AMA AMA Certifications PCM Questions & Answers

• Question 191:

  The second stage of the AIDA model is _____.

  A. Intention

  B. Interest

  C. Introduction

  D. IMC

  E. Insistence

  Correct Answer: B

• Question 192:

  A firm sells 20,000 units of a particular product at a price of $50 per unit. The company spends $30 per unit in raw materials and labor charges. What are company's fixed costs if it made a profit of $100,000?

  A. $100,000

  B. $200,000

  C. $300,000

  D. $400,000

  E. $500,000

  Correct Answer: C

• Question 193:

  Fly, a manufacturer of indoor and outdoor heaters, has production facilities that are not running at their full capacity because of piled up inventory. Fly offers a discount to retailers who purchase heaters while the weather is still warm, because the cold months are still at least three months away. Based on historical sales data, Digimart, a retailer, picks up 200 heaters from Fly at a discount of 30% on the usual price. This scenario is an example of a(n) _____.

  A. noncumulative quantity discount

  B. quantity discount

  C. slotting allowance

  D. cash discount

  E. seasonal discount

  Correct Answer: E

• Question 194:

  Firms are most likely to use reminder advertising during the _____stage of the product lifecycle.

  A. introduction

  B. growth

  C. maturity

  D. extinction

  E. re-introduction

  Correct Answer: C

• Question 195:

  Which of the following activities is part of the place aspect of the marketing mix?

  A. Manufacturing the product from raw materials

  B. Changing product designs in response to customer feedback

  C. Undertaking market research to determine the target audience for the product

  D. Coordinating between suppliers of raw materials for production

  E. Introducing the product to the market at a discount to encourage consumers to try it

  Correct Answer: D

• Question 196:

  The place aspect of the marketing mix typically involves interactions between the marketer and _____.

  A. customers

  B. regulatory bodies

  C. suppliers

  D. customers

  E. advertisers

  Correct Answer: C

• Question 197:

  The service quality dimension of assurance refers to: A. the ability to perform the service dependably and accurately.

  B. the willingness to help customers and provide prompt service.

  C. the caring, individualized attention provided to customers.

  D. the knowledge of and courtesy by employees and their ability to convey trust and confidence.

  E. the appearance of physical facilities, equipment, personnel, and communication materials.

  Correct Answer: D

• Question 198:

  When firms collude to set prices for products, it is referred to as _____.

  A. price discrimination

  B. price fixing

  C. predatory pricing

  D. tying arrangements

  E. exclusive dealing

  Correct Answer: B

• Question 199:

  Ryan's Bikes, a motorcycle company, designs and builds custom bikes. The company customizes each vehicle according to the taste, specification and individual requirements of the customer. In this scenario, Ryan's is using a _____ strategy.

  A. mass marketing targeting

  B. concentrated targeting

  C. micromarketing

  D. differentiated targeting

  E. undifferentiated targeting

  Correct Answer: C

• Question 200:

  The Better Business Bureau suggests that at least _____ of the sales should occur at a price for it to be used as a reference price.

  A. 20 percent

  B. 30 percent

  C. 40 percent

  D. 50 percent

  E. 60 percent

  Correct Answer: D