Essay: The nature of non-price competition

Sample Essay

Non-price competition is a marketing strategy in which companies discriminate their offered product line which is based upon physical attributes and functionality instead of lowered price tags. It is basically a sort of promotional strategy which attracts the customer to buy the same product from one company instead of the other just because the first company is having an achievable advantage for the customer. Considering Costco here, it often emphasizes on this strategy to gain success.

The website of Costco company is full of promotional stuff, featuring the most advanced electronic systems available to purchase with FREE gifts like DVDs. And more to add to this, they are offering free delivery of furnishing items for the consumer which means a free of cost transportation to any place as per desire.

This compels the customer to think about saving money in terms of transport charges, consequently attracting customers to purchase the item. Costco also offers computers with free soft ware which are actually costly in the market. This promotional strategy is non-price competition which pushes the customer to purchase from them and save money. The company therefore attains the benefits of an increasing, dependent number of clientele who are bound to buy, resulting in better revenue figures.

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