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Product cannibalization and the role of prices

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  • Lindsay Meredith
  • Dennis Maki
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    Abstract

    The role of brand prices in contributing to product cannibalization is examined. Price elasticities and reference price theory are used to provide a theoretical foundation and empirical test for the impact of a firm's cheap brand on one of its expensive brands. Results are consistent with the conclusion that the market share of the company's premium brand was cannibalized by a growth in sales of its cheap brand.

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    File URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010015769
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    Bibliographic Info

    Article provided by Taylor & Francis Journals in its journal Applied Economics.

    Volume (Year): 33 (2001)
    Issue (Month): 14 ()
    Pages: 1785-1793

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    Handle: RePEc:taf:applec:v:33:y:2001:i:14:p:1785-1793

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