Ask Question
BusinessBusiness
20 October, 08:28

A company known for its high-quality watches and clocks introduces a line of well-designed pocket watches to increase its market share. The pocket watch style catches on in the fashion world, and in a short time the company's pocket watch sales climb quickly. At the same time, the sales of its wrist watch line decline. The pocket watch line is having what marketing effect on the company's wrist watches?

+5
Answers (1)
  1. 20 October, 11:28
    0
    Answer: Market Cannibalization

    Explanation: The pocket watch line is having the market cannibalization which is also known as the corporate cannibalism effect on the company's wrist watches.

    Market Cannibalization refers to a reduction in sales of a particular old product which is usually as a result of a company's introduction of a new product.

    The introduction of the new product displaces the older products mostly because both products have thesame customer base and also perform similar functions.

    It is essential to note that despite the increase in sales of the new product, the company's market share experiences no increase but a decrease which is due to the sales loss of the older product.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “A company known for its high-quality watches and clocks introduces a line of well-designed pocket watches to increase its market share. The ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
Heather is the copy editor for the newspaper. She has to read everything before it goes to print because it has to be perfect. She sets rigid deadlines to make sure she has enough time to correct everyone's mistakes.
Answers (1)
Salvia Company recently purchased a truck. The price negotiated with the dealer was $40,000. Salvia also paid sales tax of $2,000 on the purchase, shipping and preparation costs of $3,000, and insurance for the first year of operation of $4,000.
Answers (1)
In the treaty of Kanazawa, Japan aggred to
Answers (1)
If there were 60,000 pounds of raw materials on hand on January 1, 120,000 pounds are desired for inventory at January 31, and 410,000 pounds are required for January production, how many pounds of raw materials should be purchased in January?
Answers (1)
Which of the following is a distance-based method for location alternatives evaluation? Factor rating methodDecision treeBreak-even approachTransportation methodCenter of gravity approach
Answers (2)
New Questions in Business
Evan Company reports net income of $140,000 each year and declares an annual cash dividend of $50,000. The company holds net assets of $1,200,000 on January 1, 2017.
Answers (1)
Those who believe that regulations on business and industry are too numerous and too complex are most likely to favor the policy of
Answers (1)
In phenomenological studies, researchers strive to ensure that their own preconceived beliefs and opinions do not influence the emerging data, using which strategy? a. Constant comparison. b. Participant observation. c. Hermeneutics. d. Bracketing.
Answers (1)
A survey by the National Restaurant Association found that 70% of consumers say that they are more likely to visit restaurants that offer locally produced food.
Answers (1)
Which of the following is not a quality of a good employee? a. hardworking b. dishonest c. polite d. punctual
Answers (2)
Home » Business » A company known for its high-quality watches and clocks introduces a line of well-designed pocket watches to increase its market share.
Sign Up Forgot Password?