The _____ budgetary allocation method is designed to promote stability and minimize marketing warfare as well as take advantage of the collective wisdom of the industry.
A)ROI
B)arbitrary allocation
C)percentage of sales
D)competitive parity
E)objective and task

Question

Quizplus · Accepted Answer

The competitive parity method is designed to minimize marketing warfare and take advantage of the collective wisdom of the industry by allocating budgets based on what competitors are spending. This method promotes stability and avoids companies overspending or underspending in the market. ROI, arbitrary allocation, percentage of sales, and objective and task methods do not necessarily address the issue of marketing warfare and industry collective wisdom in budget allocation.

The _____ Budgetary Allocation Method Is Designed to Promote Stability