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 ?
Rothschild (1947) makes scant mention of non-price competition and does not deal directly with the issue of barriers to entry, aside from a very perceptive comment on the endogeneity of market structure discussed below.
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:
First, profit dissipation by non-price competition lies outside the Klein-Leffler model.
Since a larger value of the Herfindahl index indicates greater monopoly power, we would expect a negative effect of this variable on the reserve margin under the non-price competition hypothesis and a positive effect under the alternative price competition hypothesis.
Thus entrants may seek to gain market share on the basis of non-price competition such as higher quality or innovative service offerings, rather than by price competition which could reduce average returns across the industry as a whole.
Non-price competition for students, moreover, would tend to dissipate the gains from collusion and thereby temper the incentive to collude in the first place.
Cartels, if they are to be successful, must find ways to suppress non-price competition.
Non-Price Competition in the Cigarette Industry: A Comment, The Antitrust Bulletin, XIV, 1970, pp.
Because of its limited scope concerning value formation, orthodox theory remains unaware of series of critical issues: how prices affect preferences, the manipulative nature of advertising, the subversion of consumer sovereignty, the role of non-price competition, and the rise of the distributor-producer.
Non-Price Competition in the Cigarette Industry, The Antitrust Bulletin, XIV (Fall, 1969), pp.

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