After reading the daily newspaper, the restaurant owner said, "The owner of Fellini's House of Noodles ran a quarter-page ad in today's paper. We'll just have to find enough money to run our own ad day after tomorrow." What budgeting technique is the restaurant owner most likely using?

Question

Quizplus · Accepted Answer

The restaurant owner is most likely using competitive parity budgeting, where they are matching or keeping up with the advertising spend of their competitors, in this case, Fellini's House of Noodles. They mention finding enough money to run their own ad, which suggests that they are trying to keep up with the competition rather than investing beyond what their budget allows.

After Reading the Daily Newspaper, the Restaurant Owner Said, "The