Product diversification is an important issue in marketing management. It has been the topic of business researchers for over three decades. Extending previous marketing research on product diversification by @ref38, the product diversification strategies of 300 firms were analyzed. Nine hypotheses were tested concerning the association of product diversification direction, method, and stage of firm development. The findings indicate the relationship between product diversification and firm profitability is contingent upon the method used to add new products and the stage of a firm's life when product diversification is attempted. It is concluded that the focus of marketing management should change as a firm develops from a small, entrepreneurial start-up to a large. Mature corporation.
Lunsford et al. (Wed,) studied this question.