Industry rivals tend to experience weak competitive pressures from substitute products when:
A) the available substitute products are weakly differentiated from one another.
B) the buyers of the industry's products are few in number and they have substantial amounts of leverage with sellers.
C) rival sellers experience strong bargaining power from both suppliers and influential customers.
D) buyers incur high costs in switching to substitutes and substitutes are higher priced relative to the quality,performance,and other attributes they deliver.
E) the producers of substitute products are all pursuing strategies to strongly differentiate their products on the basis of quality and product performance.

Question

Quizplus · Accepted Answer

When buyers face high switching costs and the substitutes are priced higher relative to the quality and performance, they are less likely to switch to substitutes. Thus, weak competitive pressure is experienced by the industry rivals.

Industry Rivals Tend to Experience Weak Competitive Pressures from Substitute