The competitive-parity method of promotions budgeting has been repeatedly shown to prevent promotion wars.

Question

Quizplus · Accepted Answer

The competitive-parity method of promotions budgeting is not a foolproof method for preventing promotion wars. It involves setting the promotions budget based on what competitors are spending, and if a competitor suddenly increases their budget, it may lead to a promotion war. Other factors such as market conditions and consumer behavior also play a role in the occurrence of promotion wars.

The Competitive-Parity Method of Promotions Budgeting Has Been Repeatedly Shown