Marketing applications of the economics of product variety

The most obvious questions that arise upon a reading of Professor Lancaster’s excellent summary of the economics literature on product variety are (1) What relevance does it have for the study of marketing?, and (2) How can it be applied in marketing? By highlighting specific results in the economics literature on product variety which are useful to marketing, and by outlining specific marketing applications of the economic models, this brief commentary will attempt to answer the above questions.