Discuss CIPS L4M5 Exam Topic 8 Question 89

Which of the following are internal factors when a supplier is making its pricing decision?

A1 and 2 only (Price elasticity of demand and Environmental legislation)

B1 and 4 only (Price elasticity of demand and The stage in the product life cycle)

C2 and 3 only (Environmental legislation and Risk management)

D3 and 4 only (Risk management and The stage in the product life cycle)

Suggested Answer: D

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27 comments · newest first

Luis 8 months ago

C is tricky. Environmental laws are external, right?

Evangelina 9 months ago

D could work, but risk management isn't always internal.

Karl 9 months ago

I feel like A makes sense too. Demand elasticity is key.

Mari 9 months ago

Just to clarify, are we sure about the definitions here?

Yoko 9 months ago

I thought risk management was more of an external factor too.

Graciela 9 months ago

Wait, isn't environmental legislation external?

Lamonica 9 months ago

Totally agree, the product life cycle is key!

Julio 10 months ago

Haha, who even considers "risk management" an internal factor? That's just common sense, not a pricing strategy.

Judy 10 months ago

C seems like the right answer to me. Risk management and environmental legislation are key internal factors in pricing decisions.

Leana 10 months ago

Hmm, I'm not so sure about that. I think environmental legislation could also be considered an internal factor since the supplier has to take that into account.

Deangelo 10 months ago

I think the correct answer is B. Price elasticity of demand and the stage in the product life cycle are definitely internal factors.

Veronique 10 months ago

I recall that risk management is often considered an internal factor, but I’m confused about how it relates to the product life cycle in this context.

Kasandra 10 months ago

I think B is the best choice. Product life cycle matters.

Kip 11 months ago

I think it's B, those factors really matter.

Cherry 11 months ago

I practiced a similar question where we had to identify internal versus external factors, and I feel like environmental legislation might be more external, but I could be wrong.

Erick 11 months ago

D is the way to go. The stage in the product life cycle is crucial for pricing, and risk management is a no-brainer.

Jamika 11 months ago

I'm not entirely sure, but I remember that price elasticity of demand is definitely an internal factor since it relates to how the supplier sets prices based on their own market analysis.

Afton 12 months ago

I think internal factors should focus more on aspects that the supplier can control, like pricing strategies and product life cycle.

Thaddeus 12 months ago

Ugh, I hate these pricing questions. There are just so many different factors to consider. I'm going to have to really focus and break this down step-by-step to figure out which ones are truly internal to the supplier. Hopefully I can eliminate a couple options and then make an educated guess.

Lisbeth 1 year ago

Okay, I've got this. The internal factors are going to be things that are directly under the supplier's control or influence, like their own costs, demand for their product, and their product strategy. The external factors would be things like government regulations or competition. I'm pretty confident B is the right answer here.

Fairy 1 year ago

Hmm, this one seems a bit tricky. I'm not totally sure about the difference between internal and external factors when it comes to pricing decisions. I'll have to think it through carefully and try to eliminate the options that don't seem to fit.

Anthony 1 year ago

I think the key here is to identify the internal factors that the supplier would consider when setting their pricing. The options mention things like demand, product life cycle, and risk management, so I'll need to think through which of those are truly internal to the supplier's decision-making process.

Phillip 7 months ago

↳ replying to Anthony

I’m leaning towards option B for the internal factors.

Jacquelyne 7 months ago

↳ replying to Anthony

I think it’s a mix of both internal and external factors.

Kallie 8 months ago

↳ replying to Anthony

Risk management seems more external to me.

Mose 8 months ago

↳ replying to Anthony

I believe price elasticity is definitely an internal factor.

Trevor 11 months ago

↳ replying to Anthony

True, but what about the product life cycle?

CIPS L4M5 Exam - Topic 8 Question 89 Discussion