Substitute goods or substitutes are products that a consumer perceives as similar or comparable, so that having more of one product makes them desire less of the other product. Formally, X and Y are substitutes if, when the price of X rises, the demand for Y rises.
Consumers will prefer the products that offer them more benefits (price, quallity, endurance, taste)
There are different degrees of substitutability. For example, a car and a bicycle may substitute to some extent: if the price of motor fuel increases considerably, one may expect that some people will switch to bicycles.
So, the demand of a substitute good increase when its substitute good has increased it price this is called as cross-elasticity of demand.
Jane purchases margarine instead of butter, it is similar to butter yet costs less.
RULES AND REGULATIONS ON PACKAGING AND LABELING
The main function is to inform customers about product’s contents and give instructions of how to use them.
Labeling give us protection if consumers get injured while they were using the product.
Labeling regulations are divided in kinds of products
COMPONENTS OF LABELING
Container/ carton label
DIFFERENT WAYS OF LABELING (depending on the product)
AFTER SALES SERVICE
It consists of all those efforts after the sale to satisfy the customer and, if possible, ensure a regular or repeat purchase. A sale never ends because the goal is always to have the customer completely satisfied.
So to prior sale, there are also various kinds such as:
Technical Services products
This service is divided into various sections such as installation, maintenance and repair of the product being acquired...