Differentiated or integrated: Capacity and service level choice for differentiated products

Several firms across different product-focused industries, such as Dell, GM and Keurig, offer associated services along with their products. Given that firms routinely offer a portfolio of vertically differentiated products, a crucial question facing such firms is whether such differentiation should also be extended to associated services. Service differentiation lowers cannibalization of the high-quality product by the low-quality product and...