Sam, the owner of a small company, learned that a competitor was planning to spend $150,000 on promotion in the next financial year. As soon as he learned this, Sam called his finance manager and said, "I want to spend $150,000 on promotion next year." In this case, which method of promotional budgeting does Sam use?
A) the objective-and-task method
B) the competitive-parity method
C) the percentage-of-sales method
D) the affordable method
E) the pull-push method

Question

Quizplus · Accepted Answer

Sam is using the competitive-parity method where he is matching his promotion spending based on his competitor's spending.

Sam, the Owner of a Small Company, Learned That a Competitor