<p>Because customers like variety. For example, for iPhone 14 comes according to <a href="https://www.cnet.com/tech/mobile/iphone-14-plus-pro-and-pro-max-comparison-price-size-battery-and-more-specs/" rel="nofollow noreferrer">this website</a> in 4 main variants.</p>
<p>They do not only differ by features but also by price. This allows for 4 different customer segments. If they would only release iPhone 14 Pro Max they would only attract consumers who are willing to pay the price for those specific features. By making different variant they can tap to new market segment.</p>
<p>This both allows company to increase profit while at the same time satisfying more customers.</p>
<p>The same applies to company providing any <span class="math-container">$N$</span> number of variants. It is because customers desire it.</p>
<blockquote>
<p>the less variants, the better the quality of the product and the lower the cost (eliminate the cost of changing the production line, the logistic paths etc.)</p>
</blockquote>
<p>Where is any empirical evidence that less variants leads to higher quality of products? Causal relationships don't sprung up just based on our wishes.</p>
<blockquote>
<p>I would be enough (according to me) to have these variants: for the grandmother (basic communication / navigation needs), for the business, for the gamer. No variants to the variants.</p>
</blockquote>
<p>What if someone does not fit into the categories you arbitraly decided? For example, what if someone wants a phone for semi-profesional photography, which does not fit neatly into your categories?</p>
<blockquote>
<p>better understanding of the options from the customer's POV, with better final satisfaction</p>
</blockquote>
<ul>
<li><p>Typically for most differentiated products there are comparison sites like the one I used at the beginning.</p>
</li>
<li><p>According to research (e.g. <a href="https://link.springer.com/chapter/10.1007/978-3-642-23860-4_85" rel="nofollow noreferrer">AlGeddawy &amp;  ElMaraghy 2012</a>), the product differentiation is driven by companies trying to better satisfy needs of a customers.</p>
<p>In fact mass personalization, combination of mass production with customization is considered a holy grail of manufacturing.</p>
<p>Also despite your claims you personally would be happy with it I doubt that if we would do revealed preference test you would show revealed preference for a product that is, ceteris paribus, less tailored to your own tastes. If you would, your behavior would be unique compared to what is typically observed.</p>
</li>
</ul>
<blockquote>
<p>Note: I understand that &quot;planned obsolescence&quot; plays a role, but I do not focus on this topic in the context of this question.</p>
</blockquote>
<p>This is not even connected to planned obsolescence. No product can last forever, modern statistical methods allow companies to determine precisely how long product will last by testing the prototypes in lab. Unless we are talking about monopoly, in competitive industry competitive pressure forces them to select materials that last as much as average user expects them to use it. For example, if a company knows that average consumer in fast fashion segment will only use shirt once and then throw it away there is no need for more expensive materials that last longer than that.</p>
<p>Paradoxically, by lowering the variety to some basic cases you would eliminate the more unique varieties built for people who demand their things lasting longer than average person does.</p>

