Non-price competition is often used in markets where products or services are perceived as being similar and price is not the main factor that influences consumer choice.

Non-price competition can be especially effective in oligopoly markets, where a small number of firms have the ability to influence the market price and may be reluctant to engage in price competition.

Non-price competition can also be used to signal the quality of a product or service, as higher quality goods or services may be more expensive to produce and require a higher price to be profitable.