AMA AMA Certifications PCM Questions & Answers

• Question 51:

  Which of the following is considered the second "E" in 4E framework?

  A. Educate the customer

  B. Experience the product

  C. Excite the customer

  D. Engage the customer

  E. Experience the service

  Correct Answer: A

• Question 52:

  Which of the following is a tool used to determine amount of traffic using a site, visiting a blog or tweeting about it?

  A. Bounce analysis

  B. Click paths

  C. Conversion rates

  D. Bounce rate

  E. Hits

  Correct Answer: E

• Question 53:

  The major disadvantages of primary data collection are that: A. it can only be accessed through syndicated databases or unstructured data mines.

  B. it cannot be tailored to meet specific research needs.

  C. it takes more time to collect than secondary data and is more costly.

  D. it is too general to meet researcher's and manager's needs.

  E. all of these are disadvantages of primary research data.

  Correct Answer: C

• Question 54:

  Cinfy, an electronic appliances manufacturer, sells 30 pizza ovens, 60 coffee makers, and 90 sandwich toasters per day. Despite warnings from analysts, Cinfy hikes prices of its toasters from $150 to $180, and toaster sales fall by 40%. After this pricing strategy backfires, Cinfy decides that a 10% drop in demand is acceptable, but not more. Assuming that the elasticity of demand for the toasters remains constant, what is the maximum price hike that Cinfy can afford without letting the sales drop by more than 10%?

  A. $2.50

  B. $5

  C. $7.50

  D. $9

  E. $15

  Correct Answer: C

• Question 55:

  _____ is a theory that states that if the exchange rates of two countries are in equilibrium, a product purchased in one will cost the same in the other, if expressed in the same currency.

  A. Subsistence theory

  B. Samuelson effect theory

  C. Purchasing power parity theory

  D. Penn effect theory

  E. Trade parity theory

  Correct Answer: C

• Question 56:

  PlayBall, a manufacturer of gaming consoles, announces the release of its new device. Karen, wanting to be one of the first to own the new gaming console, stands in a queue for over five hours on the day of its release. Even though disappointed that the product sold out before her turn arrived, Karen returned at 2 A.M the next day and was the first person in line. In this scenario, Karen is one among the _____.

  A. early adopters

  B. innovators

  C. early majority

  D. late majority

  E. laggards

  Correct Answer: B

• Question 57:

  In Travnia, an industrial country, the government controls most of the utilities, including power and water supply. The bottled-water market, however, has four major players: Balk, Pentl, Valr, and Tidum. Each of the companies markets its product using a distinct branding strategy. In an attempt to gain a larger market share, Pentl reduces the price of its products by 10%. It expects to make up for the lost revenue from an increase in sales. Which of the following is true of this scenario?

  A. The government's control of most of the utilities including power and water supply represents monopolistic competition.

  B. The power supply industry in Travnia is oligopolistic in nature.

  C. The competition in the bottled-water industry represents pure competition.

  D. Pentl's current pricing strategy can be termed as predatory pricing.

  E. A price war would erupt if the other firms reduced prices, too, and forced Pentl to reduce prices further.

  Correct Answer: E

• Question 58:

  Blogs provide companies with the opportunity to

  A. transfer control to the customer.

  B. enable customers to experience services.

  C. educate and engage their customers.

  D. excite their customers.

  E. enable customers to experience the product.

  Correct Answer: C

• Question 59:

  The _____ component of attitude reflects a person's belief system, or what we believe to be true.

  A. behavioral

  B. affective

  C. perceptive

  D. physiological

  E. cognitive

  Correct Answer: E

• Question 60:

  Why don't the majority of customers bother to redeem rebates?

  A. The discount offered by rebates is not significant enough.

  B. The procedure to redeem a rebate is complex as well as lengthy.

  C. The price cut is not offered directly to the consumers.

  D. The price on the shelf is more than the normal price of the product.

  E. The rebates come with riders such as a minimum purchase.

  Correct Answer: B