For a specific product or service, the existence of close substitutes means that customers could switch to these substitutes if prices, service levels or other factors make it in their interests to do so.

Question

Quizplus · Accepted Answer

The existence of close substitutes makes it easier for customers to switch to these substitutes if they are unsatisfied with the prices or quality of the original product or service. This can create competition in the market and give customers more power to make informed choices. Therefore, it is true that the existence of close substitutes can impact customer behavior.

For a Specific Product or Service, the Existence of Close