Zetovi Corp. is a multinational communications and information technology company. It manufactures smartphones and other cell phone accessories. The company launched a range of tablets in the market, and it becomes an instant hit. The company then experiences a drastic decline in the sales of its smartphones as a large section of its customer base shifts to tablets. Which of the following concepts is being illustrated in this scenario?
A) Segmentation
B) Cannibalization
C) Market penetration
D) Product bundling

Question

Quizplus · Accepted Answer

Cannibalization occurs when a new product eats into the sales of one of the company's existing products, as seen with Zetovi Corp.'s tablets affecting smartphone sales.