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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Definitions:

Corporation Laws

Laws that govern the formation, organization, and regulation of corporations.

Delaware

A state located on the eastern coast of the United States, known for its business-friendly laws and as a popular location for incorporating companies.

Fifth Amendment Right

A constitutional provision that protects individuals from self-incrimination, mandates due process of law, and prohibits the government from seizing private property without fair compensation.

Self-Incrimination

The act of exposing oneself to prosecution by making statements or producing evidence that could prove one's own criminal guilt.