Research article: Among retail managers, the standard view is that financial incentives for their salespeople, such as providing a small...
GMAT Two Part Analysis : (TPA) Questions
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.
Phase 1: Owning the Dataset
Argument Analysis Table
| Passage Statement | Analysis & Implications |
| "Among retail managers, 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 (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...no significant correlation between being offered commission and unethical selling behavior" |
|
Key Patterns Identified
- The passage clearly states what the standard view considers positive and negative
- The study challenges the standard view but doesn't change what the standard view states
- We're asked about the standard view, not the study's findings
Phase 2: Question Analysis & Prethinking
Understanding Each Part
- Part 1 (Negative result): We need to identify what the standard view sees as negative
- Part 2 (Positive result): We need to identify what the standard view sees as positive
- Relationship: These are the two effects that managers traditionally believe result from financial incentives
Valid Inferences Based on Facts
- For Negative Result: The standard view explicitly states "negative effect of increasing unethical selling behavior"
- For Positive Result: The standard view explicitly states "positive effect of increasing sales"
Phase 3: Answer Choice Evaluation
Let's evaluate each option:
"Increasing retention of sales staff"
- Not mentioned anywhere in the passage
- Cannot be inferred from given facts
- Not suitable for either part"Increasing unethical selling behavior"
- Explicitly stated as the negative effect in standard view
- Direct quote from passage
- Perfect match for Negative result"Increasing sales"
- Explicitly stated as the positive effect in standard view
- Direct quote from passage
- Perfect match for Positive result"Decreasing retention of sales staff"
- Not mentioned in the passage
- Cannot be inferred from given facts
- Not suitable for either part"Decreasing unethical selling behavior"
- Opposite of what standard view states
- Standard view says incentives increase unethical behavior
- Not suitable for either part"Decreasing sales"
- Opposite of what standard view states
- Standard view says incentives increase sales
- Not suitable for either part
Final Answer Selection
Negative result: "Increasing unethical selling behavior"
- This is explicitly identified as the negative effect in the standard view
Positive result: "Increasing sales"
- This is explicitly identified as the positive effect in the standard view
Verification
Both answers are directly stated in the passage as the standard view's perspective on financial incentives. No inference beyond the text is needed - we're simply identifying what the passage tells us about the standard view.