- Industries in which price is the most significant consideration in customers' purchase decisions tend to be highly competitive.
- A slight increase in price may cause customers to switch to substitute products if they are widely available.
2. Franchise industry (franchise products)
- Price is not as important if companies in an industry are able to effectively differentiate their products in terms of quality and performance.
- Customers may not focus on price as much if product reliability is more important to them.