CIMAPRO19-P02-1 Exam - Topic 6 Question 36 Discussion

Actual exam question for CIMA's CIMAPRO19-P02-1 exam

Question #: 36
Topic #: 6

A manufacturing company has just developed a new product and must now determine the most appropriate pricing strategy for its initial launch.

The product will initially be unique because it will include highly desirable features that no competitive product offers. Its development has involved substantial expenditure and the company wishes to recover this as soon as possible.

The product's uniqueness is expected to last for only six months before a competitor launches a similar product. It is expected that the competitor will avoid any significant development costs by reverse engineering the company's own product.

At that point, to remain competitive, the company must ensure that its selling price matches that of the competitor.

Which of the following pricing strategies would be most suitable for the initial launch of the company's product?

AMarket skimming

BPenetration pricing

CDual pricing

DOwn label pricing

Show Suggested Answer

Suggested Answer: A

by Clay at May 06, 2022, 08:37 AM

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Providencia

4 months ago

Totally agree, they should capitalize on that uniqueness while they can!

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Dottie

4 months ago

Dual pricing might confuse customers, not a good idea.

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Gabriele

4 months ago

Wait, are they really expecting to recover costs in just six months?

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Ressie

4 months ago

I disagree, penetration pricing could build a strong customer base fast.

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Glory

5 months ago

Market skimming seems like the best option here.

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Tamra

5 months ago

Okay, I think I've got this. If email is always disabled on Integration environments, that would explain why the customer didn't receive the welcome email. I'm feeling pretty confident about this one.

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Shasta

5 months ago

This seems straightforward. The question is asking us to ensure the sendConfirmation() and reserve() methods are executed in the same transactional context, so I believe the correct answer is option C.

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Dona

5 months ago

This question feels similar to one I practiced that had the same symbols. I vaguely recall 2 being an entity.

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