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Questions # 21:

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

Questions # 22:

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

Questions # 23:

The American Bar Association requires lawyers to do a certain number of hours of pro bono work. The lawyers are not paid for this work. Such requirements set by organizations are termed as _____.

Options:

A.

norms

B.

values

C.

morals

D.

character

E.

ethics

Questions # 24:

Which of the following commodities is most likely to be bought through habitual decision making?

Options:

A.

Motorcycles

B.

Cheeseburgers

C.

Coffee machines

D.

Kitchen chimneys

E.

Dresses

Questions # 25:

_____ retailers offer an inconsistent assortment of brand name merchandise at a significant discount from the manufacturer’s suggested retail price (MSRP).

Options:

A.

Limited-line

B.

Off-price

C.

Hypermarket

D.

Convenience

E.

Extreme value

Questions # 26:

Venus Inc., an American firm, enters into the Chinese market in association with its local partner, Xy Inc. According to the terms of the contract, the firms agreed to share profits and control, and also pool resources. Moreover, the firms also agreed to share financial burdens as well. This scenario is an example of _____.

Options:

A.

Direct exporting

B.

Direct investment

C.

Joint venture

D.

Licensing

E.

Franchising

Questions # 27:

Which of the following is true of a strategic alliance?

Options:

A.

It involves investing in the partner firm.

B.

It involves sharing financial burdens.

C.

It enables a partner firm to use the brand image of another.

D.

It involves only B2B selling.

E.

The firms involved do not engage in equity partnerships.

Questions # 28:

_____ represents the difference between what the customer really wants and what he or she will accept before going elsewhere.

Options:

A.

Strength of preference

B.

Threshold level

C.

Service quality gap

D.

Voice-of-customer

E.

Zone of tolerance

Questions # 29:

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%

Questions # 30:

According to the AMA Statement of Ethics, a marketer who embraces the ethical value of responsibility is expected to:

Options:

A.

contribute to charities and other social causes.

B.

avoid using coercion with all stakeholders.

C.

avoid knowing participation in conflicts of interest.

D.

listen to the needs of customers and make all reasonable efforts to monitor and improve their satisfaction on an ongoing basis.

E.

disclose list prices and terms of financing as well as available price deals and adjustments.

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