Question 1

Buyers in the same industry with the same understanding of relative value and price may still make different decisions about whether to switch. Which of the following factors may prompt a buying organization to incline toward substitute products?

1. There is potential for backward integration

2. Access to financial resources

3. The switching cost is high

4. The substitute fits organisation's strategy

Options :

A : 1 and 4 only

B : 3 and 4 only

C : 1 and 2 only

D : 2 and 4 only

E :

Answer: D

Question 2

Ymira is asked to develop the specification for water purifier which will be used at the company headquarter. She believes that the specification can be drafted based on the information available on the Internet, such as blog posts, comparison websites, how-to websites, life hacks, etc. Which of the following traits will make the information more useful?

Options :

A : Trustworthy sources

B : Written by inexperienced author

C : Objectivity

D : Subjectivity

E : Promotional information

Answer: A,C

Question 3

Bob is a new procurement specialist at XYZ Ltd. He is assigned to categorise the company's supplies. After analysing, Bob realises that a group of low value products is sourced from a tiny geographical area which is prone to flooding. What would be the best strategy to manage this category of products?

Options :

A : Find an alternative source to secure supply

B : Source this group of products from only one supplier

C : Form partnership relationship with the current supplier

D : Assign some of procurement jobs to user department

Answer: A

Question 4

Which of the following is an assumption of Kano model?

Options :

A : All customer requirements are basic requirements

B : All types of customer requirements have the same impact on customer satisfaction

C : The relationship between product functionality and customer satisfaction is always linear

D : Different types of customer requirements have different impact on customer satisfaction

Answer: D

Question 5

CPO of Vestas, a wind turbine maker, devises a business case to win the key market in Latin America by developing market-specific strategies. To appeal senior management and directors, the CPO embeds the ways in which more outputs are generated with the same input and how to manage the potential hazards. Which of the following are elements that CPO uses to please the senior management and board of directors? Select TWO that apply.

Options :

A : Compliance issue

B : Improving productivity

C : Preparing the budget

D : Risk management

E : Environmental impact

Answer: B,D

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