Another look on product diversity: some new propositions to design profitable product ranges

Eric Ballot, Blanche Segrestin and Benoit Weil

International Journal of Automotive Technology and Management, 2008, vol. 8, issue 1, 4-21

Abstract: Over the past years, automotive manufacturers have continuously renewed and expanded their product offer. Yet, despite the increasing differentiation of the offer, the sales' distribution appears to be concentrated on a limited number of versions. In these conditions, we can wonder whether diversity can effectively sustain the economic growth. What kind of diversity would support sustainable growth? The article aims at addressing this question by exploring a new hypothesis: the consumers' choice dilemma. This hypothesis makes it possible to analyse in a new way the critical role of dealers in guiding the consumers' choices and the related risks of undervaluing innovation. It then suggests alternative strategies to design diversified but profitable product ranges.

Keywords: innovation; product diversity; design; product lines; best-seller products; retailers; sales distribution; automotive manufacturers; automobile industry; automotive product range. (search for similar items in EconPapers)
Date: 2008
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