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AMA PCM Professional Certified Marketer Exam Practice Test

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Total 316 questions

Professional Certified Marketer Questions and Answers

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Question 1

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 2

Which of the following is a key difference between B2B and B2C buying processes?

Options:

A.

Unlike B2B, B2C buying requires formal orders from the buyer.

B.

Unlike B2C, B2B buying decisions are made by families or individuals.

C.

Unlike B2B, B2C buying process starts with need recognition.

D.

Unlike B2C, B2B decisions do not require a great deal of consideration.

E.

Unlike B2B, B2C has a relatively less formal alternative evaluation step.

Question 3

Toby, the manager in charge of distribution for Nissa Designs, believes that a push strategy will increase efficiency for the company. Which of the following is a feature of a push strategy?

Options:

A.

Merchandise is allocated to stores based on previous sales forecasts.

B.

It involves shipment of the entire merchandise line based on current sales forecast.

C.

It offers a lesser likelihood of overstocked goods.

D.

It determines the amount of merchandise based on data gathered from POS terminals.

E.

It is essentially a customer-driven system.

Question 4

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?

Options:

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.

Question 5

Sophia, a market researcher at Contell Foods, is tasked with assessing the particular food tastes of the Hispanic population in the United States. Previously conducted surveys reveal that the company has failed to tap into the market for processed foods with respect to Hispanic Americans. As a part of Sophia's task, she is required to stay with 50 Hispanic American families and white American families over a period of 6 months and understand the difference in the food tastes, the cooking methods used, and the family culture prevalent in these families. Sophia is conducting _____ research.

Options:

A.

content analysis

B.

focus group

C.

quantitative

D.

mixed

E.

ethnographic

Question 6

_____ is a communication used to create and build brand awareness, with the ultimate goal of moving the consumer through the buying cycle to a purchase.

Options:

A.

Product advertising

B.

Reminder advertising

C.

Personalized advertising

D.

Persuasive advertising

E.

Informative advertising

Question 7

The place aspect of the marketing mix typically involves interactions between the marketer and _____.

Options:

A.

customers

B.

regulatory bodies

C.

suppliers

D.

customers

E.

advertisers

Question 8

Newtown-based athletic shoe manufacturer Alpha Shoes sells different types of shoes for kids, and focuses its marketing activities in the Newtown region. To increase sales of its products, Alpha begins an intensive promotional campaign in Newtown's schools. Which of the following market strategies is the company using?

Options:

A.

diversification

B.

market penetration

C.

horizontal integration

D.

market development

E.

vertical integration

Question 9

Which of the following is the first step in planning and executing an advertising campaign?

Options:

A.

Creating advertisement

B.

Conveying the message

C.

Evaluating and selecting media

D.

Determine the budget

E.

Identifying the target audience

Question 10

Talyn Cosmetics sells high-end cosmetics that are coveted by women, but are priced out of the budgets of most average buyers. Talyn wants to enter the Arian market and is conducting market research to identify the market segment on which it should focus its strategy. Researchers send out a questionnaire to a vast pool of potential customers in Aria and analyze the results. Which of the following questions should research analysts focus on to identify the target segment?

Options:

A.

Would you choose Talyn Cosmetics over other cosmetics brands in the market? Why?

B.

Would you be interested in buying Talyn Cosmetics? What is the most you would be willing to spend on a brand of cosmetics?

C.

What is your preferred mode of purchase of cosmetics—retail stores or online?

D.

List your favorite brands of cosmetics.

E.

How old were you when you began using cosmetics?

Question 11

Which of the following is true of price elasticity?

Options:

A.

The lower the number of substitute products, the higher the price elasticity of demand for a given product.

B.

Rises in income can lead to drops in price elasticity even though product prices are constant.

C.

Products for which demand is highly inelastic are susceptible to minor changes in price.

D.

Generally, if demand for a product is inelastic, lowering the price will appreciably increase demand.

E.

Consumers are generally more sensitive to price decreases than to price increases.

Question 12

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?

Options:

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.

Question 13

_____ survey type has questions that are open ended and allow respondents to answer in their own words.

Options:

A.

Structured

B.

In-depth

C.

Focus

D.

Unstructured

E.

Panel

Question 14

Blogs provide companies with the opportunity to

Options:

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.

Question 15

Firms are most likely to use reminder advertising during the _____stage of the product lifecycle.

Options:

A.

introduction

B.

growth

C.

maturity

D.

extinction

E.

re-introduction

Question 16

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 17

Tim, a musician, was embroiled in an online dispute with an airline company. Tim alleged that his guitar was manhandled by the staff and therefore he set up a blog and released two videos in order to convince others not to use the airline. Which stage of the 4E framework is seen in this scenario?

