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CIPS L4M2 Exam - Topic 7 Question 26 Discussion

The position of a product in its life cycle can affect the price that suppliers set. Is this statement correct?
B) Yes, each stage in product life cycle requires different levels of investment in promotion and distribution
A) No, in market economy, the state decides the price of all goods and services
C) No, customer's perception of value is the ultimate determinant of the suppliers' price
D) Yes, it is always the only factor determining the price

CIPS L4M2 Exam - 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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Pete
9 months ago
Really? I thought demand was the main factor, not just the life cycle.
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Arthur
10 months ago
Yes, different stages need different marketing budgets, so prices change.
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Nenita
10 months ago
Wait, are we saying the state controls prices? That's not true!
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Stefania
10 months ago
I think customer perception plays a bigger role than the life cycle.
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Mose
10 months ago
Totally agree, the product life cycle impacts pricing for sure!
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Cherry
10 months ago
I recall that the life cycle can affect pricing strategies, but I don't think it's the only factor. There are so many variables at play!
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Tamar
11 months ago
I feel like customer perception is really important too, but isn't it also true that the life cycle stage can dictate how much suppliers are willing to invest?
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Yvonne
11 months ago
I'm not entirely sure, but I remember a practice question that emphasized how promotion costs can change based on the product's life cycle stage.
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Nelida
11 months ago
I think the product life cycle definitely influences pricing, especially since different stages require varying marketing efforts.
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Mickie
11 months ago
I'm pretty sure the statement is correct. The position in the life cycle affects things like competition, demand, and costs, which all factor into how suppliers set the price.
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Daniela
11 months ago
Okay, I think I've got this. The different stages of the product life cycle, like introduction, growth, maturity, and decline, require different marketing and distribution strategies, which impact the costs and therefore the pricing.
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Norah
11 months ago
This is a tricky one. I'll need to think through the different stages of the product life cycle and how that might impact pricing.
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Felton
11 months ago
Hmm, I'm not sure about this one. I know the product life cycle is important, but I'm not confident I can explain how it affects pricing.
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Nobuko
11 months ago
The Enhanced Composer option sounds interesting, but I'm not sure if that's the right tool for this specific task. I'll need to review the capabilities of each feature to determine the best approach.
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Dion
11 months ago
This question seems straightforward - I think the best answer is A, a review of an architecture project against established criteria and business objectives.
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Queen
11 months ago
The most likely cause seems to be that the user device profile is not subscribed to the Cisco Extension Mobility service. That would explain why they can't log out. I'll make sure to double-check that in my answer.
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Bernardo
1 year 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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Edison
1 year ago
A) No, in market economy, the state decides the price of all goods and services
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Dana
1 year ago
C) No, customer's perception of value is the ultimate determinant of the suppliers' price
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Gianna
1 year ago
B) Yes, each stage in product life cycle requires different levels of investment in promotion and distribution
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Erasmo
1 year 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
1 year 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
1 year ago
C) No, customer's perception of value is the ultimate determinant of the suppliers' price
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Andra
1 year 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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Virgilio
1 year ago
C) No, customer's perception of value is the ultimate determinant of the suppliers' price
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Sheron
1 year ago
B) Yes, each stage in product life cycle requires different levels of investment in promotion and distribution
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Malcolm
1 year ago
Yes, each stage in product life cycle requires different levels of investment in promotion and distribution
upvoted 0 times
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Kent
1 year 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
1 year ago
B) Yes, each stage in product life cycle requires different levels of investment in promotion and distribution
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Florencia
1 year 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
1 year 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
1 year 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
1 year ago
C) No, customer's perception of value is the ultimate determinant of the suppliers' price
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Patti
1 year ago
B) Yes, each stage in product life cycle requires different levels of investment in promotion and distribution
upvoted 0 times
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