A firm increases its promotion budget by 20 percent in order to increase awareness of its brand among its target market. Preliminary research suggests that less than 30 percent of the target market is aware of the firm's brand name. What budgeting method is being used?

Question

Quizplus · Accepted Answer

The objective-and-task budgeting method involves setting specific objectives (like increasing brand awareness) and then determining the tasks needed to achieve these objectives, along with the costs associated with these tasks. In this case, the firm has a specific objective (increasing brand awareness) and has adjusted its budget to meet this objective, indicating the use of the objective-and-task method.

A Firm Increases Its Promotion Budget by 20 Percent in Order