Non-price competition
Definition
Non-price competition refers to strategies used by firms to attract customers without changing the price of their products or services. This can include advertising, product differentiation, customer service, and other marketing techniques.
Analogy
Think about two pizza places in town. Instead of lowering their prices, they compete by offering different toppings, faster delivery times, or better customer service.
Related terms
Product differentiation: The process of distinguishing a product from others in the market through unique features or attributes.
Branding: Creating a distinct identity for a product or company through logos, slogans, and marketing campaigns.
Advertising: Promoting products or services through various media channels to attract customers' attention.
"Non-price competition" appears in:
Study guides (5)
Additional resources (1)
Practice Questions (3)
- Which of the following is true regarding non-price competition in perfect competition?
- In monopolistic competition, firms may engage in non-price competition because:
- In an oligopoly, firms may engage in non-price competition to gain a competitive advantage. Which strategy involves spending on advertising and promotional activities to differentiate a product?
Resources
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