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;
- Improvement and maintaining the quality of the products with the aim of promoting customer loyalty.
- 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.
- Use of persuasive advertisement with catchy slogans for example breweries companies, soft drink companies, firms selling cosmetics etc.
- 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.
- Offering gifts and prizes. For example petrol stations giving soap and other detergents to their customers
- 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
- Supporting charity organizations by giving them household items like food, clothing, soap etc. For example child care centers, orphanage homes etc.
- 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.
- Providing after sales services. For example providing transport for those who buy in large quantities, free installation services, repairs etc.
- 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.
- Opening up many branches and distribution centers in form of regional distributional centers and shopping outlets.
- 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.
- 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.
CATEGORIES Economics
TAGS Dr. Bbosa Science