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.
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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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
nonprice competitionsee COMPETITION METHODS, PRODUCT DIFFERENTIATION.
Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005