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CIPS Commercial Negotiation Sample Questions (Q48-Q53):

NEW QUESTION # 48
Lina Rawlins is a senior buyer working for a medical equipment company. Lina is in charge of the company's largest supplier account, Great Barrington Gas (GBG), a medical equipment supplier. Recently, GBG's performance has declined, leading to an increasing number of rejected items. Lina is aware of the seriousness of this and has asked GBG to attend an urgent meeting. In the meeting, Lina asked the GBG representative,
"Can you tell me exactly what you are doing to ensure quality?" What type of question is Lina asking?

A. Reflective
B. Hypothetical
C. Leading
D. Probing

Answer: D

Explanation:
Lina is asking a probing question to gather more detailed information on the actions GBG is taking to address quality issues. Probing questions are intended to delve deeper into a topic and elicit specific details, making them suitable for understanding underlying issues, as per CIPS's negotiation question types.

NEW QUESTION # 49
Which of the following are most likely to be fixed costs of an airline? Select TWO that apply.

A. Flightcrew training
B. Catering services
C. Purchase of aircraft
D. Fuel
E. Advertising and promotion

Answer: A,C

Explanation:
Explanation
Fixed costs (FC) are costs that do not vary with volume. To an airline once aircraft are purchased, flight crews trained and departures scheduled, costs are disproportionately fixed.
Variable costs (VC) arethose which vary with the amount produced. Fuel, catering services and marketing are examples of variable.
LO 2, AC 2.1

NEW QUESTION # 50
Premium pricing strategies used by suppliers are characterised by which of the following? Select TWO that apply.

A. Typically found in the early part of the product life cycle
B. Products are charged at a price based on supplier's reputation
C. Premium price is determined by variable costs only
D. Price is based on cost structures
E. This strategy is often used when supplier attempts to enter new market

Answer: A,B

Explanation:
:
There are several pricing strategies used by suppliers:
Cost-plus pricing - Total variable + Fixed cost + profit
Premium pricing - based on branding. Supplier determines to charge a very high price, not connected with cost structures, usually based on its reputation and/or the perception that the product/service is of a superior quality. This strategy typically found in the early part of the product life cycle/when demand exceeds supply.
Penetration pricing - Supplier attempts to enter a new market or extend its share in an established one. It is characterised by price reductions to increase volume, followed by steady price increases; may even be loss leading at start (no profit made) Marginal cost pricing - covers only variable cost Market pricing - suppliers prices in line with what the market is willing to pay

NEW QUESTION # 51
Which type of question should be used to receive affirmation on statement?

A. Narrow
B. Open
C. Leading
D. Closed

Answer: D

Explanation:
Different questioning styles can be used to elicit desired responses:
Text Description automatically generated

NEW QUESTION # 52
Which of the following is the purpose of using stakeholder support level scale?

A. To identify stakeholder's needs and expectations
B. To identify stakeholder level of influence and interest and plot them on stakeholder map
C. To estimate the gap and the progress towards desired levels of support
D. To identify key stakeholders

Answer: C

Explanation:
In order to estimate the gap and the progress towards desired level of support, a stakeholder support scale can be used by the procurement internally. The support level scale measures stakeholder commitment. Current support level for the procurement/negotiation objectives should be gained from engagement with key stakeholders. The following is an example of stakeholder support level scale:
LO 1, AC 1.1

NEW QUESTION # 53
......

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Quiz CIPS - L4M5–Professional Exam Discount

High Hit Rate L4M5 Exam Discount, Ensure to pass the L4M5 Exam

CIPS Commercial Negotiation Sample Questions (Q48-Q53):

Actual L4M5 Test Training Questions are Very Helpful Exam Materials

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