Which of the Following Statements Is Most Likely True Regarding

question 86

Multiple Choice

Which of the following statements is most likely true regarding the competitive-parity method?

• A) This method involves starting with total revenues, deducting operating expenses and capital outlays, and then devoting some portion of the remaining funds to advertising.
• B) It is based on the availability of funds rather than on opportunities.
• C) It wrongly views sales as the cause of promotion rather than as the result.
• D) In this method, promotion budgets are set to match competitors' outlays.
• E) This method involves setting the promotion budget at a certain percentage of current or forecasted sales.

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Definitions:

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