Filbertina, a company that markets nuts and other healthy snack foods, has always tried to project an upscale image. However, the company has decided to develop another product line of less expensive snacks. Marketing manager Joseph Hampton generally supports the strategy but is concerned that the new line will decrease sales of the company's current brand. Joseph is worried about the possibility of _____.
A) market diffusion
B) cannibalization
C) brand confusion
D) segmentation

Question

Quizplus · Accepted Answer

Cannibalization refers to the situation in which sales of a new product line come at the expense of sales of an existing product line. Joseph's concern about the new line decreasing sales of the current brand reflects the possibility of cannibalization. Market diffusion refers to a situation where a product fails to capture a sizable share of a market segment. Brand confusion refers to a situation where consumers are unclear about the differences between various products marketed under the same brand. Segmentation refers to the process of dividing a market into smaller groups with distinct needs and characteristics.

Filbertina, a Company That Markets Nuts and Other Healthy Snack