The correct answer is B. cannibalization effect.
Cannibalization is a term used in business to describe the loss of sales of one product or service as a result of the introduction of a new product or service. In the context of the question, the new business is reducing the sales of the existing business, which is a classic example of cannibalization.
Option A, non-cannibalization effect, is incorrect because it describes the opposite of the situation in the question. Non-cannibalization occurs when a new product or service does not reduce the sales of an existing product or service.
Option C, external effect, is incorrect because it describes a situation in which a company’s sales are affected by factors outside of the company’s control, such as changes in the economy or the introduction of new products by competitors.
Option D, internal effect, is incorrect because it describes a situation in which a company’s sales are affected by factors within the company’s control, such as changes in marketing or pricing.