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

Question

Quizplus · Accepted Answer

Cannibalization occurs when a new product eats into the sales of the company's existing products, as seen with the Gwen 2.0 affecting the sales of Prisly Inc.'s other cars.