Options:

A.

Educate the customer

B.

Excite the customer

C.

Experience the service

D.

Experience the product

E.

Engage the product

Question 18

Mars Clothing offers a ""buy one, get one free"" offer on select clothing items and a 20 percent discount on all perfumes. These type of offers are known as a(n)

Options:

A.

premiums

B.

samplings

C.

coupons

D.

deals

E.

sweepstakes

Question 19

When should a company use individual brands over family brands?

Options:

A.

When the manufacturer has to bear the costs of advertisement

B.

When the product is designed by a retailer and developed by a manufacturer

C.

When the products vary in their usage and performance

D.

When the manufacturer wants greater control over positioning the brand

E.

When the manufacturer wants the individual products to feed off each others' success

Question 20

Which of the following is an example of impulse buying?

Options:

A.

Ryan purchased a suit for his wedding after consulting a tailor.

B.

While grocery shopping Sean picked up a pack of bubble-gum from the checkout counter.

C.

Jim conducted a thorough Internet search before buying a new car.

D.

Lily picked up a burger from a drive in restaurant on the way home.

E.

Jordan purchased a mobile phone after being convinced by a sales presentation.

Question 21

The social network that is used solely for sharing videos is

Options:

A.

Google.

B.

Facebook.

C.

YouTube.

D.

Twitter.

E.

LinkedIn.

Question 22

Ryan's Bikes, a motorcycle company, designs and builds custom bikes. The company customizes each vehicle according to the taste, specification and individual requirements of the customer. In this scenario, Ryan's is using a _____ strategy.

Options:

A.

mass marketing targeting

B.

concentrated targeting

C.

micromarketing

D.

differentiated targeting

E.

undifferentiated targeting

Question 23

An inventory-management system in which the supplier determines the amount of product a retailer needs and automatically delivers the appropriate items is referred to as _____.

Options:

A.

retailer-managed inventory

B.

supply chain inventory

C.

logistics-managed inventory

D.

just-in-time inventory management

E.

vendor-managed inventory

Question 24

Calculate the market growth rate of a product in a year if it sold 120,000 units in the first quarter of the year and 200,000 units in the last quarter of the year.

Options:

A.

12.14%

B.

66.66%

C.

72.42%

D.

78.33%

E.

89.91%

Question 25

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 _____.

Options:

A.

early adopters

B.

innovators

C.

early majority

D.

late majority

E.

laggards

Question 26

_____ is/are also known as the Digital Natives, because people in this group were born into a world that already was full of electronic gadgets and digital technologies, such as the Internet and social networks.

Options:

A.

Generation X

B.

Generation Z

C.

The Baby Boomers

D.

Generation Y

E.

Millenials

Question 27

Companies are legally required to

Options:

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.

Question 28

X-Pert Bikes sells bikes for people of all ages. The company is creating a new advertising campaign targeted only at existing customers, encouraging them to buy an X-Pert Bike the next time they want a bike. The company also begins an X-Pert Club for existing users of X-Pert Bikes, as research has shown that familiarity with a brand increases the chances of repeat purchases. In this case, X-Pert's campaign is aiming to build ______.

Options:

A.

brand awareness

B.

brand dilution

C.

brand parity

D.

brand extension

E.

brand loyalty

Question 29

Jim, an entrepreneur, writes funny comic strips and posts them on facebook and twitter. He has a large fan following and he uses many of his innovative, entrepreneurial and cutting edge ideas in his comic strips. Jim is an example of a _____.

Options:

A.

lagger

B.

bonder

C.

creator

D.

professional

E.

sharer

Question 30

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 31

Candy bars should most likely be sold using which type of target market coverage?

Options:

A.

exclusive distribution

B.

direct distribution

C.

intensive distribution

D.

dual distribution

E.

selective distribution

Question 32

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 33

EightBuy.com is an online retail store that offers a special discount on every eighth item that a customer purchases from the store. The website has over 100 pages and the home page of the website is the most viewed page, at 1 million views per day. If EightBuy.com attracts 400,000 unique visitors per day, what is the number of impressions of its home page?

Options:

A.

100

B.

400,000

C.

1 million

D.

1.4 million

E.

3.2 million

Question 34

Which of the following best describes a lagged effect?

Options:

A.

It is a delayed response to a marketing communication campaign exhibited by customers.

B.

It occurs when consumers mention a specific brand name first when they are asked about a product or service.

C.

It occurs when consumers indicate they know the brand when the name is presented to them.

D.

It refers to a potential customer’s inability to recognize or recall that a brand name belongs to a certain product category.

E.

It is any interference that stems from competing messages, a lack of clarity in the message, or a flaw in the medium.

