Why would a firm offer a deep assortment of products in its product portfolio?
A) To attract a wide range of customers and market segments.
B) To capitalize on the firm's reputation.
C) To diversify its risk.
D) To maximize differentiation across its product lines.
E) None of the above.

Question

Quizplus · Accepted Answer

Offering a deep assortment of products in a product portfolio can help a firm attract a wide range of customers and market segments. Different customers have different preferences and needs, so having a variety of products can help a firm cater to those diverse consumer demands.

Answer: C
 Another reason why a firm might offer a deep assortment of products is to diversify its risk. If a firm only offers a limited number of products and one of those products fails, the firm's revenue can be greatly impacted. However, if a firm offers a diverse range of products, the risk is spread out across multiple products, reducing the impact of any one product's failure.

Answer: D
 A deep assortment of product lines can help a firm maximize differentiation across its product lines. By offering a variety of products that complement each other, the firm can distinguish its product portfolio from its competitors, offering more options and solutions for consumers.

Why Would a Firm Offer a Deep Assortment of Products