Whenever a company introduces a new product in a portfolio, there is a risk of ________, which occurs when sales of an existing product decline as the firm's current customers switch to the new product.
A) counterfeiting
B) disintermediation
C) cannibalization
D) brand inequity
E) bundling

Question

Quizplus · Accepted Answer

Cannibalization is the risk of sales decline of an existing product when a new product is introduced into the market. This happens when customers switch from an existing product to the new one.

Whenever a Company Introduces a New Product in a Portfolio