estion 151. T F Raw materials are especially affected by joint demand.

151. T F Raw materials are especially affected by joint demand.
152. T F When the major component of an item experiences a price increase, the demand for
the item may become more elastic.
153. T F Sometimes initial demand for a business product will drop following a price cut if
buyers believe that further price reductions are forthcoming.
154. T F In industries in which price changes occur frequently, demand fluctuations have
practically been eliminated since buyers have become used to these changes and have learned to
ignore them.
155. T F A fall in consumer demand for a product is likely to result in increased buying from
suppliers as consumer goods producers replenish depleted inventories and gear up for the next
surge in consumer demand.
156. T F The factors that influence business buying behavior are the same as those that
influence consumer buying behavior.
157. T F All companies, no matter what their size or market position, maintain only one buying
center.
158. T F Problem recognition can be stimulated by external sources, such as trade shows or
sales representatives.
159. T F In the buying decision process, one of the activities included in the search for
products and suppliers is examining catalogs and trade publications.
160. T F Specific details regarding terms, credit arrangements, and technical assistance are
worked out during the product specification stage of the buying decision process.
161. T F Value analysis focuses primarily on the examination of the cost of products relative to
design, quality, and materials used.
162. T F Vendor analysis is a formal, systematic evaluation of current and potential vendors
that focuses on a variety of dimensions including price, product quality, delivery service, product
availability, and overall company reliability.
163. T F The fourth stage in the business buying decision process is that of searching for
products and suppliers.
164. T F Feedback acquired during the fifth stage of the business buying decision process is
kept on file but not used as a reference for future business purchase decisions.
165. T F The five-stage business buying decision process is used primarily for routine, straight
rebuy purchases.
166. T F Interpersonal dynamics are easy to observe and simple for the marketer to assess.
167. T F The North American Industry Classification System includes all three NAFTA partners.
168. T F The old Standard Industrial Classification system is more comprehensive than NAICS.
169. T F All three NAFTA countries will convert to the NAICS over the next few years.
170. T F NAICS provides less information about service industries and high-tech products than
did the SIC system.
171. T F After finding out which industries purchase the major portion of an industry’s output,
the next step is to begin production.
172. T F To obtain the names of specific potential customers, the business marketer is well
advised to employ the services of a commercial data company, since this is both cheaper and faster
than any other method.
173. T F Industrial classification systems allow marketers to divide business customers into
groups based mainly on the types of goods and services provided.
174. T F A major source of input-output data is the Survey of Current Business.
175. T F When trying to estimate the purchases of a potential business customer, it is
reasonable to suppose that there is a relationship between the size of the potential customer’s
purchases and a variable such as the number of personnel employed by the customer.