Definition
- Non-price competition
- Non-price competition is rivalry between firms for customers through advertising, branding, quality or loyalty schemes, rather than through the price they charge.
- Not to be confused with: Price competition
- Price competition is rivalry between firms for customers through the price itself, by cutting it to win sales or to keep rivals out.
Test yourself
What is the difference between non-price competition and price competition?
Price competition changes what the buyer pays; non-price competition changes what the buyer believes they get for it.