Companies must balance the number of items in a product line.Too many items and customers find it difficult to see the differences between the products.Too few products and the company runs the risk of _______.
A)Having inefficiencies in production
B)Having trouble with discounters because they may have the same product as a full-price store
C)Having a problem with communication to the market about the products
D)Missing important market opportunities that are not being attacked by the current product offerings
E)None of these

Question

Quizplus · Accepted Answer

Companies must balance the number of items in a product line. Too many items and customers find it difficult to differentiate between individual products. In addition, cost inefficiencies involved in producing multiple products lower margins for the entire product line. Too few products and the company runs the risk of missing important market opportunities.

Companies Must Balance the Number of Items in a Product