AMA AMA Certifications PCM Questions & Answers

• Question 71:

  Which of the following firms is following a market development strategy?

  A. Baseline Technologies, which is entering a new country to sell its products

  B. Arguello Foods, which begins a customer loyalty program to encourage its existing customers to buy more

  C. Juniper Media, which adds public relations services to its existing advertising business

  D. Runway Fashions, which begins selling a brand of moderately-priced clothing in addition to its premium offerings

  E. Inscape Clothing Inc., which sold jeans and jackets in the Cumbrian market, expanding its market to Abara and beginning to sell footwear as well

  Correct Answer: A

• Question 72:

  Hanna is buying a wedding dress and chooses one that is beyond her budget. However, she notices that the dress fits her well and comes with a money-back guarantee. Despite the higher cost, she decides to purchase the dress due to the trade-off between cost and perceived value. In this scenario Hanna is exhibiting the _____ rule.

  A. compensatory decision

  B. multi-attribute

  C. noncompensatory

  D. conversion

  E. weightage

  Correct Answer: A

• Question 73:

  Tamika wants to buy a pair of shoes. She is not sure of the exact brand or the type of shoe that she wants to buy. She goes from one store to another trying on different shoes. She settles for a pair of Laurin sports shoes that cost $70 from Queen and Lavada. Laurin sports shoes represent _____.

  A. convenience products

  B. specialty products

  C. shopping products

  D. industrial products

  E. unsought products

  Correct Answer: C

• Question 74:

  Which of the following accurately describes markdowns?

  A. Variable discounts that are based on the quantity of the products being purchased

  B. Temporary discounts offered on products and services to stimulate sales during off-peak seasons

  C. Price reductions that retailers offer on the initial selling price of the product or service

  D. Temporary promotions that aim at inducing new customers and converting them to regular customers

  E. Refunds offered to customers on the purchase of a product during a limited time period

  Correct Answer: C

• Question 75:

  Bisky, a newly-founded biscuit company, is developing its first product, Jamz. It intends to the sell the product as a nutritious alternative to other biscuits. It markets the product with the tagline "A healthy snack for a healthy you." Which of the following is true of this scenario?

  A. Jamz should contain a secondary package in addition to the first package.

  B. The Food and Drug Administration (FDA) will verify Bisky's claims that Jamz is a nutritious alternative to other biscuits.

  C. Branding ethics will prevent Bisky from using the tagline on Jamz's packaging.

  D. The marketing strategy adopted by Bisky demands that it include details of the health benefits provided each ingredient on the product label.

  E. Jamz's label should contain details of the country of origin for individual ingredients.

  Correct Answer: B

• Question 76:

  The planning phase of the marketing plan involves

  A. defining the mission and vision for the business.

  B. evaluating different opportunities by engaging in segmentation, targeting, and positioning.

  C. executing the marketing mix using the four Ps.

  D. taking any necessary corrective actions to correct deviations from the plan.

  E. evaluating the performance of the marketing strategy using marketing metrics.

  Correct Answer: A

• Question 77:

  A TV show has a rating of 7 points. What does this imply?

  A. The TV show is aired seven times a week.

  B. The TV show is watched by 7% of the target population.

  C. The TV show is watched for an average of 7 minutes per viewer.

  D. The TV show has seven re-runs in a year.

  E. The TV show has more viewers than seven competing shows.

  Correct Answer: B

• Question 78:

  _____ is the two-way flow of communication between a buyer and a seller that is designed to influence the buyer's purchase decision.

  A. Advertising

  B. Direct marketing

  C. Public relation

  D. Sales promotion

  E. Personal selling

  Correct Answer: E

• Question 79:

  _____ is a popular positioning method because the relationship of price to quality is among the most important considerations for consumers when they make a purchase decision.

  A. Product attributes

  B. Value

  C. Symbols

  D. Brand image

  E. Competitor differentiation

  Correct Answer: B

• Question 80:

  Churches, educational organizations, and hospitals are considered _____ buyers.

  A. corporate

  B. government

  C. institutional

  D. public

  E. discounted

  Correct Answer: C