MANAGEMENT

Detailed explanation-1: -Contraction means removing product items or lines from the product mix. Some of the reasons that a business deletes a product from its mix are: It has lost its appeal to customers. There are few products that satisfy customers indefinitely.

Detailed explanation-2: -To compete effectively. The business with a deep product mix offers a great many items in the product line. This allows the business to meet the needs of a variety of consumers, use a range of prices, and compete effectively. A shallow product mix helps a business control its costs.

Detailed explanation-3: -The particular assortment of products a business offers to meet its market’s needs and its company’s goals is its product mix.

Detailed explanation-4: -Trading Up: A company adds a higher-cost product to an existing line to improve brand image and increase demand for its lower-cost products. Trading Down: A company adds a lower-cost product to an existing line of higher-cost products.