The measurement of cannibalization
نویسندگان
چکیده
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 specter of cannibalization. What if the line extension is successful but only at the expense of the parent? Then additional costs will be incurred without the benefit of incremental revenue.
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