Research Commons
      • Browse 
        • Communities & Collections
        • Titles
        • Authors
        • By Issue Date
        • Subjects
        • Types
        • Series
      • Help 
        • About
        • Collection Policy
        • OA Mandate Guidelines
        • Guidelines FAQ
        • Contact Us
      • My Account 
        • Sign In
        • Register
      View Item 
      •   Research Commons
      • University of Waikato Research
      • Management
      • Management Papers
      • View Item
      •   Research Commons
      • University of Waikato Research
      • Management
      • Management Papers
      • View Item
      JavaScript is disabled for your browser. Some features of this site may not work without it.

      Estimating cannibalization rates for pioneering innovations

      van Heerde, Harald J.; Srinivasan, Shuba; Dekimpe, Marnik G.
      DOI
       10.1287/mksc.1100.0575
      Link
       mktsci.journal.informs.org
      Find in your library  
      Citation
      Export citation
      van Heerde, H.J., Srinivasan, S. & Dekimpe, M.G. (2010). Estimating cannibalization rates for pioneering innovations. Marketing Science, 29(6), 1024-1039.
      Permanent Research Commons link: https://hdl.handle.net/10289/5056
      Abstract
      To evaluate the success of a new product, managers need to determine how much of its new demand is due to cannibalizing the firm’s other products, rather than drawing from competition or generating primary demand. We introduce a time-varying vector error-correction model to decompose the base sales of a new product into its constituent sources. The model allows managers to estimate cannibalization effects and calculate the new product’s net demand, which may be considerably less than its total demand. We apply our methodology to the introduction of the Lexus RX300 using detailed car transaction data. This case is especially interesting because the Lexus RX300 was the first crossover sport utility vehicle (SUV), implying that its demand could come from both the luxury SUV and the luxury sedan categories. Because Lexus was active in both categories, there was a double cannibalization potential. We show how the contribution of the different demand sources varies over time and discuss the managerial implications for both the focal brand and its competitors.
      Date
      2010
      Type
      Journal Article
      Publisher
      INFORMS
      Collections
      • Management Papers [1125]
      Show full item record  

      Usage

       
       
       

      Usage Statistics

      For this itemFor all of Research Commons

      The University of Waikato - Te Whare Wānanga o WaikatoFeedback and RequestsCopyright and Legal Statement