Fenton has a food truck in which he sells mainly burgers and fries. He decided to expand his product line to begin serving grilled chicken sandwiches as well. Fenton is noticing that his existing customers now order the chicken over the burgers, and his sales have not increased, in fact, they have decreased slightly. This is most likely due to

Question

Elian

Business

6 May, 20:29

Fenton has a food truck in which he sells mainly burgers and fries. He decided to expand his product line to begin serving grilled chicken sandwiches as well. Fenton is noticing that his existing customers now order the chicken over the burgers, and his sales have not increased, in fact, they have decreased slightly. This is most likely due to

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Answers (1)

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Arielle Meadows · Answer 1

e. cannibalization

Explanation:

Based on the information provided within the question it can be said that this is most likely due to cannibalization. In business terms, this refers to a decline in sales due to the fact that the company introduces a new product with the hope of increasing sales, but instead that product takes the spotlight and causes the sales for other products that provide more profit to actually decline. Which is what the grilled chicken is doing to the burger products in this scenario, causing Fenton's overall sales revenue to decline.