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. What does Joseph appear to be concerned about?
A) brand confusion
B) market diffusion
C) cannibalization
D) brand dispersion

Question

Quizplus · Accepted Answer

Joseph is concerned about cannibalization, which refers to the new product line negatively impacting sales of the current brand. This is a common concern when introducing a new product line that may compete with existing products.

Filbertina, a Company That Markets Nuts and Other Healthy Snack