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 about how the new line will impact sales of the company's current brand.Joseph appears to be concerned about the possibility of which of the following?
A)brand confusion
B)market diffusion
C)cannibalization
D)brand dispersion

Question

Quizplus · Accepted Answer

Joseph's concern about the impact of the new line on sales of the current brand suggests that he is worried about cannibalization. Cannibalization occurs when a new product in a company's line or portfolio reduces sales and market share of an existing product. In this case, if the less expensive snack line takes away sales from the upscale nut line, it would be an example of cannibalization. Brand confusion (A) refers to consumers being uncertain about the difference between two brands, while market diffusion (B) refers to a company's failure to focus on a particular segment or niche, resulting in spreading resources too thin. Brand dispersion (D) is not a commonly used term in marketing.

Filbertina,a Company That Markets Nuts and Other Healthy Snack Foods,has