QUESTION: 49

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 _____________.

the value-based price
the loss leader price
the everyday low price
the manufacturer's suggested retail price
the reference price

Answer(s): D

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QUESTION: 50

Procedural fairness refers to:

a customer's perception of the benefits he or she received compared with the costs of inconvenience or loss.
the perceived fairness of the process used to resolve complaints.
the turnaround time taken by a company from receiving a complaint to its resolution.
a customer's perception of the reliability and assurance of a service provider.
the difference in perception between customers about the same service provider.

Answer(s): B

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QUESTION: 51

A consumer goods manufacturer, Ankam, is accused of manufacturing substandard goods. The complainants claim that the products break down before the expiration of their warranty but the warranty is void because the parts that malfunction are not covered by the warranty. Ethan, an independent investigator, is looking into the matter. What should he do first?

Check whether the warranty issued by Ankam clearly specifies that certain parts are not covered by the warranty.
Collect information on all malfunctions and check the list of malfunctioning parts against the warranty to verify if the complaint is true.
Conduct tests of Ankam's products under various conditions and identify the conditions under which they break down.
Interview each of the complainants to find out about their use of Ankam's products.
Advise Ankam on the measures it could adopt until the investigation is complete.

Answer(s): A

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QUESTION: 52

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 _____________.

Direct exporting
Direct investment
Joint venture
Licensing
Franchising

Answer(s): C

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Free AMA PCM Exam Questions (page: 14)

QUESTION: 49

QUESTION: 50

QUESTION: 51

QUESTION: 52

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