Asked by Carina Campos on Jul 17, 2024
Verified
Which of the following is TRUE?
A) To reduce cannibalization among products,reposition a product so that it does not directly compete with the other
B) After acquiring a substitute product,lower prices on both the products
C) After acquiring a complementary product,raise prices on both the products
D) None of the above
Reposition
The act of changing a product's market position, which may involve altering its image, target audience, or associated features.
Substitute Product
A product that can be used in place of another product, offering a similar utility to the consumer.
Complementary Product
A product that adds value to another product when used together, typically enhancing the user's experience or utility.
- Understand the strategic elements involved in product positioning to minimize cannibalization within a company's product lineup.
- Acquire knowledge of how product complements and substitutes impact pricing and marketing strategies.
Verified Answer
MR
Mohamed RafahJul 19, 2024
Final Answer :
A
Explanation :
Repositioning a product is a common strategy to reduce cannibalization among products. By changing the target market or adding new features that differentiate the product, it can avoid direct competition with other products in the same portfolio. Lowering or raising prices after acquiring complementary or substitute products can depend on various factors, such as the demand elasticity and the competitive environment, and may not always be the best strategy. Therefore, options B and C are not always true.
Learning Objectives
- Understand the strategic elements involved in product positioning to minimize cannibalization within a company's product lineup.
- Acquire knowledge of how product complements and substitutes impact pricing and marketing strategies.