The competitive force of substitute products tends to be stronger when
A)buyers view the prices of substitutes as too high.
B)the costs that buyers face in switching over to substitutes are low.
C)the quality and performance of substitutes are relatively low.
D)substitutes do not embody many characteristics that are similar to those of products already serving the market.
E)none of these choices.

Question

Quizplus · Accepted Answer

When the costs that buyers face in switching over to substitutes are low, the competitive force of substitute products tends to be stronger because it makes it easier for customers to switch to the substitute product. This makes it harder for companies to retain customers and maintain their market share.

The Competitive Force of Substitute Products Tends to Be Stronger