Inter-brand competition and intra-brand cannibalization in the automotive industry: its impact and the moderating role

This paper aims to empirically study how inter-brand competition and intra-brand cannibalization affect prices and market share in the auto industry, as well as the moderating effect of intra-brand cannibalization. Using a detailed data set from the Taiwanese automotive industry from 2015 to 2023, the findings show that inter-brand competition negatively impacts auto prices and market share, while intra-brand cannibalization positively impacts them. Furthermore, increasing the number of car models for each brand leads to higher auto prices and market share. Additionally, we examine the moderation effect of intra-brand cannibalization. Our findings reveal that the moderating effect of intra-brand cannibalization increases (decreases) the relationship between inter-brand competition (product mix) and auto prices and market share. This research contributes to the existing literature on brand competition and product proliferation management by examining the price and market share effects of inter-brand competition and intra-brand cannibalization and its moderating role.