AMA PCM Questions & Answers

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Answer: D


QUESTION: 305

Which of the following is true of personal ethics?


  1. People stop growing in their understanding of ethical behavior once they become adults.

  2. A person's genes, cultural background, and upbringing have no influence on ethical understanding.

  3. Different people view complex situations differently based on their own ethical understandings.

  4. People act unethically on their own accord without any external influences.

  5. Business and marketing ethics have an overbearing influence on personal ethics.


Answer: C


QUESTION: 306

Moul, a diaper manufacturer, is developing a media plan that involves trying to expose its target audience to its new advertisement about ten times. Moul is trying to increase its advertisement's.


  1. reach

  2. repetition

  3. frequency

  4. targeting

  5. exposure


Answer: C


QUESTION: 307

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?

  1. It did not have an ethical mission statement.

  2. It did not have control measures in place.

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

  4. It prioritized profits over effective drugs.

  5. It did not conduct large-scale human trials.


Answer: B


QUESTION: 308

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.


  1. external

  2. perceived

  3. informed

  4. generic

  5. internal


Answer: E


QUESTION: 309

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


  1. The brand awareness of a product

  2. The breadth of the product mix

  3. The importance of each service quality dimension

  4. The complexity of the product or service

  5. The type of labeling used


Answer: C


QUESTION: 310

If a company claims to be fair toward its customers, it would imply that:


  1. the company gives back to the community through volunteerism.

  2. the company offers discounts to its regular customers.

  3. the company does not engage in price fixing or ""bait and switch"" tactics.

  4. the company makes an effort to improve the satisfaction of customers.

  5. the company does not accept criticism from its stakeholders other than


Answer: C


QUESTION: 311

Diversification refers to the marketing strategy of


  1. increasing sales of current products in current markets.

  2. selling current products to new markets.

  3. selling new products to new markets.

  4. selling new products to current markets.

  5. selling the same brands in both current and new markets.


Answer: C


QUESTION: 312

Customer relationship management refers to


  1. the view that organizations should satisfy the needs of consumers in a way that provides for society’s well-being.

  2. the process of identifying prospective buyers, understanding them intimately, and developing favorable long-term perceptions of the organization and its offerings so that buyers will choose them in the marketplace.

  3. the idea that an organization should (1) strive to satisfy the needs of consumers

    (2) while also trying to achieve the organization’s goals.

  4. the links an organization has to its individual customers, employees, suppliers, and other partners for their mutual long-term benefit.

  5. the cluster of benefits that an organization promises customers to satisfy their needs.


Answer: B


QUESTION: 313

In an administered vertical marketing system,:


  1. there are contractual relationships between all parties.

  2. there is common ownership of goods.

  3. one member can directs the actions of another member.

  4. there are franchise relationships between channel members.

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


QUESTION: 314

Cuppa, a coffee-mug manufacturer, invests money in procuring equipment to produce custom prints on coffee mugs. Cuppa also releases a new line of eco- friendly porcelain mugs priced at $20 each. Cuppa spends $24,000 per month on its production, including employees' salaries. The cost of producing and packaging each mug is $12. Cuppa has a target profit of $8,000 a month. How many mugs should Cuppa sell to gain this profit?


A. 1,000

B. 2,000

C. 3,000

D. 4,000

E. 5,000


Answer: D


QUESTION: 315

Which of the following is true of the in-depth interview method?


  1. In-depth interviews can be used for sentiment mining.

  2. The results of in-depth interviews can be used to make quick changes to the product roll.

  3. In-depth interviews are relatively less time consuming.

  4. The results of in-depth interviews can be used to develop surveys.

  5. In-depth interviews cannot be used to establish an historical context.


Answer: D


QUESTION: 316

Which of the following is true of postpurchase cognitive dissonance?


  1. It is likely for products that work as intended.

  2. It is not likely for products that are widely available.

  3. It is likely for products that are associated with low levels of risk.

  4. It is likely for products that are frequently purchased.

  5. It is likely for expensive products.


Answer: E


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