3) Threat from substitute merchandise
• represented the attitude of attaching importance to “value” rather than “price” by shopping only for quality merchandise.
• comprised consumers looking for cheap-priced product due to the slow growth of their income.
Individuals tend to purchase depending on either “value-added” merchandise or “low-priced” merchandise.
As s result of this, the advantages which the convenience industry one possessed over the other from substitute products is becoming much more prevalent.