In multi-product firms, managers need to consider the effect on demand for other products when they make a keep or drop decision about one product.

Question

Quizplus · Accepted Answer

Managers must consider the interdependencies among products because the decision to keep or drop one product can affect the demand for other products within the firm's portfolio, due to factors like complementary products or brand image.

In Multi-Product Firms, Managers Need to Consider the Effect on Demand