Which of these statements is FALSE about the rivalry in the performance-based yoga and fitness apparel industry?

The statement that rivalry has no effect on product pricing is false. In competitive markets, especially in the performance-based yoga and fitness apparel industry, the degree of rivalry among existing companies significantly influences pricing strategies. When competition is intense, brands often lower prices to attract customers, enhance market share, and respond to the pricing strategies of their rivals. Therefore, rivalry does have a direct effect on pricing.

In contrast, the other statements reflect truths about the competitive landscape. Rivalry being a weak force overall is misleading as this sector often witnesses strong competition driven by brand differentiation and market positioning. Brand reputation plays a crucial role in rivalry because established brands can leverage their reputation for quality and performance to command customer loyalty, shaping competitive dynamics. High product quality, too, is essential in a market that values performance and reliability, directly affecting how brands position themselves against competitors.