CC BY-SA 4.0
2023-08-02T14:36:44.067Z
You described what I already knew (and explained in the question) and you did not touch the actual question even a bit. I would down-vote if I had enough points. I am especially disappointed considering that you are a moderator.
virolino
CC BY-SA 4.0
2023-08-02T15:43:05.677Z
@virolino you asked why companies release many variants of same product, the answer especially first paragraph answers that. Sorry you don’t like the answer but that is why companies do it
1muflon1
CC BY-SA 4.0
2023-08-03T05:54:47.017Z
4 variants is not at all many. I already gave an example in the question with 3 variants, which is mostly the same (as an idea). My question was about "countless" which means very big.
virolino
CC BY-SA 4.0
2023-08-03T10:41:02.903Z
@virolino 1. but there arent any products that come in countless varieties. Name any product and any company and I can guarantee their product variety will be countable not countless.  2. The answer that applies to 4 varieties above applies to any $N$ varieties (and $N$ varieties are still countable), I actually edited an answer to make it clear if it wasn't obvious.
1muflon1
CC BY-SA 4.0
2023-08-03T10:44:16.307Z
Not only that you did not read my question properly, you also failed to read the comments provided by @Giskard. You should be ashamed to be called moderator.
virolino
CC BY-SA 4.0
2023-08-03T10:50:24.697Z
@virolino A man is driving on the highway, listening to the radio. Suddenly the music cuts out: "*We bring you emergency news. A strange car is driving the wrong way on the highway, be alert!*" The man says to himself: "*You got that right, except there is not just one car going the wrong way, but hundreds!!*"
Giskard
CC BY-SA 4.0
2023-08-03T11:02:44.950Z
@1muflon1 I have no comments on your actual answer, but on your throwaway line "*Name any product and any company and I can guarantee their product variety will be countable not countless.*" I used to enjoy reading about product differentiation, and used Coca-Cola varieties as an example in class. In the US Coca-Cola also has an app+machine called "[Freestyle](https://www.coca-colafreestyle.com/)" which lets you mix these in any desired ratio. Not countless (the mix ratio is digital, not analog), but pretty close!
Giskard
CC BY-SA 4.0
2023-08-03T12:13:31.807Z
@Giskard 'Not countless' <- but that was precisely my point, I even said it can be extended to $N$ such cases if 4 is too low for OP. But as you yourself said its not countless, tbh that was also intended to teach OP bit of an lesson, like when you give student extra homework problem that has P vs NP component to see how many realize it and what clever ways they can think of trying to argue their way through it
1muflon1
CC BY-SA 4.0
2023-08-02T13:03:57.453Z
2023-08-03T10:41:41.653Z
2023-08-03T10:41:41.653Z
1muflon1
<p>I guess that the question is quite simple and clear. To avoid any potential confusion, I will give two examples.</p>
<ol>
<li>Automotive</li>
</ol>
<p>OEMs release countless variants of each of their cars. Pretty much, for each device in the car they have several variants. And the &quot;same&quot; car is sold in &quot;all&quot; combinations of those variants.</p>
<p>I would be enough (according to me) to have these variants: for the city (small), for the family, for the rich. Double the number of variants with alternatives regarding the gear box (manual or automatic), to match the taste of the customer. Obviously, the small car will not need a 500 HP engine, like the others might.</p>
<ol start="2">
<li>Smartphones</li>
</ol>
<p>Here, the situation is even more obvious. It is practically impossible to make an informed choice about what to buy. I will take Samsung as an example, the same holds true for most of the important players. There are so many phones made by them, that many times it is impossible to understand which is the actual difference. In most of those times, the difference is actually irrelevant to the final customer.</p>
<p>I would be enough (according to me) to have these variants: for the grandmother (basic communication / navigation needs), for the business, for the gamer. No variants to the variants.</p>
<p>From my POV, the following would hold true:</p>
<ul>
<li>the less variants, the better the quality of the product and the lower the cost (eliminate the cost of changing the production line, the logistic paths etc.)</li>
<li>better understanding of the options from the customer's POV, with better final satisfaction.</li>
</ul>
<p>So, why do the companies create this messy confusion?</p>
<p>Note: I understand that &quot;planned obsolescence&quot; plays a role, but I do not focus on this topic in the context of this question.</p>

