PCM Online Practice Questions and Answers

In which of the following cases is a company changing its business strategy in response to a strength identified in a SWOT analysis?

A. When it realized that its products were inferior in quality to competitors' products, KPR Inc. instituted a revamp of its production processes.

B. YellowBerry Inc. identified market demand for powdered energy drinks, and began producing powdered drinks to cater to this demand.

C. When a survey revealed that customers thought its products were safe and durable, Masada Motors began stressing that aspect in its advertisements.

D. Chocobella Inc. introduced a line of unsweetened chocolates when a competitor's unsweetened chocolate saw increasing demand.

E. When new competitors entered its market, Widdershins Inc. had to increase its advertising and marketing efforts to maintain its market share.

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

A. Structured

B. In-depth

C. Focus

D. Unstructured

E. Panel

Quano Inc. decides to produce a 3D-display phone, Chel, which is a much-anticipated release. Most buyers are disappointed within a week because of heating issues. Quano announces immediately that it would replace the defective phones with a rectified model. The new Chel arrives two months later and has a few issues that are taken care of by a software upgrade. This prompts a flood of sales. After six months, Quano releases a new 3D-phone and drops the prices of Chel by over 40%. Jason who has been waiting for this opportunity buys a Chel immediately. In this scenario, Jason is one among the _____.

A. early adopters

B. innovators

C. early majority

D. late majority

E. laggards

An everyday low pricing strategy differs from a high/low pricing strategy in that an everyday low pricing strategy:

A. does not offer products at discounted prices.

B. has a more uniform pricing throughout a year.

C. offers different discounts and prices on different days of the year.

D. uses predatory pricing and premium pricing tactics.

E. relies on the promotion of sales.

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

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.

Peltz, a chewing gum manufacturer, markets chewing gum in a variety of flavors. The company also sells cardamom- and clove-flavored chewing gum under the Peltz brand. Five years after the introduction of the cardamom and clove flavors, the name Peltz is synonymous with cardamom- and clove-flavored chewing gum. Which of the following aspects of the Peltz brand is exemplified in this scenario?

A. Brand awareness

B. Perceived value

C. Brand parity

D. Brand loyalty

E. Brand extension

Goldwyn, a market researcher at Horpine Analytics, is creating a survey to measure the value of his company's brand as perceived by customers. Which of the following questions will help Goldwyn measure the top-of-mind awareness of Horpine Analytics?

A. Have you used the services of Horpine Analytics?

B. What are companies that you depend on for your business needs?

C. What companies do you think of first when you hear the phrase market analysis?

D. When was the last time you used an analytics tool?

E. What is the likelihood of recommending Horpine Analytics to others?

Which of the following is true of price elasticity?

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.

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

A. exclusive distribution

B. direct distribution

C. intensive distribution

D. dual distribution

E. selective distribution

Lumos Lighting, a company that offers lighting solutions for office spaces, has adopted the AMA Statement of Ethics, although not in its entirety. It does not recognize the value of citizenship as an ethical requirement. Which of the following is Lumos Lighting least likely to do?

A. Apologize to a customer for a faulty product.

B. Invest in a new manufacturing facility to generate more jobs.

C. Institute an employee rewards program.

D. Donate money to a nonprofit involved in developing sustainable living methods.

E. Create a communication channel for customers to lodge complaints.

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,

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.

Fly Air, provides exclusive services such as guaranteed tickets, upgrades and dedicated customer lines to customers who use the airline more than 20 times a year. The company believes that not all customers are created equally. In this scenario, Fly Air is using _____ segmentation.

A. demographic

B. psychographic

C. loyalty

D. geographic

E. occasion

The planning phase of the marketing plan involves

A. defining the mission and vision for the business.

B. evaluating different opportunities by engaging in segmentation, targeting, and positioning.

C. executing the marketing mix using the four Ps.

D. taking any necessary corrective actions to correct deviations from the plan.

E. evaluating the performance of the marketing strategy using marketing metrics.

Which of the following is a source of quantitative research?

A. In-depth interviews

B. Social media sites

C. Scanner data

D. Projective techniques

E. Focus groups

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

A. 6

B. 54

C. 66

D. 10

E. 360