When new products or a new chain steals customers and sales from older existing ones it is referred to as
A)cannibalization.
B)amortization.
C)product appropriation.
D)profit pilfering.
E)profit implosion.

Question

Quizplus · Accepted Answer

Cannibalization refers to the situation when a new product or chain takes away customers and sales from an older existing product or chain. It is called cannibalization because the new product is eating away at the sales of the older product and reducing its market share. Amortization refers to the process of spreading out the cost of an asset over a period of time, usually its useful life. Product appropriation, profit pilfering, and profit implosion are not terms commonly used in the context of business and do not relate to the situation described.

When New Products or a New Chain Steals Customers and Sales