Pricing - 17% Flashcards
What are some of the pricing challenges that companies face on a daily basis?
A) Managing user permissions and updating product hierarchies
B) Grouping products together, discounting individual products in a bundle, and offering products with prices based on customer group
C) Caching catalog data, regenerating metadata, and changing product prices over time
D) Offering loyalty points, updating existing prices, and managing order decompositions
E) Managing platform caches, enabling CPQPartition, and assigning costs to products
Answer: B) Grouping products together, discounting individual products in a bundle, and offering products with prices based on customer group
Explanation: Companies face various pricing challenges such as grouping products together while keeping them separate, discounting individual products in a bundle without changing their base prices, and pricing products differently for different customer groups.
Which of the following is NOT a feature of Salesforce Industries’ pricing approach?
A) A component-oriented system with reusable items
B) Pricing components that are dependent on products
C) Types of pricing, such as penalties, charges, and adjustments to existing charges
D) Settings that determine the frequency that the charge occurs
E) Transitioning from older pricing to newer pricing for less expense and disruption
Answer: B) Pricing components that are dependent on products
Explanation: Salesforce Industries’ pricing approach includes a component-oriented system with reusable items, various types of pricing, settings that determine the frequency of charges, and pricing components that live independently of products.
Which of the following is a benefit of using Salesforce Industries’ pricing model?
A) Simplified user permission management
B) Enhanced inventory management
C) Ability to assign more than one base price to a product
D) Faster shipping cost calculations
E) Improved marketing strategy development
Answer: C) Ability to assign more than one base price to a product
Explanation: With Salesforce Industries’ pricing model, you can assign more than one base price to a product, allowing for greater flexibility in pricing strategies and catering to different customer groups or business needs.
What happens when a product has no price list entries marked as a base price?
A) The product’s price will display as zero in the PRODUCTS list, but the charge will still show in the Cart.
B) The product will be unavailable for purchase.
C) The product’s price will be calculated automatically based on other factors.
D) The product will not be visible in the PRODUCTS list.
E) The charge will not show in the Cart.
Answer: A) The product’s price will display as zero in the PRODUCTS list, but the charge will still show in the Cart.
Explanation: If a product has no price list entries marked as a base price, the prices in the PRODUCTS list will display as zero. However, the charge will still show in the Cart.
What is the purpose of marking a price as the base price when creating a price list entry?
A) To indicate that the price is for internal use only
B) To display the price along with the product in the PRODUCTS list of the Cart
C) To apply a discount to the product
D) To ensure the price is only visible to specific customer groups
E) To automatically calculate taxes based on the base price
Answer: B) To display the price along with the product in the PRODUCTS list of the Cart
Explanation: When you mark a price as the base price when creating a price list entry, the display text of the base price appears alongside the product in the PRODUCTS list of the Cart, providing clear pricing information to the user.
What is the purpose of using multiple price lists in Salesforce Industries’ pricing model?
A) To restrict the number of base prices for a product
B) To separate customer pricing from wholesale pricing or employee pricing
C) To assign a single base price for all products
D) To limit the flexibility in pricing based on business needs
E) To use the same pricing for all customer segments
Answer: B) To separate customer pricing from wholesale pricing or employee pricing. This allows businesses to cater to different customer segments by creating price list entries stored in different price lists.
What is the relationship between a price list and a Salesforce price book?
A) Price lists are not related to price books
B) A price book is associated with multiple price lists
C) A price book must have a unique price list for each product
D) Every price list is associated with a price book
E) Price lists and price books are the same thing
Answer: D) Every price list is associated with a price book. Salesforce Industries uses the Salesforce price book as a pass-through, and you can associate every price list you create with the same price book.
What are pricing variables in Salesforce Industries’ pricing model?
A) Charges assigned to a product bundle
B) Discounts applied to specific products
C) Types of prices associated with charges, determining charge characteristics and payment method
D) Rules that define when a price list entry is applied
E) Elements that combine pricing variables with amounts and currency
Answer: C) Types of prices associated with charges, determining charge characteristics and payment method. Pricing variables determine whether the charge is regular or a penalty fee, how frequent the charge is, whether it is a price charged to the customer or a cost the company must bear, and the method of payment (currency or loyalty points).
