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

Question

Quizplus · Accepted Answer

Cannibalization occurs when a company's new or lower-priced product eats into the sales of its existing or higher-priced products. In this case, the company introduced Funday film to compete with lower-priced brands, but many of its regular customers bought Funday instead of its higher-priced film. This resulted in a decrease in sales of the company's higher-priced film, which is an example of cannibalization.

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