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

摘要

Considering the number of new product introductions and avilable product varieties today, the practice of product pro- liferation is visibly evident in many diverse industries. Given its prevalence in practice, understanding the determinants and implications of firm profileration strategies clearly has important managerial relevance. Previous theoretical research has identified three primary Effects of proliferation strategy: (1) a broad product line can Increase the overall demand faced by the firms, (2) a broad Product line can affect supply by increasing costs, and (3) Broad product lines can have strategic consequences 9e.g., Long product lines can deter entry, thereby allowing an in- Cumbent firm to raise prices).