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Professional Certified Marketer

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Question # 1

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

Discussion 0
Question # 2

_____ 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

Discussion 0
Question # 3

What does the break-even point refer to in a break-even analysis?

Options:

A.  

It refers to the number of product units sold at which point both loss and profit are zero.

B.  

It refers to the point at which the fixed costs curve intersects the variable costs curve.

C.  

It refers to the required number of products that should sell for the profit to equal the fixed costs.

D.  

It refers to the point at which the variable costs start increasing over fixed costs.

E.  

It refers to the point at which the total costs are equal to the profit generated.

Discussion 0
Question # 4

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%

Discussion 0
Question # 5

Which of the following is the function of programs and PSA's in the PR context?

Options:

A.  

They support cause-related marketing efforts.

B.  

They give the required financial data to investors and other outsiders.

C.  

They generate news coverage of an organizations activities or products.

D.  

They inform various constituencies about the activities of an organization.

E.  

They highlight specific areas of expertise.

Discussion 0
Question # 6

Which of the following is true of distribution centers?

Options:

A.  

Distribution centers rely on pull, rather than push strategies to determine their inventory levels.

B.  

Greater backup inventory is needed to prevent stockouts.

C.  

Space in a distribution center is usually more expensive than space in retail stores.

D.  

Distribution centers work best when retailers have only a few outlets that are far apart geographically.

E.  

Distribution centers enable the retailer to carry less merchandise in the individual stores, which results in lower inventory investments systemwide.

Discussion 0
Question # 7

Raymond is driving across town when he spots a billboard that reads, "When life begins…" He instantly recognizes this as the tagline for Voch Spa and expects to find a spa nearby. Which of the following aspects of a brand is exemplified in this scenario?

Options:

A.  

Brand licensing

B.  

Brand dilution

C.  

Brand association

D.  

Brand loyalty

E.  

Brand extension

Discussion 0
Question # 8

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.

Discussion 0
Question # 9

Spark, a manufacturer of consumer electronics, makes TVs, home theater systems, refrigerators, ACs, and microwave ovens. Spark's surround-sound system, Quadro, was a market leader a few years ago, before the market for large sound systems began to shrink. Despite its dip in market share and minimal profitability, Spark continues to produce Quadro. Spark offers Quadro for a highly discounted price when customers purchase its high-end LCD, LED, plasma, and 3D TV sets. Although the customers would not purchase Quadro as a standalone product at the same price, the combined offer increases the sales of both Quadro, and the other TV sets. In this scenario, Quadro is a _____.

Options:

A.  

dog

B.  

cash cow

C.  

star

D.  

question mark

E.  

market leader

Discussion 0
Question # 10

Kreme, a biscuit manufacturer, offers retailers a 20% discount on its latest product, Coco-Bite. The discount offer comes with a rider that retailers have to feature the product in their promotional material. Kreme is offering a(n) _____ to its retailers.

Options:

A.  

slotting allowance

B.  

cash discount

C.  

seasonal discount

D.  

advertising allowance

E.  

cumulative quantity discount

Discussion 0
Question # 11

Archer Daniels Midland Co. is the world’s largest cocoa-bean processor. It buys cocoa beans and converts them into cocoa powder and cocoa butter, which it then sells to companies like Hershey’s that manufacture consumer products that contain chocolate. In this scenario, ADM is in a(n) _____.

Options:

A.  

consumer

B.  

retailer

C.  

wholesaler

D.  

manufacturer

E.  

distributor

Discussion 0
Question # 12

Which of the following is true of personal ethics?

Options:

A.  

Personal ethics are governed by external factors such as laws and government regulations.

B.  

Personal ethics refer to an individual's understanding or perception of laws.

C.  

Most people, given a chance, will engage in behavior that runs counter to their ethical understanding.

D.  

Most people mature in their understanding of what is ethical and what is not by the age of 12.

E.  

Most people gain ethical understanding through a continuous process from childhood through adulthood.

Discussion 0
Question # 13

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

Discussion 0
Question # 14

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

Discussion 0
Question # 15

Calculate the brand development index of a company for a region where it earns 20% of its sales and in which 4% of the country's population resides.

Options:

A.  

5

B.  

20

C.  

400

D.  

500

E.  

1000

Discussion 0
Question # 16

Fly, a manufacturer of indoor and outdoor heaters, has production facilities that are not running at their full capacity because of piled up inventory. Fly offers a discount to retailers who purchase heaters while the weather is still warm, because the cold months are still at least three months away. Based on historical sales data, Digimart, a retailer, picks up 200 heaters from Fly at a discount of 30% on the usual price. This scenario is an example of a(n) _____.

