A service provider has a new strategy which involves them selling services via third parties, and also from their own website. This new sales channel should bring additional customers, and may also…

Question

Options

• ACannibalism
• BErosion
• CConcurrence
• DSynergism

• A
  3% (1)
• B
  10% (3)
• C
  3% (1)
• D
  83% (24)

Explanation

Synergism is correct because the scenario describes two channels that actively reinforce each other: third-party sales boost brand recognition, which in turn lifts direct sales. The combined effect of both channels exceeds what either would achieve independently - the defining characteristic of a synergistic model.

Cannibalism (A) is wrong because it describes a new channel stealing customers from an existing one, reducing overall performance. Here, direct sales are expected to increase, not suffer.

Erosion (B) is similarly wrong - it describes one channel gradually weakening another over time. The scenario describes the opposite: a positive spillover effect between channels.

Concurrence (C) is wrong because it describes channels operating in parallel without meaningful interaction. The scenario explicitly notes that third-party sales influence direct sales through brand recognition, meaning the channels are interdependent, not merely coexistent.

Memory tip: Link Synergism to synergy - when two things work together to create a result bigger than the sum of their parts. If a question describes Channel A helping Channel B (or vice versa), think "syn-ergy = syn-ergism."

No community discussion yet for this question.