[amp_mcq option1=”non-cannibalization effect” option2=”cannibalization effect” option3=”external effect” option4=”internal effect” correct=”option2″]<\/p>\n
The correct answer is B. cannibalization effect.<\/p>\n
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.<\/p>\n
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.<\/p>\n
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.<\/p>\n
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.<\/p>\n","protected":false},"excerpt":{"rendered":"
[amp_mcq option1=”non-cannibalization effect” option2=”cannibalization effect” option3=”external effect” option4=”internal effect” correct=”option2″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[945],"tags":[],"class_list":["post-47587","post","type-post","status-publish","format-standard","hentry","category-financial-management","no-featured-image-padding"],"yoast_head":"\n