What is a general advantage of setting promotion budgets to whatever level companies believe they can afford? Does not acknowledge marketing as an investment toward sales. Could help companies remain solvent during prolonged recession. Could cause companies to react too slowly to a competitive threat. Could make long-range marketing planning difficult.

Could help companies remain solvent during prolonged recession.

Explanation:

A promotion budget is a specific amount of money destined to promote the goods or services of a business.

During a recession, many businesses reduce their promotion budgets, although is the opposite of what could actually help them survive tough economical periods. It´s the businesses that improve promotion during recessions the ones that get a sales increase during and even after the recession.

cognitive overload: having a lot on your mind impairs decision-making and tends to result in the simplest, but not necessarily best, option being selected.

empathy gaps: overlooking how you might feel in a different situation can result in unnecessary purchases, such as overbuying when shopping for food on an empty stomach.

optimism and overconfidence: wearing rose-tinted glasses and having unrealistic expectations about the future can affect money management and leave you unprepared for a change in circumstance.

instant gratification: seeking instant gratification drives impulsive spending and can undermine long-term planning and savings.

harmful habits: automatic or mindless behaviour can amplify a poor financial decision as it becomes a recurring event.

social norms: we are heavily influenced by the actions of others; while this can be in certain circumstances, it also contributes to the pressure to keep up with the joneses through conspicuous consumption.