A company introduced the Funday film to compete with lower-priced brands, but it found many of its regular customers bought Funday instead of its usual, higher-priced film. The company experienced ________.
A) an upward line stretch
B) a product line contraction
C) brand dilution
D) cannibalization
E) filling in

Question

Quizplus · Accepted Answer

The scenario describes cannibalization, which occurs when sales of a new product or service come at the expense of an existing product or service offered by the same company. In this case, the company's regular customers are switching to the lower-priced Funday film instead of buying the higher-priced film they previously purchased.

A Company Introduced the Funday Film to Compete with Lower-Priced