Assessing the Dimensions of Product Variety on Performance: The Value of Product Line and Pack Size

Assessing the Dimensions of Product Variety on Performance: The Value of Product Line and Pack Size. Journal of Business Logistics Vol.35(3), 213-224.

36 Pages Posted: 1 Jun 2016

See all articles by Xiang Wan

Xiang Wan

Ohio State University (OSU) - Department of Marketing and Logistics

Martin E. Dresner

University of Maryland

Philip Evers

University of Maryland

Date Written: May 30, 2016

Abstract

This paper studies the impacts of product variety along two dimensions: product-line variety and pack-size variety. Previous research has often found that increased product variety is associated with increased sales. Interestingly, we find that this is not always the case, once the negative impact of product variety on fill rates is introduced. Specifically, product-line variety has a positive total effect on sales, but pack-size variety has a negative total effect on sales. We also investigate potential nonlinear impacts (with decreasing marginal effects) of product-line and pack-size variety, and find the result to be one of diminishing returns.

Keywords: Product variety; Product line; Pack size; Fill Rates; Sales; Distributors

Suggested Citation

Wan, Xiang and Dresner, Martin E. and Evers, Philip, Assessing the Dimensions of Product Variety on Performance: The Value of Product Line and Pack Size (May 30, 2016). Assessing the Dimensions of Product Variety on Performance: The Value of Product Line and Pack Size. Journal of Business Logistics Vol.35(3), 213-224.. Available at SSRN: https://ssrn.com/abstract=2786754

Xiang Wan (Contact Author)

Ohio State University (OSU) - Department of Marketing and Logistics ( email )

Fisher Hall 524
2100 Neil Ave
Columbus, OH 43210
United States

Martin E. Dresner

University of Maryland ( email )

College Park
College Park, MD 20742
United States

Philip Evers

University of Maryland ( email )

College Park
College Park, MD 20742
United States

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