If an organisation increases its product range, what effect will this have on its customers?

It is dependent on the products the quality and the value to you segmented cusotmer base. It is usually a positive 

No customer like to see the high price for a product.  But still some buy and some won't.

Thanks for the lawsuit.

I agree with Mr. Majed Fawzy's answer

i will inrease the customers loyality and they will find a lot of varity and a complete product portofolio must cover all the needs.

Increase in product by an organisation is a good sign, but varity and quality is cornorstone to build the confidance of valued customers. Furhter, expansion in product increase the number of customers. 

But, constant prices, quality and easy access should be ensured by all mean.

It will increase customer confidence as well as company shows how much they care customer's need.

The increase in product range shows that the business is builing on its products profile and growing in the business.  It shows there are more choices and customers are choosing more thus building the profit of the business also the confidence build up and loyalty in the customers for the business is growing.  the market share increases as the profit share ratios increase.  The company gains a better place in the market for its reputation and goodwill.  The customers are happy for the business in relation to quality products and choices.The competitors interest in the cimpany is growing too as they want to know the new range as well.  Hence this has peeked their interest in realtion to product increase.

Customers love the company for its new range and they make more purchases to find out about the products and the deals therein.

A company's identity is the product or service it offeres.  Customer, in general associate an organization with the product or service it offers.  Unless new products are well aligned with the type of products or services the organization offers, the new products may actually confuse customers and they may go elsewhere.

A good example is travel provider that offers airline, hotel, car rental, etc.  Adding a service like driver and limosine services is in line with the general customer needs.  Starting a retail business to sell clothing under the same brand will not make either of their products or services better.

While the above is more of an extreme example, if an organization is looking to expand its service or product range, the new product needs to be aligned with what is already being offered.

This expansion will give them a sense that the product has become distinctive