ABSTRACT

Cannibalization occurs when products in a portfolio take market share from each other instead of from competitor brands. Cannibalization is relevant in two contexts: new product introductions and price promotions. In its most common form, cannibalization refers to the loss of sales on an existing product item when a new item is introduced (Mason and Milne 1994). While this is the most common form, cannibalization is relevant also in conjunction with price promotions. Here, cannibalization refers to the loss of sales on an un-promoted item in a product line as a result of the price promotion.