The term "cannibalization" refers to ________.
A) decrease in the sales of current project caused by the launching of new project
B) decrease in the sunk cost caused by launching of new project
C) decrease in overhead expenses incurred due to launch of new project
D) cost of using a resource for the best value it could provide in its best alternative

Question

Quizplus · Accepted Answer

Cannibalization refers to a situation where the sales of a current product or service are negatively affected by the introduction of a new product or service. This is because the new product or service is taking away customers from the existing one. Therefore, option A is the correct answer.

The Term "Cannibalization" Refers to ________