APICS CLTD Exam - Topic 5 Question 93 Discussion

Actual exam question for APICS's CLTD exam

Question #: 93
Topic #: 5

[All CLTD Questions]

An international organization has a pricing strategy that allows it to sell its product at different prices depending on the country where the product is sold. Which of the following unintended consequences is a result of this strategy?

ACounterfeit products in the supply chain

BGray market products in the supply chain

CHostile takeover by a conglomerate

DDecrease in profits due to variable revenues

Show Suggested Answer

Suggested Answer: A

by Emeline at Nov 13, 2024, 02:50 PM

Limited Time Offer

25%

Off

Get Premium CLTD Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Edda

3 months ago

Not sure if hostile takeovers are related to this pricing strategy.

upvoted 0 times

...

Carissa

3 months ago

Variable pricing can lead to decreased profits, too.

upvoted 0 times

...

Berry

3 months ago

Wait, are counterfeit products really a thing here?

upvoted 0 times

...

Chauncey

4 months ago

I totally agree, it’s a common issue with pricing strategies.

upvoted 0 times

...

Merlyn

4 months ago

Gray market products are definitely a risk.

upvoted 0 times

...

Barbra

4 months ago

I thought variable revenues could affect profits, but I don't see how that directly relates to pricing strategies. Maybe I'm overthinking it?

upvoted 0 times

...

Gussie

4 months ago

I practiced a similar question where gray market products were mentioned as a consequence of price differences. It seems to fit here too.

upvoted 0 times

...

Lashandra

4 months ago

I'm not entirely sure, but I feel like counterfeit products could also be a consequence. It’s a bit confusing!

upvoted 0 times

...

Corinne

5 months ago

I remember discussing how different pricing strategies can lead to gray market issues, so I think option B might be the right answer.

upvoted 0 times

...

Delila

5 months ago

Hmm, I'm not totally sure about this one. I think the pricing strategy could potentially lead to a decrease in profits, but I'm not 100% confident that's the right answer. I'll have to think it through.

upvoted 0 times

...

Hoa

5 months ago

Easy peasy. Differential pricing opens the door for counterfeit products, so A is the clear answer here.

upvoted 0 times

...

Ranee

5 months ago

I'm a little confused on this one. I know differential pricing can lead to gray market issues, but I'm not sure if that's the only unintended consequence. I'll have to review my notes.

upvoted 0 times

...

Herman

5 months ago

Okay, I've got this. The key is to identify the unintended consequence that is most directly related to the pricing strategy. I'm leaning towards B.

upvoted 0 times

...

Nan

5 months ago

Hmm, this seems like a tricky one. I'll need to think carefully about the potential consequences of differential pricing across countries.

upvoted 0 times

...

Becky

1 year ago

I disagree. I believe the unintended consequence could be counterfeit products in the supply chain.

upvoted 0 times

...

Sophia

1 year ago

Haha, D) Decrease in profits? Yeah, right. That's what they want you to think! This is all about maximizing those sweet, sweet profits, my friends.

upvoted 0 times

Francis

1 year ago

D) Decrease in profits due to variable revenues

upvoted 0 times

...

Avery

1 year ago

B) Gray market products in the supply chain

upvoted 0 times

...

Kenneth

1 year ago

A) Counterfeit products in the supply chain

upvoted 0 times

...

Johnetta

1 year ago

I agree with you, Tamekia. Selling at different prices can lead to gray market products.

upvoted 0 times

...

Daren

1 year ago

I'd have to go with B). Gray market is just the fancy term for 'people buying cheap overseas and reselling it at home'. Happens all the time with this kind of pricing strategy.

upvoted 0 times

Agustin

1 year ago

C) Hostile takeover by a conglomerate

upvoted 0 times

...

Hyman

1 year ago

B) Gray market products in the supply chain

upvoted 0 times

...

Noelia

1 year ago

A) Counterfeit products in the supply chain

upvoted 0 times

...

Patti

1 year ago

A) Counterfeit products is a good guess too. When you have that kind of pricing disparity, it creates incentives for counterfeiters to get in on the action.

upvoted 0 times

...

Altha

1 year ago

B) Gray market products in the supply chain seems like the most likely answer here. Selling at different prices in different countries is just begging for gray market goods to pop up.

upvoted 0 times