![]() Non-Price competition in Oligopoly/imperfect competition This includes a unique selling point (the best coffee), securing the best location and/or offering internet delivery. In the real world, firms are seeking to attract custom through the methods of non-price competition. For example, if you go for a restaurant meal, do you choose the cheapest? Unless you are on a strict budget, factors like the quality of the food and service are likely to weigh more heavily. In many markets, the price is only one of many factors which influence which good/service you buy. However, many markets do not fit this model of perfect competition. And for a homogenous product like potatoes, consumers will generally want to buy the cheapest potatoes. ![]() Models of perfect competition suggest the most important issue in markets is the price. Non-price competition can include quality of the product, unique selling point, superior location and after-sales service. ![]() Definition: Non-price competition involves ways that firms seek to increase sales and attract custom through methods other than price. ![]()
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June 2023
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