The width of a product mix refers to the number of product lines the firm offers.
The correct answer and explanation is :
The statement is correct: the width of a product mix refers to the number of product lines that a firm offers.
Explanation:
The product mix (also known as product assortment) is a concept used in marketing to refer to the total range of products that a company offers for sale. This mix is composed of several dimensions, and width is one of these key elements. In the context of the product mix, width refers to the number of different product lines that a company offers. A product line is a group of related products that share common characteristics, target markets, or functions. For instance, a company like Samsung may have product lines in electronics, home appliances, and mobile phones.
To clarify, the product mix has four key dimensions:
- Width – the number of different product lines a company carries.
- Length – the total number of items in the product mix, which is the sum of all products across all the product lines.
- Depth – the number of variations of each product in a product line, such as size, color, or model.
- Consistency – how closely related the various product lines are in terms of their end-use, production requirements, or distribution channels.
Importance of Product Mix Width:
A company may choose to expand or reduce the width of its product mix based on various strategic goals. By broadening the width (i.e., adding new product lines), a firm can diversify its market reach and reduce risk. For example, a company that only sells clothing might expand into footwear or accessories, thus appealing to a wider set of consumer needs. Conversely, narrowing the width can help a company focus on its core competencies or consolidate its market position.
In summary, the width of a product mix is an essential factor in product strategy, as it influences how diversified or specialized a company’s offerings are in the marketplace. A broader product mix width often suggests a strategy of market diversification, while a narrower mix indicates a focus on a more specialized target market.