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Nonprice Competition

   Also found in: Wikipedia 0.01 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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Order flow payments and other forms of nonprice competition represent a threat to that vision (although it is only a vision, as there is relatively little quote-competition between the securities markets).
Nonprice competition can take the form of vertical agreements with brokers in which dealers agree to pay brokers for order flow.
10) With deregulation of deposit interest rates, the influence of nonprice competition on branching patterns has diminished.
 
 
 
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