Discuss CIPS L5M7 Exam Topic 1 Question 7

Which of the following is an example of Variable Pricing?

AA wholesaler offers a discount when a customer buys more than 100 units.

BA cleaning firm charges more when demand increases.

CA retailer holds a January sale.

DA restaurant offers student discounts.

Suggested Answer: A

Variable Pricing changes the unit price based on quantity purchased; larger volumes trigger discounts.

Short cited term: ''price varies with quantity ordered.'' (L5M7 Study Guide, pp. 188--191)

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30 comments · newest first

Yuonne 7 months ago

B shows how prices change with demand, definitely variable.

Santos 7 months ago

D is more about discounts, not pricing variation.

Sharita 7 months ago

C is just a sale, not really variable pricing.

Rene 7 months ago

A is also a good example, but not variable pricing.

Krissy 7 months ago

I agree, B makes sense with demand.

Steffanie 7 months ago

Not sure if D counts as variable pricing... seems more fixed.

Vallie 8 months ago

I agree with B, it makes sense with demand!

Eveline 8 months ago

Wait, isn't a January sale just a seasonal discount?

Yolando 8 months ago

I thought A was a better example.

Albert 9 months ago

B is definitely variable pricing!

Charlena 9 months ago

Haha, a January sale? That's just a good old-fashioned discount, not variable pricing!

Shawna 9 months ago

D) A restaurant offers student discounts. Gotta love those student perks!

Diane 9 months ago

Ah, the classic supply and demand dance. Variable pricing is the way to go!

Ena 9 months ago

B) A cleaning firm charges more when demand increases.

Amie 9 months ago

I thought variable pricing was more about dynamic changes, so B seems like the best fit, but I’m still a bit confused.

Casey 10 months ago

I’m not sure, but I feel like option D with student discounts could be considered variable pricing too, right?

Tyisha 10 months ago

I remember practicing a question like this, and I think discounts based on quantity, like in A, might not count as variable pricing.

Erinn 10 months ago

For variable pricing, I'd focus on options that mention the price changing based on factors like demand or volume. B seems like the clearest example of that.

Amber 10 months ago

I'm a little confused by this question. Can variable pricing apply to sales and discounts too, or just changes in the base price?

Elbert 10 months ago

Okay, let's see. Variable pricing means the price changes based on factors like demand, right? So I'd say B is the best answer here.

Elke 10 months ago

I think B is the best choice.

Polly 11 months ago

I think variable pricing is when prices change based on demand, so I’m leaning towards option B.

Tasia 11 months ago

B) A cleaning firm charges more when demand increases. Capitalism at its finest!

Barabara 11 months ago

Hmm, I'm not totally sure about this one. I'll have to think it through carefully.

Kallie 12 months ago

This one seems pretty straightforward. I think option B is the best example of variable pricing.

Joaquin 6 months ago

↳ replying to Kallie

Good point! It’s all about demand and pricing.

Dominga 6 months ago

↳ replying to Kallie

Yeah, B really fits the definition well.

Louann 6 months ago

↳ replying to Kallie

I thought about option A too, but B is clearer.

Ming 11 months ago

↳ replying to Kallie

I agree, option B makes the most sense.

Irma 11 months ago

↳ replying to Kallie

Definitely! Prices changing with demand is variable pricing.

CIPS L5M7 Exam - Topic 1 Question 7 Discussion