AMA Certified Marketer PCM Questions & Answers

• Question 301:

  Carnival Cruise Lines increased the price of its seven-day cruise package by 20 percent recently. If demand for its cruises is negatively elastic, which of the following is the likely outcome of the increase in price?

  A. The company will see an increase in customer bookings.

  B. The company's profit will decrease though its revenue will increase.

  C. The company will see a decrease in total revenue.

  D. There will be no change in the number of cruises booked.

  E. The company's total revenue will increase.

  Correct Answer: C

• Question 302:

  Which of the following statements is most characteristic of a firm that has a relational orientation?

  A. Improving sales techniques is the key to marketing success.

  B. A firm's success depends on producing goods as quickly as possible.

  C. Firms should focus on the value of each customer transaction rather than long-term sales.

  D. Marketers should focus on producing products and then creating customer needs for the products.

  E. Marketing success depends on building lifetime profitability from customers.

  Correct Answer: E

• Question 303:

  Quano Inc. decides to produce a 3D-display phone, Chel, which is a much-anticipated 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. The new Chel arrives two months later and has a few issues that are taken care of by a software upgrade. This prompts a flood of sales. After six months, Quano releases a new 3D-phone and drops the prices of Chel by over 40%. Jason who has been waiting for this opportunity buys a Chel immediately. In this scenario, Jason is one among the _____.

  A. early adopters

  B. innovators

  C. early majority

  D. late majority

  E. laggards

  Correct Answer: D

• Question 304:

  When conducting a SWOT analysis, opportunities and threats are likely to arise from:

  A. assets and financial performance.

  B. key personnel.

  C. changes in consumer preferences.

  D. the company's core competencies.

  E. the location of the company.

  Correct Answer: C

• Question 305:

  In the marketing communication process, the sender works with a creative department, either an in-house marketing department or an external agency, who receives the information and transforms it for use. Here, the creative department is the _____.

  A. encoder

  B. decoder

  C. transmitter

  D. channel

  E. receiver

  Correct Answer: C

• Question 306:

  What do retail outlets hope to achieve from using promotions in conjunction with markdowns?

  A. Bulk purchase of products, which reduces brand switching and, in turn, increased consumption

  B. Increased loyalty of customers based on discounts tailored to suit individual customers

  C. An increase in store traffic that leads to the purchase of non-promotional products at regular prices

  D. Increased savings for customers and increased profits, without actually cutting prices

  E. Selling off less desirable products by including them in a package with more desirable products

  Correct Answer: C

• Question 307:

  Aaron Ulm and Edyth Mcgann are marketing analysts at Cara Cobey Fashion House, an online retailer that only sells private brands. Cara Cobey made a profit of $145,000 the previous year and $180,000 the year before. The loss in profit of almost 20% prompts Cara to hire Aaron and Edyth. Aaron and Edyth figure out that the drop in sales corresponds to a 15% drop in the number of visitors to the site. On their advice, Cara invests $10,000 in revamping the website to enable potential customers find it easily using Internet searches. At the end of the year, Cara reports a profit of $175,000. What is the ROI in this scenario?

  A. 100%

  B. 150%

  C. 200%

  D. 250%

  E. 300%

  Correct Answer: E

• Question 308:

  The person who controls information or access, or both, to decision makers and influencers is known as the _____

  A. buyer

  B. decider

  C. gatekeeper

  D. initiator

  E. user

  Correct Answer: C

• Question 309:

  In which of the following cases is a company changing its business strategy in response to a strength identified in a SWOT analysis?

  A. When it realized that its products were inferior in quality to competitors' products, KPR Inc. instituted a revamp of its production processes.

  B. YellowBerry Inc. identified market demand for powdered energy drinks, and began producing powdered drinks to cater to this demand.

  C. When a survey revealed that customers thought its products were safe and durable, Masada Motors began stressing that aspect in its advertisements.

  D. Chocobella Inc. introduced a line of unsweetened chocolates when a competitor's unsweetened chocolate saw increasing demand.

  E. When new competitors entered its market, Widdershins Inc. had to increase its advertising and marketing efforts to maintain its market share.

  Correct Answer: C

• Question 310:

  In _____ companies initially develop products for niche or underdeveloped markets, and then expand them into their original or home markets.

  A. glocalization

  B. reverse innovation

  C. homogenization

  D. localization

  E. inverse creation

  Correct Answer: B