CIPS L3M3 Exam - Topic 1 Question 12 Discussion

Actual exam question for CIPS's L3M3 exam

Question #: 12
Topic #: 1

[All L3M3 Questions]

How many 'Whys'?

AFive

BFour

CThree

DSix

Show Suggested Answer

Suggested Answer: B

'Market skimming' is the correct answer.

An obvious example of this type of pricing behaviour is in the field of technology, where 'early adopters' will pay significantly more for a product, even although they know the price will drop subsequently. For commercially-used products, sometimes there is an urgent need for an organisa-tion to acquire - a topical example as I write (early 2022) is some new surveillance technology which is in the news and which some governments are desperate to have. In consumer markets, everyone's 'go-to' example is the next generation smartphone, especially Apple products.

Promotional pricing is a short-term price reduction (or 'two-4-one' type offer) to generate sales in the short-term, for example to clear stock, or because of a manufacturer financial support arrangement.

Price discrimination is where the seller sets different prices for different market segments. An ex-ample would be charging different rail fares in UK or mainland Europe based on customer age.

Contribution pricing is based on the notion that sales should cover costs, contributing to the busi-ness, without necessarily making a profit. For example, a large order may be accepted which will keep the workforce employed (retaining their skills as well as having a considerate / ethical outlook) to see the firm through a rough period.

by Franchesca at May 30, 2024, 01:40 PM

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Ira

9 months ago

Not sure about that, seems off.

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Sharika

9 months ago

Totally with you on five!

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Orville

10 months ago

Wait, is it really six?

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Corrie

10 months ago

Definitely four!

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Twana

10 months ago

I think it's five.

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Emerson

10 months ago

I thought it was six 'Whys' in some contexts, but that seems too high for the standard method.

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Laurene

11 months ago

I feel like it could be three or four, but I can't recall the exact details from the study materials.

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Kati

11 months ago

I practiced a similar question last week, and I believe it was four 'Whys' that we discussed.

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Ulysses

11 months ago

I think I remember something about the 'Five Whys' technique, but I'm not entirely sure if that's the right answer here.

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Erasmo

11 months ago

This seems straightforward, but I want to double-check my work before answering.

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Nell

11 months ago

Okay, I think I've got this. Let me walk through the options and see which one makes the most sense.

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Cassi

11 months ago

I'm not sure about this one. The wording is a bit ambiguous. I'll have to analyze it closely.

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Myong

11 months ago

Hmm, this is an interesting one. I'll need to read the question carefully and think it through step-by-step.

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Andra

11 months ago

I'm confident I know the right answer here. The question is clear and the options are straightforward.

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Lashon

11 months ago

I'm pretty sure the command to create choropleth maps is geostats, so I'll go with option A.

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Jeannetta

11 months ago

This reminds me of similar practice questions we did on management risks. Option A feels like a safe bet, especially with such a risky background.

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Phillip

1 year ago

I heard the answer is E) Infinite, because the 'Whys' just keep going on and on forever in our existential questions about life!

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Cassie

1 year ago

C) Three

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Avery

1 year ago

B) Four

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Kami

1 year ago

C) Three

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Ria

1 year ago

A) Five

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Sheron

1 year ago

B) Four

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Salome

1 year ago

A) Five

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Aileen

1 year ago

Ha, this question is like a game of 'Where's Waldo' but with 'Whys' instead! I'm feeling lucky, let's go with B) Four.

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Brandee

1 year ago

User 4: I agree with you, let's go with B) Four.

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Claudia

1 year ago

User 3: I'll choose D) Six.

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Sharita

1 year ago

User 2: I'm going with C) Three.

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Arthur

1 year ago

User 1: I think it's A) Five.

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Maryln

1 year ago

Aw, man, I was totally going to pick D) Six, because there are six letters in the word 'Whys'! Dang, should have read the question more carefully.

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Sue

1 year ago

Hmm, I think the answer is C) Three. I mean, that's the number of 'Whys' I can see in the question. Easy peasy!

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Maybelle

1 year ago

I think it's D) Six, actually.

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Catalina

1 year ago

I agree, the answer is C) Three.

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Jamey

1 year ago

Wait, are we supposed to count the number of 'Whys' in the question itself? That's a bit of a brain teaser!

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Starr

1 year ago

I'm not sure, but I think the answer might be A) Five, because asking 'why' five times is a common practice in problem-solving.

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Beckie

1 year ago

I agree with Hyun, because in the '5 Whys' technique, we ask 'why' five times to get to the root cause of a problem.

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Hyun

1 year ago

I think the answer is C) Three.

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