What do we call firms that provide different products that solve the same problem or satisfy the same needs?

The term that best describes firms that offer different products which address the same problems or satisfy the same needs is "generic competitors." This classification is rooted in the concept of competition that extends beyond direct brand comparisons or product types. Generic competitors offer alternative solutions that can fulfill the same basic functions for consumers, even if the products differ in appearance, branding, or specific features.

For instance, if consumers are looking for hydration, generic competitors may include not just bottled water but also other beverages such as juices or electrolyte drinks. All these products aim to satisfy the same need—thirst—despite their differences.

The other options denote different types of competition. Brand competitors focus specifically on competing brands within the same product category. Product competitors refer to products that directly compete for the same segment by offering similar products. Total budget competitors involve products vying for the same overall budget from consumers but are not necessarily in the same category of need or problem solving. Understanding these distinctions helps in analyzing market dynamics more effectively.