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PCM Premium File

  • 316 Questions & Answers


Professional Certified Marketer
Professional Certified Marketer

Questions & Answers for AMA PCM

Showing 1-15 of 316 Questions

Question #1

Power in a marketing channel exists when:

A. all the firms in the channel have contractual relationships with the others.

B. each channel member is independent; there is no parent company that owns channel members.

C. one firm has the means or ability to dictate the actions of another member at a different level of distribution.

D. all the members of the channel are at the same level of distribution.

E. the channel is a direct channel.

Question #2

What is the variable cost of a product if the fixed costs associated with it total $6,000, the
break even point is 300 units, and selling price is $45?

A. $17

B. $25

C. $29

D. $34

E. $41

Question #3

_____ strategies are designed to increase demand by focusing on wholesalers, retailers, or

A. Push

B. Pull

C. Macro

D. Informative

E. Relationship

Question #4

The ethical value of respect in the the AMA Statement of Ethics implies that marketers

A. avoid using coercion with all stakeholders.

B. consider environmental stewardship in their decision-making.

C. offer products of value that do what they claim in their communications.

D. acknowledge the social obligations to stakeholders that come with increased marketing and economic power.

E. avoid stereotyping customers or depicting demographic groups in a negative or dehumanizing way.

Question #5

If a customer spends $40 on purchasing a company's product and spends $80 on other
companies' products in the same product category, what is the company's share of
customer wallet?

A. 11.12%

B. 22.46%

C. 29.77%

D. 33.33%

E. 41.13%

Question #6

Snap, a manufacturer of cleaning supplies, sells its products through retailers like Peblle, a
country-wide chain of discount stores in the U.S. At the end of a quarter, Snap takes into
account the total purchases made by Peblle and offers a discount in the form of a rebate
check. The pricing tactic used by Snap is termed as a(n) _____.

A. slotting allowance

B. cash discount

C. seasonal discount

D. trade allowance

E. cumulative quantity discount

Question #7

Dento Inc., a manufacturer of dental care products, faced a social media uproar when
rumors spread that it was using ingredients from animal sources to create its products. The
labels as such carried no evidence of this and this discovery was brought about by an
independent researcher. The company's CEO and senior management did not know about
these ingredients. Internal research revealed that containers used to hold Dento's products,
produced by a vendor, used products derived from animal fat in the manufacturing process,
but the product itself did not contain any fat. What should Dento do to prove that it is

A. Release a statement to the press explaining that it is not responsible for the manufacturing processes of its suppliers.

B. Refute the independent researcher's claims by filing a defamation suit.

C. Invest in a program that aims to spread dental hygiene awareness.

D. Inform its consumers of the situation and implement measures to ensure animal-fat-free packaging and products.

E. Penalize the vendor by not paying for the next order of packaging materials.

Question #8

When should a company use individual brands over family brands?

A. When the manufacturer has to bear the costs of advertisement

B. When the product is designed by a retailer and developed by a manufacturer

C. When the products vary in their usage and performance

D. When the manufacturer wants greater control over positioning the brand

E. When the manufacturer wants the individual products to feed off each others' success

Question #9

How can firm decrease the depth of the product mix?

A. By adding a new product to an existing product line

B. By deleting products to realign resources

C. By eliminating loss-making product lines

D. By introducing an existing product line in a new markets

E. By deleting product lines in one market and moving them to another market

Question #10

EZ, a manufacturer of electronic appliances, manufactures sandwich toasters, waffle
makers, and sandwich-waffle makers. Recently, EZ reduced the price of sandwich-waffle
makers by 20%. This increased the sales of sandwich-waffle makers by 20% and reduced
the sale of sandwich toasters by 30% and waffle makers by 25%. Which of the following is
true of this scenario?

A. The price elasticity of sandwich-waffle makers is -2.

B. The cross-price elasticity of sandwich-waffle makers and sandwich toasters is -1.

C. The cross-price elasticity of sandwich-waffle makers and waffle makers is -2.

D. Sandwich-waffle makers and sandwich toasters are likely to be substitute products.

E. Sandwich-waffle makers and waffle makers are complementary products.

Question #11

Sophia, a market researcher at Contell Foods, is tasked with assessing the particular food
tastes of the Hispanic population in the United States. Previously conducted surveys reveal
that the company has failed to tap into the market for processed foods with respect to
Hispanic Americans. As a part of Sophia's task, she is required to stay with 50 Hispanic
American families and white American families over a period of 6 months and understand
the difference in the food tastes, the cooking methods used, and the family culture
prevalent in these families. Sophia is conducting _____ research.

A. content analysis

B. focus group

C. quantitative

D. mixed

E. ethnographic

Question #12

In Travnia, an industrial country, the government controls most of the utilities, including
power and water supply. The bottled-water market, however, has four major players: Balk,
Pentl, Valr, and Tidum. Each of the companies markets its product using a distinct branding
strategy. In an attempt to gain a larger market share, Pentl reduces the price of its products
by 10%. It expects to make up for the lost revenue from an increase in sales. Which of the
following is true of this scenario?

A. The government's control of most of the utilities including power and water supply represents monopolistic competition.

B. The power supply industry in Travnia is oligopolistic in nature.

C. The competition in the bottled-water industry represents pure competition.

D. Pentl's current pricing strategy can be termed as predatory pricing.

E. A price war would erupt if the other firms reduced prices, too, and forced Pentl to reduce prices further.

Question #13

Which of the following is a disadvantage of outdoor marketing?

A. It cannot be linked to detailed content.

B. It is relatively more flexible than newspaper advertising.

C. It offers reduced chances of repeat exposure.

D. It is highly expensive.

E. It offers very limited exposure time.

Question #14

An everyday low pricing strategy differs from a high/low pricing strategy in that an everyday
low pricing strategy:

A. does not offer products at discounted prices.

B. has a more uniform pricing throughout a year.

C. offers different discounts and prices on different days of the year.

D. uses predatory pricing and premium pricing tactics.

E. relies on the promotion of sales.

Question #15

Ryan, an insurance salesperson, sells an insurance policy covering hurricane damage to
Sean. However, as instructed by his company, Ryan fails to tell Sean that the policy does
not include water damage caused by hurricane flooding. In this scenario,

A. only the insurance company can be held accountable for fraudulent sales.

B. only Ryan can be held accountable for fraudulent sale.

C. no one can be held accountable as the buyer must read the document carefully before buying.

D. both the insurance company and the salesman can be held accountable.

E. Ryan can be held accountable only if water damage actually happens.