Asked by Ashley Friend on Apr 25, 2024
Verified
Which of the following is true?
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,lower prices on both the products
C) After acquiring a complementary product,raise prices on both the products
D) All of the above
Substitute Product
A product or service that satisfies the same need or function as another in the eyes of the consumer, often leading to competition between brands.
Complementary Product
A product that adds value to another product when used together, enhancing the consumer's experience or utility.
- Absorb the strategic implications in product positioning to mitigate cannibalization amongst a company's own offerings.
- Familiarize oneself with the strategic motives behind acquisitions, particularly in cases concerning substitutes and complementary products.
Verified Answer
CT
Celine Tanyingying8 days ago
Final Answer :
A
Explanation :
Repositioning a product can help in reducing cannibalization among products. Lowering prices on both substitute products (Option B) might lead to further cannibalization, and raising prices on both complementary products (Option C) might lead to a decrease in demand for both products. Therefore, Option A is the best choice.
Learning Objectives
- Absorb the strategic implications in product positioning to mitigate cannibalization amongst a company's own offerings.
- Familiarize oneself with the strategic motives behind acquisitions, particularly in cases concerning substitutes and complementary products.