A Costco employee solicits products to potential buyers in hopes that it will increase sales.

1. Costco, much like almost all of the modern stores in America use the non-price method of internet advertising. They post their advertisements on other sites that large businesses frequent to attract them to the bulk items that Costco sells. Another type of non-price competition that Costco uses is use of free samples of foods in the stores. This can be an incentive for people to keep shopping there and also introduces them to products that they may not have thought of buying. A Costco employee solicits products to potential buyers in hopes that it will increase sales.

2. The fact that almost everyone who sees this slide will associate the above logo with the shoes that Nike produces shows the extent of non-price competition that Nike invests in. The advertisements that Nike makes promotes this competition extremely effectively. Basketball sponsorship has greatly influenced the sale of Nike shoes and other products. This form of non-price competition is what makes consumers pay large amounts of money for a pair of any shoes with the well known “swoosh” on it. Nike’s well known basketball sponsorships are a large non-price factor in their business.

3. Wal-Mart is the most well known corporation that engages in price competition. Their competitive prices is what drives millions of people to buy products there as opposed to the many other stores that offer the exact same products. Wal-Mart is able to compensate for these low prices by the vast amounts of people that buy their products as a result of this price competition. This means that even though Wal-Mart sells products for cheap they still come out with the same profits because of the sheer amounts of products sold is large enough to offset the costs of cutting the prices. As one can see, Wal-Mart prices are generally lower than its competitors and thus generates more sells.

4. Gasoline prices are the subject of the most price competition of virtually any other product sold in the U.S. It is clearly visible from the variations in price in local areas. Among the competing companies, Chevron cuts their prices to make their gas more appealing and thus get more business than their competitors. This example of all businesses but Chevron is relatively well known. Chevron’s lower prices lead to higher volumes of customers, leading to higher profits.