Asked by Bruno Freitas on Jul 04, 2024
Verified
Which of the following is FALSE?
A) To reduce cannibalization among products,reposition a product so that it does not directly compete with the other
B) After acquiring a substitute product,raise prices on both the products
C) After acquiring a complementary product,raise prices on both the products
D) All of the above
Cannibalization
A decrease in the sales figures, earnings, or the market dominance of an existing product due to the launch of a new product by the same manufacturer.
- Comprehend the strategic considerations in product positioning to reduce cannibalization among a company's own products.
- Understand the strategic decisions behind acquisitions, particularly in contexts involving substitutes and complementary goods.
Verified Answer
ZK
Zybrea KnightJul 08, 2024
Final Answer :
C
Explanation :
Raising prices on both products after acquiring a complementary product is generally not a recommended strategy. Instead, companies might bundle the products together at a special price to encourage more sales, leveraging the complementary nature of the products to increase value for customers.
Learning Objectives
- Comprehend the strategic considerations in product positioning to reduce cannibalization among a company's own products.
- Understand the strategic decisions behind acquisitions, particularly in contexts involving substitutes and complementary goods.