STEP 2: Define the relevant market - Relevant Product Market (RPM)
3 important questions on STEP 2: Define the relevant market - Relevant Product Market (RPM)
How does the SSNIP test determine whether consumers are likely to change to another product? Does it take an economic approach?
The SSNIP test considers whether a small but lasting increase in the relative price (5-10%) in product A would result in product A's consumers switching to substitutes such as product B
Why did Hugin - a cash register manufacturer - have a market dominance for spare parts in (Hugin)?
Several companies have been unable to service Hugin registers due to Hugin refusing to supply parts. Hugin had a dominant position in the spare parts market since only Hugin's spare parts could be used in Hugin registers.
Why were bananas found to be distinct from other fruits in United Brands to form a separate, dominant market
Bananas have separate characteristics from other fruits to form a separate market - seedless and soft and therefore non-interchangeable with other fruits.
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