WHY SUBSTITUTEPRODUCTS MATTER

WHY SUBSTITUTEPRODUCTS MATTER

• Competitively priced substitutes can place CEILING on PRICES industry can charge for its product
• Price ceiling can place LID on PROFITS industry members can earn
• Availability of substitutes invites customers to make QUALITY & PERFORMANCE comparisons as well as PRICE comparisons
• The lower the SWITCHING COSTS, easier it is for customers to shift to substitute products

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