Question:

Which of the following is not an example of nonprice competition?

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a. Kellogg’s introduces Fruit Loops with Lemonberry Swirls.

b. Sterling Planet provides consumers the opportunity to purchase renewable electricity in upstate New York.

cMountain Dew sells “Livewire” orange soda in the summer of 2003.

d. Nissan lowers the interest rate charged for new automobile financing.

e. Honda produces a hybrid version of its Civic

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2 ANSWERS


  1. D. The lower interest rate relates to price, as interest rates are the price of money.


  2. Non-price competition is a marketing strategy "in which one firm tries to distinguish its product or service from competing products on the basis of attributes like design and workmanship"

    In your case, only D fails to meet this definition.  It is an example of price competition (lowered interest rate).

    [Answer: see above]

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