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Exam Code: PCMExam Name: Professional Certified Marketer
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PCM accurate prep material Total Q&A: 316 Questions and Answers
Last Update: 2016-12-27
PCM Exam Collection Detail: PCM accurate prep material
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NO.1 Dento Inc., a manufacturer of dental care products, faced a social media uproar when rumors
spread that it was using ingredients from animal sources to create its products. The labels as such
carried no evidence of this and this discovery was brought about by an independent researcher. The
company's CEO and senior management did not know about these ingredients. Internal research
revealed that containers used to hold Dento's products, produced by a vendor, used products derived
from animal fat in the manufacturing process, but the product itself did not contain any fat. What
should Dento do to prove that it is ethical?
A. Release a statement to the press explaining that it is not responsible for the manufacturing
processes of its suppliers.
B. Refute the independent researcher's claims by filing a defamation suit.
C. Penalize the vendor by not paying for the next order of packaging materials.
D. Invest in a program that aims to spread dental hygiene awareness.
E. Inform its consumers of the situation and implement measures to ensure animal-fat-free
packaging and products.
Answer: E
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NO.2 Hermit, a fashion apparels retailer, recently slashed prices on its premium fashion label, Lau,
by 40%. This resulted in a sharp rise in sales of Lau by 30%. This also directly impacted the sales of its
lower-priced brand, Infinity, which saw sales reduced by 15%. What is the cross-price elasticity of
demand between Lau and Infinity?
A. 1.33
B. 0.5
C. 0.37
D. 2
E. 2.66
Answer: C
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