Saturday, April 10, 2010

Non-price Competition


Our text defines this as when a seller decides not to focus on price and instead emphasizes distinctive product features,service,product quality,promotion, and packaging. A great example of a company that I believe is a non-price competitor is our case study Sherwin Williams. When you compare it to other brands of paint, mostly always SW is more expensive. Most people just respond to it as "you are paying for what you get". SW paint is supposed to be one of the best quality paints. The other good example that I thought of was clothing stores for teens and young adults. For the most part it comes down to four stores: Abercrombie & Fitch, Hollister, American Eagle, and Aeropostale. They are in a certain order as well because Abercrombie is the prime example of non-price competitor, while on the other end of the spectrum is Aeropostale where they are price competitive. Aeropostale is the cheapest store as usually they always have deals going on, and on average all the clothing is cheap. You can walk in and get two t shirts for $20. While if you walk down the mall further and try to by two t shirts from Abercrombie you can plan on spending around $60. I believe that non-price competitors are viewed as the "high-end" of what ever products they sell. Have you ever been persuaded to buy from a non-price competitor, just because you wanted the logo?

In Response to Sam's Post

Do you have any personal favorite techniques for selling items on craigslist/ebay? Do you think that big companies use similar or different techniques to sell their products?


I have only actually sold a couple of things online, most of them being textbooks that I couldn't sell back to the bookstore. I would say my techniques are pretty simple. I describe the item honestly and in detail, to make sure there isn't any confusion of the condition of the item. I also try to show a picture of the item, so that the person buying it knows what they are buying and can visually see it. I think companies try to do this, but with big companies, there also comes a lot of small text. They could advertise something as "on sale" but underneath in small print might read must spend over $50. But when you can visually see the item in a magazine or online, I think it increases your chances of a sale dramatically. Have you ever had instances where you think something is a really good deal, but then you find out about the small print?