The Full Form of CPQ is Configure Price Quote.

Configure, price quote software is a term used in the business-to-business industry to describe software systems that help sellers quote complex and configurable products. An example could be a maker of heavy trucks. If the customer chooses a certain chassis, the choice of engines may be limited, because certain engines might not fit a certain chassis. Given a certain choice of engine, the choice of trailer may be limited, and so on. If the product is highly configurable, the user may face combinatorial explosion, which means the rapid growth of the complexity of a problem. Thus a configuration engine is employed to alleviate this problem.