Definition: a Substitute is in consumer theory and business strategy another product or service that can be used for the same purpose by the consumers and take the place of an existing one.
Substitution can happen to a certain degree or completely ("perfect substitution").
A substitute good is a good with a positive cross elasticity of demand. Perfect substitutes have a higher cross elasticity of demand than imperfect substitutes do.


More on consumer theory: Consumer Decision Journey, Customer Value, 30 Elements Of, Customer Variability, Mental Accounting, Scarcity Marketing, more...


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