SOFTWARE ENGINEERING

Detailed explanation-1: -Cost of complexity is a term often used to describe the costs that are caused by introducing new product platforms and products, as well as managing the variety of products produced. Many different products would cause a high cost of complexity, fewer and more similar products a low cost of complexity.

Detailed explanation-2: -Examples include books, shoes, hats, DVD’s and the majority of consumer products. Complex products are defined by 1) many variations and 2) complex pricing. In the industrial marketplace, it is common for one type of product to have hundreds of slight variations, and for merchants to offer volume pricing.

Detailed explanation-3: -Price complexity increases the time (or effort) consumers need to make a choice and the level of cognitive abilities and sophistication required to find the best offer. So, it may lead to consumer confusion and allow homogeneous product sellers to soften price competition and increase their profits.