The competitive pressures from substitute products tend to be stronger when
A)good substitutes are readily available.
B)there are fewer number of substitute products.
C)substitutes have lower performance features.
D)buyers incur high costs in switching to substitutes.
E)substitutes are priced above the market.

Question

Quizplus · Accepted Answer

When good substitutes are readily available, it increases the likelihood that customers will switch to the substitute product, which in turn puts pressure on companies to either lower their prices or improve their products to remain competitive. This makes the competitive pressures from substitute products stronger.

The Competitive Pressures from Substitute Products Tend to Be Stronger