Question

The competitive pressures from substitute products tend to be stronger when Group of answer choices there are more than 10 sellers of substitute products. buyers are relatively comfortable with the quality and performance of substitutes, and the costs to buyers of switching over to the substitutes are low. demand for the industry's product is not very price sensitive. buyers have high psychic costs in severing existing brand relationships and establishing new ones. substitutes exhibit the latest in technological innovation.

Answer 1

buyers are relatively comfortable with the quality and performance of substitutes, and the costs to buyers of switching over to the substitutes are low.

Step-by-step explanation:

Substitute goods are goods that can be used in place of another good.

Factors that increases competitive pressures from substitute products include:

1. the switching cost : the lower the cost of switching to substitute good, the higher the competitive pressures from substitute products
2. If the demand for the industry product is price sensitive : if demand for the product is price sensitive, a small increase in price would lead to an increase in demand for the substitute good