AMA AMA Certifications PCM Questions & Answers

• Question 161:

  _____ requires a firm to maintain 100 percent ownership of its plants, operation facilities, and offices in a foreign country, often through the formation of wholly owned subsidiaries.

  A. Franchising

  B. Direct investment

  C. Licensing

  D. Joint venture

  E. Strategic alliance

  Correct Answer: B

• Question 162:

  Which of the following is true of the standardized marketing approach?

  A. It is losing its relevance in an increasingly globalized marketplace.

  B. It is not profitable to maintain a standard product across increasingly diverse cultures.

  C. It can work well for some, but not all products.

  D. It is very expensive in terms of advertising and other marketing costs.

  E. It does not work well for multi-functional products.

  Correct Answer: C

• Question 163:

  Which of the following is true of rule-of-thumb methods for allocating IMC budgets?

  A. It creates a budget by first establishing a set of communication objectives.

  B. It uses prior sales to determine the present communication budget.

  C. It allots a budget according to the profits made in previous quarters.

  D. It requires limited negotiation among managers.

  E. It allocates an equal budget for all departments.

  Correct Answer: B

• Question 164:

  Calculate the Category Development Index of a particular product that sells 5% of its product in a particular market that contains 1% of the country's population.

  A. 500

  B. 400

  C. 300

  D. 200

  E. 100

  Correct Answer: A

• Question 165:

  Which of the following is true of B2B and B2C purchase decisions?

  A. Both types of decisions involve the same purchasing behaviors.

  B. A B2C purchase usually involves many people in the decision process.

  C. A B2C purchase typically involves a more formal decision process.

  D. The purchase decision in a B2C scenario is explicit.

  E. A B2B purchase involves less formal processes than B2C purchases.

  Correct Answer: C

• Question 166:

  Within the buying center, deciders are people who

  A. handle the paperwork of the actual purchase.

  B. control the flow of information in the buying center.

  C. ultimately determine any part of or the entire buying decision.

  D. influence other members of the buying center in making the final decision.

  E. actually use and evaluate the product or service.

  Correct Answer: C

• Question 167:

  A(n) _____ is a broad description of a firm's objectives and the scope of activities it plans to undertake, and attempts to answer two main questions: What type of business are we? What do we need to do to accomplish our goals and objectives?

  A. marketing toolbox

  B. operational plan

  C. mission statement

  D. marketing plan

  E. code of conduct

  Correct Answer: C

• Question 168:

  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.

  Correct Answer: D

• Question 169:

  Hermit, a fashion apparels retailer, recently slashed prices on its premium fashion label, Lau, by 40%. This resulted in a sharp rise in sales of Lau by 30%. This also directly impacted the sales of its lower-priced brand, Infinity, which saw sales reduced by 15%. What is the cross-price elasticity of demand between Lau and Infinity?

  A. 0.5

  B. 0.37

  C. 1.33

  D. 2

  E. 2.66

  Correct Answer: B

• Question 170:

  Which of the following is an example of impulse buying?

  A. Ryan purchased a suit for his wedding after consulting a tailor.

  B. While grocery shopping Sean picked up a pack of bubble-gum from the checkout counter.

  C. Jim conducted a thorough Internet search before buying a new car.

  D. Lily picked up a burger from a drive in restaurant on the way home.

  E. Jordan purchased a mobile phone after being convinced by a sales presentation.

  Correct Answer: B