Product Proliferation: An Empirical Analysis of Product Line Determinants and Market Outcomes

2000 ◽  
Author(s):  
Barry L. Bayus ◽  
William P. Putsis
Keyword(s):  
Empirical Analysis ◽  
Product Line ◽  
Market Outcomes ◽  
Product Proliferation

Design for Variety: A Methodology for Understanding the Costs of Product Proliferation

1996 ◽  
Author(s):  
Mark V. Martin ◽  
Kosuke Ishii
Keyword(s):  
Indirect Costs ◽  
Product Line ◽  
Decision Makers ◽  
Profit Margins ◽  
Design For Variety ◽  
Set Up ◽  
Market Coverage ◽  
Product Proliferation ◽  
The Cost

Abstract This paper further develops the previously introduced concept of Design for Variety (DFV). Our study seeks a tool that enables product managers to estimate the cost of introducing variety into their product line. This will help them to maximize market coverage while maintaining required profit margins. Variety incurs many indirect costs that are not always well understood or are difficult to capture. These costs are often not considered by people making the decision about introducing variety. Our DFV model attempts to capture these indirect costs through the measurement of three indices: commonality, differentiation point, and set-up cost. These indices will allow the decision makers to estimate some of the generally unmeasurable costs of providing variety. We conclude this paper by discussing our validation plans for testing the model in industry.

scholarly journals Why Do Distilleries Produce Multiple Ages of Whisky?

2019 ◽  
Vol 14 (01) ◽  
pp. 26-47 ◽  
Author(s):  
Ian B. Page
Keyword(s):  
Theoretical Model ◽  
Empirical Analysis ◽  
Product Line ◽  
Product Lines ◽  
Market Conditions ◽  
Different Ages ◽  
Over Time ◽  
Jel Classifications

AbstractVintage goods are a unique set of goods that accrue value over time. Unlike producers for many other vintage goods, Scottish distilleries often mature their stocks to different ages and sell a product line that varies significantly in quality. This article develops a theoretical model to examine this maturation strategy and identify market conditions under which a distillery would produce multiple ages of whisky. An empirical analysis of distilleries’ product lines confirms results from the model and highlights the determinants of variety and substitutability between brands. (JEL Classifications: D43, L13, L66)

An Empirical Analysis of Firms' Product Line Decisions

2001 ◽  
Vol 38 (1) ◽  
pp. 110-118 ◽  
Author(s):  
William P. Putsis ◽  
Barry L. Bayus
Keyword(s):  
Empirical Analysis ◽  
Product Line

scholarly journals Organizational Inertia and Excessive Product Proliferation

2016 ◽  
Vol 70 (1) ◽  
Author(s):  
Rie Sakuraki
Keyword(s):  
Strategic Change ◽  
Product Line ◽  
Empirical Literature ◽  
Product Portfolio ◽  
Chain Store ◽  
Internal Factors ◽  
Organizational Inertia ◽  
Product Line Management ◽  
Product Proliferation

AbstractThis study investigates the internal factors of excessive product proliferation. Since empirical literature on product over-proliferation focused on how to optimize existing product portfolio, the causes of excessive product proliferation have so far attracted little attention. This study employs a case study of Shiseido, a famous Japanese cosmetics company, with particular attention to product proliferation in the Shiseido chain store channel, because external factors are mostly absent from this case. My results indicate that intra- and inter-organizational inertia affects product line management. Due to Shiseido’s effort in the 1990s, the company could maintain the advantage it and its cosmetics store channel held with much the strategy as had been used until the mid-1970s. This strengthen intra-organizational inertia at Shiseido. Inter-organizational inertia with cosmetics stores makes Shiseido’s strategic change more difficult, which causes excess proliferation.

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