If a company extends a line of products by introducing a new product to the market,and the firm does not distinctly position this product (i.e.,separately from the other products in the line),the result could be
A) poor product positioning.
B) product deletion.
C) product repositioning.
D) cannibalization.
E) new-product development.

Question

Quizplus · Accepted Answer

If a company introduces a new product into an existing product line without clearly differentiating or positioning it from the other products in the line, customers may perceive the new product as simply a substitute for existing products, leading to cannibalization. This means that the new product will eat into the sales of the company's existing products, resulting in lower revenue and profits overall. To avoid cannibalization, companies need to carefully position and differentiate their products within the line.

If a Company Extends a Line of Products by Introducing