Cannibalization

This article deals with a phenomenon of marketing. For cannibalization as a form of spare parts procurement, see cannibalization (technology) .

In the economy, cannibalization or cannibalism effect denotes the competitive marketing of similar products at different prices by the same company. This can lead to the high-priced product being replaced by the cheaper one. This reduces the sales of the higher priced one. A frequently cited example is the Volkswagen Group's strategy of offering similar models at higher prices than VW and lower prices than Seat or Škoda . Individual models are technically identical even with two or more brands. In this case, one also speaks of badge engineering .

More generally, it describes the increase in sales of one product at the expense of another product from the same company.

See also

• Transmission effect

Web links

• Cannibalization - definition in the Gabler Wirtschaftslexikon
• Cannibalism effect - definition in the Gabler Wirtschaftslexikon