CIPS Exam L4M2 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?

ANo, in market economy, the state decides the price of all goods and services

BYes, each stage in product life cycle requires different levels of investment in promotion and distribution

CNo, customer's perception of value is the ultimate determinant of the suppliers' price

DYes, it is always the only factor determining the price

Show Suggested 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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Jose

1 days ago

C) No, customer's perception of value is the ultimate determinant of the suppliers' price

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Patti

2 days ago

B) Yes, each stage in product life cycle requires different levels of investment in promotion and distribution

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