Cannibalization is the concept that describes __________.
A)The loss that occurs from a new product introduction on existing products
B)When revenue is lost to a competitor
C)The loss of unit sales to a new advertising campaign of a competitor
D)The loss that occurs from a brand maturing
E)None of these

Question

Quizplus · Accepted Answer

Cannibalization is the reduction in sales (units or dollars) of a firm's existing products due to the introduction of a new product. The cannibalization rate is generally calculated as the percentage of a new product's sales that represents a loss of sales (attributable to the introduction of the new entrant) by a specific existing product or products.

Cannibalization Is the Concept That Describes __________