AMA PCM Exam - Topic 9 Question 118 Discussion

Actual exam question for AMA's PCM exam

Question #: 118
Topic #: 9

[All PCM Questions]

Which of the following is true of an administrative marketing channel?

AThe parent company has complete control over the marketing channel because it owns multiple segments of the channel.

BThe channel is held together by contractual relationships between the members of the channel.

CThere is no common ownership, but the dominant channel member controls or holds the balance of power.

DSeveral independent members---a manufacturer, a wholesaler, and a retailer---each attempts to satisfy its own objectives and maximize its profits.

ENone of the participants has any control over the others.

Show Suggested Answer

Suggested Answer: C

by Lucy at Oct 27, 2025, 01:04 PM

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Alonso

17 days ago

I lean towards B. Contractual relationships are key in channels.

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Sueann

22 days ago

D makes sense. Everyone wants to maximize profits, right?

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Selene

27 days ago

I feel like A could be true too. Complete control sounds right for some companies.

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Maryrose

2 months ago

B is also valid, contracts are key in many channels.

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Polly

2 months ago

Wait, E? No control at all? That seems off.

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Ty

2 months ago

D sounds right, everyone just looks out for their own profits.

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Antonio

2 months ago

I think A is misleading, not all channels are owned completely.

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Brendan

2 months ago

C is definitely true, the dominant member usually calls the shots.

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Han

3 months ago

Haha, E? Yeah, right. As if any business would let others control their marketing channel without a fight.

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Leontine

3 months ago

D is just too idealistic. In the real world, there's always a power imbalance in marketing channels.

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Sherrell

3 months ago

I agree with C. The lack of common ownership but presence of a dominant member is the key characteristic of an administrative marketing channel.

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Alida

3 months ago

Option C seems the most accurate. The dominant channel member controls the marketing channel without owning it.

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Shenika

3 months ago

I feel like option A could be a possibility since it talks about complete control, but I’m not confident if that applies to administrative channels specifically.

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Winifred

3 months ago

I'm not entirely sure, but I remember something about contractual relationships in option B. It might be relevant to administrative channels.

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Kenia

4 months ago

I think C is the best choice. The dominant member usually controls everything.

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Jenise

4 months ago

Option D seems to describe a more traditional channel structure, but I remember we talked about how administrative channels differ from that.

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Alecia

5 months ago

I think option C sounds familiar because it mentions a dominant member controlling the channel, which we discussed in class.

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Salina

5 months ago

I'm leaning towards C. The key is that there's no common ownership, but one member has the balance of power.

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Yuette

5 months ago

D can't be right, that describes an independent marketing channel, not an administrative one.

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Hyman

5 months ago

B sounds right to me. The channel is held together by contracts between the members, not complete control by the parent company.

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Lizette

5 months ago

Hmm, I'm not sure about this one. The options seem pretty similar, I'll have to think it through carefully.

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Lonna

6 months ago

I think the answer is C. The question is asking about an administrative marketing channel, which means there's no common ownership but one member dominates the others.

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