Setting up variable library topics

I have a question about setting up a variable for Product Name. We are using Oxygen as our Editor. When you insert a variable into a topic, you must to select a library topic containing the variable. So, it's going to insert the content as defined in the selected library topic, which I think is confusing since writers will see a specific product name. I am thinking of the following 2 approaches:

1) Create a single "Product Variables" library topic and in it create different variables for each product:

<ph varid="product-a-name>Product A</ph>

<ph varid="product-b-name>Product B</ph>

The writer inserts both product variables into their topic, and applies a productA condition to the Product A variable and productB condition to the ProductB variable. In the publication in Publication Manager, the writers adds the "Product Variables" topic to their Resources folder and assigns also appropriate condition to the publication (ProductA or ProductB).

2) Create multiple Product variable library topics, one for each product. However, to avoid confusion for the writer, create a "Generic" Product name variable library topic, containing:

<ph varid="product-name">Product Name</ph>.

Instruct writers to use the "Generic" library topic when inserting the variable into their topic, this way they see "Product Name" in their content while authoring, rather than a specific product. In the publication in Pub Mgr, the writer adds the appropriate variable library topic (Product A Variables or Product B Variables) to their Resources folder.  

What are others doing? Or are you finding the fact that Oxygen inserts specific variable text while authoring not to be too confusing for their authors? Anyone using the "generic" approach?  Is there a better approach I am not considering?