The lower the price of product substitutes,the higher their quality and performance and the lower the user's switching costs,the
A) harder it is for the sellers of attractive substitutes to lure buyers to their offering.
B) more intense the competitive pressures posed by substitute products.
C) less intense the competitive pressures posed by substitute products.
D) greater rival sellers experience strong bargaining power from both suppliers and influential customers.
E) less rival sellers experience weak bargaining power from both suppliers and influential customers.

Question

Quizplus · Accepted Answer

When the price of product substitutes is lower and they have higher quality and performance, it becomes more attractive for customers to switch to those substitute products. This increases the competitive pressure on the original product as customers have more options to choose from. Therefore, option B is the correct option, as it states that the competitive pressures posed by substitute products become more intense.

The Lower the Price of Product Substitutes,the Higher Their Quality