What is an example of a narrow product mix?

• A. Electronics
• B. Designer handbags
• C. Generic brands
• D. Home appliances

Answer: (B)

A narrow product mix refers to a company focusing on a limited variety of products within a specific category. In this case, designer handbags exemplify a narrow product mix because they represent a distinct niche in the fashion accessory market, catering to a specific audience who values luxury and exclusivity.

This focus allows brands in this category to establish a strong identity and differentiate themselves from competitors, as they concentrate their efforts on a singular product type. In contrast, the other options represent broader categories that encompass a wide range of products. For instance, electronics include various items like smartphones, televisions, and computers, while home appliances cover a multitude of devices such as refrigerators and microwaves. Generic brands also often encompass multiple product types across different categories, rather than focusing on a single niche. Therefore, the choice of designer handbags clearly demonstrates a narrow product mix due to its specialized nature and targeted market segment.