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Reassessing product line breadth effectiveness: The role of heterogeneity, moderation, and cumulative effects

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  • Charles Hugh Wilkie, Dean
  • Mirzaei, Abas
  • Pham, Ngoc
  • Johnson, Lester W.

Abstract

Evidence regarding the impact of product line breadth (PLB) on brand performance remains fragmented; the current research proposes an influential effect of product equity in determining PLB success. To test these predictions, Study 1 first identifies heterogeneous effects of PLB on brand performance according to the levels of product equity. Specifically, PLB hinders (improves) the performance of low (high) product equity brands. Then Study 2 identifies two drivers of PLB effectiveness, product attribute differences and competitive intensity, that have contrasting influences for brands with high versus low product equity. These influences exert long-term, cumulative effects (i.e., over 104 weeks). To ensure the generalizability and applicability of the findings, this research effort spans a vast consumer scanner data set, involving 268 brand panels, 14 product categories, and three retailers. Based on this collected evidence, the authors propose a matrix of managerial actions that practitioners can adopt to increase their PLB effectiveness.

Suggested Citation

  • Charles Hugh Wilkie, Dean & Mirzaei, Abas & Pham, Ngoc & Johnson, Lester W., 2022. "Reassessing product line breadth effectiveness: The role of heterogeneity, moderation, and cumulative effects," Journal of Business Research, Elsevier, vol. 149(C), pages 434-447.
    • Handle: RePEc:eee:jbrese:v:149:y:2022:i:c:p:434-447
    DOI: 10.1016/j.jbusres.2022.05.006
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