AMA AMA-PCM Online Practice Questions and Exam Preparation

AMA AMA-PCM Online Questions & Answers

• Question 151:

  Which of the following is a feature of extreme-value retailers?

  A. They exclusively offer health and personal grooming merchandise.
  B. They offer deep but narrow assortments and sales associate expertise.
  C. They offer a limited merchandise assortment.
  D. They buy from manufacturers who have limited merchandise.
  E. They use a predominantly self-service approach.
  C. They offer a limited merchandise assortment.

• Question 152:

  A sustainable competitive advantage for a firm refers to:

  A. an advantage that a firm possesses as a result of being first in a particular market.
  B. an advantage that a firm possesses for a short period of time, till a competitor replicates it.
  C. an advantage that is not easily copied and thus can be maintained over a long period of time.
  D. an advantage companies possess by being already established in a market.
  E. an advantage that a firm has as a result of its ability to produce goods at a lower cost than its competitors.
  C. an advantage that is not easily copied and thus can be maintained over a long period of time.

• Question 153:

  Which of the following is true of price elasticity?

  A. The lower the number of substitute products, the higher the price elasticity of demand for a given product.
  B. Rises in income can lead to drops in price elasticity even though product prices are constant.
  C. Products for which demand is highly inelastic are susceptible to minor changes in price.
  D. Generally, if demand for a product is inelastic, lowering the price will appreciably increase demand.
  E. Consumers are generally more sensitive to price decreases than to price increases.
  B. Rises in income can lead to drops in price elasticity even though product prices are constant.

• Question 154:

  The person who controls information or access, or both, to decision makers and influencers is known as the _____

  A. buyer
  B. decider
  C. gatekeeper
  D. initiator
  E. user
  C. gatekeeper

• Question 155:

  A consumer goods manufacturer, Ankam, is accused of manufacturing substandard goods. The complainants claim that the products break down before the expiration of their warranty but the warranty is void because the parts that malfunction are not covered by the warranty. Ethan, an independent investigator, is looking into the matter. What should he do first?

  A. Check whether the warranty issued by Ankam clearly specifies that certain parts are not covered by the warranty.
  B. Collect information on all malfunctions and check the list of malfunctioning parts against the warranty to verify if the complaint is true.
  C. Conduct tests of Ankam's products under various conditions and identify the conditions under which they break down.
  D. Interview each of the complainants to find out about their use of Ankam's products.
  E. Advise Ankam on the measures it could adopt until the investigation is complete.
  A. Check whether the warranty issued by Ankam clearly specifies that certain parts are not covered by the warranty.

• Question 156:

  In a distribution center, getting merchandise floor-ready means _____.

  A. packaging merchandise that will be stored in the distribution center.
  B. preparing merchandise to be placed on the selling floor.
  C. sending merchandise from the unloading dock at which it was received to the loading dock for the truck going to the specific store.
  D. going through the goods upon receipt to make sure they arrived undamaged and that the merchandise ordered was the merchandise received.
  E. recording the receipt of merchandise as it arrives at a distribution center.
  B. preparing merchandise to be placed on the selling floor.

• Question 157:

  ChoStik, a firm that manufactures office stationery, produces a range of products including sticky notes, note books, pens, pencils, erasers, and adhesives. Some of the raw materials used by ChoStik come from sources contributing to the deforestation of the Tongas National Forest, Alaska. ChoStik offers discounts on its products when consumers make bulk purchases, but as many customers note, the products are priced significantly higher than competing products to begin with. ChoStik also has a history of introducing exorbitantly priced products only to decrease the prices by a large margin within a week or two, to stimulate artificial demand. ChoStik is can be considered to be _____.

  A. unethical and socially responsible
  B. unethical and socially irresponsible
  C. ethical and socially irresponsible
  D. ethical and socially responsible
  E. socially responsible
  B. unethical and socially irresponsible

• Question 158:

  Calculate the market growth rate of a product in a year if it sold 120,000 units in the first quarter of the year and 200,000 units in the last quarter of the year.

  A. 12.14%
  B. 66.66%
  C. 72.42%
  D. 78.33%
  E. 89.91%
  B. 66.66%

• Question 159:

  Zippy manufacturers pens in the U.S. Zero Point, Zippy's latest ball point pen, is three months old and yet to grab a significant market share. Since the demand for ball point pens is high, Zippy believes that Zero Point will benefit from increased advertisement and promotions. Zippy's marketing strategies are aimed at increasing the market share of Zero Point, significantly, during the current quarter. In this scenario, Zero Point is a _____.

  A. dog
  B. cash cow
  C. star
  D. question mark
  E. loss leader
  D. question mark

• Question 160:

  _____ needs pertain to the personal gratification consumers associate with a product and/or service.

  A. functional
  B. social
  C. safety
  D. situational
  E. psychological
  E. psychological