Substitute is lower quality (NMBHI)

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A lower quality product means a customer is less likely to switch from NMBHI to another product or service. … "Substitute is lower quality (NMBHI)" has a significant impact, so an analyst should put more weight into it. "Substitute is lower quality (NMBHI)" is an easily defendable qualitative factor, so competing institutions will have a difficult time overcoming it. This qualitative factor will lead to an increase in costs.

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