Which of the following is an example of cannibalization?
A) A toothpaste manufacturer adds a new line of toothpaste (that contains baking soda) to its product line.
B) A grocery store begins selling T-shirts featuring the local university's mascot.
C) A basketball manufacturer adds basketball hoops to its product line.
D) A convenience store begins selling pre-paid cell phones.

Question

Quizplus · Accepted Answer

Cannibalization occurs when a company's new product eats into the sales of one of its existing products. In this case, introducing a new line of toothpaste (that contains baking soda) to an existing toothpaste product line is likely to split the sales between the two products, rather than generating entirely new sales.

Which of the Following Is an Example of Cannibalization