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 allow the company to specialize. A company that has a narrow product mix offers a limited number of product lines. This enables the company to specialize effectively, to produce efficiently, and to concentrate on marketing the product lines.

Detailed explanation-3: -Your product mix is important in determining the image of your business and brand, as it helps you to maintain consistency in the eyes of your target market. For instance, if you’re a discount retailer, your target market likely consists of economy-minded shoppers looking for low prices.