Question 35

Ryan, an insurance salesperson, sells an insurance policy covering hurricane damage to Sean. However, as instructed by his company, Ryan fails to tell Sean that the policy does not include water damage caused by hurricane flooding. In this scenario,

Options:

A.

only the insurance company can be held accountable for fraudulent sales.

B.

only Ryan can be held accountable for fraudulent sale.

C.

no one can be held accountable as the buyer must read the document carefully before buying.

D.

both the insurance company and the salesman can be held accountable.

E.

Ryan can be held accountable only if water damage actually happens.

Question 36

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

Options:

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.

Question 37

Which list below presents the hierarchy of needs in its correct order, beginning with the lowest level need to the highest level need?

Options:

A.

personal, social, physiological, psychological, and safety

B.

physiological, safety, love, esteem, and self-actualization

C.

safety, physiological, safety, and self-actualization, and personal

D.

self-actualization, personal, social, safety, and physiological

E.

safety, personal, self-actualization, physiological, and social

Question 38

Jeanne's, a mom and pop store, sells a large variety of groceries. Jeanne's buys its products from several warehouse owners and sells to consumers from varied market segments. In this scenario, Jeanne's is an example of a _____.

Options:

A.

manufacturer

B.

distributor

C.

drop-shipper

D.

wholesaler

E.

retailer

Question 39

Jim's book store sold management textbooks online to university students. The store wanted to open a brick and motor store in a small town. However, a study showed that there was only small community college in the area and the number of prospective customers was likely to be low. In this scenario, the store is considering the _____ criterion.

Options:

A.

identifiability

B.

substantialness

C.

reachability

D.

profitability

E.

responsiveness

Question 40

In a(n) _____ search for information , a buyer examines his or her own memory and knowledge about a product or service, gathered through past experiences.

Options:

A.

external

B.

perceived

C.

informed

D.

generic

E.

internal

Question 41

Hermit, a fashion apparels retailer, recently slashed prices on its premium fashion label, Lau, by 40%. This resulted in a sharp rise in sales of Lau by 30%. This also directly impacted the sales of its lower-priced brand, Infinity, which saw sales reduced by 15%. What is the cross-price elasticity of demand between Lau and Infinity?

Options:

A.

0.5

B.

0.37

C.

1.33

D.

2

E.

2.66

Question 42

Torege, a video game developer, releases its new first-person shooter game, The Final Call. Torege prices the game at $100, while the rest of its products sell for below $40. Despite this obvious high pricing, hardcore gaming fans of Torege queue up to buy the game when it is released. Which of the following strategies does this scenario exemplify?

Options:

A.

Price skimming

B.

Penetration pricing

C.

Odd pricing

D.

Predatory pricing

E.

Vertical price fixing

Question 43

Each month, the owner of a small restaurant that sells take-out fried chicken and biscuits pays $2,500 in rent, $500 in utilities, $750 interest on a loan, insurance premium of $200, and $250 on advertising on local buses. A bucket of take-out chicken is priced at $9.50. Unit variable costs for the bucket of chicken are $5.50. How many small buckets of chicken does the restaurant need to sell to break even each month?

Options:

A.

442 buckets

B.

764 buckets

C.

1,050 buckets

D.

3,150 buckets

E.

4,200 buckets

Question 44

The management team at Green Meadows Inc. is debating expanding its corporate social responsibility (CSR) budget for the year. Greg is against the proposal, saying that the expenditure on CSR activities does not profit the firm in any way. In his opinion, the money could be better invested in other activities, especially as the market is seeing some volatility. Paolo, however, says that investing in CSR will benefit the firm's reputation in its target market in the long run. Which of the following, if true, weakens Greg's argument?

Options:

A.

The firm has an assured customer base for its products as it is the only supplier in the market.

B.

The country in which Green Meadows operates has recently introduced stricter regulations about the import of raw materials.

C.

The firm has many competitors who sell similar products at similar prices.

D.

The firm's B2B division is much larger and more profitable than its B2C division.

E.

Most of the firm's customers are long-time customers who have been loyal to the firm for many years.

Question 45

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

Options:

A.

glocalization

B.

reverse innovation

C.

homogenization

D.

localization

E.

inverse creation

Question 46

Individuals can choose to purchase Microsoft stand-alone software packages such as the Home and Student versions of Word, Excel, and PowerPoint for $119.99 each. However, they may choose to purchase the Office Home and Student 2010 suite, which has all of these applications in the same package for a price of $149.99. Microsoft is using a __________ pricing strategy.

Options:

A.

penetration

B.

prestige

C.

bundle

D.

odd-even

E.

standard mark-up

Question 47

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

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Total 316 questions