A company introduced the Funday film to compete with lower-priced brands,but it found many of its regular customers bought Funday instead of its usual,higher-priced film.The company experienced ________.

Question

Quizplus · Accepted Answer

Cannibalization occurs when a new product from a company starts capturing sales from the company's existing products, instead of generating incremental sales. In this scenario, the introduction of Funday film resulted in the company's regular customers buying Funday instead of its usual, higher-priced film, hence cannibalizing its own sales.

A Company Introduced the Funday Film to Compete with Lower-Priced