A company introduced the Funday film to compete with lower-priced brands, but it found many of its regular customers buying Funday instead of the company's usual, higher-priced film. The company experienced ________.

Question

Quizplus · Accepted Answer

Cannibalization refers to a situation in which a company's new or cheaper product takes market share away from its own existing higher-priced product rather than from its competitors. In this case, the introduction of Funday film resulted in the company's regular customers buying it instead of the higher-priced brand, which indicates cannibalization.

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