CC BY-SA 4.0
2023-08-02T11:20:18.523Z
There are over 10,000 questions on this site. According to some, that is too many; it is time consuming to browse questions, hard to find the right one. According to this assumption, by adding a new question that is tailored to your exact taste/inquiry, you are also adding to the confusion. Do you think you should delete your question, or do you think that variety in this case has merit?
Giskard
CC BY-SA 4.0
2023-08-02T11:59:39.397Z
@Giskard: your comment is not related to the question. Because products are answers, not questions. I did not ask why Apple introduced the iPhone, when rotary phones already existed. I did not ask about why people asked for transportation without horses. I did not even ask why there are so many manufacturers with the same product. I only asked why THE SAME manufacturer provides SO MANY ANSWERS to the SAME QUESTION. It is not even about models. (e.g. Skoda Octavia and Skoda Fabia). Maybe you should delete your comment and up-vote instead of down-vote? :) (no affiliation to any company or brand)
virolino
CC BY-SA 4.0
2023-08-02T12:02:01.993Z
I have not downvoted your question. (I can only prove this to you by downvoting it now, but I would prefer not to.)
Giskard
CC BY-SA 4.0
2023-08-02T12:04:10.190Z
There happens to be a question to which I did post two answers. In the second one I write "*...to cover all bases like a good incumbent in a differentiated product market, I will also post an answer with points that...*"
Giskard
CC BY-SA 4.0
2023-08-02T12:04:18.280Z
@Giskard: moreover, this site is about applying the science of economics, and I was looking after a proper answer. Your comment is philosophical in the best case, and diverts the attention from the actual topic. I am not happy.
virolino
CC BY-SA 4.0
2023-08-02T12:05:10.167Z
I am sorry to hear that you are not happy, I hope it will pass. Please feel free to flag my comment if you think there are grounds for moderator intervention.
Giskard
CC BY-SA 4.0
2023-08-02T12:05:46.900Z
@Giskard: but 2 is not 20 or 50 or 100. Actually, "2" fits into different models. I am talking even about variants of teh same model.
virolino
CC BY-SA 4.0
2023-08-02T12:08:52.097Z
Firms compete in differentiated product markets; it can make sense for someone to cover many market segments and not leave it to their competitors. You can read about [differentiated product markets](https://policonomics.com/salops-circular-city/) and how the market size can influence the number of product variants. I don't think the outcome is socially optimal in that model, it is just an equilibrium. Mind that what I linked is just a toy model.
Giskard
CC BY-SA 4.0
2023-08-02T12:15:33.903Z
One more thing: the model I linked in the previous comment conveys the basic idea of competition in a differentiated product market, but there each variant is owned by different firms. It is the basic model, so it is a good starting point. There are other models where a single firm produces many variants to deter others from entering the market, e.g.; ["Entry deterrence in the ready-to-eat breakfast cereal industry" by  ‎Schmalensee](http://neconomides.stern.nyu.edu/networks/phdcourse/Schmalensee%20_Entry_deterrence.pdf)
Giskard
CC BY-SA 4.0
2023-08-03T10:38:31.007Z
please don't delete question that already has an answer that is considered vandalism
1muflon1
CC BY-SA 4.0
2023-08-03T10:41:31.513Z
I consider vandalism that a moderator writes an answer NOT related to the question! You did not delete your answer yet, that is why I deleted the question.
virolino
CC BY-SA 4.0
2023-08-03T10:44:27.293Z
@virolino my answer does directly answer your question, again I am sorry you don't like the answer, sometimes answers we dont like cause cognitive dissonance, but this is the actual answer whether you accept it or not, similarly as abiogenesis is the answer to question how life on earth started whether some orthodox priest is willing to accept itit or not
1muflon1
<marketing>
Why manufacturers release countless variants of the same product?
virolino
# Why manufacturers release countless variants of the same product?

(Asked by: username_0 on 2023-08-02)

I guess that the question is quite simple and clear. To avoid any potential confusion, I will give two examples.

1. Automotive

OEMs release countless variants of each of their cars. Pretty much, for each device in the car they have several variants. And the "same" car is sold in "all" combinations of those variants.

I would be enough (according to me) to have these variants: for the city (small), for the family, for the rich. Double the number of variants with alternatives regarding the gear box (manual or automatic), to match the taste of the customer. Obviously, the small car will not need a 500 HP engine, like the others might.

2. Smartphones

Here, the situation is even more obvious. It is practically impossible to make an informed choice about what to buy. I will take Samsung as an example, the same holds true for most of the important players. There are so many phones made by them, that many times it is impossible to understand which is the actual difference. In most of those times, the difference is actually irrelevant to the final customer.

