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AMA PCM Professional Certified Marketer Exam Practice Test

Demo: 47 questions
Total 316 questions

Professional Certified Marketer Questions and Answers

Question 1

_____ 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.

Options:

A.

Subsistence theory

B.

Samuelson effect theory

C.

Purchasing power parity theory

D.

Penn effect theory

E.

Trade parity theory

Question 2

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%?

Options:

A.

$2.50

B.

$5

C.

$7.50

D.

$9

E.

$15

Question 3

Empowerment of employees helps to address the delivery gap because:

Options:

A.

employees directly involved with the customer can respond effectively at the moment the problem occurs.

B.

customers appreciate it when everyone in the delivery chain has the same level of authority.

C.

management then doesn't need to devote time and energy to resolving service delivery problems.

D.

employees spend less time resolving problems than managers would.

E.

the major decisions in running a business are taken by lower-level employees and not the senior management.

Question 4

In an administered vertical marketing system,:

Options:

A.

there are contractual relationships between all parties.

B.

there is common ownership of goods.

C.

one member can directs the actions of another member.

D.

there are franchise relationships between channel members.

E.

there is no dominant member; all members have equal power.

Question 5

Which of the following is most likely to be considered a convenience product?

Options:

A.

A lamp

B.

A haircut

C.

Running shoes

D.

A can of soda

E.

Concert tickets purchased online

Question 6

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

Options:

A.

Bounce analysis

B.

Click paths

C.

Conversion rates

D.

Bounce rate

E.

Hits

Question 7

Which problem solving variation would likely be used for clothing, sheets, towels, or electric can openers?

Options:

A.

Routine response behavior

B.

Limited problem solving

C.

Extended problem solving

D.

Simulated solving

E.

Integrated problem solving

Question 8

Which of the following is a source of internal information ?

Options:

A.

Books and magazines

B.

A person's knowledge

C.

Friends and family

D.

Financial reports

E.

Consumer reports

Question 9

A customer information storehouse enables

Options:

A.

retailers to decelerate customer returns.

B.

create a consistent brand image.

C.

provide a seamless experience for customers.

D.

integrate the supply chain.

E.

reduce shipping charges and sales tax.

Question 10

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

Options:

A.

Advertising

B.

Direct marketing

C.

Public relation

D.

Sales promotion

E.

Personal selling

Question 11

Diversification refers to the marketing strategy of

Options:

A.

increasing sales of current products in current markets.

B.

selling current products to new markets.

C.

selling new products to new markets.

D.

selling new products to current markets.

E.

selling the same brands in both current and new markets.

Question 12

A group of firms that make and deliver a given set of goods and services is known as a _____.

Options:

A.

market segment

B.

line extension

C.

focus group

D.

supply chain

E.

marketing mix

Question 13

A company's_____ specifies the marketing activities that a firm will undertake in a specific period of time.

Options:

A.

mission statement

B.

code of conduct

C.

marketing plan

D.

statement of purpose

E.

marketing mix

Question 14

Which of the following retailers offers a broad variety of merchandise, limited service, and low prices?

Options:

A.

Full-line discount stores

B.

Specialty stores

C.

Extreme value retailers

D.

Department stores

E.

Convenience stores

Question 15

Which of the following is seen in Stage 4 of the B2B buying process?

Options:

A.

Metric assessment

B.

Order specifications

C.

Straight rebuys

D.

Vendor negotiation

E.

Modified rebuys

Question 16

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

Options:

A.

Brand dilution

B.

Line extension

C.

Rebranding

D.

Co-branding

E.

Brand association

Question 17

Saleye Pharmaceuticals develops cheaper alternatives to proprietary drugs. Its mission statement states that it wants to create affordable medicine for everyone and create a healthier world. Saleye releases a new and improved version of its pain-relieving drug, Fento. Within a week, Saleye receives many complaints stating that the drug is inducing hallucinations and in some cases triggering certain anxiety disorders. Saleye was caught off-guard as its animal and human trials did not reveal any side effects. Saleye deliberated over the decision to recall the drug for over a week and by the time it eventually did, it had lost millions in stocks. Where did Saleye fail?

Options:

A.

It did not have an ethical mission statement.

B.

It did not have control measures in place.

C.

It did not consider the target market before creating its drug.

D.

It prioritized profits over effective drugs.

E.

It did not conduct large-scale human trials.

Question 18

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

Options:

A.

Educate the customer

B.

