Industry members experience lesser competitive pressures from substitutes in which scenario?

In scenarios where buyers doubt using substitutes, industry members experience lesser competitive pressures from those substitutes. This occurs because when customers have confidence in the existing products or services, they are less likely to consider alternatives, even if those alternatives are viable. The uncertainty or skepticism surrounding the quality, reliability, or value of substitutes creates a barrier to substitution, thereby diminishing the pressure on the industry.

When buyers are unsure, they may prefer to stick with what they know, leading to greater customer loyalty for existing offerings. This environment allows companies within the industry to continue operating without the threat of losing significant market share to substitutes.

On the other hand, when switching costs are low, substitute quality meets buyer needs, or substitutes are widely available, competition can intensify because consumers can easily transition away from the current offerings to alternatives that provide better value, features, or satisfaction.