The Competitive Pressures from Substitute Products Tend to Be Stronger

question 47

Multiple Choice

The competitive pressures from substitute products tend to be stronger when

• A) buyers are relatively comfortable with using substitutes and the costs to buyers of switching over to the substitutes are low.
• B) there are more than 10 sellers of substitute products.
• C) the quality and performance of the substitutes is well above what buyers need to meet their requirements.
• D) buyers have high psychic costs in severing existing brand relationships and establishing new ones.
• E) demand for the industry's product is not very price sensitive.

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