AMA AMA-PCM Online Practice Questions and Exam Preparation

AMA AMA-PCM Online Questions & Answers

• Question 221:

  Which of the following is true of distribution centers?

  A. Distribution centers rely on pull, rather than push strategies to determine their inventory levels.
  B. Greater backup inventory is needed to prevent stockouts.
  C. Space in a distribution center is usually more expensive than space in retail stores.
  D. Distribution centers work best when retailers have only a few outlets that are far apart geographically.
  E. Distribution centers enable the retailer to carry less merchandise in the individual stores, which results in lower inventory investments systemwide.
  E. Distribution centers enable the retailer to carry less merchandise in the individual stores, which results in lower inventory investments systemwide.

• Question 222:

  Which of the following is likely to lead to less conflict in a vertical marketing system?

  A. Increasing the number of channel members
  B. Increasing flexibility and informality within the system
  C. Requiring each member to act in its own interest
  D. Increasing the degree of formalization
  E. Implementing an independent marketing channel
  D. Increasing the degree of formalization

• Question 223:

  MN Corp., a retailer, wished to open a new store in a suburb. In order to obtain data relating to consumer behavior, competition, and other relevant information, the company employed Am Research, a market research firm. In this scenario, the data collected and presented by Am Research would be known as _____.

  A. mined data
  B. panel data
  C. internal data
  D. syndicated data
  E. scanner data
  D. syndicated data

• Question 224:

  Individuals can choose to purchase Microsoft stand-alone software packages such as the Home and Student versions of Word, Excel, and PowerPoint for $119.99 each. However, they may choose to purchase the Office Home and Student 2010 suite, which has all of these applications in the same package for a price of $149.99. Microsoft is using a __________ pricing strategy.

  A. penetration
  B. prestige
  C. bundle
  D. odd-even
  E. standard mark-up
  C. bundle

• Question 225:

  Whenever Donald calls on potential pest control customers, he emphasizes the fact that, unlike the national franchise competitors, he is a local business person and has been in business over twenty years. Donald is_____ his business

  relative to his competition.

  A. segmenting
  B. repositioning
  C. positioning
  D. valuing
  E. re-mapping
  C. positioning

• Question 226:

  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 ethical?

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

• Question 227:

  When a claim cannot be made in a non-misleading way, due to the limitations of a platform:

  A. the claim should not be made in that platform.
  B. the claim's disclosures should be displayed using a hyperlink.
  C. a different medium can be used to display the claim's disclosures.
  D. it is the duty of the consumer to perform due diligence before purchasing a product.
  E. it is not the marketer's responsibility to ensure accuracy and readability.
  A. the claim should not be made in that platform.

• Question 228:

  _____ are consumers who like to avoid change and rely on traditional products until they are no longer available.

  A. Early adopters
  B. Innovators
  C. Early majority
  D. Late majority
  E. Laggards
  E. Laggards

• Question 229:

  Tim, a musician, was embroiled in an online dispute with an airline company. Tim alleged that his guitar was manhandled by the staff and therefore he set up a blog and released two videos in order to convince others not to use the airline. Which stage of the 4E framework is seen in this scenario?

  A. Educate the customer
  B. Excite the customer
  C. Experience the service
  D. Experience the product
  E. Engage the product
  E. Engage the product

• Question 230:

  Mike Morgan, a sales representative for a major food service distributor of Warm Delights, wanted to encourage repeat purchases by his grocery customers. In order to accomplish this objective, Morgan offered the following discounts to his customers: a 10 percent discount for buying 1-49 cases of Warm Delights within a calendar month; a 12-percent discount if 50-99 cases of Warm Delights are purchased within the same calendar month; and a 15-percent discount if 100 or more cases of Warm Delights are purchased within the same calendar month. What type of discount was Morgan offering his grocery customers?

  A. a seasonal discount
  B. a quantity discount
  C. a cash discount
  D. a trade discount
  E. a partial-payment discount
  B. a quantity discount