Legal Definitions - product market

A product market is a part of a relevant market that applies to a specific product or service. It identifies all reasonable substitutes for the product and determines whether these substitutes limit the firm's ability to affect prices. In simpler terms, it is the market where a particular product or service is sold.

For example, the smartphone market is a product market that includes all the different brands and models of smartphones available for purchase. Another example is the fast-food market, which includes all the different fast-food chains and their menu items.

Understanding the product market is important for businesses to determine their competition and pricing strategies. By identifying their substitutes and competitors, businesses can adjust their prices and marketing efforts to stay competitive.