NONPRICE COMPETITION

Non-price competition: is a way to attract customers through style, service, or location, but not a lower price.

NON-PRICE COMPETITION TAKES SEVERAL DIFFERENT FORMS

• Physical characteristics: businesses offer new size, color, shape, texture, or taste.
• A good example of products are shoes, pens, cars, and toothpaste.
• Because, people will pay extra for these items if they look different or are better.
• Location: the location where a product is sold will impact on how much is sold.
• Because, depending on the number of competitors, a product will have a higher demand.

CONTINUED:

• Service level: some sellers can charge higher prices because they offer
• Their customers a higher level of service.
• A example of this is that fast food chains sell there food for less compared
• To a restaurant.
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CONTINUED:

• Advertising, image, or status: some firms use advertising to create
• Apparent differences between their own offerings and other products in the marketplace
• Most of these offers are more of a matter of perception, than reality.
• For example a designer can put there name on a blank t-shirt and charge more for it
• Because the designers name is imprinted on it.

Example: people will look to the shoe with blue and black on it as apposed to the shoe with just plain white. This shoes the difference in physical characteristics can make a product sell.

Another example of location is that a convenience store in the desert can charge more for a bottle of water than a convenience store in the city because it is the only store within miles.

Advertising can create a higher demand for a product by giving it to a celebrity and having them say good things about it, people will purchase the item thinking it will make them more like this celebrity.