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Luxury Motors Introduced a New Car to Its Already Popular

Question 32

Multiple Choice

Luxury motors introduced a new car to its already popular sedan line. The new car sold very well in its first year, so the company was surprised to find that its overall sales volume remained about the same as did its market share. What is the likely reason for this?


A) The company didn't differentiate the new car from its existing product line.
B) The company failed to assess customer interest in luxury cars.
C) The company's new car was disruptive technology to its existing product line.
D) The company needed to revamp a model rather than create a new model.
E) The company experienced cannibalization from the new car from its existing product line.

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