Despite an average market price of $3.99 for cereal boxes, Bradbury’s Natural sells its cereal boxes for an average price of $6.99 due to the use of organic ingredients in what could be termed
Explanation
Answer: E - Despite an average market price of $3.99 for cereal boxes, Bradbury’s Natural sells its cereal boxes for an average price of $6.99 due to the use of organic ingredients in what could be termed non-price competition. Non-price competition occurs when a company focuses on non-price factors, such as quality, service, promotions, and distinctive packaging. This type of competition allows the company to gain loyalty for its brand, such as Bradbury’s Natural cereals. However, non-price competition requires that a company have specific distinguishing qualities that would make customers think of them before the price.
