Toward the end of the fiscal year,the owner of a small company came back from lunch concerned because he had learned that a business targeting the same customers as his was planning on spending $150,000 on promotion.As soon as he arrived at the office,he called his financial manager and said,"I want to budget $150,000 for next year's promotion." Which method of promotional budgeting did the owner want to use?

Question

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The owner wanted to use the competitive-parity method of promotional budgeting, where the company sets its promotional budget to match or exceed competitors' promotional spending. This is evident from the fact that the owner learned that a similar business was planning on spending $150,000 on promotion and immediately decided to budget an equal amount.

Toward the End of the Fiscal Year,the Owner of a Small