Economies of scope: Difference between revisions

{{Marketing}}

'''Economies of scope''' are conceptually similar to [[economies of scale]]. Whereas economies of scale primarily refer to efficiencies associated with supply-side changes, such as increasing or decreasing the scale of production, of a ''single product type'', economies of scope refer to efficiencies primarily associated with demand-side changes, such as increasing or decreasing the scope of [[marketing]] and [[distribution (business)|distribution]], of ''different types of [[product (business)|products]]''. Economies of scope are one of the main reasons for such marketing strategies as [[product bundling]], [[product lining]], and [[family branding]].