NIGP CPP CERTIFICATION STUDY GUIDE
73 QUESTIONS WITH COMPLETE
SOLUTIONS 2026 GRADED A+
⩥The Four steps in Market Research:
Answer: 1. Market Intelligence - A high-level review of the industry
examines all of the activities of the market.
2. Market Research - The process of collecting and analyzing the
information related to a specific good or service.
3. Market Analysis - The action of the public entity in recognizing the
availability of goods within the marketplace, as well as the suppliers of
those goods.
4. Procurement of the commodity - By following the previous three
steps, the entity will have a summary of the market conditions, will be
able to identify potential suppliers of the commodity, will understand
how their anticipated requirements match up with the commodities
readily available in the current marketplace, can anticipate potential
budget impacts, and will be able to develop a successful solicitation to
meet stakeholder requirements.
⩥The supplier marketplace is typically broken down into four groups.
Answer: 1. Perfect competition exists when there is free and open
competition.
,2. Imperfect competition includes the artificial restriction of available
competition through the use of preference policies, restraint of trade by
suppliers who create selling territorial areas, or by the business practices
of the entity.
3. Oligopoly is a market situation in which a few companies control or
dominate the market for a particular commodity. Example: OPEC cartel
for petroleum commodities.
4. Monopoly is a situation in which there are many buyers and only one
seller of a commodity that has no close substitute, giving the seller
considerable control over the price because of the lack of competition.
⩥Some measurements and indicators that reflect changes in economic
and business activity, including highs and lows in the economy, are:
Answer: New Orders.
Production.
Employment.
Supplier Deliveries.
Inventories.
, ⩥Quantitative Data
Answer: Quantitative data can be measured objectively, such as:
Time
Dollars spent on copy papers
Number of units purchased
- such as the data that go into a spend analysis.
⩥Qualitative Data
Answer: Qualitative data deals with observations and labels that can't be
easily measured, such as:
Color of paper
Darkness of copier ink on prints
What characteristics good copy machines contain
⩥Value analysis can be applied to:
Answer: hardware and software.
development, production, and manufacturing.
specifications, standards, contract requirements and procurement
practices, procedures, and documentation.
73 QUESTIONS WITH COMPLETE
SOLUTIONS 2026 GRADED A+
⩥The Four steps in Market Research:
Answer: 1. Market Intelligence - A high-level review of the industry
examines all of the activities of the market.
2. Market Research - The process of collecting and analyzing the
information related to a specific good or service.
3. Market Analysis - The action of the public entity in recognizing the
availability of goods within the marketplace, as well as the suppliers of
those goods.
4. Procurement of the commodity - By following the previous three
steps, the entity will have a summary of the market conditions, will be
able to identify potential suppliers of the commodity, will understand
how their anticipated requirements match up with the commodities
readily available in the current marketplace, can anticipate potential
budget impacts, and will be able to develop a successful solicitation to
meet stakeholder requirements.
⩥The supplier marketplace is typically broken down into four groups.
Answer: 1. Perfect competition exists when there is free and open
competition.
,2. Imperfect competition includes the artificial restriction of available
competition through the use of preference policies, restraint of trade by
suppliers who create selling territorial areas, or by the business practices
of the entity.
3. Oligopoly is a market situation in which a few companies control or
dominate the market for a particular commodity. Example: OPEC cartel
for petroleum commodities.
4. Monopoly is a situation in which there are many buyers and only one
seller of a commodity that has no close substitute, giving the seller
considerable control over the price because of the lack of competition.
⩥Some measurements and indicators that reflect changes in economic
and business activity, including highs and lows in the economy, are:
Answer: New Orders.
Production.
Employment.
Supplier Deliveries.
Inventories.
, ⩥Quantitative Data
Answer: Quantitative data can be measured objectively, such as:
Time
Dollars spent on copy papers
Number of units purchased
- such as the data that go into a spend analysis.
⩥Qualitative Data
Answer: Qualitative data deals with observations and labels that can't be
easily measured, such as:
Color of paper
Darkness of copier ink on prints
What characteristics good copy machines contain
⩥Value analysis can be applied to:
Answer: hardware and software.
development, production, and manufacturing.
specifications, standards, contract requirements and procurement
practices, procedures, and documentation.
