A company introduced the Funday film to compete with lower-priced brands, but it found many of its regular customers bought Funday instead of its usual, higher-priced film. The company experienced ________.

Question

Quizplus · Accepted Answer

The situation described in the question is indicative of cannibalization, which occurs when a company's new or cheaper product takes market share away from its existing, higher-priced offerings. In this case, Funday film is the new, lower-priced option that is attracting regular customers away from the company's higher-priced film.

A Company Introduced the Funday Film to Compete with Lower-Priced