What is a common tactic used in nonprice competition?

In the context of nonprice competition, advertising and promotions are vital strategies that businesses use to enhance the appeal of their products without altering their prices. Nonprice competition focuses on factors other than price to attract consumers. This includes branding, quality, customer service, and specific promotional efforts designed to differentiate a product from its competitors in the market.

When firms engage in advertising, they aim to create a strong brand identity, highlight unique features, or emphasize the quality of their products. This kind of marketing can effectively influence consumer perception and preferences, which can lead to increased sales without having to lower prices.

While other tactics such as forming alliances or increasing product features can also play a role in a company's overall strategy, they do not inherently capture the essence of nonprice competition in the same way that advertising and promotional activities do. Lowering prices directly pertains to price competition, not nonprice competition strategies.