Question

Prisly Inc. is a multinational company that specializes in manufacturing and selling high-end cars. It launches a new car, the Gwen 2.0, that becomes highly successful in the market because of its economical price and excellent features. However, this leads to a significant decline in the sales of Prisly Inc.’s other cars. This scenario exemplifies _____.

1--segmentation2--differentiation3--cannibalization4--personalization

Answer 1

3. cannibalization

Step-by-step explanation:

Cannibalization is a decline in the sales of one or more product when a new product is introduced into the market by the same producer.

When Prisly Inc introduced Gwen 2.0, the sales of other cars produced by Prisly fell.