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If the Price of an Alternative Is Lower Than the Price

Question 2

Multiple Choice

If the price of an alternative is lower than the price of an existing product, and customers perceive similar benefits from both the products, then the ________.


A) switching cost is high
B) price of the product should be increased to retain market share
C) threat from the substitute is strong
D) customers' bargaining power decreases

Correct Answer:

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