Author Question: Which type of budget allocation method should not be used for firms that are entering a new market ... (Read 108 times)

Kthamas · **on:** Jun 29, 2018

Which type of budget allocation method should not be used for firms that are entering a new market or whose brands are not known locally?
a. Objective-and-task c. Competitive-parity
b. Executive-judgment d. All-you-can-afford

Question 2

_____ is the most effortless type of consumer decision-making, and is characterized by little or no information seeking.
A) Performance processing
B) Reactance
C) Habit
D) Emotional processing
E) Satisfice

Gabe · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

C
In a new market, it is unlikely that a firm will have a similar marketing goal or strategy compared to competing firms. The same is true for brands that are not known. For example, a firm with an unknown brand may need to spend much more in advertising to achieve awareness. For this reason, the competitive-parity methods should not be used for firms that are entering a new market and/or whose brands are not known locally.

Answer to Question 2

C