Cannibalization occurs when

A. two or more companies collude to set prices, forcing smaller brands to leave the marketplace.
B. a brand has been mismanaged and must be revitalized in order remain a viable brand.
C. existing products have such a strong market share that new products fail to gain acceptance with consumers.
D. a firm develops a new product but does not allocate enough funds to promote the product successfully.
E. new products take sales away from the firm's existing products rather than generating additional revenues.


Answer: E

Business

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