L4M2 practice question 9 of 30
Which of the following sources of information are considered as primary data? Select TWO that apply.
Full set: 301 questionsPrimary data is original information collected firsthand by the researcher for a specific purpose. It involves gathering new data that does not already exist. Surveying customers (C) is a direct method of collecting unique insights and feedback tailored to the organization's specific questions. Similarly, a Request for Information (RFI) (D) is a formal process where an organization collects specific, original data directly from potential suppliers to understand their capabilities. Both methods involve the active, direct collection of new information for a defined procurement or marketing objective, which is the essence of primary data.
A. The information about specific market sectors from trade associations: This is secondary data, as the trade association has already collected, processed, and published the information for its members or the public.
B. Commercial publishers of market reports: This is a source of secondary data. The reports are based on research conducted and compiled by another organization for general commercial sale.
E. Reports in business magazines: This is secondary data. The information has been researched, analyzed, and published by the magazine's journalists and is not original data collected by the procurement professional.
1. Lysons
K.
& Farrington
B. (2020). Procurement and Supply Chain Management (10th ed.). Pearson.
Page 158
Section 5.5.2 'Primary research': Defines primary research as "the collection of data that does not already exist" and lists methods such as "surveys
interviews
focus groups and observation." This supports option C.
Page 158
Section 5.5.3 'Secondary research': Defines secondary research as "the summary
collation and/or synthesis of existing research" and lists sources including "trade associations
market research organisations
journals and newspapers." This confirms that options A
B
and E are incorrect.
2. Van Weele
A. J. (2018). Purchasing and Supply Chain Management (7th ed.). Cengage Learning.
Page 208
Section 7.4.2 'Purchasing market research': Distinguishes between desk research (secondary data) and field research (primary data). It states
"Field research implies that the purchaser or market analyst gets in direct contact with suppliers... to gather information." This principle directly applies to an RFI (D) as a method of gathering primary data from suppliers.
3. Monczka
R. M.
Handfield
R. B.
Giunipero
L. C.
& Patterson
J. L. (2016). Purchasing and Supply Chain Management (6th ed.). Cengage Learning.
Chapter 16
'Supplier Evaluation and Selection': Discusses the use of RFIs
RFPs
and RFQs as tools to gather detailed
specific information directly from suppliers for evaluation purposes. This process of direct information gathering for a specific sourcing need is a form of primary data collection. For instance
on page 561
the text describes how RFIs are used to "gather information about potential suppliers’ capabilities
" which is a primary research activity.
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