Technological Substitution

Posted in Marketing and Strategy Terms, Total Reads: 401

Definition: Technological Substitution

Technological substitution is the customer’s preference of one product over the other due to the technological advancement available in the product. 

Example: If a customer wants to buy a new television his aim will be to buy the best product which offers many quality features for a given price money. Say If Sony offers better LED TV than Panasonic in that price range naturally the customer will prefer Sony LED TV over Panasonic

A product with superior quality in terms of its technological features will normally attract customers as he always weighs in alternate option and tries to get the maximum value from the buying process. Maximising the utility from the product is main expectation from the consumer. This buying behaviour of the customers is used efficiently by giving a detailed product description which highlights the technological advantage of the products.

Due to the advent of the ecommerce, technological substitution plays a crucial role in buying a product. All these ecommerce retailers provide the market place for different product manufacturers to the customers. It results in many vendors providing similar products with almost similar features. When a customer decides to buy a product he normally checks out few products, compares the different features and ultimately makes a judgement to maximize the utility.

A lot of new start-up companies provide exclusive service for comparing different products before buying. Some of them are

• Pricedekho

• Compareraja

• Smartprix

• Comparemyproduct

• Compareindia.ibnlive


These websites help customers to easily compare the technological features of products which they intend to buy and makes their buying process easier. The technological superiority need not only be on product but also include the other services like customer management, supplier management and efficient customer care services.


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