Pharmaceutical firms have introduced new over-the-counter antacids that block the production of stomach acids while still marketing traditional antacids.Traditional antacids treat heartburn by neutralizing stomach acid.If sales of the new acid blockers reduce sales of the traditional antacids,what has occurred?
A) undifferentiation
B) cannibalization
C) perceptual confusion
D) demarketing

Question

Quizplus · Accepted Answer

Cannibalization occurs when a new product reduces sales of an existing product within the same company. In this case, the introduction of the new acid blockers is likely to cannibalize sales of the traditional antacids as both products are used for the same purpose of treating heartburn.

Pharmaceutical Firms Have Introduced New Over-The-Counter Antacids That Block the Production