Cannibalization vs. competition: An empirical study of the impact of product durability on automobile demand

Dinakar Jayarajan, S. Siddarth and Jorge Silva-Risso

International Journal of Research in Marketing, 2018, vol. 35, issue 4, 641-660

Abstract: Many durable product categories have well developed and organized secondary markets that make it easy for consumers to purchase used versions in lieu of new ones. Manufacturers in these categories therefore face a dilemma in deciding on how much durability to build into their new products. High durability levels increase the risk that future new product sales are lost to used versions (the cannibalization effect), but can also help the firm take sales from new and used versions produced by its rivals (the competition effect). However, there has been no empirical research to determine the relative sizes of these two effects.

Keywords: Durable goods; Secondary markets; Choice models; Durability (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0167811618300466
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:ijrema:v:35:y:2018:i:4:p:641-660

DOI: 10.1016/j.ijresmar.2018.09.001

Access Statistics for this article

International Journal of Research in Marketing is currently edited by Roland Rust

More articles in International Journal of Research in Marketing from Elsevier
Bibliographic data for series maintained by Catherine Liu ().