Nonprice competition refers to
A) competition between products of different industries, for example, competition between aluminum and steel in the manufacture of automobile parts.
B) price increases by a firm that are ignored by its rivals.
C) advertising, product promotion, and changes in the real or perceived characteristics of a product.
D) reductions in production costs that are not reflected in price reductions.

Question

Quizplus · Accepted Answer

Nonprice competition refers to competition based on factors other than price, such as advertising, product promotion, and changes in the real or perceived characteristics of a product. Option A refers to inter-industry competition, Option B refers to a price increase that is not challenged by competitors, and Option D refers to cost reduction strategies that do not involve price changes.

Nonprice Competition Refers to