CIPS L4m5 Commercial Negotiation · Free Practice Question Easy
Question 16
Aubral Ltd is a company that finds and hires talented people for other businesses. The businesses pay Aubral a fee for using the talents. The fee varies depending on how skilled and experienced the talents are. What is the name of this pricing strategy that Aubral uses?
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A
Psychological pricing
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B
Skimming pricing
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C
Cost reimbursement pricing
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D
Dynamic pricing
Reveal correct answer
Correct answer: D
Explanation
The correct answer is dynamic pricing. Dynamic pricing is a pricing strategy that involves changing and adjusting the price of goods and services in response to market factors. Some of the market factors that affect dynamic pricing are demand, supply, competition, seasonality, customer preferences, etc.
Aubral Ltd uses dynamic pricing because it charges different fees for different talents based on their skills and experience. The fee is not fixed or predetermined, but varies according to the market conditions and the value of the talents. Aubral Ltd can use dynamic pricing to maximize its revenue and profit by charging higher fees when the demand for talents is high or when the talents are scarce or highly skilled. Dynamic pricing also allows Aubral Ltd to be flexible and responsive to the changing needs and preferences of its customers.
Discussion
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