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CIPS L4M5 Exam - Topic 9 Question 63 Discussion

Actual exam question for CIPS's L4M5 exam
Question #: 63
Topic #: 9
[All L4M5 Questions]

Premium pricing strategies used by suppliers are characterised by which of the following? Select TWO that apply.

Show Suggested Answer Hide Answer
Suggested Answer: C

Competing is assertive and uncooperative, a power-oriented mode. When competing, an individual pursues his or her own concerns at the other person's expense, using whatever power seems appropriate to win his or her position. Competing might mean standing up for your rights, defending a position you believe is correct, or simply trying to win. Competing will not allow long-term relationship to flourish.

Compromising is intermediate in both assertiveness and cooperativeness. When compromising, the objective is to find an expedient, mutually acceptable solution that partially satisfies both parties. Compromising falls on a middle ground between competing and accommodating, giving up more than competing but less than accommodating. Likewise, it addresses an issue more directly than avoiding but doesn't explore it in as much depth as collaborating. Compromising might mean splitting the difference, exchanging concessions, or seeking a quick middle-ground position. It is a valid approach when long-term relationships are at stake and it is important to find some common ground on which to base an agreement. Both sides get something but not everything. Therefore, this is the most appropriate for this scenario.

Avoiding is unassertive and uncooperative. When avoiding, an individual does not immediately pursue his or her own concerns or those of the other person. He or she does not address the conflict. Avoiding might take the form of diplomatically sidestepping an issue, postponing an issue until a better time, or simply withdrawing from a threatening situation. In the scenario, both parties want to take the opportunity, then avoiding is not an appropriate solution.

Accommodating is unassertive and cooperative---the opposite of competing. When accommodating, an individual neglects his or her own concerns to satisfy the concerns of the other person; there is an element of self-sacrifice in this mode. Accommodating might take the form of selfless generosity or charity, obeying another person's order when you would prefer not to, or yielding to another's point of view. In the scenario, neither party shall concede all of their requirements, it is unnecessary to adopt this approach.

LO 1, AC 1.1


Contribute your Thoughts:

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Marcos
3 months ago
Isn't it surprising that premium pricing can be used for new markets?
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Colette
3 months ago
A is definitely true, reputation matters a lot.
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Malinda
3 months ago
Wow, I thought premium pricing was all about costs!
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Elsa
4 months ago
I disagree, B doesn't really fit.
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Raul
4 months ago
A and D are spot on!
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Adell
4 months ago
I thought premium pricing was more about perceived value than just cost structures, so I'm hesitant about C being correct.
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Gaynell
4 months ago
I practiced a question similar to this, and I think D makes sense since premium pricing can be common in the early product life cycle.
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Charlena
4 months ago
I'm not entirely sure, but I feel like premium pricing isn't typically used for entering new markets, so maybe B isn't right.
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Benedict
5 months ago
I remember discussing how premium pricing often relies on the supplier's reputation, so I think option A could be one of the correct answers.
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Bobbye
5 months ago
Okay, let's see. I know premium pricing is often used in the early stages of a product's life cycle, so that's one I'll definitely select. And basing the price on cost structures also seems like a common characteristic.
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Fausto
5 months ago
Hmm, this is a tricky one. I'm not totally sure about the differences between the options here. I'll need to think carefully about which two really capture the essence of premium pricing strategies.
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Lazaro
5 months ago
I think I've got a good handle on this. The key is to identify the characteristics of premium pricing strategies used by suppliers. I'll focus on the options that seem most relevant, like pricing based on reputation and using this strategy to enter new markets.
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Shawnee
5 months ago
I feel pretty confident about this one. Premium pricing is all about charging a higher price based on the supplier's reputation and brand value, not just their costs. And it's often used when trying to break into a new market.
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Youlanda
5 months ago
Wait, I'm a bit confused. Does that mean there's a separate data model for vendors and customers, or can they be managed under the same business partner?
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Matthew
5 months ago
This seems like a straightforward question about time synchronization on Linux servers. I'm pretty confident the answer is NTP, since that's the standard protocol used for this purpose.
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Luisa
5 months ago
This question looks pretty straightforward. I think I can use the delta values provided to set up a delta-neutral hedge with the 3-month put and call options.
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Lauran
10 months ago
Ah, the age-old question: do I go with the supplier's reputation or their production costs? Tough call, but I'm leaning towards A and D.
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Tu
9 months ago
User 3: A and D seem to be the winning combination for premium pricing strategies.
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Iraida
9 months ago
User 2: I agree, but I also think D is important because it's about the product life cycle.
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Mee
9 months ago
User 1: I think A is a good choice, it's all about the supplier's reputation.
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Nu
10 months ago
B is interesting, but I thought premium pricing was more about exclusivity and quality, not necessarily for new market entry.
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Lajuana
10 months ago
Haha, 'premium pricing' and 'cost-based pricing' in the same answer? That's like oil and water, my friend.
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Claribel
9 months ago
B) This strategy is often used when supplier attempts to enter new market
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Yuette
10 months ago
A) Products are charged at a price based on supplier's reputation
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Mattie
10 months ago
I believe options A and B are the correct choices.
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Hana
10 months ago
I'm not sure about E - premium pricing is usually based on more than just variable costs, right? There's gotta be some margin in there too.
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Nada
9 months ago
I'm not sure about E - premium pricing is usually based on more than just variable costs, right? There's gotta be some margin in there too.
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Frankie
9 months ago
I'm not sure about E - premium pricing is usually based on more than just variable costs, right? There's gotta be some margin in there too.
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Katy
10 months ago
I agree, it helps them establish a strong brand image.
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Hayley
10 months ago
I think premium pricing strategies are important for suppliers.
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Markus
11 months ago
A and D seem like the best options to me. Premium pricing is all about leveraging brand reputation and positioning your product in the early stages of the lifecycle.
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Jose
9 months ago
E doesn't seem relevant for premium pricing, it's more about overall value and brand positioning.
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Beckie
9 months ago
I see your point, but B is also crucial as entering a new market often requires a premium pricing strategy.
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Louann
10 months ago
I think C is also important because pricing based on cost structures can help determine the premium price.
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Thora
10 months ago
I agree, A and D are key factors in premium pricing strategies.
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