In an effort to maintain market share,a manufacturer may choose to introduce multiple line extensions in an effort to take up additional shelf space.The risk of using this strategy is that sales of new products may ________ sales of the firm's existing products.

Question

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Introducing multiple line extensions may lead to cannibalization, which is when the sales of new products come at the expense of the firm's existing products. This may happen because customers switch from buying the existing products to the new ones, or because the introduction of new products creates confusion or reduces the appeal of existing products. Therefore, while increasing shelf space may attract new customers and increase overall sales, it may also lead to sales declines for the firm's core products.

In an Effort to Maintain Market Share,a Manufacturer May Choose