What’s a non-price competition?


Non-price competition refers to the ways that help companies attract customers and increase sales without involving a change in price.


Very often the price of the product is not the main issue when there is competition between firms; it is only one of the many factors on the list. The non-price competition includes strategies linked to unique selling points, the product’s quality, service upgrade, and location. There are a lot of levers the companies can pull to attract customers. Introducing the following improvements can heavily contribute to the firm’s sales increase.

Unique selling points. Nowadays, more companies concentrate on specific consumer preferences. Offering niche products designed especially for a small segment – be it vegan, non-GMO, cruelty-free, gluten-free goods – earns those firms bonus points among people. Also, choosing the prime location for the place is crucial to the constant customer flow.

Developing brand loyalty. Companies spend big amounts of money on marketing and advertising to build up their customers’ trust. Consumers are likely to purchase something from a brand that they believe in and are accustomed to. What is more, customers’ loyalty helps keep other firms that compete with entering the market for the product.

Loyalty program – Speaking of loyalty, some firms have introduced loyalty cards into their systems to reward their consumers with some sort of bonuses or partially give the spent money back. Shops offer discounts solely to the cardholders, airlines gift their customers with Airmiles every flight to encourage them to use their services.

Increasing the number of good reviews. Good reviews can build or crush a firm’s reputation on the market. So, many companies offer their customers incentives for leaving reviews. If you place an order at SpaceNK, they will give you points, and every 100 points equal a 5 £ incentive for the next purchase.

Newsletter – Giving the customers access to exclusive offers and promotions, making them feel special and included certainly benefits the company. Adding different feedback forms into the newsletter can also help with improving the quality of the product.

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"What's a non-price competition?" Academic.Tips, 7 Apr. 2020, academic.tips/question/whats-a-non-price-competition/.