The percentage-of-sales method wrongly views sales as the cause of promotion rather than as the result.

Name: The percentage-of-sales method wrongly views sales as the cause of promotion rather than as the result.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The percentage-of-sales method assumes that sales drive promotional expenses, but in reality, promotional expenses can also drive sales. This method can lead to underinvestment in promotions and hinder a company's ability to compete in the market.

The Percentage-Of-Sales Method Wrongly Views Sales as the Cause of Promotion