A firm currently offers a single product within the product category. The product management team is considering
Question:
A firm currently offers a single product within the product category. The product management team is considering the development of a new high-featured and high-priced offering.
a) Should they expect the new higher-priced product to cannibalize sales from the existing marketed product?
b) If so, why might the firm move forward with the new high-featured and high-priced offering
Suppose the product management team is considering the development of a new low featured and low-priced offering, instead of the high-featured and high-priced one.
c) Should they expect the new lower-priced product to cannibalize sales from the existing marketed product?
d) If so, why might the firm move forward with the new low-featured and low-priced offering?
Management Accounting Information for Decision-Making and Strategy Execution
ISBN: 978-0137024971
6th Edition
Authors: Anthony A. Atkinson, Robert S. Kaplan, Ella Mae Matsumura, S. Mark Young