insights into the role of strategic customer behavior. Not surprisingly, strategic customer behavior decreases firm profit. Interestingly, we show that sometimes firms strategically delay the launch of products in response to strategic behavior, and tematically vary their product portfolio over time. Our work differs from much of the existing work on product variety by explicitly modelling consumer purchase decisions over time, and by illustrating that a static product portfolio is not necessarily sub-optimal and can lead to a significant profit increase.