When Ann Taylor, a well-known retailer of sophisticated women's clothing, started losing sales to its own Loft outlets that feature moderately priced casual clothes, Ann Taylor was dealing with the marketing phenomenon known as
A)amortization.
B)guerrilla marketing.
C)shrinkage.
D)marketing Darwinism.
E)cannibalization.

Question

Quizplus · Accepted Answer

Cannibalization refers to the scenario where a company's new or existing product or service eats into the sales of its own established product or service. In this case, Ann Taylor is losing sales to its own Loft outlets, which offer similar products at a lower price. This is an example of cannibalization.

When Ann Taylor, a Well-Known Retailer of Sophisticated Women's Clothing