Prisly Inc. is a multinational company that specializes in manufacturing and selling high-end cars. It launches a new car Gwen 2.0 that becomes highly successful in the market because of its cheap price and excellent specifications. However, this leads to a significant decline in the sales of Sanders Inc.'s other cars. This scenario exemplifies _____.
A)segmentation
B)differentiation
C)cannibalization
D)personalization

Question

Quizplus · Accepted Answer

The given scenario exemplifies cannibalization, which occurs when a company's own product or service eats into the sales of its other products or services, thereby reducing the overall revenue and profit of the company. In this case, the highly successful launch of Prisly Inc.'s Gwen 2.0 has led to a significant decline in the sales of their other cars. Therefore, choice C, cannibalization, is the best answer. The other options (segmentation, differentiation, and personalization) are not relevant to this scenario.