›› 2017, Vol. 29 ›› Issue (10): 157-167.

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A Research on the Relationship between Product Variety and Service Quality:The Perspective of Scope Economy

Zeng Fue1, Wang Kewei1, Yu Jinjun2   

  1. 1. Economics and Management School of Wuhan University, Wuhan 430000;
    2. Business School of South China University of Technology, Guangzhou 510000
  • Received:2015-07-14 Online:2017-10-28 Published:2017-11-01

Abstract:

Improving service quality in terms of provision of diversified products to customers is one of the most critical objectives of enterprises. However, few studies have an insight into the relationship between product variety and service quality. Applying the perspective of scope economy and data of life insurance market in China from 2010 to 2012, this study investigates the relationship between product variety and service quality, and the relevant influential mechanism. Results indicate that enterprises' service quality is damaged by excessive product variety, and their market position is a mediating mechanism. Results further demonstrate that the degree of relationship is determined by the magnitude of competition intensity.

Key words: product variety, service quality, market position, competitive intensity