What is the role of market research?

• A. To determine the best acquisition method
• B. To reduce the number of suppliers to one
• C. To set the final price for the product
• D. To manage supplier contracts post-award

Answer: (A)

Market research in sourcing is about gathering information on the external market to guide how you will buy. It helps you understand what solutions exist, who can supply them, typical prices, delivery times, and potential risks. With that insight, you determine the best acquisition method—whether to pursue full and open competition, a restricted process, or a direct/sole-source approach—based on market conditions and supplier capabilities. The role isn’t to pick a single supplier or lock in a price during market research, and contract management comes after a contract is awarded.