Cannibalization in Business-to-Business Marketing

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Cannibalization in Business-to-Business Marketing
Overview
As Lomax et al. (1997) note, there is no one generally accepted definition of cannibalization within the business world. Although in general cannibalization is a process by which a new product or service gains sales by diverting customers from existing offerings, it can also be said that magnitude is at issue (Lomax et al., 1997). The extent to which revenue streams are diverted through the introduction of new buying patterns may denote when or where cannibalization is extant. Nonetheless, as Desai (2001) notes, the more firms compete and the higher the risks within their industry, the more likely that cannibalization will be a factor, and a necessary part of a firm’s set of...

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