It is a type of good that can easily cover a need, equal to or better than another product. In this sense, from the consumer’s point of view, the substitute good starts to replace or substitute the function of a certain product for another, whether or not they have the same or similar characteristics.
A good is a substitute for another when it is in charge of compensating the present need in the consumer. In this sense, that is why the competition between the two is constant, because they seek the attention of the consumer and their preference either through low prices, attention, service and quality.
When reaching the end of satisfaction of a need , which can do another good, companies, in addition to taking into account the competition, also take into account all possible substitutes for their brand, this is because they act the same form as competition.
Characteristics of substitute goods
- They have interrelated demands , thanks to the fact that the consumer knows that he can choose another product when the main one is missing or does not satisfy his need.
- When the price of the main good increases, the substitute good sees it as a business opportunity and potential customers.
- The most expensive good is replaced by the cheapest good.
- Goods can achieve anything from a perfect substitution to a lower substitution.
Examples of substitute goods
- A black or blue pen. Many of the people do not care about the handling of one or the other, so both can be substitutes without inconvenience in front of the buyer.
- Sugar and honey. In these cases, the goal is to sweeten. In case you want to eat healthier, honey is a perfect substitute for oats and contains fewer negative aspects for the body.
- Vegetable oil for olive oil. Both can be used at any time and serve the same purpose. However, when it comes to wanting to eat some fried food or food in a healthy way, olive oil is an excellent option and substitute.
- Margarine and butter. When you want to add a touch of flavor to food, butter is an excellent and healthy option to consume.
- Chicken and pork. When it comes to wanting to consume meats other than cattle, an excellent option is chicken or pork. They can work as an excellent substitute and the benefits are greater.
- Soda and water. Water, when it comes to wanting to ingest a refreshing and hydrating drink, never ceases to be a better option to consume.
- Fireplace and stove. Both fulfill the same function: to keep the house warm. So either of the two can be used in the same way.
- Sweater and jacket. The purpose of both is to keep you warm, so either of the two can be used.
- Brand name and generic drugs. Frame products are generally much more expensive than pharmaceuticals and their effects are very similar. So people look for generics as an alternative.
- Pepsi and coke. These are carbonated drinks that are very competitive between the two, however, since they are dark drinks, people tend to choose one, when the other is at a high price.
- Alternative means of transport. When it comes to going from one place to another, the options today are diverse, you can use it from a bus, taxi, bicycle, plane, among others.
- Fossil fuels. When it comes to needing a fuel that powers the various means of transport, there are various options from gasoline, diesel or gas.
- Alcoholic drinks. When it comes to consuming alcoholic beverages, the options are varied, being able to substitute one for another.
- Wheat flour and almond flour. When it comes to wanting to eat some delicious food for which flour is required, but which is suitable for your diet, the option of almond flour as a substitute is an excellent ally and with greater properties.
- Coffee or energy drinks. When it comes to staying active, many people choose to consume coffee or some type of drink that can keep them energized and in this way make them last much longer.