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Substitute Products Write For Us, Guest Post, Contribute, Submit Post

Substitute Products Write For Us

Substitute Products Write For Us

Substitute products offer consumers pick when making purchase decisions by providing equally good alternatives, thus cumulative utility. However, from a company’s perspective, substitute crops create a rivalry.

Consequently, businesses may incur high marketing and publicity costs when competing for market share, reducing operating profits. Some companies remain even put out of business due to substitute products significantly outperforming their offerings.

Substitute Products in the Economy

Every business faces some form of competition, level monopoly industries. Most of the competition originates from substitute products. A substitute product serves the same purpose as another product in the market, and getting more of one commodity allows consumers to demand less of the other product.

The demand for substitute products displays a negative correlation. That is, the consumption of one product reduces or replaces the need for the other. For example, if you are moving from point A to B, you can only use a car, bicycle, or additional mode of transportation. However, the demand and assessment of substitute products exhibit a positive correlation. It means if the price of one product increases, the demand for the other increases.

For example, coffee can remain said to be a substitute for tea, and solar energy is a substitute for electricity. If coffee prices go up, the demand for tea also goes up, and vice versa. It will only apply if we assume that the price of tea remains constant. It is unlikely to see a person drinking coffee and tea simultaneously. However, finding an entity that uses solar energy and electricity is not hard.

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