Typically, the reason to increase product variety mainly to increase the
number of options in particular if customers couldn’t find their desired
product. At the same time, it can increase the customer satisfaction by doing
so, in fact it brings positive impact because customers will sees it as an
opportunity to match to their personal need.
Besides, by having variety in product category helps to attract new
customers and the current existing ones. Customers would often get bored with
their current product and would want to get something different. Or they
would use it until their satisfaction level is reached, and craves for
something new. Another reason would be that customer look for product not
because to only utilize and make use of a particular choice, but rather they
want to utilize it over different choices more.
Larger pool of choices will help customers to their stronger selection
and it enables them to maintain flexibility when buying it.
But for all of that, companies reducing variety may prove successful as
well, but of course for varied reasons. For example, ‘Head & Shoulders’
reduced the number of types of shampoo from 26 to 15. As a result, they noticed
their sales increased by 10 percent.
Sometimes, it is because the customer thinks that too many number of
variety may be the reason that they won’t feel like buying because they
couldn’t handle such high of variety. It would create a mind-decision conflict
thus confused hence uninterested or unintended to make the purchase – no
decision at all.
However, it all depends on the company’s’ innovation to decide the
number of variety they should set for; not too many and not too itsy-bitsy. And
they must be able to predict or forecast rightly so with accuracy.
In ‘The Impact on Customers’ Perception of Product Variety’, they
conducted a survey to gather information on what product variety brings to them
and how they feel and think of it. A total of seven questions for the customers
just to have a better understanding how product variety affects their
perception – based on electronics and hardware product. Survey will be
conducted for the people between the age of 20 and 60.