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What does a traditional retailer aim for in terms of product sales through cannibalization?

  1. Increase sales of all existing products

  2. Decrease competition among products

  3. Encourage loyalty to existing products

  4. Shift sales from one product to another

The correct answer is: Shift sales from one product to another

A traditional retailer's aim regarding cannibalization often focuses on shifting sales from one product to another. Cannibalization occurs when a new product introduced by a retailer takes sales away from an existing product within the same category. Retailers may intentionally introduce a new product line or variant anticipating that it will capture market share from existing items, thus increasing overall profitability or sales volume within the company's portfolio. When strategic, this approach allows retailers to stay competitive by introducing innovative or improved products that can attract customers who may have otherwise purchased similar items. By shifting sales in this manner, they can manage their product assortment, respond to consumer trends, and ultimately enhance the overall performance of their business. The other options reflect goals that, while relevant to retail strategy, do not capture the essence of cannibalization itself. For instance, increasing sales of all existing products encompasses a broader objective that doesn't specifically relate to the concept of cannibalization, which focuses on the interplay between products. Decreasing competition among products and encouraging loyalty to existing products might be desired outcomes but do not align with the scenario where one product's success is derived at the expense of another's performance.