Question

By switching its sales agents to a sales neutral profit commission, the firm is trying to convince the agents a. ​Improve their compensation by pricing more aggressively (lowering prices) b. ​To not change their sales patterns, as it would not change their compensation c. ​None of the above d. ​Improve their compensation by pricing less aggressively

Answer 1

Answer:

Improve their compensation by pricing less aggressively

Explanation:

Sales agents mostly prefer to have their commission based on the sales turnover as this appears to guarantee a seemingly better return compared to profit based commission at the expenses of the producer. however , one of the ways of persuading them to accept a change to this attitude  is by introducing a switch to a sales neutral profit commission.With this , attention is shifted from generating a high sales volume at all cost.

Incentives and compensation should be modified to sales neutral , which will result to a change of behavior towards earning a higher compensation.

One of the changes that could come up to earn more is less aggressive pricing .