I would be enough (according to me) to have these variants: for the grandmother (basic communication / navigation needs), for the business, for the gamer. No variants to the variants.

From my POV, the following would hold true:

* the less variants, the better the quality of the product and the lower the cost (eliminate the cost of changing the production line, the logistic paths etc.)
* better understanding of the options from the customer's POV, with better final satisfaction.

So, why do the companies create this messy confusion?

Note: I understand that "planned obsolescence" plays a role, but I do not focus on this topic in the context of this question.

**Tags:** marketing
> **Comments:**
> **username_1**: There are over 10,000 questions on this site. According to some, that is too many; it is time consuming to browse questions, hard to find the right one. According to this assumption, by adding a new question that is tailored to your exact taste/inquiry, you are also adding to the confusion. Do you think you should delete your question, or do you think that variety in this case has merit?  
> **username_0**: @Giskard: your comment is not related to the question. Because products are answers, not questions. I did not ask why Apple introduced the iPhone, when rotary phones already existed. I did not ask about why people asked for transportation without horses. I did not even ask why there are so many manufacturers with the same product. I only asked why THE SAME manufacturer provides SO MANY ANSWERS to the SAME QUESTION. It is not even about models. (e.g. Skoda Octavia and Skoda Fabia). Maybe you should delete your comment and up-vote instead of down-vote? :) (no affiliation to any company or brand)  
> **username_1**: I have not downvoted your question. (I can only prove this to you by downvoting it now, but I would prefer not to.)  
> **username_1**: There happens to be a question to which I did post two answers. In the second one I write "*...to cover all bases like a good incumbent in a differentiated product market, I will also post an answer with points that...*"  
> **username_0**: @Giskard: moreover, this site is about applying the science of economics, and I was looking after a proper answer. Your comment is philosophical in the best case, and diverts the attention from the actual topic. I am not happy.  
> **username_1**: I am sorry to hear that you are not happy, I hope it will pass. Please feel free to flag my comment if you think there are grounds for moderator intervention.  
> **username_0**: @Giskard: but 2 is not 20 or 50 or 100. Actually, "2" fits into different models. I am talking even about variants of teh same model.  
> **username_1**: Firms compete in differentiated product markets; it can make sense for someone to cover many market segments and not leave it to their competitors. You can read about [differentiated product markets](https://policonomics.com/salops-circular-city/) and how the market size can influence the number of product variants. I don't think the outcome is socially optimal in that model, it is just an equilibrium. Mind that what I linked is just a toy model.  
> **username_1**: One more thing: the model I linked in the previous comment conveys the basic idea of competition in a differentiated product market, but there each variant is owned by different firms. It is the basic model, so it is a good starting point. There are other models where a single firm produces many variants to deter others from entering the market, e.g.; ["Entry deterrence in the ready-to-eat breakfast cereal industry" by  ‎Schmalensee](http://neconomides.stern.nyu.edu/networks/phdcourse/Schmalensee%20_Entry_deterrence.pdf)  
> **username_2**: please don't delete question that already has an answer that is considered vandalism  
> **username_0**: I consider vandalism that a moderator writes an answer NOT related to the question! You did not delete your answer yet, that is why I deleted the question.  
> **username_2**: @virolino my answer does directly answer your question, again I am sorry you don't like the answer, sometimes answers we dont like cause cognitive dissonance, but this is the actual answer whether you accept it or not, similarly as abiogenesis is the answer to question how life on earth started whether some orthodox priest is willing to accept itit or not  

---

## 1 answers

### Answer by username_2 on 2023-08-02. Score: 1

Because customers like variety. For example, for iPhone 14 comes according to [this website](https://www.cnet.com/tech/mobile/iphone-14-plus-pro-and-pro-max-comparison-price-size-battery-and-more-specs/) in 4 main variants.

They do not only differ by features but also by price. This allows for 4 different customer segments. If they would only release iPhone 14 Pro Max they would only attract consumers who are willing to pay the price for those specific features. By making different variant they can tap to new market segment.

