CIPS L5M7 Exam - Topic 1 Question 7 Discussion

Actual exam question for CIPS's L5M7 exam

Question #: 7
Topic #: 1

[All L5M7 Questions]

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.

Show Suggested Answer

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)

by France at Nov 23, 2025, 09:35 PM

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Yolando

15 hours ago

I thought A was a better example.

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Albert

6 days ago

B is definitely variable pricing!

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Charlena

11 days ago

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

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Shawna

16 days ago

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

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Diane

21 days ago

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

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Ena

26 days ago

B) A cleaning firm charges more when demand increases.

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Amie

1 month ago

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

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Casey

1 month ago

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

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Tyisha

1 month ago

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

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Erinn

2 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.

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Amber

2 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?

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Elbert

2 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.

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Elke

2 months ago

I think B is the best choice.

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Polly

2 months ago

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

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Tasia

3 months ago

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

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Barabara

3 months ago

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

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Kallie

3 months ago

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

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Ming

2 months ago

I agree, option B makes the most sense.

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Irma

3 months ago

Definitely! Prices changing with demand is variable pricing.

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