When Do Online Marketers Run the Risk of Cannibalization

question 2

Multiple Choice

When do online marketers run the risk of cannibalization?

• A) when they compete with off-price houses on the Internet
• B) when they self-inflict price cuts by creating competition among their own products
• C) when they construct numerous new brick and mortar stores alongside their virtual websites
• D) when they hold onto tradition in the face of new technology

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Definitions:

Expected Return

The projected average return on an investment, accounting for all potential outcomes and their probabilities.

Expected Market Return

The average return anticipated from an investment in a broad market index over a certain period.

Expected Return

The anticipated return on an investment based on the probabilities of possible outcomes.

Risk-Free Rate

The expected earnings from an investment that carries no risk of losing money, typically exemplified by the return on government bonds.