In Which of the Following Situations Would Use of the Competitive

question 241

Multiple Choice

In which of the following situations would use of the competitive parity budget-setting method be most appropriate?

• A)Two or more companies are competing with similar products and similar promotional goals.
• B)Two or more companies are introducing a totally new product to the market.
• C)Two or more companies exist in an oligopoly, and are planning on a product diversification strategy.
• D)Two or more companies exist in pure competition and compete on the basis of product differentiation.
• E)Two or more companies are in direct competition with products in all stages of the product life cycle.