CIMA Exam CIMAPRO19-P03-1 Topic 1 Question 78 Discussion

Actual exam question for CIMA's CIMAPRO19-P03-1 exam

Question #: 78
Topic #: 1

JHG manufactures inexpensive cars that compete largely on price Its cars have very basic equipment and small but economical engines JHG's Board is considering launching a luxury brand of cars that will be far better equipped, more comfortable and have much better performance

Which THREE of the following would be relevant factors to incorporate into the stress testing of this new strategy to create a luxury brand?

AReductions m motorway speed limits

BThe need for consumer research

CIncreased tax on vehicle emissions

DThe cost of designing new cars.

EPotential changes in interest rates.

FSales of JHG's existing range of cars

Show Suggested Answer

Suggested Answer: C, D, F

by Lyla at Sep 16, 2024, 05:35 PM

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Jill

10 months ago

F is an interesting one - they should definitely look at how their existing cars are selling. That could give them insights into what the market wants.

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Carma

9 months ago

D) The cost of designing new cars is important to consider for the luxury brand strategy.

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Domonique

9 months ago

F) Sales of JHG's existing range of cars can provide valuable market insights for the new luxury brand.

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Jaime

9 months ago

B) Consumer research is crucial to understand what customers want in a luxury brand.

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Elenora

10 months ago

A) Reductions in motorway speed limits would impact the performance of luxury cars.

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Detra

10 months ago

Haha, A is a classic red herring! Like motorway speed limits are going to make or break this decision. Nice try, test writers!

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France

10 months ago

I think they should also consider C - increased tax on emissions. That could have a big impact on the viability of the luxury brand.

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Adolph

9 months ago

C) Increased tax on vehicle emissions could impact the pricing and demand for the luxury brand.

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Elin

9 months ago

B) Consumer research is crucial to understand what features consumers want in a luxury car.

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Horace

10 months ago

A) Reductions in motorway speed limits could affect the performance of the luxury cars.

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Adolph

10 months ago

B, D, and E are definitely the most relevant factors. You can't just assume consumers will want a luxury brand without research, and the design and financing costs are crucial.

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