If the adoption of a new product will reduce the sales of an existing product, then the:
A)New product should not be undertaken
B)Old product should be abandoned
C)Incremental benefits of the new product may be overestimated
D)Incremental benefits of the new product may be underestimated

Question

Quizplus · Accepted Answer

When introducing a new product that may cannibalize sales of an existing product, there is a risk that the incremental benefits of the new product may be overestimated. This means that the potential increase in sales from the new product may not fully make up for the decrease in sales from the existing product. Therefore, it is important to carefully evaluate the potential impact of the new product on existing sales before making a decision. Option A and B are extreme choices that do not account for potential benefits of the new product, while option D assumes that the benefits of the new product are underestimated, which may not always be the case.

If the Adoption of a New Product Will Reduce the Sales