NON-PRICE AND PRICE COMPETITION
Keywords:
Abstract
Exists when marketers complete on the basis of price. In price competition, the marketers develop different price strategies to beat the competition.They generally set a same or low price of a product than that of the competitors to gain the market share. Generally, the prices are changed to cover the costs or increase the demand. For instance, Coca-Cola and Pepsi are close competitors, thus, they often engage in price wars. The major disadvantage of price competition is that the competitors have flexibility to change the prices of products.
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