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Non-price competition

Non-price competition based on customer acquisition is not

lower prices, and based on non-price factors: improving the quality of goods, advertising of brand names, conditions of sales and after-sales service. Non-price competition is associated with certain additional costs, however, in the long run, product differentiation, improvement and non-price competition can increase the demand for the company's products to a greater extent than its costs increase.

Non-price competition is carried out mainly by improving the quality of products and / or conditions for their sale, “servicing” sales, which is two main areas:

? improvement of technical characteristics of the goods - competition for the product;

? improving the adaptability of the product to the needs of the consumer by changing the conditions of sales and competition according to the conditions of sales.

Product competition is based on the desire to capture part of the industry market through the release of new products that are either fundamentally different from the old model, or represent its modernized version.

Competition based on quality improvement is controversial. On the one hand, improving quality serves as a way to covertly lower prices and expand sales, on the other hand, this subjective assessment by the consumer of the quality of the goods opens up the possibility of falsifying quality through advertising and beautiful packaging.

Non-price competition by improving the marketing of products is based on the following marketing factors:

? improving customer service (home delivery, children's rooms in supermarkets, etc.);

? impact on consumers through advertising (including promotions and prize draws);

? improving the distribution network (distribution, territorial proximity of outlets to the consumer, courtesy of sales staff, corporate identity of outlets);

? the establishment of benefits for customer service after the acquisition of goods, that is, in the process of its operation (warranty and post-warranty service);

? improving payment terms (discounts, loans).

Non-price competition minimizes price as a factor in consumer demand.
The more unique the offer of products, from the point of view of consumers, the more freedom from marketers in setting prices is higher than that of competing products. Currently, many companies prefer to improve the consumer properties of their product while maintaining or even slightly increasing sales prices.
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Non-price competition

  1. Non-price competition and product diversity in healthcare
    The manifestation of non-price competition and the desire of manufacturers to differentiate the product takes place in all, without exception, sub-sectors of healthcare. In the conditions of fierce competition, the medical industry enterprises apply the following methods of non-price competition:? providing volume discounts for the purchase of a large batch of equipment; ? deferred payment
  2. Product differentiation. Non-price competition
    Product differentiation. Non-price
  3. Competition in a Transitional Economy
    In the conditions of the medical services market, which is regulated by two main mechanisms - supply and demand, health care products are sold. Manufactured products in medicine can be a product (denture, optical lens, artificial lens, etc.) and a service. Both a product and a service in healthcare have two characteristics that play a leading role in the sale of goods to
  4. Product differentiation
    Product differentiation means that at any time a wide range of products will be offered to the consumer. The differences will find expression in the types, types, styles, brands, degrees of quality of this product, packaging forms, which ensures the satisfaction of a variety of consumer tastes. Product differentiation may find expression in the production of substitute products and
  5. Economic boundaries of the industry and the factors that determine them
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  6. Tests in the test form
    Test passport Tests in test form are designed to control the level of knowledge in the specialty "Health Economics" among students of medical universities and postgraduate students in the specialty "Public Health and Organization of Health", "Health Economics". The content of the test items is fully consistent with the educational standard "Economics
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  8. The industry and the efficiency of the economy. State regulation of industry structures
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  9. Market structure and product diversity
    The diversity of the product on the market is closely related to its structure. From the definition of the two extreme types of market structures — monopoly and perfect competition, it follows that a monopoly firm and firms in perfect competition offer a homogeneous product on the market that does not need advertising. In monopolistic competition, sellers in the same market often provide diversity.
  10. The emergence and establishment of a new concept of quality management in healthcare
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  11. Concentration and Monopoly
    Concentration and monopolization are closely related. But concentration does not necessarily lead to the emergence of a monopolist firm. In particular, antitrust laws counteract this, with the help of which many states regulate concentration processes in order to prevent the emergence of monopolistic enterprises. Market concentration statistics are systematically published in
  12. Thumb Fight
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  13. Government Guarantee Program and Medical Services
    Currently, there is minimal competition between hospitals in general due to the fact that payment for the services provided is carried out either at firmly established tariffs / standards, or in the provision of paid services to the population, there is a “price collusion” of manufacturers. As for the conditions for the provision of medical care, they are also determined by the framework of the territorial program of state
  14. Measuring Market Power
    The approach to the determination of market power indicators is based on a comparison of real markets with the market of perfect competition. As far as the market approaches the ideal of free competition, one can judge by the behavior of firms in terms of price and cost: the more the price set by the firm deviates from marginal cost, the more market power the firm has and the more the market
  15. Sources and causes of market power
    The market structure has many facets, which is reflected in its various indicators. To determine the market structure (the level of monopoly power, the freedom of entry of the company into the industry, its ability to influence the price), it is important to determine the value of the concentration of sellers in the market. With high barriers to entry into the industry, the concentration of sellers can be realized in monopoly power - the ability to establish
  16. Gender conflicts
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  17. Protective mechanisms against immunization
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