When using the competitive parity budgeting method,the firm:
A)matches its share of total industry advertising expenditures to its market share.
B)spends as much as it can.
C)allocates some portion of planned sales for the period to advertising.
D)spends the same total amount as its major competitors spend.
E)bases its advertising and promotion expenditures on sales.

Question

Quizplus · Accepted Answer

Competitive parity budgeting method involves matching the firm's advertising expenditures with its market share of the total industry advertising expenditures. This helps the firm to maintain its share in the market and not fall behind its competitors.

When Using the Competitive Parity Budgeting Method,the Firm