Setting the promotion budget so as to match the budgets of the competition is characteristic of which of the following budget methods ?
Correct answer: C. Competitive parity method
- A. Affordable method
- B. Percentage of Sales method
- C. Competitive parity method
- D. Objective and task method
Explanation
The competitive parity method sets the promotion budget in line with competitors’ spending. The percentage-of-sales method instead bases the budget on the firm’s own sales.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? [email protected]
About Microeconomics
Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
Practise Microeconomics
1,742 free Microeconomics MCQs from Economics, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Discussion
Stuck on an option, or know a faster way to get there? Ask or explain it here.
No comments yet. Be the first to explain this one.
Exams that ask Economics questions like this
Economics is on 3 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Microeconomics questions
Technological advances, shifts in consumer tastes, and increased competition all of which reduce demand for a product are typical of which stage in the PLC ?
The process that turns marketing strategies and plans into marketing actions in order to accomplish strategic marketing objectives is called ?
The last stage in the selling process in the __________ stage?
When a marketing research organization chooses a segment of the population that represents the population as a whole, they have chosen a ?
When Coca-Cota and Nestle formed joint venture to market a ready to drink coffee and tea worldwide the type of marketing system that was formed would best be described as being a(n)?
A three day cooling off period in which buyers can cancel a contract after re-thinking it is to protect the consumer from ?