In a competitive market, why might a business choose to use a shallow product mix?

• A. To offer a wide variety of products to attract more customers
• B. To reduce competition by entering multiple market segments
• C. To increase the complexity of inventory management
• D. To focus resources on a few products and achieve greater efficiency

Answer: (D)

Verified step by step guidance

1. Understand the concept of a product mix: It refers to the total range of products that a business offers to its customers. The product mix can be broad (many different product lines) or narrow, and deep (many variations of a product) or shallow.
2. Define a shallow product mix: This means the business offers only a few variations or options within each product line, focusing on a limited number of products rather than many variations.
3. Consider the implications of a shallow product mix in a competitive market: By focusing on fewer products, the business can allocate its resources more efficiently, such as production, marketing, and inventory management.
4. Recognize that focusing resources on a few products can lead to greater operational efficiency, cost savings, and potentially higher quality or better customer service for those products.
5. Conclude that a business might choose a shallow product mix to concentrate efforts and resources on a limited range of products, which helps achieve greater efficiency rather than trying to attract more customers with a wide variety or increasing complexity.