The threat of substitutes may be high if
A. Switching costs are of concern to the customer.
B. The substitute product provides a higher perceived value or benefit.
C. The substitute product does not provide enhanced functionality, reduced cost and better quality.
D. Customers have strong existing brand loyalty.
Answer:B
The threat of substitutes may be high if
A. Switching costs are of concern to the customer. B. The substitute product provides a higher perceived value or benefit. C. The substitute product does not provide enhanced functionality, reduced cost and better quality. D. Customers have strong existing brand loyalty.