A firm discovers that its new product reduces sales of one of its existing products. This effect is called:
Correct answer: C. Product cannibalisation
- A. Market skimming
- B. Brand reinforcement
- C. Product cannibalisation
- D. Channel integration
Explanation
Product cannibalisation occurs when a new product takes sales from another product in the same firm's portfolio. It can be intentional when the firm wants to protect its market position from competitors.
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