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True or false? Momentum buying means being more receptive to adding to a purchase with a complementing product, once the commitment to the initial purchase has been made.

Select one:
a. True
b. False

User GWigWam
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1 Answer

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Final answer:

Momentum buying is falsely described in the statement; it actually refers to the stock market strategy where investors buy more shares as the stock price rises, not about adding complementary products to a purchase.

Step-by-step explanation:

The concept of 'momentum buying' relates to trading and investment, where it suggests purchasing additional shares of a stock as its price is rising, thus gaining momentum. This type of buying is based on the idea that a security's price that is moving strongly in a given direction will continue to move in that direction. Therefore, the statement 'Momentum buying means being more receptive to adding to a purchase with a complementing product, once the commitment to the initial purchase has been made' is false. The correct explanation for momentum buying pertains to the stock market rather than consumer purchasing behavior regarding complementary products.

User Dgel
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