Substitute products are items that can replace each other in fulfilling a similar need or desire. For example, if a consumer prefers coffee but cannot find it, they might choose tea instead. These products often serve the same purpose but may differ in taste, price, or other features. The presence of substitute products in a market can influence pricing and competition. When many alternatives are available, consumers have more choices, which can lead to lower prices. Businesses must be aware of substitutes to effectively position their products and maintain customer loyalty.