The Threat from Substitutes Is High When

question 62

Multiple Choice

The threat from substitutes is high when:

• A) switching costs are high.
• B) the substitute product's price is lower than the industry product's price.
• C) the quality of the substitute product is lower than the quality of the industry's product.
• D) the substitute product stimulates new process innovations within the industry.

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Definitions:

Romance

A feeling of excitement and mystery associated with love, often emphasizing emotional and spiritual connection.

Maturity Principle

The concept that individuals become more responsible and emotionally stable as they age.

Collectivism

A cultural value that emphasizes the importance of groups and community over individual achievement or identity, often prioritizing group goals over individual desires.

Defense Mechanisms

Unconscious psychological strategies employed to protect oneself from anxiety and cope with reality or maintain self-image.