nonprice competition

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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2010), banks are actively engaged in fierce nonprice competition.
Linkline illustrates this position: (311) the Court rejected the notion of harm to competition through the creation of entry barriers or the impairment of nonprice competition or innovation in the downstream market.
More recent observations point to a resurgence of nonprice competition among hospitals, or what some have characterized as the "new medical arms race," triggered in part by the entry of new organizational forms for delivering patient care, including physician-owned specialty hospitals (Devers, Brewster, and Casalino 2003).
1979, Rate Regulation and Nonprice Competition in the Property and Liability Insurance Industry, Journal of Risk and Insurance, 46: 683-696.
Recent studies on the effects of competition are also mixed, with some evidence of increasing price competition among hospitals (Gift, Arnould, and DeBrock 2002) and other evidence of increased emphasis on nonprice competition (Devers, Brewster, and Casalino 2003).
However, they can engage in nonprice competition, for example, by improving the quality of their notes or services associated with them, and such nonprice competition is also capable of maximizing consumers' surplus (White and Boudreaux 1998).
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).
In addition to this problem of nonprice competition pushing costs up to the level of high CAB-prescribed fares, there was a tendency to set fares even higher on long-distance flights (more than 400 miles) and lower on short-distance flights (see Douglas and Miller 1974).
Nonprice competition can take the form of vertical agreements with brokers in which dealers agree to pay brokers for order flow.
Nonprice competition for order flow can take the form of research services or agreements with brokers in which dealers pay brokers for order flow.
10) With deregulation of deposit interest rates, the influence of nonprice competition on branching patterns has diminished.
In the absence of meaningful prices, competition among health plans takes the form of nonprice competition.