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

Source: Mock

Two Part Analysis

Verbal - RC

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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.

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

Solution

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"	Core Fact: Standard view explicitly identifies increased sales as positive Visualization: Managers believe \(\mathrm{commission} \rightarrow \mathrm{more\ sales}\) Logical Connections: This is the benefit managers expect from incentives What We Can Conclude: Standard view sees sales increase as the positive outcome
"...and the negative effect of increasing unethical selling behavior (for example, exaggerating features of the product, or allowing bad credit risks)"	Core Fact: Standard view explicitly identifies increased unethical behavior as negative Visualization: Managers believe \(\mathrm{commission} \rightarrow \mathrm{more\ dishonest\ tactics}\) Logical Connections: This is the drawback managers worry about What We Can Conclude: Standard view sees ethical compromise as the negative outcome
"Our recent study, however, suggests that the standard view is mistaken"	Core Fact: New research challenges the standard view Visualization: Study results contradict managers' beliefs Logical Connections: Sets up contrast between belief and reality What We Can Conclude: The study found different results than expected
"We found...no significant correlation between being offered commission and unethical selling behavior"	Core Fact: Study found no link between commission and unethical behavior Visualization: \(\mathrm{Commission} \neq \mathrm{more\ unethical\ behavior}\) Logical Connections: Contradicts the negative effect in standard view What We Can Conclude: At least part of standard view appears incorrect

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.

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