Which of the Following Is NOT an Example of Cannibalization

question 65

Multiple Choice

Which of the following is NOT an example of cannibalization?

• A)Kellogg's introduces a new type of cereal.
• B)Ford rolls out a new model of car.
• C)Molson brings out a new beer.
• D)Canadian Tire allows Tim Horton's to operate a concession stand in their retail outlets.

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Definitions:

Advertising Campaign

A series of advertisement messages that share a single idea and theme intended to achieve specific business objectives.

Contribution Margin Ratio

A measure of how a company's sales revenue contributes to covering its variable costs.

Fixed Costs

Expenses that do not change in total volume with changes in the level of business activity, such as rent or salaries.

Contribution Margin Ratio

A financial ratio that measures how much of each sale is available to cover fixed costs after variable costs have been paid.