Previous studies on the measurement of learning-by-doing emphasize the importance of accounting for multi-vintage effects having an impact on firms’ production costs through economies of scope. This study shows that accounting for cannibalization effects on the demand side is equally important for the adequate measurement of learning. Since multi-vintage firms anticipate the demand-side canniba...

Traditional wisdom suggests that the interchangeable design in process system engineering, such as modularity or commonality design, can lower manufacturing cost and act a revenue driver. Moreover, will be efficient both assembling for new production disassembling remanufacturing. As such, confronted remanufacturing processing often involves balance of from drivers cannibalization effects There...

In today’s market, companies tend to develop long-term multiple-generation product strategies instead of releasing consecutive single products to maintain market competitiveness. Even though this strategy affords market vitality, it also can bring about inter-product-line cannibalization. Cannibalization within a multiple-generation product line is a complex problem, and it has seldom been expl...

Because of short product life cycles, large product offerings and fickle consumer tastes, product demand in the apparel retail industry is volatile and difficult to predict. It is also thought to be impacted significantly by the presence of other products in the store, which may cannibalize or complement sales. This thesis explores the interactions among products in Zara's stores, and uses this...

Environmental strains are causing consumers to trade up to greener alternatives and many brown products are losing market coverage to premium-priced green rivals. In order to tackle this threat, many companies currently offering only brown products are contemplating the launch of a green product to complement their product portfolio. This paper provides strategic insights into and tactical rami...

Durable goods manufacturers often design product lines by segmenting their markets on quality attributes—attributes that exhibit a ‘‘more is better’’ property for all consumers. Since products within a product line are partial substitutes, and consumers can self-select the products they want to purchase, multiproduct firms have to carefully consider the cannibalization problem in designing thei...

27 The prevalence of line extensions, as manufacturers struggle to maximize the leverage of their brand equity, is undoubted and well documented (Aaker 1991; Ries and Trout 1986; Tauber 1981). Brand owners use existing brand names to reduce barriers to entry for the new line with the implicit assumption that additional profit will be earned as a result. But haunting the parent brand is the spec...

We present a model to investigate the competitive implications of electronic secondary markets that promote concurrent selling of new and used goods on a supply chain. In secondary markets where suppliers cannot directly utilize used goods for practicing intertemporal price discrimination and where transaction costs of resales is negligible, the threat of cannibalization of new goods by used go...

We develop an analytical framework to investigate the competitive implications of secondary electronic marketplaces which promote concurrent selling of new and used information goods. In secondary markets where suppliers cannot directly use second-hand goods for practicing intertemporal price discrimination, the threat of cannibalization of new goods by used goods become significant. We examine...