more intense the competitive pressures posed by substitute products.
Explanation:
The lower the user's switching costs: the more intense the competitive pressures posed by substitute products.
Switching costs can be defined as the cost of a consumer switching from a product to a substitute good.
Therefore when such switching costs are low, it will be easier to switch from one product to another, implying that the competitive pressure from substitute goods are higher.
More intense the competitive pressures posed by substitute products
Explanation:
A user's switching cost is the cost incurred by a user/consumer when he/she changes brands of products and services he/she usually purchases for a substitute good or service usually of equal standard with the first brand.
Switching cost can be monetary, psychological and time-based as well. the higher the switching cost the less likely a user will switch brands but the lower the switching cost the more likely a user will switch brands, and also the more intense the competitive pressures posed by the substitute products.
therefore switching cost is a market determinant for products with several substitutes in the open market.
