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:

Tests Of Significance

Statistical tests used to determine whether the results of a study are likely to be due to chance or represent genuine effects.

Arithmetic Mean

The sum of a set of numbers divided by the count of numbers in the set, commonly known as the average.

Effect Size

An objective, standardized way of describing the strength of the independent variable’s influence on the dependent variable.

P Value

A statistical measure that helps scientists determine the significance of their research results.