Using extensive dynamic product lines for listening in on evolving demand

As companies rush into opening markets in Eastern Europe and elsewhere, and as suppliers everywhere introduce new products in existing markets, they need to decide which and how many versions of the product to offer at the time of market entry and how to change the product line over time. Given the heterogeneity of consumer preferences, the relative newness of the product in the market and/or the consumer's ability to choose from a variety of different versions, and the possibility of complex evolution of demand, traditional market research may not be a reliable guide to product-line design and management. A solution provided by Anirudh Dhebar is to use the product line itself to listen in on evolving demand. For the listening to be effective, the product line must be extensive and dynamic, and it must be based on a systematic experimentation process conducive to learning. The author warns that the product line should not be too extensive or too dynamic; that may inhibit learning and hurt market evolution.