The competitive pressures from substitute products tend to be stronger when A) buyers have high psychic costs in severing existing brand relationships and establishing new ones. B) substitutes exhibit the latest in technological innovation. C) demand for the industry's product is not very price sensitive. D) buyers are relatively comfortable with the quality and performance of substitutes and the costs to buyers of switching over to the substitutes are low.
The competitive pressures from substitute products tend to be stronger when A) buyers have high psychic costs in severing existing brand relationships and establishing new ones. B) substitutes exhibit the latest in technological innovation. C) demand for the industry's product is not very price sensitive. D) buyers are relatively comfortable with the quality and performance of substitutes and the costs to buyers of switching over to the substitutes are low.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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The competitive pressures from substitute products tend to be stronger when
A) buyers have high psychic costs in severing existing brand relationships and establishing new ones.
B) substitutes exhibit the latest in technological innovation.
C) demand for the industry's product is not very price sensitive.
D) buyers are relatively comfortable with the quality and performance of substitutes and the costs to buyers of switching over to the substitutes are low.
E) there are more than 10 sellers of substitute products.
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