AMA AMA Certifications PCM Questions & Answers

• Question 181:

  By setting appropriate service standards and measuring service performance, firms can attempt to close a __________ gap.

  A. seniority

  B. knowledge

  C. standards

  D. delivery

  E. communication

  Correct Answer: C

• Question 182:

  Current size, and expected growth rate, market competitiveness, and market access are a part of the _____ criterion.

  A. substantialness

  B. profitability

  C. identifiability

  D. reachability

  E. responsiveness

  Correct Answer: B

• Question 183:

  Reference groups refer to

  A. the relatively permanent, homogeneous divisions in a society that consists of people who share similar values, interests, and behaviors.

  B. individuals who exert direct or indirect social influence over others.

  C. one or more persons whom an individual uses as a basis for comparison regarding beliefs, feelings, and behaviors.

  D. those buyers who, through the size of their purchases, affect where marketing dollars will be spent.

  E. those with whom a person does not wish to be a member of or identified with.

  Correct Answer: C

• Question 184:

  The American Bar Association requires lawyers to do a certain number of hours of pro bono work. The lawyers are not paid for this work. Such requirements set by organizations are termed as _____.

  A. norms

  B. values

  C. morals

  D. character

  E. ethics

  Correct Answer: A

• Question 185:

  Romelia, an online cosmetics store, relies on traffic generated by Internet searches to sell its products. Romelia was one of the very first online stores to sell cosmetics and hence had the advantage of showing up on the first page of a search for ""Online cosmetics U.S."" An increase in the number of online retailers has pushed Romelia's website to the fourth search page. Instead of arriving at a website and then looking for a product, customers search for a product directly on an Internet search engine. What should Romelia change to improve the hits on its website?

  A. Romelia should increase the number of pages on its website.

  B. Romelia should analyze the click paths of the customers who purchase products on its site.

  C. Romelia must work to decrease the conversion rates on its site.

  D. Romelia can use keyword analysis to determine the keywords its customers use.

  E. Romelia can work to increase the bounce rates on its website.

  Correct Answer: D

• Question 186:

  A customer information storehouse enables

  A. retailers to decelerate customer returns.

  B. create a consistent brand image.

  C. provide a seamless experience for customers.

  D. integrate the supply chain.

  E. reduce shipping charges and sales tax.

  Correct Answer: C

• Question 187:

  The Crichton Family Farm is a family-run business that produces and sells organic produce, preserves, and baked goods under the Crichton Family Farm brand. It has generally operated in a limited area, selling most of its products from the farm and in stores in the nearby town of Greenville. When loyal customers mentioned the brand on social media sites, there was great interest from others, and the Crichtons saw potential to expand the business. Which of the following strengthens the case for the family to opt for a product development strategy?

  A. Crichton products are all-natural, without preservatives or additives, and cannot be stored for a long time.

  B. Many customers enquire if the Crichtons sell organic dairy products as well and are willing to buy them.

  C. A chain of organic food stores has approached the Crichtons and offered to stock Crichton products in its outlets throughout the state.

  D. Crichton products sell very quickly, and the Crichtons rarely stock inventory for longer than a week.

  E. The Crichton Family Farm's most popular product is its home-baked loaves of bread, which sell twice as fast as any other item.

  Correct Answer: B

• Question 188:

  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.

  Correct Answer: C

• Question 189:

  Timer, a U.S. based watchmaker, recently entered into a partnership agreement with an Australian firm to make watches. According to the terms of the agreement the firms agreed to pool resources and share losses. What type of partnership agreement does this situation most likely represent?

  A. Franchising

  B. Licensing arrangement

  C. Strategic alliance

  D. Joint venture

  E. Direct ownership arrangement

  Correct Answer: D

• Question 190:

  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

  Correct Answer: E