CIPS Exam L4M2 Topic 7 Question 26 Discussion

Actual exam question for CIPS's L4M2 exam

Question #: 26
Topic #: 7

[All L4M2 Questions]

The position of a product in its life cycle can affect the price that suppliers set. Is this statement correct?

ANo, in market economy, the state decides the price of all goods and services

BYes, each stage in product life cycle requires different levels of investment in promotion and distribution

CNo, customer's perception of value is the ultimate determinant of the suppliers' price

DYes, it is always the only factor determining the price

Show Suggested Answer

Suggested Answer: B

Those items make up small portion of spend and the supply risk is low. So it is tactical item according to Kraljic portfolio matrix. Procurement should bundle these items into larger contracts, simplify procurement process.

LO 2, AC 2.1

by Elvera at Dec 26, 2023, 08:32 AM

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Bernardo

2 months ago

I heard a rumor that the exam question was designed by a supplier trying to sell snake oil. Guess they're trying to keep their prices high, even in the decline stage!

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Dana

1 months ago

C) No, customer's perception of value is the ultimate determinant of the suppliers' price

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Gianna

1 months ago

B) Yes, each stage in product life cycle requires different levels of investment in promotion and distribution

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Erasmo

2 months ago

D is a bit extreme. While the product life cycle is a factor, it's not the 'only' factor determining the price. That's like saying the wheel is the only factor in a car's design.

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Marica

2 months ago

I think the statement is correct because the position of a product in its life cycle can indeed affect the price set by suppliers. Different stages require different strategies and investments.

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Elke

2 months ago

C) No, customer's perception of value is the ultimate determinant of the suppliers' price

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Andra

2 months ago

A is just plain wrong. In a market economy, the government doesn't decide the prices of all goods and services. That's not how it works!

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Virgilio

27 days ago

C) No, customer's perception of value is the ultimate determinant of the suppliers' price

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Sheron

29 days ago

B) Yes, each stage in product life cycle requires different levels of investment in promotion and distribution

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Malcolm

1 months ago

Yes, each stage in product life cycle requires different levels of investment in promotion and distribution

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Kent

1 months ago

A is just plain wrong. In a market economy, the government doesn't decide the prices of all goods and services. That's not how it works!

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Diego

2 months ago

B) Yes, each stage in product life cycle requires different levels of investment in promotion and distribution

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Florencia

2 months ago

I think the statement is correct because different stages in a product's life cycle require different strategies to attract customers and maintain competitiveness.

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Nana

2 months ago

C is also a valid answer. Ultimately, the customer's perception of value is a key factor in determining the supplier's price, not just the product life cycle.

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Brock

2 months ago

B is the correct answer. The product life cycle does affect the supplier's pricing strategy, as different stages require varying levels of investment in promotion and distribution.

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Jose

2 months ago

C) No, customer's perception of value is the ultimate determinant of the suppliers' price

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Patti

2 months ago

B) Yes, each stage in product life cycle requires different levels of investment in promotion and distribution

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