Question

In many market situations, such as an oligopoly or monopolistic competition, there is a very strong expectation of what the price for a product should be. In these situations, many businesses engage in ____________ by using advertising, free-product offers or bonus packaging to differentiate their product.

Answer 1

Answer: Non price competition

Explanation: In simple words, non price competition refers to a business strategy under which the firms in the industry compete with each other on the factors like product attributes, customer service, special features etc.

The firms tries to enhance the value of the product by factors other than price. These, kinds of strategies is usually used in markets where small price change can impact the customer base heavily.