CLEP Marketing

Answer: D - As a company’s online commerce grows as a percentage of its annual revenues, the potential of e-commerce to cannibalize retail store sales becomes more likely. Cannibalization in e-commerce emerged in the late 1990s and early 2000s as companies shifted some of their marketing and sales activities towards their websites. Concurrently, online sales started to take greater shares of product sales than retail outlets. Since companies are interested in enhancing sales through online offerings and not cross-channel cannibalization, this risk has remained consistent as e-commerce flourished.