Question

Laxman & Sons is a leading producer of perfume among many other firms. Recently, it introduced a new fragrance and offered gift vouchers to the customers who bought this product.

Identify the form of market and explain the feature implied in this situation.

Answer 1

The market form in this situation is Monopolistic Competition.

Non-price Competition: In monopolistic competition, companies don’t just compete on price. Instead, they use advertising, promotions, and other methods to make their goods stand out. Giving gift vouchers is a classic way to compete without price to get people and make them loyal to your brand.