CIPS L6M9 Exam - Topic 3 Question 15 Discussion

Actual exam question for CIPS's L6M9 exam

Question #: 15
Topic #: 3

[All L6M9 Questions]

XYZ Ltd is a perfume manufacturer based in France. They have created a new perfume and research has shown that demand for the perfume will outstrip supply. The Chief Operating Officer (COO) and the Chief Financial Officer (CFO) are meeting to discuss this. The COO believes that the organisation needs to reallocate resources in order to meet demand. Are there any exceptions to when this may be the case?

ANo - organisations should always aim to meet customer demand or resources will be underutilised

BNo - this would negatively affect the profit the organisation could make

CYes - there are occasions when an organisation would choose not to fulfil customer demand

DYes - there are exceptions, but these are always outside of the organisation's control

Show Suggested Answer

Suggested Answer: C

While organisations generally try to fulfil customer demand, there are times when they strategically choose not to. A common reason is maintaining a premium image---limiting supply can increase desirability and justify a higher price. For example, luxury brands often limit product availability. (See p.169)

by Cordell at Nov 02, 2025, 09:07 AM

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Hubert

22 days ago

True, but if resources are stretched too thin, it could backfire. Option D has a point.

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Alease

27 days ago

But isn't it risky to not meet demand? Option A seems safer.

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Martha

2 months ago

I agree, Alice. There are times when fulfilling demand could hurt the brand.

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Herminia

2 months ago

I think option C makes sense. Sometimes quality matters more than quantity.

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Carol

2 months ago

Profit is key, but so is customer loyalty!

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Mozell

2 months ago

Definitely exceptions, like if it compromises brand image.

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Evangelina

2 months ago

Wait, are there really times when they wouldn't fulfill demand?

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Dean

2 months ago

C is the way to go. Who needs happy customers when you can have a fatter bottom line, am I right?

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Verdell

3 months ago

B is the funniest answer. Of course organizations should always prioritize profit over customer satisfaction! That's just good business.

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Domingo

3 months ago

D is the right answer. Demand can be affected by factors outside the organization's control, like supply chain issues or market trends.

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Dannette

3 months ago

I agree with C. Profit isn't everything - sometimes you have to prioritize other factors like brand reputation or environmental impact.

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Martina

3 months ago

C is the correct answer. There are times when an organization may choose not to meet customer demand, such as when it would negatively impact quality or sustainability.

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Jenise

3 months ago

I think option D might be tricky. While there are exceptions, I wonder if they really are always outside the organization's control. It feels like there could be internal factors too.

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Doretha

3 months ago

I practiced a similar question where the focus was on resource allocation, and I think it leaned towards option C. There are definitely times when demand isn't met for strategic reasons.

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Brinda

4 months ago

I'm a bit unsure about the exceptions part. I feel like there could be situations where fulfilling demand isn't feasible, but I can't recall specific examples.

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Jeniffer

4 months ago

I disagree, sometimes quality over quantity matters.

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Lashawna

4 months ago

Always meet demand, or you're losing money!

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Madelyn

5 months ago

I remember discussing how sometimes companies might not want to meet demand if it means sacrificing quality. So, I think C could be a valid option.

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Peter

5 months ago

This is the kind of question where it's important to stay calm and methodical. I'll make sure to read through all the options carefully before selecting my answer.

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Lyndia

5 months ago

I feel pretty confident about this one. The key is to recognize that there can be valid reasons for an organization to choose not to meet customer demand.

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