Certified Professional Category Analyst (CPCA) Practice Exam 2026 - Free CPCA Exam Practice Questions and Study Guide

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What is cannibalization in a retail context?

When a new product reduces sales of an existing product

Cannibalization in a retail context refers specifically to the situation where the introduction of a new product negatively impacts the sales of an existing product. This phenomenon occurs when a new item captures the attention of customers who may have otherwise purchased an already established product within the same brand or category.

For instance, if a company launches a new flavor of a snack, it could divert sales away from the original flavor, as customers may opt for the new choice instead. This is particularly relevant in cases where products are similar or serve the same purpose, as consumers might not feel the need to purchase both. Understanding cannibalization is crucial for retailers and marketers to assess the overall impact of their product offerings and refine their strategies accordingly to optimize overall sales.

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When inventory levels diminish

When promotional efforts fail

When customers choose not to buy

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