Consumers' ability to replace the focal brand with other products is called:
A)the substitution effect.
B)the markdown effect.
C)the experience curve effect.
D)the competitive parity effect.
E)the income effect.

Question

Quizplus · Accepted Answer

The ability of consumers to replace a focal brand with other products is known as the substitution effect. This effect becomes significant when customers perceive comparable alternative products in the market, which can meet their needs as well as the focal brand. As a result, firms must take steps to maintain brand loyalty by differentiating their products in some way.

Consumers' Ability to Replace the Focal Brand with Other Products