A local hardware store owner is preparing an advertising budget for his firm for the year. He uses data on the proportion of sales that other hardware stores in the region allocate to advertising as a base. Which of the following methods for establishing an advertising budget is he using?

Question

Quizplus · Accepted Answer

The basic philosophy underlying this approach is that advertising is defensive. Advertising budgets are based on those of competitors or other members of the industry.

A Local Hardware Store Owner Is Preparing an Advertising Budget