A company introduced a new low-calorie version of one of its popular cold drinks. As a result, the sales of the original cold drink started decreasing because consumers preferred its low calorie version. What is this situation is known as?
A) product encroachment
B) product centralization
C) cannibalization
D) polarization

Question

Quizplus · Accepted Answer

This situation is known as cannibalization, where the sales of one product decrease due to the introduction of a new product by the same company, as consumers prefer the new product over the old one.

A Company Introduced a New Low-Calorie Version of One of Its