In which of the following instances are industry members NOT subject to stronger competitive pressures from substitute products?Question 7AnswerA.The costs to buyers of switching over to the substitutes are low.B.Buyers are wary about using substitutes.C.The quality and performance of the substitutes are well-matched to what buyers need to meet their requirements.D.Buyer brand loyalty is weak.E.Substitutes are readily available at competitive prices.

The competitive pressures from substitute products tend to be stronger when good substitutes are readily available. Question 1AnswerTrueFalse

The competitive force of substitute products is strong whenMultiple choice question.substitutes are more highly priced relative to the performance they deliver.substitutes are attractively priced.end users face high costs when switching to substitutes.acceptable substitutes are not available.

How does the existence of substitutes affect the price elasticity of demand?Question 1Answera.The existence of substitutes leads to higher prices in the marketplace.b.The existence of substitutes leads to a situation with perfect elasticity.c.If there are many substitutes, the price elasticity of the good will be more elastic than otherwise.d.None of these answers are correct.

Which of the following competitive forces affect an industry's attractiveness? (Check all that apply.)Multiple select question.Competitive pressures stemming from creating entry barriers in the marketCompetitive pressures associated with being the first entrant in a marketCompetitive pressures stemming from supplier bargaining powerCompetitive pressures associated with the threat of new entrants into the marketCompetitive pressures stemming from buyer bargaining power

The rivalry among competing sellers in an industry intensifiesMultiple Choicewhen buyer demand for the product is growing rapidly.when customers are brand loyal and their costs to switch to competing brands or substitute products are relatively high.when buyer demand is strong and sellers have little or no excess capacity and only minimal inventories.as the number of rivals increases and as they become more equal in size and competitive capability.when the products of rival sellers are highly differentiated products and the industry consists of so many rivals that any one company’s actions have little direct impact on rivals’ business.