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Differences between price competition

(a) Please discuss the differences between price competition (collusion, price discrimination, price leadership, loss leaders, game theory) and non-price competition (product differentiation, advertising). Then, list products that are marketed using price and non-price competition.

(b) Why is each product you list marketed using these different strategies?

(c) What are the advantages of each strategy under different circumstances?

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The response addresses the queries posted in 714 words with references.

//As per the directions, we will talk about the difference between the 'Price Competition' and 'Non- Price Competition'. In this part, we will also discuss the products that are marketed, using price competition and non price competition.//

A.

Difference between Price Competition and Non-Price Competition:

Price competition and non-price competition are the major forms of marketing strategy. Under Price Competition, Company tries to differentiate its product or service from other contending products based on the phenomena of low price (Yordangunawan, 2007). On the other hand, under

Non-price competition, one firm seeks to differentiate its related product or service from other contending products based on the attributes like design and skill. Here, the firm can also go for distinguishing its product based on the service quality, widespread distribution, intense customer focus etc other than price (Brue, Stanley, McConnell & Campbell, 2002).

The tools used in price competition includes price discount on a product and cutting of retail prices ;while non-price competition includes expenditures incurred in the promotional activities (like advertising, sales promotions, selling staff, coupons or free gifts), new development of the product, brand management cost and marketing ...

Solution Summary

The response addresses the queries posted in 714 words with references.

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