The Effects of Product Line Breadth: Evidence from the Automotive Industry

@article{Moreno2017TheEO,
  title={The Effects of Product Line Breadth: Evidence from the Automotive Industry},
  author={Antonio Moreno and Christian Terwiesch},
  journal={Marketing Science},
  year={2017},
  volume={36},
  pages={254-271}
}
Using a detailed data set from the U.S. automotive industry, we enrich the existing literature on product line breadth with new results that highlight previously unexplored operational aspects of its benefits and costs. We find that expanding product line breadth has a significant effect on increasing mismatch costs arising from the increased demand uncertainty associated with product proliferation. These mismatch costs are manifested through additional discounts and inventories. The effect of… CONTINUE READING