When Procter & Gamble (P&G)introduced Liquid Tide to a new segment,consumers in the traditional powdered detergent segment switched to the liquid product.Rather than real sales growth,P&G simply experienced the shifting of existing customers to a new product.This exemplifies a drawback of multisegment targeting strategy.What is it?
A) undifferentiation
B) demarketing
C) market repositioning
D) cannibalization

Question

Quizplus · Accepted Answer

This situation exemplifies cannibalization, which occurs when a new product introduced to a company's product line captures sales from existing products, rather than generating new sales. In this case, Liquid Tide took sales away from traditional powdered detergent, rather than bringing in new customers or increasing overall sales. This is a drawback of multisegment targeting strategy because it can lead to cannibalization and ultimately hurt the company's overall revenue.

When Procter & Gamble (P&G)introduced Liquid Tide to a New