In the competitive-parity method of setting an advertising budget, the budget is set based on _ .
A) the total revenues that a company makes
B) a percentage of current sales
C) objectives set by the company and the cost required to accomplish them
D) a percentage of future sales
E) the amount spent by similar companies in the same industry

Question

Quizplus · Accepted Answer

The competitive-parity method involves setting the advertising budget based on the amount spent by similar companies in the same industry, ensuring that a company remains competitive in its advertising efforts.

In the Competitive-Parity Method of Setting an Advertising Budget, the Budget