Whenever a product line or a product family is extended,there is a risk of ________,which occurs when sales of an existing brand decline as the firm's current customers switch to the new product.

Question

Quizplus · Accepted Answer

Cannibalization occurs when a new product or an extension of a product line decreases sales of an existing brand by appealing to the same customers. This results in a loss of market share for the firm and can impact the profitability of the brand.

Whenever a Product Line or a Product Family Is Extended,there