view is that financial incentives for their salespeople, such as providing a small percentage of each sale as remuneration (commission), have the positive effect of increasing sales and the negative effect of increasing unethical selling behavior (for example, exaggerating features of the product, or allowing bad credit risks).
Having located the relevant information, we can now go through the answer choices.
Increasing retention of sales staff
It's plausible that a postive effect of providing financial incentives for sales is increased retention of sales staff.
At the same time, the passage says nothing about "retention" of staff. So, even though it's plausible that increased retention of staff is a positive effect of providing financial incentives for sales, this choice is not correct.
Eliminate.
Increasing unethical selling behavior
Scanning the portion of the passage about "the standard view," we see that it says the following:
the standard view is that financial incentives for their salespeople ... have ... the negative effect of increasing unethical selling behavior
So, according to the standard view, a negative effect, or result, of providing financial incentives for sales is "increasing unethical selling behavior."
Select for Negative result.
Increasing sales
Scanning the portion of the passage about "the standard view," we see that it says the following:
the standard view is that financial incentives for their salespeople ... have the positive effect of increasing sales
So, according to the standard view, a positive effect, or result, of providing financial incentives for sales is "increasing sales."
Select for Positive result.
Decreasing retention of sales staff
The passage mentions nothing about retention of staff.
Eliminate.
Decreasing unethical selling behavior
Scanning the portion of the passage about "the standard view," we see that it says the following:
the standard view is that financial incentives for their salespeople ... have ... the negative effect of increasing unethical selling behavior
So, according to the standard view, a result of providing financial incentives for sales is increasing, rather than decreasing, unethical selling behavior.
So, this choice says the opposite of what's true according to the standard view.
Eliminate.
Decreasing sales
Scanning the portion of the passage about "the standard view," we see that it says the following:
the standard view is that financial incentives for their salespeople ... have the positive effect of increasing sales
So, according to the standard view, a result of providing financial incentives for sales is increasing, rather than decreasing, sales.
So, this choice says the opposite of what's true according to the standard view.
Eliminate.
Correct answer: Increasing unethical selling behavior, Increasing sales
21 Oct 2024, 10:47
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1. We are asked to find a positive and negative result of providing financial incentives for sales.
2. In the text: "the standard view is that financial incentives for their salespeople...have the positive effect of increasing sales and the negative effect of increasing unethical selling behavior".
3. Both of these are options. So, our answer is: negative result - Increasing sales, and positive result - Increasing unethical selling behavior.
2. In the text: "the standard view is that financial incentives for their salespeople...have the positive effect of increasing sales and the negative effect of increasing unethical selling behavior".
3. Both of these are options. So, our answer is: negative result - Increasing sales, and positive result - Increasing unethical selling behavior.
