This competition focuses on the sale price of a product.

This competition focuses on the sale price of a product.

• A. Non-price Competition
• B. Direct Competition
• C. Indirect Competition
• D. Price Competition

Answer: (D)

When competition centers on the sale price of a product, the focus is on price as the main lever to attract customers. This is price competition, where rivals try to win buyers by offering lower prices, discounts, or price-focused deals. Non-price competition would mean competitors differentiate through factors other than price—such as quality, features, brand, or service. Direct competition refers to rivals offering the same or very similar products in the same market, while indirect competition comes from substitutes that satisfy the same need in a different form. So, emphasizing sale price clearly signals price competition.

When competition centers on the sale price of a product, the focus is on price as the main lever to attract customers. This is price competition, where rivals try to win buyers by offering lower prices, discounts, or price-focused deals. Non-price competition would mean competitors differentiate through factors other than price—such as quality, features, brand, or service. Direct competition refers to rivals offering the same or very similar products in the same market, while indirect competition comes from substitutes that satisfy the same need in a different form. So, emphasizing sale price clearly signals price competition.