Which method of budget allocation is difficult to adopt for firms ...

[jenna1]

Which method of budget allocation is difficult to adopt for firms entering new markets?
 a. Objective-and-Task c. Competitive-parity
  b. Percent-of-Sales d. Executive-judgment

Question 2

A principal objective of marketing strategy should be to increase the likelihood of _____ through offering quality.
 A) elaboration
  B) negative affect
  C) cognitive effort
  D) reinforcement
  E) satisfaction

[frejo]

Answer to Question 1

B
The percent-of-sales method determines the total budget allocated to advertising based on past or projected sales. This method is difficult to adopt for firms entering new markets which are more likely to benefit from budgeting methods such as competitive parity or objective-and-task. In new markets, sales figures do not yet exist and it is hard to estimate sales accurately enough to use the percent-of-sales method.

Answer to Question 2

E

[jenna1]

Thanks for the timely response, appreciate it

[parker125]

Gracias!