AMA AMA Certifications PCM Questions & Answers

• Question 251:

  What should a firm do to create a sustainable advantage based on product excellence?

  A. Maintain strong relationships with suppliers and retailers

  B. Undertake advertising and brand-building campaigns to reinforce brand positioning

  C. Situate stores in all busy shopping areas and malls in a city

  D. Develop a script for customer service so that all customers have a consistent experience

  E. Introduce customer loyalty programs to retain existing customers

  Correct Answer: B

• Question 252:

  The psychographic variable that includes people's psychographic makeup, are the way they live is _____.

  A. motive

  B. social class

  C. self-values

  D. self-concept

  E. lifestyle

  Correct Answer: E

• Question 253:

  Peltz, a chewing gum manufacturer, markets chewing gum in a variety of flavors. The company also sells cardamom- and clove-flavored chewing gum under the Peltz brand. Five years after the introduction of the cardamom and clove flavors, the name Peltz is synonymous with cardamom- and clove-flavored chewing gum. Which of the following aspects of the Peltz brand is exemplified in this scenario?

  A. Brand awareness

  B. Perceived value

  C. Brand parity

  D. Brand loyalty

  E. Brand extension

  Correct Answer: A

• Question 254:

  A sustainable competitive advantage for a firm refers to:

  A. an advantage that a firm possesses as a result of being first in a particular market.

  B. an advantage that a firm possesses for a short period of time, till a competitor replicates it.

  C. an advantage that is not easily copied and thus can be maintained over a long period of time.

  D. an advantage companies possess by being already established in a market.

  E. an advantage that a firm has as a result of its ability to produce goods at a lower cost than its competitors.

  Correct Answer: C

• Question 255:

  Which of the following is an advantage of secondary data collection?

  A. It always provides data that is specific to immediate needs.

  B. It requires sophisticated training and hence is always accurate.

  C. It offers in-depth consumer behavioral insights.

  D. It guarantees information without bias.

  E. It saves time and effort in collecting and analyzing.

  Correct Answer: E

• Question 256:

  X-Pert Bikes sells bikes for people of all ages. The company is creating a new advertising campaign targeted only at existing customers, encouraging them to buy an X-Pert Bike the next time they want a bike. The company also begins an X-Pert Club for existing users of X-Pert Bikes, as research has shown that familiarity with a brand increases the chances of repeat purchases. In this case, X-Pert's campaign is aiming to build ______.

  A. brand awareness

  B. brand dilution

  C. brand parity

  D. brand extension

  E. brand loyalty

  Correct Answer: E

• Question 257:

  A Macy's manager designs the casual clothing department such that one of Macy's private label pairs of jeans, priced at $24.99, is positioned next to a national brand of jeans, such as Levis, priced at $39.99. What is the manager attempting to accomplish?

  A. Everyday low prices strategy

  B. Odd-even pricing strategy

  C. Prestige pricing strategy

  D. Special-event pricing strategy

  E. Reference pricing strategy

  Correct Answer: E

• Question 258:

  Talyn Cosmetics sells high-end cosmetics that are coveted by women, but are priced out of the budgets of most average buyers. Talyn wants to enter the Arian market and is conducting market research to identify the market segment on which it should focus its strategy. Researchers send out a questionnaire to a vast pool of potential customers in Aria and analyze the results. Which of the following questions should research analysts focus on to identify the target segment?

  A. Would you choose Talyn Cosmetics over other cosmetics brands in the market? Why?

  B. Would you be interested in buying Talyn Cosmetics? What is the most you would be willing to spend on a brand of cosmetics?

  C. What is your preferred mode of purchase of cosmetics--retail stores or online?

  D. List your favorite brands of cosmetics.

  E. How old were you when you began using cosmetics?

  Correct Answer: B

• Question 259:

  Calculate the return on marketing investment of a campaign that costs $10,000 and delivers $45,000 in incremental net profit.

  A. 1.5

  B. 2

  C. 2.5

  D. 3.5

  E. 4

  Correct Answer: D

• Question 260:

  _____ occurs when the brand extension adversely affects consumer perceptions about the attributes the core brand is believed to hold.

  A. Brand dilution

  B. Line extension

  C. Rebranding

  D. Co-branding

  E. Brand association

  Correct Answer: A