How can you create multiple price list entries for the same product using the same price list without causing interference?
A) By using effectivity date ranges for each price list entry
B) By creating separate price lists for each entry
C) By assigning a single price list entry for each product
D) By not using any effective dates for price list entries
E) By only using the Effective From field
Answer: A) By using effectivity date ranges for each price list entry. This allows the product’s price to change over time as each price list entry becomes effective without interfering with other price list entries.
What happens if there are gaps between the effectivity date ranges for the base price of a product?
A) The product price will be set to zero
B) The product will not appear in the product list of the Cart
C) The product price will remain the same as the previous entry
D) The effectivity date ranges will be automatically adjusted
E) The gaps will not have any impact on the product price
Answer: B) The product will not appear in the product list of the Cart. To avoid this issue, it is important to ensure that there are no gaps between the effectivity date ranges for the base price of a product.
What is a bundle and how does it relate to parent and child products?
A) A bundle is a discount applied to a group of products
B) A bundle is a logical grouping of products into one “package”
C) A bundle is a collection of unrelated products
D) A bundle is a single product with multiple variations
Answer: B) A bundle is a logical grouping of products into one “package”. The top level of the bundle is considered the parent product. All products under this level are considered child products.
What happens when the parent product of a bundle is priced at $0 and Virtual Price is checked on the price list entry?
A) The price of the bundle is set to zero
B) The price list entries are filtered out of the tightest match evaluation and are not tracked as a price tagged to the bundle in the pricing log or generated as a base price in the price adjustment records
C) The child products’ prices are ignored in the bundle total
D) The bundle price will be the sum of all child products’ prices
Answer: B) The price list entries are filtered out of the tightest match evaluation and are not tracked as a price tagged to the bundle in the pricing log or generated as a base price in the price adjustment records.
What can you do with the display text for bundles containing optional child products to avoid confusion in the Products list of the Cart?
A) Indicate a range or a starting price for the bundle
B) Show the total price if all the products are purchased
C) Display the highest price among the optional products
D) Remove the price information from the display text
Answer: A) Indicate a range or a starting price for the bundle
What are the two main methods for pricing bundles that include parent and child products?
A) Adding the parent and child product prices together
B) Using a virtual price for the parent product
C) Calculating the average price of child products
D) Multiplying the parent product price by the number of child products
Answer: A) Adding the parent and child product prices together, B) Using a virtual price for the parent product
What are the two ways to change the price of a child product in a bundle without changing the base price?
A) Adjustments
B) Overrides
C) Discounts
D) Surcharges
Answer: A) Adjustments, B) Overrides
Where can you create product adjustments and overrides for child products in a bundle?
A) In the price list entry
B) In the Cart
C) In the Product Structure facet of the bundle
D) In the display text settings
Answer: C) In the Product Structure facet of the bundle
What is the difference between adjusting the price and overriding the price of a child product in a bundle?
Adjusting the price uses the base price to calculate a percentage discount or an amount discount, while overriding the price completely replaces the base price. In both cases, you can change the price of the child product without altering its base price.
Where are adjustments and overrides created for child products in a bundle?
You create adjustments and overrides within the bundle’s product structure. Charges are created in the price list entry of the product, while adjustments and overrides are specifically created within the bundle to alter the prices of child products.
In Salesforce Industries CPQ, what options do you have to manually change a price in the Cart?
A. Adjusting it with a percentage or amount
B. Overriding the price
C. Assigning a time plan
D. Assigning a time policy
E. Using context rules
Answer: A and B
Explanation: You can manually change a price in the Cart by adjusting it with a percentage or amount, or by overriding the price completely.
In Salesforce Industries CPQ, how can you ensure that no manual adjustments are made to prices in the Cart?
A. Assign a time plan to limit the time frame of the discount
B. Assign a time policy to determine how the discount begins and ends
C. Delete any manual changes made to prices in the Cart
D. Use context rules to control the conditions under which manual pricing adjustments are made
E. Disable the manual adjustment feature from the CPQ settings
Answer: D
Explanation: You can use context rules to control the conditions under which you can make manual pricing adjustments. By configuring the context rules appropriately, you can essentially “turn off” this capability and ensure that no manual adjustments are made.
