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What is the strategic process of developing new products that replace existing products within a firm’s own product line, potentially reducing existing sales?

ALine Extension
BCo-Branding
CBrand Extension
DCannibalization

Explanation

* Cannibalization occurs when a new product line or item takes sales away from a firm’s existing established products.
* While planned cannibalization drives innovation, unplanned cannibalization lowers overall product line profitability.
* Marketers model cannibalization rates during new product concept testing.

Exam Relevance
  • Topic: Product Strategy
  • Subtopic: Product Line Dynamics
Submitted by: mcqstutor Team More Marketing MCQs →

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