AMA PCM CORE EXAMS SET 2025/2026 ANSWERS AND
QUESTIONS GRADED A+
✔✔Marginal Revenue - ✔✔A change to the total revenue resulting from the sale of one
more unit of output in a perfectly competitive firm.
✔✔Multiple-Unit Pricing (Multiple Packaging) - ✔✔Discounts offered to customers who
buy in quantity or who buy a product bundle.
✔✔Negotiated Pricing - ✔✔A type of differential pricing where the final price is
established through buyer/seller bargaining (buying a car).
✔✔Nonprice Competition - ✔✔Competition by firms trying to attract customers by
methods other than reducing prices; examples include advertising and promotional gifts.
✔✔Odd-Even Pricing - ✔✔Psychological pricing tactic based on the premise that
customers prefer prices not stated in even dollar amounts
✔✔Penetration Pricing - ✔✔A new product pricing strategy that aims to capture as
much of the market as possible through rock-bottom pricing.
✔✔Periodic Discounting - ✔✔The temporary reduction due to seasonal or predictable
sales based on a patterned or systematic basis
✔✔Premium Pricing - ✔✔Pricing the highest quality or most versatile products higher
than other models in the product line.
✔✔Prestige Pricing - ✔✔Charging a high price to help promote a high-quality image.
✔✔Price - ✔✔The amount of money paid for a good, service, or resource. Marketing
element requiring marketers to determine the amount of money they will ask in
exchange for their products.
✔✔Price Competition - ✔✔A type of rivalry between or among businesses that focuses
on the use of price to attract scarce customer dollars.
✔✔Price Discrimination - ✔✔A price structure in which the seller charges different
prices for the product it sells and the price differences do not reflect cost differences.
✔✔Price Elasticity of Demand - ✔✔The responsiveness of the quantity demanded to a
change in price, measured by dividing the percentage change in the quantity demanded
of a product by the percentage change in the product's price.
, ✔✔Profit-Oriented Pricing Approach - ✔✔Profit-oriented objectives include profit
maximization, satisfactory profits, and target return on investment
✔✔Promotional Allowances - ✔✔Cash payments or an extra amount of "free goods"
awarded sellers in the marketing channel for undertaking certain advertising or selling
activities to promote a product.
✔✔Pure Competition - ✔✔A market structure characterized by many buyers and sellers,
firms producing identical products and no barriers to producers to enter and exit.
✔✔Pure Monopoly - ✔✔A monopoly in which there is: (1) only one seller; (2) no close
substitutes; (3) getting into and out of the market is difficult; and (4) there is almost
complete control over prices.
✔✔Quantity Discount - ✔✔Discounts offered to encourage customers to buy in larger
amounts.
✔✔Random Discounting - ✔✔Tempporary reduction of prices on an unsystematic basis
✔✔Reference Pricing - ✔✔Prices that buyers carry in their minds and refer to when they
look at a given product.
✔✔Robinson-Patman Act (1936) - ✔✔Makes illegal any price discrimination. Does
permit some price differences, but they must be based on, 1) cost differences, or 2) the
need to meet competition.
✔✔Seasonal Discount - ✔✔Discounts offered to encourage buyers to by earlier than
present demand requires.
✔✔Secondary-Market Pricing - ✔✔Setting one price for the primary target market and a
different price for another market.
✔✔Sherman Antirust Act (1890) - ✔✔States that any combination, conspiracy, or
collusion with the intent of restricting trade in interstate commerce is illegal.
✔✔Standard Markup Pricing - ✔✔Adding a fixed percentage to the cost of all items in a
specific product class.
✔✔Survival Pricing - ✔✔A short-term pricing solution to stay in business by covering
essential costs only.
✔✔Target Return on Investment (ROI) Pricing - ✔✔Management's overall effectiveness
in generating profits with the available assets. Net profits after taxes over total assets.
QUESTIONS GRADED A+
✔✔Marginal Revenue - ✔✔A change to the total revenue resulting from the sale of one
more unit of output in a perfectly competitive firm.
✔✔Multiple-Unit Pricing (Multiple Packaging) - ✔✔Discounts offered to customers who
buy in quantity or who buy a product bundle.
✔✔Negotiated Pricing - ✔✔A type of differential pricing where the final price is
established through buyer/seller bargaining (buying a car).
✔✔Nonprice Competition - ✔✔Competition by firms trying to attract customers by
methods other than reducing prices; examples include advertising and promotional gifts.
✔✔Odd-Even Pricing - ✔✔Psychological pricing tactic based on the premise that
customers prefer prices not stated in even dollar amounts
✔✔Penetration Pricing - ✔✔A new product pricing strategy that aims to capture as
much of the market as possible through rock-bottom pricing.
✔✔Periodic Discounting - ✔✔The temporary reduction due to seasonal or predictable
sales based on a patterned or systematic basis
✔✔Premium Pricing - ✔✔Pricing the highest quality or most versatile products higher
than other models in the product line.
✔✔Prestige Pricing - ✔✔Charging a high price to help promote a high-quality image.
✔✔Price - ✔✔The amount of money paid for a good, service, or resource. Marketing
element requiring marketers to determine the amount of money they will ask in
exchange for their products.
✔✔Price Competition - ✔✔A type of rivalry between or among businesses that focuses
on the use of price to attract scarce customer dollars.
✔✔Price Discrimination - ✔✔A price structure in which the seller charges different
prices for the product it sells and the price differences do not reflect cost differences.
✔✔Price Elasticity of Demand - ✔✔The responsiveness of the quantity demanded to a
change in price, measured by dividing the percentage change in the quantity demanded
of a product by the percentage change in the product's price.
, ✔✔Profit-Oriented Pricing Approach - ✔✔Profit-oriented objectives include profit
maximization, satisfactory profits, and target return on investment
✔✔Promotional Allowances - ✔✔Cash payments or an extra amount of "free goods"
awarded sellers in the marketing channel for undertaking certain advertising or selling
activities to promote a product.
✔✔Pure Competition - ✔✔A market structure characterized by many buyers and sellers,
firms producing identical products and no barriers to producers to enter and exit.
✔✔Pure Monopoly - ✔✔A monopoly in which there is: (1) only one seller; (2) no close
substitutes; (3) getting into and out of the market is difficult; and (4) there is almost
complete control over prices.
✔✔Quantity Discount - ✔✔Discounts offered to encourage customers to buy in larger
amounts.
✔✔Random Discounting - ✔✔Tempporary reduction of prices on an unsystematic basis
✔✔Reference Pricing - ✔✔Prices that buyers carry in their minds and refer to when they
look at a given product.
✔✔Robinson-Patman Act (1936) - ✔✔Makes illegal any price discrimination. Does
permit some price differences, but they must be based on, 1) cost differences, or 2) the
need to meet competition.
✔✔Seasonal Discount - ✔✔Discounts offered to encourage buyers to by earlier than
present demand requires.
✔✔Secondary-Market Pricing - ✔✔Setting one price for the primary target market and a
different price for another market.
✔✔Sherman Antirust Act (1890) - ✔✔States that any combination, conspiracy, or
collusion with the intent of restricting trade in interstate commerce is illegal.
✔✔Standard Markup Pricing - ✔✔Adding a fixed percentage to the cost of all items in a
specific product class.
✔✔Survival Pricing - ✔✔A short-term pricing solution to stay in business by covering
essential costs only.
✔✔Target Return on Investment (ROI) Pricing - ✔✔Management's overall effectiveness
in generating profits with the available assets. Net profits after taxes over total assets.
