TD Bank is forecasting sales of $10 million for their new business account. RBC also released a new business account and is spending $1 million on their advertising program. TD decides that their budget will also be $1 million. TD's budgeting strategy is known as:

Question

Quizplus · Accepted Answer

Competitive parity is a budgeting strategy where a company decides its budget based on what its competitors are spending. In this scenario, TD Bank is matching RBC's advertising spending, which is an example of competitive parity.

TD Bank Is Forecasting Sales of $10 Million for Their