AMA PCM TEST PAPER 2025/2026 ANSWERS AND
QUESTIONS GRADED A+
✔✔Intangibility - ✔✔A major characteristic of services - they cannot be seen, tasted,
felt, heard, or smelled before they are purchased.
✔✔Inventory - ✔✔Extra supply of the items used in a business, such as raw materials
or goods for sale.
✔✔Inventory Cost of Service - ✔✔All process steps that are completed prior to the
customer's arrival. Much like inventories of physical products, service inventories affect
how quickly - and at what cost - a firm can fill demand.
✔✔Knowledge Gap - ✔✔A type of service gap that reflects the difference between
customers' expectations and the firm's understanding of those expectations
✔✔Laggards - ✔✔Consumers who like to avoid change and rely on traditional products
until they are no longer available.
✔✔Late Majority - ✔✔The last group of buyers to enter a new product market; when
they do, the product has achieved its full market potential.
✔✔Market Testing - ✔✔The stage of the new-product process that exposes actual
products to prospective consumers under realistic purchase conditions to see if they will
buy.
✔✔New-Product Process - ✔✔The 7 stages an organization goes through to identify
business opportunities and convert them into salable products or services 1) new
product strategy development 2) idea generation 3) Screening and evaluation
(Feasibility Study) 4) business analysis 5) development 6) Market testing 7)
Commercialization
✔✔Nondurable Good - ✔✔Goods that last a short period, such as food, light bulbs, and
sneakers.
✔✔Peak Demand - ✔✔The greatest quantity of a product at any one time.
✔✔Process Materials - ✔✔Materials that are used directly in the production of other
products but are not readily identifiable.
✔✔Product Class - ✔✔Positioning the brand against other products that, while not the
same, offer the same class of benefits.
, ✔✔Product Life Cycle - ✔✔The stages through which goods and services move from
the time they are introduced on the market until they are taken off the market.
✔✔Product Line - ✔✔A group of products that are closely related because they function
in a similar manner, are sold to the same customer groups, are marketed through the
same types of outlets, or fall within given price ranges.
✔✔Product Mix - ✔✔The particular assortment of goods and services that a business
offers to meet the needs of its market(s) and its company goals.
✔✔Psychological Barriers - ✔✔Barriers related to the way people think, reason, or feel:
personality, values, language.
✔✔Raw Materials - ✔✔Basic substance in its natural, modified, or semi-processed
state, used as an input to a production process for subsequent modification or
transformation into a finished good.
✔✔Reliability - ✔✔Ability of a test to produce consistent and stable scores.
✔✔Responsiveness - ✔✔A bodily process occurring due to the effect of some foregoing
stimulus or agent.
✔✔Risk Barriers - ✔✔Consumers resist using a product for 1) physical, 2) economic, or
3) social reasons.
✔✔Roll-Out - ✔✔Occurs when a product is introduced in stages, starting in one set of
geographic areas and gradually expanding into adjacent areas.
✔✔Service Continuum - ✔✔The range of offerings companies bring to the market, from
the tangible to the intangible or product-dominant to service-dominant.
✔✔Service Gap - ✔✔The difference between customers' expectations and perceptions
of customer service to improve customers' satisfaction with their service.
✔✔Service Quality - ✔✔The consistency meeting or exceeding customer expectations
(external focus) and service delivery system performance (internal focus) for all service
encounters.
✔✔Shopping Products - ✔✔Products that a customer feels are worth the time and effort
to compare with competing products.
✔✔Slotting Allowance (Slotting Fee) - ✔✔The fee that retail vendors charge to a
manufacturer, or wholesaler to ensure a good product placement. For example the
QUESTIONS GRADED A+
✔✔Intangibility - ✔✔A major characteristic of services - they cannot be seen, tasted,
felt, heard, or smelled before they are purchased.
✔✔Inventory - ✔✔Extra supply of the items used in a business, such as raw materials
or goods for sale.
✔✔Inventory Cost of Service - ✔✔All process steps that are completed prior to the
customer's arrival. Much like inventories of physical products, service inventories affect
how quickly - and at what cost - a firm can fill demand.
✔✔Knowledge Gap - ✔✔A type of service gap that reflects the difference between
customers' expectations and the firm's understanding of those expectations
✔✔Laggards - ✔✔Consumers who like to avoid change and rely on traditional products
until they are no longer available.
✔✔Late Majority - ✔✔The last group of buyers to enter a new product market; when
they do, the product has achieved its full market potential.
✔✔Market Testing - ✔✔The stage of the new-product process that exposes actual
products to prospective consumers under realistic purchase conditions to see if they will
buy.
✔✔New-Product Process - ✔✔The 7 stages an organization goes through to identify
business opportunities and convert them into salable products or services 1) new
product strategy development 2) idea generation 3) Screening and evaluation
(Feasibility Study) 4) business analysis 5) development 6) Market testing 7)
Commercialization
✔✔Nondurable Good - ✔✔Goods that last a short period, such as food, light bulbs, and
sneakers.
✔✔Peak Demand - ✔✔The greatest quantity of a product at any one time.
✔✔Process Materials - ✔✔Materials that are used directly in the production of other
products but are not readily identifiable.
✔✔Product Class - ✔✔Positioning the brand against other products that, while not the
same, offer the same class of benefits.
, ✔✔Product Life Cycle - ✔✔The stages through which goods and services move from
the time they are introduced on the market until they are taken off the market.
✔✔Product Line - ✔✔A group of products that are closely related because they function
in a similar manner, are sold to the same customer groups, are marketed through the
same types of outlets, or fall within given price ranges.
✔✔Product Mix - ✔✔The particular assortment of goods and services that a business
offers to meet the needs of its market(s) and its company goals.
✔✔Psychological Barriers - ✔✔Barriers related to the way people think, reason, or feel:
personality, values, language.
✔✔Raw Materials - ✔✔Basic substance in its natural, modified, or semi-processed
state, used as an input to a production process for subsequent modification or
transformation into a finished good.
✔✔Reliability - ✔✔Ability of a test to produce consistent and stable scores.
✔✔Responsiveness - ✔✔A bodily process occurring due to the effect of some foregoing
stimulus or agent.
✔✔Risk Barriers - ✔✔Consumers resist using a product for 1) physical, 2) economic, or
3) social reasons.
✔✔Roll-Out - ✔✔Occurs when a product is introduced in stages, starting in one set of
geographic areas and gradually expanding into adjacent areas.
✔✔Service Continuum - ✔✔The range of offerings companies bring to the market, from
the tangible to the intangible or product-dominant to service-dominant.
✔✔Service Gap - ✔✔The difference between customers' expectations and perceptions
of customer service to improve customers' satisfaction with their service.
✔✔Service Quality - ✔✔The consistency meeting or exceeding customer expectations
(external focus) and service delivery system performance (internal focus) for all service
encounters.
✔✔Shopping Products - ✔✔Products that a customer feels are worth the time and effort
to compare with competing products.
✔✔Slotting Allowance (Slotting Fee) - ✔✔The fee that retail vendors charge to a
manufacturer, or wholesaler to ensure a good product placement. For example the
