The competitive- parity method is a promotional budgeting method that forces management to spell out assumptions about the relationship among dollars spent, exposure levels, trial rates, and regular usage.

Question

Quizplus · Accepted Answer

The competitive-parity method bases the budget on the firm's share of market expenses relative to its competitors, rather than on the relationship between advertising expenses and sales or market response.

The Competitive- Parity Method Is a Promotional Budgeting Method That