What Is a Substitute Good?
Substitute products are those that meet the same needs as the products produced in the industry. If there is a substitute product or a potential substitute product in a market segment, then the market segment loses its attractiveness to some extent. [1]
replacement product
Right!
- Chinese name
- replacement product
- Belongs to
- economics
- Nature
- Proper noun
- Features
- Limit price and profit growth in market segments
- Substitute products are those that meet the same needs as the products produced in the industry. If there is a substitute product or a potential substitute product in a market segment, then the market segment loses its attractiveness to some extent. [1]
- Substitute products will limit price and profit growth in market segments. Companies should pay close attention to the price trends of alternative products. If technology develops in these alternative product industries, or if competition becomes more intense, prices and profits in this market segment may fall. [1]
- A substitute product refers to a product that can be equal to or substantially equivalent to the value of use of another commodity. It appears in the form of a related commodity of another commodity and affects changes in demand for another commodity. If there is a substitute between two commodities, then the increase in the price of one commodity will lead to an increase in demand for the other.