ECONOMICS
COMPETITION AND MARKET STRUCTURES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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More Locations
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Better Customer Service
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Advertising
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Low Price
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Detailed explanation-1: -The most common form of non-price competition is advertising. Here, companies compete to raise the market share by showing their commodities or products on different platforms rather than reducing the product price.
Detailed explanation-2: -Instead of engaging in price wars with their competitors, companies that rely on non-price competition use promotional expenditures such as marketing campaigns, brand management costs, advertising, sales staff, sales promotions, free gifts, and free delivery services.
Detailed explanation-3: -Marketing involves a range of approaches (based round the 4Ps), including product differentiation, advertising, promotion and distribution.
Detailed explanation-4: -competition in which an element other than price (eg: prestige, convenience, taste etc) is the major means of differentiating the product of one company from that of a rival. See: Competitors Price Competition.
Detailed explanation-5: -Loyalty programs. Most firms offer out loyalty cards in order to capture market attention and retain customers. Subsidized delivery. Unique selling points. Accumulation of positive reviews. Offering good after-sales service.