Certified Professional Public Buyer (CPPB) Practice Test

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What is one reason for conducting market surveillance?

To restrict market entry
To continually review industry activity
To eliminate competition
To lower product prices

The correct answer is: To continually review industry activity

Conducting market surveillance is essential for continually reviewing industry activity. It enables organizations to remain informed about current trends, competitive practices, pricing strategies, and changes in consumer preferences. By monitoring the market, organizations can make informed decisions regarding procurement strategies, supplier relationships, and overall purchasing practices. This ongoing analysis helps identify opportunities for improvement, innovation, and efficiency within the purchasing process. The other options do not align with the primary purpose of market surveillance. Restricting market entry is usually counterproductive to healthy competition and market dynamism. Eliminating competition contradicts the principles of a free market economy, which values competition as a means of fostering innovation and better pricing for consumers. Lowering product prices may be an outcome of effective market surveillance, but it is not the primary reason for conducting it, as the focus is more on understanding the market environment rather than solely on price manipulation. Overall, the emphasis of market surveillance is on staying updated with industry movements, which is why the selected answer is the most appropriate.