Price competition can be an effective way to respond to an immediate threat, but it isn't good for the long term. Customers who are attracted because of lower prices are likely to leave if rivals cut their prices even more. A very low price may lead customers to question the quality and value of your product. Many marketers are turning to nonprice competition. Nonprice competition is the practice of differentiating a product on the basis of elements other than price.
Marketers can use nonprice competition to improve benefits without increasing price.
In planning pricing strategy, marketers need to understand the relationship between price and customer demand. B. Along the Demand Curve 1. The demand curve is a graphic illustration of the way customer demand responds to a series of possible prices. In most cases, the quantity demanded by customers goes up as price goes down. Demand doesn't always follow a straight line.