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.

---

Definitions:

Favorable Self-concepts

Positive beliefs or perceptions an individual holds about themselves, reflecting aspects like self-worth and competence.

Realistic Self-concepts

An individual's accurate and factual perception and understanding of their strengths, weaknesses, and character.

Taylor and Brown

Researchers known for their work in psychology, particularly on the positive illusions that people hold about themselves, their control over events, and their future.

Constructive Coping

Adaptive strategies for managing stress and solving problems, focusing on positive actions and cognitive approaches to mitigate stressful situations.