Question

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

1. segmentation
2. differentiation
3. cannibalization
4. personalization

Answer 1

3. cannibalization

Step-by-step explanation:

This term refers to the situation were sales or the market share of a product are reduced because another product is introduced by the same company.