Experience the product

C.

Excite the customer

D.

Engage the customer

E.

Experience the service

Question 19

BrewCraft Beer is a microbrewery that sells its beer at its own beer gardens in Central City. Though customers were initially unused to the concept of a beer garden, BrewCraft undertook a long-running social media campaign to popularize the concept. It also advertised the fact that all its ingredients were sources locally and sustainably. Which of the following would be considered the service that BrewCraft is selling customers?

Options:

A.

The beer

B.

The concept of a beer garden

C.

The fact that its products are local and sustainably sourced

D.

The experience customers have at BrewCraft beer gardens

E.

The use of social media for its ad campaign

Question 20

Stavely Publishing is conducting a SWOT analysis of its marketing environment. In this analysis, the company will identify its strengths and weaknesses from _____.

Options:

A.

its customer base

B.

government regulations impacting its products

C.

its production department

D.

changes in the country's economic environment

E.

its competitors' marketing strategies

Question 21

_____ appeals help consumers make purchase decisions by offering factual knowledge that encourage consumers to evaluate the brand favorably on the basis of the key benefits they provide.

Options:

A.

Informational

B.

Push

C.

Pull

D.

Emotional

E.

Mass

Question 22

When advertising content appears to be native to a platform (a news article, independent website, organic search result), the ethical thing to do is to:

Options:

A.

warn users beforehand that the platform contains content from advertisers.

B.

make sure that users are led to the advertiser's content before native content.

C.

charge the advertiser per click and not per view.

D.

make the advertisement stand out by using bright colors for the font and background.

E.

conspicuously disclose when content is sponsored by an advertiser.

Question 23

A seller's costs are usually determined during or after a product is made, with a specified percentage or dollar amount added to the cost to establish a price. In this case, the organization is using _____ pricing.

Options:

A.

skimming

B.

demand-based

C.

differential

D.

cost-plus

E.

expense-based

Question 24

CL Inc. an American fast-food chain enters into an agreement with Mars Corp., a British firm. According to the terms of the contract, Mars Corp. can use CL's brand name, image, logo and business format for a specified fee. This type of market entry is known as _____.

Options:

A.

strategic alliance

B.

franchising

C.

joint venture

D.

direct investment

E.

exporting

Question 25

Pluto, a footwear company, designs and creates sports shoes for children. Since most of Pluto's target market consists of children who are in school, Pluto's retailers agree to sell its shoes for a certain amount below the actual price on the products. The price that Pluto and its retailer agree to sell the sports shoes for is known as _____.

Options:

A.

the value-based price

B.

the loss leader price

C.

the everyday low price

D.

the manufacturer’s suggested retail price

E.

the reference price

Question 26

Which of the following is a feature of using an Internet marketing channel?

Options:

A.

It reduces a company's ability to personalize products.

B.

It limits a firm's market presence.

C.

It removes the need for other channels of distribution.

D.

It reduces the need to spend money on marketing.

E.

It enables companies to offer individualized offerings.

Question 27

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

Options:

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.

Question 28

Resolve surveys 20,000 households that own a TV. The results of this survey indicate that an advertisement for a retail store was watched 360,000 times during a period of three days. The same advertisement was watched at least once by 30,000 people. What is the average frequency of the advertisement?

Options:

A.

30,000

B.

360,000

C.

12

D.

10,000

E.

1.5

Question 29

Which of the following aspects is directly responsible for determining the zone of tolerance of customers?

Options:

A.

The brand awareness of a product

B.

The breadth of the product mix

C.

The importance of each service quality dimension

D.

The complexity of the product or service

E.

The type of labeling used

Question 30

FEL Pharmaceuticals, a new company, decides to incorporate features of the AMA's statement of ethics into its mission statements. The company hires Bernardo, an industry expert, to help them understand the ethical norms of the industry. FEL Pharmaceuticals is most likely in the _____ stage of the strategic marketing planning process.

Options:

A.

control

B.

integration

C.

decline

D.

implementation

E.

planning

Question 31

In the early 1980s, typical round-trip coach air fares from the East Coast to London were over $500. Then Freddie Laker introduced the

People’s Express, a competing service into Newark at $350. Major airlines matched his price—and continued to do so until they drove

People’s Express out of business. Then prices shot back up to over $500. A lawsuit filed under the Sherman Act resulted in the judgment that the major airlines had explicitly tried to destroy a competitor. The experience of People’s Express is an example of __________ on the part of the major airlines.

