What Are Some Examples of Nonprice Competition?

Comstock/Stockbyte/Getty Images

Examples of nonprice competition include touting a supermarket’s loyalty discount cards, banking services, extended hours, self-checkouts and online shopping. A company may seek an advantage over another by marketing a product’s longevity, convenience and workmanship over comparable products. In general, nonprice competition means marketing a company’s brand and quality of products as opposed to lower prices.

Nonprice competition entails two phases: one that implements new aspects of production or services and another that markets these changes to the public. As an example, reducing a product’s packaging saves materials, weight and space on the shelf. One way to inform consumers of the change is to draw attention to lettering on the packaging that says “new packaging, same great product.” Altering the package does not necessarily sacrifice quality or workmanship of a product, nor does it lower prices.

Several advantages to nonprice competition include higher quality products, better perception of the brand, newer product design, different products for varied demographics and improved sales tactics. When companies offer the same basic product, with few changes, separately for men and for women, potential sales increase. Newer sales tactics include social media posts, direct sales through manufacturers rather than stores and efficient forms of advertising online.

One disadvantage to nonprice competition is that consumers may not notice changes right away. Price changes occur right away and improve a consumer’s bottom line.