Options:

A.  

noncumulative quantity discount

B.  

quantity discount

C.  

slotting allowance

D.  

cash discount

E.  

seasonal discount

Discussion 0
Question # 17

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

Discussion 0
Question # 18

BlueGreen Tech is conducting market research to discover potential customers who might be interested in its products. The company will also survey its existing customers to identify ways of selling them additional products from its product line. At which stage of the customer relationship management process is BlueGreen?

Options:

A.  

XXX FILL ME IN XXX

B.  

Reacquisition

C.  

Retention

D.  

Conversion

E.  

Prospecting

Discussion 0
Question # 19

Why are early adopters considered as opinion leaders?

Options:

A.  

They wait until a product is at its lowest price and influence others to make bulk purchases.

B.  

They do not give up on products easily and use a particular version until it is not in production.

C.  

They purchase enough products for the overall price to fall below a certain level and pave the entry for the late majority.

D.  

They read reviews of critics before buying a product.

E.  

They are instrumental in bringing other buyer categories to the market.

Discussion 0
Question # 20

CL Foods, a fast-food chain, considers the entire community to be a potential target market. Moreover, the chain has stores in business districts, near schools and colleges and next to ball-parks. CL Foods is using a _____ strategy.

Options:

A.  

micromarketing

B.  

undifferentiated

C.  

concentrated

D.  

targeted

E.  

focused

Discussion 0
Question # 21

Which of the following is true of the standardized marketing approach?

Options:

A.  

It is losing its relevance in an increasingly globalized marketplace.

B.  

It is not profitable to maintain a standard product across increasingly diverse cultures.

C.  

It can work well for some, but not all products.

D.  

It is very expensive in terms of advertising and other marketing costs.

E.  

It does not work well for multi-functional products.

Discussion 0
Question # 22

Unibix Inc. is developing its marketing plan. The company has identified the segments in the market that it can pursue. Which of the following should the company do next if it follows a typical planning process?

Options:

A.  

Unibix should analyze its internal strengths and weaknesses to evaluate its potential in the market.

B.  

Unibix should identify marketing metrics that it can use to evaluate its performance.

C.  

Unibix should implement the marketing mix and allocate resources for the various activities.

D.  

Unibix should evaluate the attractiveness of the different market segments and select segments on which it will focus its marketing efforts.

E.  

Unibix should conduct a detailed analysis of the cultural and economic factors in the market in which it operates.

Discussion 0
Question # 23

In the typical communication process, the message originates from the _____.

Options:

A.  

receiver

B.  

transmitter

C.  

sender

D.  

creator

E.  

decoder

Discussion 0
Question # 24

Three teenage girls spent hours at a store trying on various outfits, looking at possible combinations, and asking each other, “How do you think this outfit looks on me?” This situation is most closely related to which of the following situational influences?

Options:

A.  

Purchase tasks

B.  

Social surroundings

C.  

Physical surroundings

D.  

Temporal effects

E.  

Antecedent states

Discussion 0
Question # 25

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

Discussion 0
Question # 26

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

Discussion 0
Question # 27

Which of the following is part of the final step in the ethical decision-making process?

Options:

A.  

Establishing the advantages and disadvantages of alternative solutions

B.  

Identifying the various stakeholders who will be affected by the solution

C.  

Identifying the one-off stakeholder who will be affected by the solution

D.  

Developing a firm understanding of the real issue at hand

E.  

Interacting with stakeholders to generate possible solutions

Discussion 0
Question # 28

Which of the following is an advantage of using primary data sources?

Options:

A.  

It requires very little time and effort.

B.  

It is inexpensive.

C.  

It does not require any sophisticated training.

D.  

It offers a lesser scope for bias.

E.  

It does not require experience to design the study.

Discussion 0
Question # 29

Maya Designs is an interior design firm that specializes in designing office spaces. Which of the following is an ethical business practice, but not a corporate responsibility program at Maya?

Options:

A.  

Maya works with nonprofits to design their office spaces for free or highly discounted rate.

B.  

Maya prominently displays the discounts that customers can avail of on its website.

C.  

Maya encourages its employees to volunteer at shelters or schools.

D.  

Maya gives away 5 percent of its profits to environment protection initiatives.

E.  

Maya offers free vocational training through an online course for the unemployed.

Discussion 0
Question # 30

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

Options:

A.  

corporate

B.  

government

C.  

institutional

D.  

public

E.  

discounted

Discussion 0
Question # 31

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.

