AMA AMA Certifications PCM Questions & Answers

• Question 221:

  Quano Inc. decides to produce a 3D-display phone, Chel, which is a much-anticipated release. Raymond and Jenny are among thousands of buyers who queue up outside a retail store to buy Chel on the day of its release. Most buyers are disappointed within a week because of heating issues. Quano announces immediately that it would replace the defective phones with a rectified model. Raymond and Jenny's replacement phones arrive after three months. The new Chel has a few issues that are taken care of by a software upgrade. This prompts a flood of sales. Trevor is one of Quano's regular customers who buys Chel after the software upgrade. In this scenario, Trevor is one among the _____.

  A. early adopters

  B. innovators

  C. early majority

  D. late majority

  E. laggards

  Correct Answer: C

• Question 222:

  According to the AMA Statement of Ethics, a marketer who embraces the ethical value of responsibility is expected to:

  A. contribute to charities and other social causes.

  B. avoid using coercion with all stakeholders.

  C. avoid knowing participation in conflicts of interest.

  D. listen to the needs of customers and make all reasonable efforts to monitor and improve their satisfaction on an ongoing basis.

  E. disclose list prices and terms of financing as well as available price deals and adjustments.

  Correct Answer: B

• Question 223:

  QuickFix Inc., a clothing supplier, sends an advanced shipping notice document to Western Stores. Which of the following information is most likely to be conveyed by this document?

  A. Details regarding transfer of ownership and so forth

  B. Information relating to the previous owners

  C. Details related to size and quantity of shipment

  D. Details related to price of the shipment

  E. Details related to the warehousing of the shipment

  Correct Answer: C

• Question 224:

  Which of the following is a key similarity between selective distribution and exclusive distribution?

  A. Like exclusive distribution, selective distribution involves placing products in as many stores as possible.

  B. Like selective distribution, exclusive distribution eliminates the retail mark-up.

  C. Like exclusive distribution, selective distribution helps a seller maintain a particular image and control the flow of merchandise into an area.

  D. Like selective distribution, exclusive distribution always eliminates agency mark-up.

  E. Like exclusive distribution, selective distribution cannot be used for luxury goods.

  Correct Answer: C

• Question 225:

  An inventory-management system in which the supplier determines the amount of product a retailer needs and automatically delivers the appropriate items is referred to as _____.

  A. retailer-managed inventory

  B. supply chain inventory

  C. logistics-managed inventory

  D. just-in-time inventory management

  E. vendor-managed inventory

  Correct Answer: E

• Question 226:

  Resolve surveys 20,000 households that own a TV. The results of this survey indicate that an advertisement for a retail store was watched 360,000 times during a period of three days. The same advertisement was watched at least once by 30,000 people. What is the average frequency of the advertisement?

  A. 30,000

  B. 360,000

  C. 12

  D. 10,000

  E. 1.5

  Correct Answer: C

• Question 227:

  Patisserrita is a family-owned chain of bakeries in the Northtown region. The chain sells luxury desserts and pastries that are priced at a permium. Bianca, one of the owners of the business, is considering expanding the business using a

  market penetration strategy.

  Which of the following will she do?

  A. Bianca opens a franchise in a neighboring city.

  B. Bianca introduces strategies to target her competitors' customers.

  C. Bianca creates sugar-free and gluten-free products to cater to health-conscious consumers.

  D. Bianca begins developing a line of kitchenware for pastry chefs.

  E. Bianca opens a fast-food outlet in a neighboring city.

  Correct Answer: B

• Question 228:

  In Ravonia, the telecom sector is dominated by four major service providers: Flank, Zelno, Tuhaz, and Klock. The service providers determine call rates and broadband rates using a collective strategy. They maintain uniform pricing and compete mainly on quality and service. Flank, Zelno, Tuhaz, and Klock are using a _____ strategy.

  A. deceptive reference pricing

  B. bait-and-switch

  C. horizontal price fixing

  D. manufacturer 's suggested retail pricing

  E. price discrimination

  Correct Answer: C

• Question 229:

  What does the break-even point refer to in a break-even analysis?

  A. It refers to the number of product units sold at which point both loss and profit are zero.

  B. It refers to the point at which the fixed costs curve intersects the variable costs curve.

  C. It refers to the required number of products that should sell for the profit to equal the fixed costs.

  D. It refers to the point at which the variable costs start increasing over fixed costs.

  E. It refers to the point at which the total costs are equal to the profit generated.

  Correct Answer: A

• Question 230:

  Which of the following is part of the final step in the ethical decision-making process?

  A. Establishing the advantages and disadvantages of alternative solutions

  B. Identifying the various stakeholders who will be affected by the solution

  C. Identifying the one-off stakeholder who will be affected by the solution

  D. Developing a firm understanding of the real issue at hand

  E. Interacting with stakeholders to generate possible solutions

  Correct Answer: A