When a firm introduces a new product into an existing product line,its marketing team MOST LIKELY will be concerned with __________.
A)the ability to change prices quickly
B)speeding up the diffusion of innovation process
C)brand extension confusion
D)charging a lower price to gain a foothold in the market
E)cannibalizing sales from the higher-priced products in the line,reducing overall sales revenues

Question

Quizplus · Accepted Answer

When a new product is introduced into an existing product line, there is a risk that it might take sales away from the firm's existing higher-priced products, leading to a reduction in overall sales revenues. This is known as cannibalization.

When a Firm Introduces a New Product into an Existing