Final answer:
Nonprice competition aims to differentiate a company's products from competitors through quality, service, and branding, fostering customer loyalty and market control without focusing on price.
Step-by-step explanation:
The purpose of nonprice competition is to distinguish products from those of competitors, as opposed to competing solely on price. Companies engage in nonprice competition by emphasizing factors such as quality, service, brand image, and product features. Unlike price competition, nonprice strategies can create a unique brand identity and customer loyalty, which can be more sustainable in the long run. This type of competition is also a tool for firms to establish extensive control over their market by differentiating their products. It can lead to innovation, but may also result in higher costs due to advertising and marketing.