luxury motors introduced a new car to its already popular sedan line. the new car sold very well in its first year, so the company was surprised to find that its overall sales volume remained about the same as did its market share. what is the likely reason for this? the company experienced cannibalization from the new car from its existing product line. the company needed to revamp a model rather than create a new model. the company failed to assess customer interest in luxury cars. the company’s new car was disruptive technology to its existing product line. the company didn’t differentiate the new car from its existing product line.

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12-10-2022
Business

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luxury motors introduced a new car to its already popular sedan line. the new car sold very well in its first year, so the company was surprised to find that its overall sales volume remained about the same as did its market share. what is the likely reason for this? the company experienced cannibalization from the new car from its existing product line. the company needed to revamp a model rather than create a new model. the company failed to assess customer interest in luxury cars. the company’s new car was disruptive technology to its existing product line. the company didn’t differentiate the new car from its existing product line.

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smecloudbird17 smecloudbird17 · Answer 1 · 2022-10-26T09:26:28+02:00

The likely reason for this is that the company experienced cannibalization from the new car from its existing product line.

Car's cannibalization refers to take out the salvageable parts from something, maybe from a broken machine in order to put something else together or fix it. Thus, to include a part taken from one thing into the repairing, repairing, or making of another object.

However, the new car's cannibalization of the company's existing product line occurred is the likely reason for this. Marketing cannibalization is often done unintentionally when the marketing campaign for certain new products draw the customers away from an already established product.

Hence, option A is correct.

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