nonprice competition

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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.

nonprice competition

see COMPETITION METHODS, PRODUCT DIFFERENTIATION.
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References in periodicals archive ?
We enumerate some of the reasons of this in the literature, with a view to be able to specify a statistical model for non-price competition in the pharmaceutical industry, as follows:
Overall, we find that firms are reacting to each other's previous period R&D outlay, indicating strong non-price competition in that area.
Both the R&D and advertising rivalry results indicate a leader versus follower type of non-price competition.
Klein and Leffler suggest that non-price competition will dissipate this profit.
Non-price competition would occur if each firm could increase profit via such behavior, even though the net effect of many firms doing it would dissipate profit.
In his analysis of price and non-price competition, Stigler (1968) considers the case of a cartel.
The positive sign on the HERF coefficient offers support for the price competition hypothesis, since under the non-price competition hypothesis one would expect a negative sign.
Non-Price Competition in the Cigarette Industry: A Comment, The Antitrust Bulletin, XIV, 1970, pp.
In response to this the supermarkets place a high degree of emphasis on price competition with customer convenience, service and other non-price competition factors seen very much as a secondary priority.

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