AMA AMA Certifications PCM Questions & Answers

• Question 61:

  A particular webpage is used to conduct an online survey and only one in four visitors participates in the survey. If the webpage is visited by an average of 30,000 visitors every day, what the average conversion rate of the webpage?

  A. 0%

  B. 25%

  C. 50%

  D. 75%

  E. 100%

  Correct Answer: B

• Question 62:

  Forever Quilting is a company that designs and distributes quilting kits. The kits are priced at $120 each. The costs of the materials that go into each kit are $45. It costs $5 in labor to assemble a kit. The company has monthly expenses of $1,200 for rent and insurance, $300 for heat and electricity, $600 for advertising in quilting magazines, and $3,500 for the monthly salary of its owner. What is the break-even point for Forever Quilting?

  A. 50

  B. 60

  C. 70

  D. 80

  E. 90

  Correct Answer: D

• Question 63:

  _____ is a communication used to prompt repurchases, especially for products that have gained market acceptance and are in the maturity stage of their life cycle.

  A. Reminder advertising

  B. Persuasive advertising

  C. Informative advertising

  D. Product advertising

  E. Institutional advertising

  Correct Answer: A

• Question 64:

  Organizational buying criteria refer to

  A. the restrictions placed on potential solutions to a problem in a purchase decision.

  B. the specific qualifications of a potential customer based upon past performance, reliability, and consistency regarding the purchase of an organization's offerings.

  C. the subjective attributes of the supplier's products and services and the capabilities of the supplier itself.

  D. the objective attributes of the supplier's products and services and the capabilities of the supplier itself.

  E. the factors that an ultimate consumer would consider that represent both the objective attributes of a brand and the subjective ones to compare different products and brands.

  Correct Answer: D

• Question 65:

  A(n) _____ designates the maximum quantity of a product that may be brought into a country during a specified time period.

  A. exchange control

  B. embargo

  C. tariff

  D. quota

  E. trade agreement

  Correct Answer: D

• Question 66:

  Serenity Inc. exercises reward power over a channel partner when Serenity:

  A. offers ACTFast Transporters a monetary incentive to improve transporation speed.

  B. it threatens to penalize a supplier for delayed delivery times.

  C. holds a channel partner to a contract that the partner signed.

  D. dominates a channel partner because it has specialized industry knowledge that the partner lacks.

  E. compels a channel partner to follow its directions because the channel partner values the association with Serenity.

  Correct Answer: A

• Question 67:

  Companies are legally required to

  A. conceal consumers' addresses and phone numbers when they share information.

  B. share information only with the sales department for follow-up.

  C. disclose their privacy practices to customers on an annual basis.

  D. refer to the company's code of ethics to determine what information can be released.

  E. obtain consumer information only through secondary sources.

  Correct Answer: C

• Question 68:

  Pop-Mart, a chain of discount stores in the U.S., procures its products from many suppliers. Indigo is one among hundreds of other suppliers who supply poultry products to Pop-Mart and other retailers. The price of the products is often dictated by the demand from consumers. Which of the following is true of this scenario?

  A. Pop-Mart's competition with other retailers represents pure competition.

  B. Indigo is competing in an oligopolistic market and depends on competitors to increase product prices.

  C. Indigo can carve an identity for itself and move into a monopolistically competitive market by branding its poultry products.

  D. Pop-Mart's suppliers cannot decommoditize their products in order to make more money.

  E. The large number of suppliers indicates that the poultry industry indicates monopolistic competition.

  Correct Answer: C

• Question 69:

  Why do companies offer seasonal discounts to customers?

  A. To get customers to buy higher-margin products that team up nicely with the discounted product

  B. To reduce the use of coupons and rebates during of-peak seasons

  C. To encourage customers to try out new products that they would otherwise never purchase

  D. To increase the sales of a product that was initially overpriced and rejected by customers

  E. To increase the demand for a product at a time when consumers are less likely to buy or use the product

  Correct Answer: E

• Question 70:

  Which of the following would be considered a strength in a typical SWOT analysis?

  A. a reputation for delivering quality products

  B. the exit of a competitor from the market

  C. increased disposable income among the target population

  D. a relaxation in government regulations concerning the company's product

  E. the failure of a rival product

  Correct Answer: A