CIPS L4M2 Exam - Topic 10 Question 54 Discussion

Actual exam question for CIPS's L4M2 exam

Question #: 54
Topic #: 10

Buyers can ascertain the prices by examining information provided by primary and secondary sources of market data. Which of the following is a secondary source of market data?

ASupplier prices provided on price comparison websites

BHistorical records of supplier prices on the buyer's database

CPrice brochures provided by the supplier's sales team

DSuppliers' prices provided on the buyer's request for quotation

Show Suggested Answer

Suggested Answer: A

Price comparison websites are secondary sources as they aggregate data collected from multiple suppliers. Primary sources (like RFQs and brochures) come directly from the supplier. Reference: CIPS Level 4, Market Data Analysis.

by Rebbecca at Feb 11, 2025, 02:58 AM

Limited Time Offer

25%

Off

Get Premium L4M2 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Kate

6 months ago

Historical records are usually considered secondary, so B is correct!

upvoted 0 times

...

Veronika

6 months ago

Wait, are we sure about D being secondary?

upvoted 0 times

...

Mitsue

6 months ago

C seems like a primary source to me.

upvoted 0 times

...

Anna

7 months ago

I think B is more accurate, though.

upvoted 0 times

...

Garry

7 months ago

A is definitely a secondary source!

upvoted 0 times

...

Bettye

7 months ago

I’m confused about the definitions, but I think option A could be secondary since it’s compiled from various suppliers, right?

upvoted 0 times

...

Sharmaine

7 months ago

I feel like I’ve seen a similar question before, and I think brochures from suppliers might be considered primary sources since they come directly from them.

upvoted 0 times

...

Lili

7 months ago

I’m not too sure, but I remember something about price comparison websites being more like primary sources since they gather current data directly from suppliers.

upvoted 0 times

...

Claribel

8 months ago

I think secondary sources are usually data that’s been collected by someone else, so I’m leaning towards option B with the historical records.

upvoted 0 times

...

Ming

8 months ago

I've got this! The supplier's own price brochures would be a primary source, while the price comparison websites would be a secondary source since they compile data from multiple suppliers.

upvoted 0 times

...

Marguerita

8 months ago

Okay, I know that primary sources are direct from the supplier, and secondary sources are indirect. I just need to identify which of these options is a secondary source.

upvoted 0 times

...

Lon

8 months ago

Hmm, I'm a bit unsure about the difference between primary and secondary sources here. Let me think this through carefully.

upvoted 0 times

...

Chanel

8 months ago

This seems like a straightforward question about primary and secondary sources of market data. I think I can handle this one.

upvoted 0 times

...

Cordie

1 year ago

I'm gonna go with B. Can't go wrong with good old-fashioned data, am I right? Though I do wonder if the buyer has been keeping those records up to date...

upvoted 0 times