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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?

Show Suggested Answer Hide 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
13 days 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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Erasmo
15 days 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
17 days 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
18 days ago
C) No, customer's perception of value is the ultimate determinant of the suppliers' price
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Andra
19 days 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
20 days ago
B) Yes, each stage in product life cycle requires different levels of investment in promotion and distribution
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Florencia
22 days 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
23 days 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
24 days 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
29 days ago
C) No, customer's perception of value is the ultimate determinant of the suppliers' price
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Patti
30 days ago
B) Yes, each stage in product life cycle requires different levels of investment in promotion and distribution
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