Options:

A.

price fixing.

B.

price discrimination.

C.

deceptive pricing.

D.

predatory pricing.

E.

pricing constraints.

Question 32

The profit earned by a product is at its lowest during the _____ stage of the product life cycle.

Options:

A.

introduction

B.

maturity

C.

growth

D.

accelerated development

E.

decline

Question 33

If the GRP of an advertisement is 60 percent and its reach is 6 percent, what is the frequency of the ad?

Options:

A.

6

B.

54

C.

66

D.

10

E.

360

Question 34

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 _____.

Options:

A.

encoder

B.

decoder

C.

transmitter

D.

channel

E.

receiver

Question 35

If a customer spends $40 on purchasing a company's product and spends $80 on other companies' products in the same product category, what is the company's share of customer wallet?

Options:

A.

11.12%

B.

22.46%

C.

29.77%

D.

33.33%

E.

41.13%

Question 36

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

Options:

A.

1.5

B.

2

C.

2.5

D.

3.5

E.

4

Question 37

A toy manufacturer realizes that its latest product presents a choking hazard due to some of the components used in the toy. This occured despite the prior implementation of safety measures to prevent such an occurrence. The toy manufacturer is faced with a decision to recall over a million products or place a warning label on each product. This type of situation is representative of _____.

Options:

A.

an ethical dilemma

B.

a law and order problem

C.

unconscionable conduct

D.

pyramid schemes

E.

unfair contract terms

Question 38

In a franchise system,:

Options:

A.

the franchisor operates a retail outlet using a name and format developed and supported by the franchisee.

B.

the franchisee pays a lump sum plus a royalty on all sales in return for the right to operate a business in a specific location.

C.

the franschisee has complete control over the store design, products or services sold, management training, and advertising.

D.

franchisors receive all profits that the franchisees generate, and pay franchisees a fixed sum.

E.

franchisees are responsible for advertising, product development, and system development.

Question 39

CL Corp. buys stationery supplies from Sharpe Inc. on a large scale and sells smaller quantities to several stationery stores around the country. In this scenario, CL Corp. is an example of a _____.

Options:

A.

manufacturer

B.

retailer

C.

wholesaler

D.

promoter

E.

consumer

Question 40

Which of the following is true of Millenials?

Options:

A.

They are those born between 1946 and 1964.

B.

They are those who were alive during World War II.

C.

They are also known as digital natives.

D.

They are those born between 2002 and 2014.

E.

They are also referred to as Generation Yers.

Question 41

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

Options:

A.

behavioral

B.

affective

C.

perceptive

D.

physiological

E.

cognitive

Question 42

The second step in the marketing research project involves

Options:

A.

analysis.

B.

design.

C.

data collection.

D.

implementation.

E.

defining.

Question 43

Which of the following is true of low-involvement customers?

Options:

A.

They scrutinize an advertisement in a thorough manner.

B.

They pay more attention to quality.

C.

They process key elements of a message deeply.

D.

They are likely to have superficial impressions.

E.

They pay more attention to price.

Question 44

Which of the following represents an ethical problem?

Options:

A.

A manager refusing to grant leave to a subordinate who wants to watch a baseball game

B.

A manager underselling his team's abilities to keep the client's expectations reasonable

C.

A manager exaggerating current sales figures slightly to earn a bonus and promotion

D.

A manager accepting responsibility for the mistakes made by his team

E.

A manager admonishing an employee for making a mistake that jeopardized a project

Question 45

_____ pertains to a customer’s perception of the benefits he or she received compared with the costs.

Options:

A.

Distributive fairness

B.

Procedural fairness

C.

Qualitative fairness

D.

Extent of responsiveness

E.

Extent of reliability

Question 46

Telcon, a mobile phone manufacturer, sells its flagship product, Pute, at $250 per unit. The fixed cost incurred by the company is $500,000, and the variable cost per unit is $150. What is the profit earned by Telcon if it sells 100,000 units of Pute?

Options:

A.

$100,000

B.

$500,000

C.

$20,000,000

D.

$9,500,000

E.

$7,500,000

Question 47

A local Target retailer carries a variety of different items. A customer can find anything ranging from socks, DVD’s, and sports gear to groceries. This is an example of the __________ carried by Target.

Options:

A.

breadth of product mix

B.

depth of product line

C.

breadth of product line

D.

versatility of product line

E.

depth of the product mix

Demo: 47 questions
Total 316 questions