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Question 1

Carnival Cruise Lines increased the price of its seven-day cruise package by 20 percent recently. If demand for its cruises is negatively elastic, which of the following is the likely outcome of the increase in price?

AThe company will see an increase in customer bookings.

BThe company's profit will decrease though its revenue will increase.

CThe company will see a decrease in total revenue.

DThere will be no change in the number of cruises booked.

EThe company's total revenue will increase.

Answer : C

Question 2

Stavely Publishing is conducting a SWOT analysis of its marketing environment. In this analysis, the company will identify its strengths and weaknesses from _____.

Aits customer base

Bgovernment regulations impacting its products

Cits production department

Dchanges in the country's economic environment

Eits competitors' marketing strategies

Answer : C

Question 3

Retailers whose target audience is Baby Boomers should plan their offerings keeping in mind that:

ABaby Boomers are heavy Internet users and tend to do research before purchasing online.

Bas they reach retirement age, Baby Boomers' incomes and spending power is decreasing.

Cas a result of their being born in a post-war world, Baby Boomers tend to buy products based on price, not quality.

DBoomers tend to be collectivistic rather than individualistic and prefer family-oriented products.

EBoomers' purchasing habits are influenced by their feelings of financial insecurity.

Answer : A

Question 4

Which of the following is a disadvantage of outdoor marketing?

AIt cannot be linked to detailed content.

BIt is relatively more flexible than newspaper advertising.

CIt offers reduced chances of repeat exposure.

DIt is highly expensive.

EIt offers very limited exposure time.

Answer : E

Question 5

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.

Aniche

Bmass

Cspeciality

Dmicro

Epush

Answer : B

Question 6

Forever Quilting is a company that designs and distributes quilting kits. The kits are priced at $120 each. The costs of the materials that go into each kit are $45. It costs $5 in labor to assemble a kit. The company has monthly expenses of $1,200 for rent and insurance, $300 for heat and electricity, $600 for advertising in quilting magazines, and $3,500 for the monthly salary of its owner. What is the break-even point for Forever Quilting?

A50

B60

C70

D80

E90

Answer : D

Question 7

Which of the following is true of personal ethics?

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

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

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

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

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

Answer : E

AMA Professional Certified Marketer PCM Exam Questions