This both allows company to increase profit while at the same time satisfying more customers.

The same applies to company providing any $N$ number of variants. It is because customers desire it.

> the less variants, the better the quality of the product and the lower the cost (eliminate the cost of changing the production line, the logistic paths etc.)

Where is any empirical evidence that less variants leads to higher quality of products? Causal relationships don't sprung up just based on our wishes.

> I would be enough (according to me) to have these variants: for the grandmother (basic communication / navigation needs), for the business, for the gamer. No variants to the variants.

What if someone does not fit into the categories you arbitraly decided? For example, what if someone wants a phone for semi-profesional photography, which does not fit neatly into your categories?

> better understanding of the options from the customer's POV, with better final satisfaction

* Typically for most differentiated products there are comparison sites like the one I used at the beginning.
* According to research (e.g. [AlGeddawy & ElMaraghy 2012](https://link.springer.com/chapter/10.1007/978-3-642-23860-4_85)), the product differentiation is driven by companies trying to better satisfy needs of a customers.

  In fact mass personalization, combination of mass production with customization is considered a holy grail of manufacturing.

  Also despite your claims you personally would be happy with it I doubt that if we would do revealed preference test you would show revealed preference for a product that is, ceteris paribus, less tailored to your own tastes. If you would, your behavior would be unique compared to what is typically observed.

> Note: I understand that "planned obsolescence" plays a role, but I do not focus on this topic in the context of this question.

This is not even connected to planned obsolescence. No product can last forever, modern statistical methods allow companies to determine precisely how long product will last by testing the prototypes in lab. Unless we are talking about monopoly, in competitive industry competitive pressure forces them to select materials that last as much as average user expects them to use it. For example, if a company knows that average consumer in fast fashion segment will only use shirt once and then throw it away there is no need for more expensive materials that last longer than that.

Paradoxically, by lowering the variety to some basic cases you would eliminate the more unique varieties built for people who demand their things lasting longer than average person does.

> **Comments:**
> **username_0**: You described what I already knew (and explained in the question) and you did not touch the actual question even a bit. I would down-vote if I had enough points. I am especially disappointed considering that you are a moderator.  
> **username_2**: @virolino you asked why companies release many variants of same product, the answer especially first paragraph answers that. Sorry you don’t like the answer but that is why companies do it  
> **username_0**: 4 variants is not at all many. I already gave an example in the question with 3 variants, which is mostly the same (as an idea). My question was about "countless" which means very big.  
> **username_2**: @virolino 1. but there arent any products that come in countless varieties. Name any product and any company and I can guarantee their product variety will be countable not countless.  2. The answer that applies to 4 varieties above applies to any $N$ varieties (and $N$ varieties are still countable), I actually edited an answer to make it clear if it wasn't obvious.  
> **username_0**: Not only that you did not read my question properly, you also failed to read the comments provided by @Giskard. You should be ashamed to be called moderator.  
> **username_1**: @virolino A man is driving on the highway, listening to the radio. Suddenly the music cuts out: "*We bring you emergency news. A strange car is driving the wrong way on the highway, be alert!*" The man says to himself: "*You got that right, except there is not just one car going the wrong way, but hundreds!!*"  
> **username_1**: @1muflon1 I have no comments on your actual answer, but on your throwaway line "*Name any product and any company and I can guarantee their product variety will be countable not countless.*" I used to enjoy reading about product differentiation, and used Coca-Cola varieties as an example in class. In the US Coca-Cola also has an app+machine called "[Freestyle](https://www.coca-colafreestyle.com/)" which lets you mix these in any desired ratio. Not countless (the mix ratio is digital, not analog), but pretty close!  
> **username_2**: @Giskard 'Not countless' <- but that was precisely my point, I even said it can be extended to $N$ such cases if 4 is too low for OP. But as you yourself said its not countless, tbh that was also intended to teach OP bit of an lesson, like when you give student extra homework problem that has P vs NP component to see how many realize it and what clever ways they can think of trying to argue their way through it  

---

