Product cannibalization: a case study
Session Title
Session 1-3-C: Lightning Talks
Presentation Type
Lightning Talk
Start Date
23-5-2023 1:45 PM
End Date
23-5-2023 3:15 PM
Disciplines
Business Administration, Management, and Operations | Marketing
Abstract
Corporate cannibalization is a marketing phenomenon that occurs when a product’s sales decrease in volume or market-share due to the release of a new product that is introduced by the same company. The new product then absorbs demand for the old product therefore reducing its sales. When considering institutions that operate in monopolistic, oligopolistic, or highly regulated markets as is the case with lotteries, it may be expected for the gambling activity to grow by the expansion of total demand. Very few studies so far have focused on the impact of new lottery games on other preexisting lottery games. The present study is the first to assess for the impact of cannibalization on the Portuguese national lottery portfolio and is also the first to include games such as passive lotteries. Results showed that cannibalization was found at the product category level and for individual products. Scratch-cards was the product that most cannibalized other products because it cannibalized most other games. Complementarity for product category and individual products was found. The national lotto correlated positively with EuroMillions’ except for situations when there was a rollover than increases one of these games’ jackpots The present study brings new findings that complement previous research on lottery cannibalization.
Keywords
Lottery gambling; longitudinal Analysis; panel data; product cannibalization.
Funding Sources
none
Competing Interests
no competing interest
Product cannibalization: a case study
Corporate cannibalization is a marketing phenomenon that occurs when a product’s sales decrease in volume or market-share due to the release of a new product that is introduced by the same company. The new product then absorbs demand for the old product therefore reducing its sales. When considering institutions that operate in monopolistic, oligopolistic, or highly regulated markets as is the case with lotteries, it may be expected for the gambling activity to grow by the expansion of total demand. Very few studies so far have focused on the impact of new lottery games on other preexisting lottery games. The present study is the first to assess for the impact of cannibalization on the Portuguese national lottery portfolio and is also the first to include games such as passive lotteries. Results showed that cannibalization was found at the product category level and for individual products. Scratch-cards was the product that most cannibalized other products because it cannibalized most other games. Complementarity for product category and individual products was found. The national lotto correlated positively with EuroMillions’ except for situations when there was a rollover than increases one of these games’ jackpots The present study brings new findings that complement previous research on lottery cannibalization.