When Prisly Inc. introduced a liquid detergent in the market, it noticed that the sales of its detergent powder significantly declined. Prisly Inc.'s loyal customers who previously purchased detergent powder switched to liquid detergent
As a result, Prisly Inc. was forced to reduce production of its detergent powder. This scenario exemplifies__________.
Fill in the blanks with correct word.
ANSWER: cannibalization
The sales of Prisly Inc.'s detergent powder significantly declined after the introduction of liquid detergent in the market. This exemplifies cannibalization. Cannibalization occurs when sales of a new product cut into sales of a firm's existing products.
Business
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