The __ of the product mix refers to how closely related the various product lines are in end use, production requirements, distribution channels, or some other way.
A) length
B) depth
C) consistency
D) width
E) height
The correct answer and explanation is :
The correct answer is:
C) Consistency
Explanation:
The consistency of the product mix refers to how closely related the different product lines are in terms of end use, production requirements, distribution channels, or some other aspect. A company with a highly consistent product mix has product lines that share similarities in one or more of these areas, while a company with a diverse or inconsistent product mix offers products that vary significantly across these factors.
Understanding the Product Mix Dimensions
A company’s product mix consists of four key dimensions:
- Width – The number of different product lines a company offers. For example, Procter & Gamble (P&G) has multiple product lines, including beauty, health, and home care products.
- Length – The total number of products in all lines combined. If a company has five product lines with four products in each, the product mix length is 20.
- Depth – The number of variations offered for each product in a line. For example, Colgate offers different flavors, sizes, and formulations of toothpaste.
- Consistency – How closely related the product lines are in terms of usage, production, and distribution. For example, Apple’s product mix is highly consistent because all its products (iPhones, iPads, MacBooks) share similar technology, software, and ecosystem.
Why Consistency Matters?
A highly consistent product mix allows a company to:
- Use shared production and marketing resources efficiently.
- Strengthen brand identity and customer loyalty.
- Reduce operational complexity and costs.
A low-consistency product mix may help a company diversify risks and reach broader markets but could require separate marketing strategies and supply chains.
Thus, product mix consistency plays a crucial role in business strategy and operational efficiency.