When it became apparent that the drawing power to a particular Walmart store was very strong, because every day there would be long lines and empty shelves despite all cashier lanes open and plenty of stockers, Walmart opened another store within 10 miles of that store to try and reduce the amount of business at the over-demand store. This is an example of utilizing ________, but for the good of the retailer.
A) artificial barriers
B) cannibalization
C) congestion
D) fringe trading
E) drawing power

Question

Quizplus · Accepted Answer

This is an example of cannibalization, where Walmart opened another store to reduce the demand on a particular store. Usually, cannibalization refers to when a new store or branch reduces the sales and profits of an existing store or branch, but here, it was used to positively impact the retailer by reducing overcrowding and improving the shopping experience for customers.

When It Became Apparent That the Drawing Power to a Particular