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CIPS L4M5 Exam - Topic 2 Question 103 Discussion

SBL provides contract bathroom furniture and fittings for a wide variety of domestic and commercial clients. To some suppliers, SBL spend claims a large portion of their revenue. But SBL is famous for imposing draconian obligations on these suppliers. Which of the following is most likely to be overarching objective of these suppliers to SBL?
A) Charge a higher price to compensate for all the pain SBL has put
B) Win and keep business with SBL at any costs, even without profits
C) Drop the business with SBL immediately
D) Hold on and keep SBL happy but make sure that the business is profitable

CIPS L4M5 Exam - Topic 2 Question 103 Discussion

Actual exam question for CIPS's L4M5 exam
Question #: 103
Topic #: 2
[All L4M5 Questions]

SBL provides contract bathroom furniture and fittings for a wide variety of domestic and commercial clients. To some suppliers, SBL spend claims a large portion of their revenue. But SBL is famous for imposing draconian obligations on these suppliers. Which of the following is most likely to be overarching objective of these suppliers to SBL?

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Suggested Answer: A

According to Paul Steele's 'The Seller's Perspective', customer can be classified into 4 categories as below:

In this scenario, although SBL's spend claims large portion in suppliers' revenues, their draconian treatment will reduce SBL's attractiveness in supplier's perspective. SBL falls into Exploit quadrant. With exploitable customers, suppliers tend to 'milk' the customer and charge a high price to compensate for all the pain customer put on them.


by Kris at Aug 14, 2026, 01:57 AM

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Sheron
4 days ago
I feel like option D could also be a strong contender since keeping SBL satisfied while ensuring profitability seems like a smart long-term strategy.
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Cathrine
9 days ago
I think option B makes sense because suppliers might feel they need to keep SBL happy to maintain their revenue, even if it means sacrificing profits.
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Skye
15 days ago
I remember discussing how suppliers often have to balance their relationship with major clients like SBL, but I'm not sure which option reflects that best.
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