noun[mass noun] Economics
A form of competition in which two or more producers use such factors as packaging, delivery, or customer service rather than price to increase demand for their products.
- This is particularly important in industries where firms do not compete primarily in terms of price, but instead engage in non-price competition, such a product quality competition.
- In response to such non-price competition, many states passed Certificate of Need laws in the 1970s.
- And advertising can also be a useful tool if you are engaged in non-price competition, for example where a small dominant group of sellers wants to artificially keep prices high by giving an impression of fierce competition.
What do you find interesting about this word or phrase?
Comments that don't adhere to our Community Guidelines may be moderated or removed.