A major shortcoming with the _____ method of determining promotional expenditures is a tendency to spend more on promotion when sales are increasing and less when they are declining.
A) percentage of sales
B) "what it will take to do the job"
C) sales plus
D) "all you can afford"

Question

Quizplus · Accepted Answer

The percentage of sales method ties promotional expenditures to sales, so when sales increase, the amount spent on promotion also increases. On the other hand, when sales decline, less money is allocated for promotion. This can be problematic as it can lead to a cycle of decreased promotion and decreased sales.

A Major Shortcoming with the _____ Method of Determining Promotional