Non-price competition such as today's rivalry between Coca-Cola and Pepsi refers to:
A) When one firm cuts prices to gain market share, the competition will do the same.
B) When a firm is driving costs down in order to gain competitive advantages through lower prices.
C) When a firm has no pricing power that leads to a competitive disadvantage.
D) When a firm is offering unique products and services as opposed to competing on price.

Question

Quizplus · Accepted Answer

Non-price competition exists when firms compete on differentiation rather than prices. Differentiation also gives firms some pricing power.

Non-Price Competition Such as Today's Rivalry Between Coca-Cola and Pepsi