Examples of non-price competition

Examples of non-price competition

Non-price competition   is where  rival  firms  compete   using  other  means  other  than  changing (adjusting)   the price  of the commodity.   Examples   of non-price   competition   include;

  1. Improvement and maintaining the quality of the products   with the aim of promoting   customer loyalty.
  2. Giving   (distributing) free samples of the products   to customers.   This is mainly   used when the product is new on the market for example soft drinks, telecommunication     companies   etc.
  3. Use of persuasive advertisement with catchy  slogans   for example   breweries   companies,    soft drink  companies,   firms  selling  cosmetics   etc.
  4. Carrying   out promotional offers.  For  example   selling  the  product  at a lower  price  to customers through  sales  promotions,   giving  free training  services to customers   etc.
  5. Offering gifts and prizes. For example   petrol stations   giving soap and other detergents   to their customers
  6. Sponsoring sports activities like volley ball, football,  cricket etc.  This is aimed at winning   and selling the product to the consumers   who are supporters   of a given sports activity
  7. Supporting charity organizations by giving them household  items like food, clothing,   soap etc. For example child care centers, orphanage   homes etc.
  8. Carrying   out trade fairs and exhibitions.  For example   firms participating    in the international trade fair at Uganda Manufacturers    Association   grounds   in Lugogo to showcase   their  products.
  9. Providing    after sales services.  For example   providing    transport    for those   who   buy in large quantities,   free installation   services, repairs etc.
  10. Organizing consumer games  in  form  of  raffle  draws  where   a customer   buys  the  product   and enters  a draw.  The winners are given prizes for example cars, phones, domestic   appliances   etc.
  11. Opening up many branches and distribution centers in form of regional   distributional centers and shopping outlets.
  12. Using one stop shopping centers where the customer can conveniently    find all what he requires in one place.  This is common in big shopping   malls like Shoprite, Garden city.  Mazima  mall etc.
  13. Offering credit facilities to customers, for example   allowing   customers   to acquire   products   on hire purchase,   giving airtime on credit to their customers   by telecommunication     companies   etc.
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