When Prisly Inc.introduced a liquid detergent in the market,it noticed that the sales of its detergent powder significantly declined.Prisly Inc.'s loyal customers who previously purchased detergent powder switched to liquid detergent.As a result,Prisly Inc.was forced to reduce production of its detergent powder.This scenario exemplifies _____.
A)segmentation
B)diversification
C)differentiation
D)cannibalization

Question

When Prisly Inc.introduced a liquid detergent in the market,it noticed that the sales of its detergent powder significantly declined.Prisly Inc.'s loyal customers who previously purchased detergent powder switched to liquid detergent.As a result,Prisly Inc.was forced to reduce production of its detergent powder.This scenario exemplifies _____.​
A)segmentation
B)​diversification
C)​differentiation
D)cannibalization

Quizplus · Accepted Answer

Cannibalization occurs when a new product introduced in the market reduces the sales of an existing product of the same company. In this scenario, the introduction of liquid detergent by Prisly Inc. led to a significant decline in the sales of its detergent powder, forcing the company to reduce its production, indicating cannibalization. Therefore, option D is the most suitable choice. Segmentation, diversification, and differentiation do not match the given scenario.