Oligopolies Little Notes : Non Price Competition

Non Price Competition is used as said because of the possible problems with competing with price. 

  • It is likely to increase expenditure for the firm in terms of costs however it enables the firms in changing price and then provoking a price war. 
  • Examples of Non Price Competition:Supermarkets
  1. In store advertising/marketing
  2. loyalty cards to increase customer loyalty
  3. Home delivery services
  4. discounted petrol
  5. extension of hours

Airlines also do this for example offer larger seats, better in flight entertainment, more varied food menu. 

 

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