Certified Professional Category Analyst (CPCA) 2026 – 400 Free Practice Questions to Pass the Exam

The situation described where a buyer switches from their usual widgets to a new item on discount is an example of cannibalization. This term refers to the scenario where a new product takes sales away from an existing product within the same brand or company, rather than generating additional sales. The buyer's switch indicates that they are choosing the discounted item over their usual purchase, which can lead to a decrease in sales for their previously favored product.

This phenomenon often occurs when companies introduce new products or promotional strategies; while it can help attract new customers, it also risks reducing the sales volume of existing products. This situation highlights the importance of monitoring how new introductions and promotional offers affect overall brand performance and existing product lines.

In contrast, market segmentation focuses on dividing a broader market into smaller segments for targeted marketing, product introduction refers to bringing a new product to market, and brand loyalty signifies a consumer's commitment to repurchase the same brand consistently over time, which does not apply in this case since the buyer is opting for a different item based on a promotional discount.