Cannibalization occurs when the sales of a firm's existing product increase with the introduction of a new product.
Answer the following statement true (T) or false (F)
False
A potential cost of multisegment targeting is cannibalization, which occurs when sales of a new product cut into, or decrease, sales of a firm’s existing products. For example, the iPad peaked as a share of Apple’s revenue in 2012 when iPhone screens were only three-and-a-half inches. Since then, as iPhone screen sizes have expanded, however, sales of iPads have dropped at a greater rate than the tablet market average. See 8-7: Strategies for Selecting Target Markets.
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Public officials can win a defamation case only by proving the defendant's actual malice
a. True b. False Indicate whether the statement is true or false
Which of the following techniques balances the cost of ordering with the cost of carrying inventory?
A) EOQ B) the constant K C) POQ D) all of the above
As a general rule of thumb, a retailer that has a high gross margin will have:
A. m-commerce capabilities B. an inventory management system C. low prices D. salespeople trained in cross-selling techniques E. high prices
You are auditing a store that sells merchandise. Some of the store merchandise is held on consignment. Which account balance assertion for inventory should you be most concerned about verifying?
A. Existence or occurrence. B. Completeness. C. Rights and obligations. D. Valuation or allocation.