Cannibalization occurs when a new EC initiative produces substantial online sales,but traditional sales fall such that no increase in total revenue occurs.

Question

Quizplus · Accepted Answer

Cannibalization occurs when a new EC initiative, such as launching an online store, generates significant online sales but at the same time causes a decline in traditional sales. As a result, the total revenue may remain unchanged or even decrease, leading to cannibalization of the business.

Cannibalization Occurs When a New EC Initiative Produces Substantial Online