A downward stretch of the product line carries the risk that new low- end items may "cannibalise" the reputation and/or sales of higher- end items.

Question

Quizplus · Accepted Answer

This is true. Cannibalization occurs when sales of a new low-end product come at the expense of sales of a higher-end product, thereby reducing overall revenue and potentially damaging the reputation of the higher-end product.

A Downward Stretch of the Product Line Carries the Risk