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Nonprice Competition
(redirected from Non-price competition)

   Also found in: Dictionary/thesaurus, Wikipedia 0.03 sec.
Nonprice Competition
Competition between companies that involves something other than lower prices. That is, rather than advertising the lowest price for a product, a company may advertise that is has the best quality, the most convenience, or even the best branding. Nonprice competition is especially important where competition is stiff and companies cannot afford to charge much less than they already do. See also: Marketing.

nonprice competition
Competition among firms that choose to differentiate their products by nonprice means, for example, by quality, style, delivery methods, locations, or special services. Nonprice competition is often practiced by firms that desire to differentiate virtually identical products. Companies producing cigarettes, over-the-counter medications, and food products spend large sums on nonprice competition.


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They also argue that because members of the cartel cannot engage in competition based on price, they are forced into non-price competition, resulting in an "arms race" among members, especially in the form of new facilities construction, that causes most members to lose money.
No one model is broad enough to account for all of these activities, hence we begin with some simple abstraction, namely that the firms arrive at a pricing strategy through non-market means, and that the firms rely heavily on non-price competition for their survival.
THE COMMISSION CONTENDS THAT ISP STARTED PRICE AND NON-PRICE COMPETITION AMONG STORE PLANNERS, WHETHER THEY WERE MEMBERS OR THE INSTITUTE OR NOT.
 
 
 
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