Practice Test Geeks(AMA) American Marketing Association Certification Practice Test
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Marketing Strategy Flashcards

7 cards from real AMA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Marketing Strategy flashcards as text

  1. The 'share of wallet' metric measures:

    Answer: The percentage of a customer's spending in a category that goes to one brand

    Share of wallet tracks what fraction of a customer's total spending in a category is captured by your brand, reflecting loyalty and cross-sell success.

  2. Which concept describes the total amount a customer is expected to spend with a company over the entire relationship?

    Answer: Customer lifetime value (CLV)

    Customer lifetime value (CLV) calculates the projected total revenue a business can expect from a customer over the entire duration of their relationship.

  3. A perceptual map is most useful for:

    Answer: Visualizing how consumers perceive competing brands on key attributes

    A perceptual map plots competing brands on two key dimensions (e.g., price vs. quality) to reveal gaps and positioning opportunities in the market.

  4. According to the Ansoff matrix, which strategy carries the HIGHEST level of risk?

    Answer: Diversification

    Diversification—entering new markets with new products—is the riskiest Ansoff strategy because the firm has no established expertise in either the market or the product.

  5. A company that reduces its product line to focus on its highest-margin items is practicing:

    Answer: Line pruning (contraction)

    Line pruning (or contraction) eliminates weak, low-margin items from a product line to concentrate resources on the most profitable offerings.

  6. Which of the following is an example of psychographic segmentation?

    Answer: Targeting customers who value sustainability and eco-conscious living

    Psychographic segmentation divides markets based on lifestyle, values, attitudes, and personality traits rather than demographics or behavior.

  7. In a SWOT analysis, which two dimensions relate to the EXTERNAL environment?

    Answer: Opportunities and Threats

    Opportunities and Threats come from the external environment (market trends, competition, regulation), while Strengths and Weaknesses are internal factors.