By Kelvin Lancaster (auth.), Teck-Hua Ho, Christopher S. Tang (eds.)
Product proliferation has turn into a standard phenomenon. so much businesses now supply 1000's, if now not millions, of inventory maintaining devices (SKUs) that allows you to compete available in the market position. businesses with increasing product and repair forms face with difficulties of acquiring actual call for forecasts, controlling construction and stock expenses, and delivering prime quality and reliable supply functionality for the shoppers. advertising managers usually suggest widening product traces for expanding profit and marketplace proportion. besides the fact that, the breadth of product line may also reduce the potency of producing procedures and distribution platforms. hence businesses needs to weigh some great benefits of product style opposed to its price as a way to ascertain the optimum point of product type to provide to their shoppers. lecturers and practitioners have an interest in numerous primary questions on product kind. for example, why do businesses expand their product strains? Do shoppers care approximately product kind? Will a model with extra style take pleasure in greater marketplace proportion? How should still product kind be measured? How can an organization make the most its product and approach layout to carry a better point of product kind fast and affordably? What may still the extent of product style be and what should still the cost of all the product editions be? what sort of 'challenges could a firm face in supplying a excessive point of product sort and the way can those stumbling blocks be triumph over? The options to those questions span a number of services and disciplines.
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Extra resources for Product Variety Management: Research Advances
Sample text
WHY DO CONSUMERS SEEK VARIETY? Variety-seeking in purchase behavior has been defined as the tendency of individuals to seek diversity in their choices of services or goods over time (Givon 1985, Kahn, Kalwani and Morrison 1986). Many different explanations for the types of behavior have been proposed in the marketing and psychology literatures. For comprehensive reviews of the extensive literature existing regarding variety-seeking behavior, see McAlister and Pessemier (1982), Kahn (1995), and van Trijp (1995).
Variety, Equity and Efficiency. New York, Columbia University Press. Lancaster, K J. 1984. Protection and product differentiation. In H. ) , Monopolistic Competition and International Trade, 1984, 137-155. (Reprinted in Lancaster 1996). Lancaster, K. J. 1990. The economics of product variety: a survey, Marketing Science, 9, 189-206. (Reprinted in Lancaster 1991). Lancaster, K J. 1991. Modem Consumer Theory. Aldershot, UK and Brookfield VT: Edward Elgar. Lancaster, K J 1996. Trade, Markets and Welfare.
Butt have opted to increase the size of their assortments in various categories so as to differentiate themselves from the "every-day-Iowprice" retailers such as Walmart. This strategy may affect the overall positioning of the store and bring in more shoppers. E. Butt could do something to increase their shoppers' desire for variety. Some preliminary experiments have shown that there are ways marketers can increase consumers' desires for variety. The psychology literature (see Isen 1987 for a review) shows that people's moods can affect the way they process information, and thus their ultimate behavior.
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