Substitutes are considered to be products
A) from inside the industry that meet the same need
B) are the product and service offerings of competitors
C) from outside the industry that meet the same need
D) that are better than the product and service offerings of competitors

Question

Quizplus · Accepted Answer

Substitutes are products from outside the industry that can satisfy the same need as the product or service offered by a particular industry. For example, ride-sharing services like Uber and Lyft are substitutes to traditional taxi services. They are not from inside the industry as in choice A nor are they the product or service offerings of competitors as in choice B. Additionally, choice D is not accurate as substitutes do not necessarily have to be better than the product and service offerings of competitors.

Substitutes Are Considered to Be Products