A company introduced a new low calorie version of one of its popular cold drinks.As a result,the sales of the original cold drink started decreasing because consumers preferred its low calorie version.This situation is known as:
A)product encroachment.
B)product centralization.
C)cannibalization.
D)polarization.

Question

Quizplus · Accepted Answer

Cannibalization occurs when the sales of an existing product decrease due to the introduction of a new product within the same company's brand portfolio. In this case, the low calorie version of the cold drink has cannibalized the sales of the original version. Product encroachment refers to a situation where an outside company enters the market with a similar product and captures some of the existing company's market share. Product centralization and polarization are not relevant in this context.

A Company Introduced a New Low Calorie Version of One