When Pearl Love introduced its new range of body wash,consumers switched from using soaps,sold under the same brand,to its new body wash.As a result,the company experienced a sharp drop in its soap sales.This is best known as:
A) cannibalization.
B) the vampire effect.
C) the halo effect.
D) vaporware.

Question

Quizplus · Accepted Answer

Cannibalization refers to a situation where the introduction of a new product in the market leads to a decline in sales of an existing product sold under the same brand. In this case, the sales of soap declined after the introduction of body wash, which is an example of cannibalization. The vampire effect refers to a situation where the introduction of a new product in the market leads to a decline in sales of a competitor's product. The halo effect refers to a situation where the success of a product influences the perception of other products sold under the same brand. Vaporware refers to a product that is announced but never released in the market.

When Pearl Love Introduced Its New Range of Body Wash,consumers