If customers perceive the benefits of an alternative to be similar to that of a product,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

Question

Quizplus · Accepted Answer

If customers perceive the benefits of an alternative to be similar to that of a product, it means the alternative is a strong substitute and poses a threat to the product. The threat of a substitute is high when customers can easily switch to a similar alternative without any significant cost, therefore increasing the pressure on the product to maintain its competitive advantage.

If Customers Perceive the Benefits of an Alternative to Be