Discussion 0
Question # 32

Recency, frequency, monetary (RFM) analysis is based on the concept that

Options:

A.  

most consumers follow the standard AIDA process when viewing an ad.

B.  

the best predictor of future behavior is past and present behavior.

C.  

demographics are the basis of all good market research data.

D.  

the best customers for a product are the existing customers.

Discussion 0
Question # 33

Which of the following is an example of a contest?

Options:

A.  

Visit our website and win movie tickets

B.  

Avail our ""featured price"" discounts

C.  

Buy one, get one free

D.  

Player of the year sponsored by Mars Inc.

E.  

Leave your visiting card and win a trip to Bahamas

Discussion 0
Question # 34

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

Discussion 0
Question # 35

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

Discussion 0
Question # 36

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.

Discussion 0
Question # 37

What should a firm do to create a sustainable advantage based on product excellence?

Options:

A.  

Maintain strong relationships with suppliers and retailers

B.  

Undertake advertising and brand-building campaigns to reinforce brand positioning

C.  

Situate stores in all busy shopping areas and malls in a city

D.  

Develop a script for customer service so that all customers have a consistent experience

E.  

Introduce customer loyalty programs to retain existing customers

Discussion 0
Question # 38

_____ risks are those risks associated with the way people will feel if the product or service does not convey the right image.

Options:

A.  

Safety

B.  

Performance

C.  

Physiological

D.  

Social

E.  

Psychological

Discussion 0
Question # 39

Pluto Inc. runs a television and radio advertising campaign which involves several celebrities with the aim of creating a emotionally appealing to its customers. In this scenario, Pluto Inc. is using _____ media.

Options:

A.  

niche

B.  

mass

C.  

speciality

D.  

micro

E.  

push

Discussion 0
Question # 40

Which of the following is true of private-label brands?

Options:

A.  

These brands help manufacturer develop a consistent quality across retailers.

B.  

These brands help the manufacturers position, segment, and build a brand.

C.  

These brands, also known as manufacturer brands, provide greater control over marketing strategies.

D.  

These are products that are distributed to and sold by many retailers.

E.  

These are products based on designs and specifications provided by retailers.

Discussion 0
Question # 41

Which of the following is true of packaging a product?

Options:

A.  

Product repositioning is a cheaper way to attract a new target market than updating a product's packaging.

B.  

The secondary and primary packages of a product are interchangeable.

C.  

When products remain untouched, changing their package invariably induces distrust in customers.

D.  

Changing or updating a product's package is different from method to reposition a product.

E.  

Consumers are tempted to try products in new packaging.

Discussion 0
Question # 42

In the hierarchy of needs water, food, rest, and shelter would be considered _____ needs.

Options:

A.  

physiological

B.  

safety

C.  

social

D.  

personal

E.  

psychological

Discussion 0
Question # 43

Why do companies offer seasonal discounts to customers?

Options:

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

Discussion 0
Question # 44

Whenever Donald calls on potential pest control customers, he emphasizes the fact that, unlike the national franchise competitors, he is a local business person and has been in business over twenty years. Donald is_____ his business relative to his competition.

Options:

A.  

segmenting

B.  

repositioning

C.  

positioning

D.  

valuing

E.  

re-mapping

Discussion 0
Question # 45

What is the net promoter score of a company that has 6,431 promoters and 2,801 passives in survey conducted of 12,000 customers?

Options:

A.  

12.41%

B.  

30.53%

C.  

39.21%

D.  

44%

E.  

51.32%

Discussion 0
Question # 46

Dento Inc., a manufacturer of dental care products, faced a social media uproar when rumors spread that it was using ingredients from animal sources to create its products. The labels as such carried no evidence of this and this discovery was brought about by an independent researcher. The company's CEO and senior management did not know about these ingredients. Internal research revealed that containers used to hold Dento's products, produced by a vendor, used products derived from animal fat in the manufacturing process, but the product itself did not contain any fat. What should Dento do to prove that it is ethical?

Options:

A.  

Release a statement to the press explaining that it is not responsible for the manufacturing processes of its suppliers.

B.  

Refute the independent researcher's claims by filing a defamation suit.

C.  

Invest in a program that aims to spread dental hygiene awareness.

D.  

Inform its consumers of the situation and implement measures to ensure animal-fat-free packaging and products.

E.  

Penalize the vendor by not paying for the next order of packaging materials.

Discussion 0
Question # 47

The Better Business Bureau suggests that at least _____ of the sales should occur at a price for it to be used as a reference price.

Options:

A.  

20 percent

B.  

30 percent

C.  

40 percent

D.  

50 percent

E.  

60 percent

Discussion 0
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