Price competition is primarily concerned with which factor?

Price competition is fundamentally focused on pricing strategies, as it involves businesses competing with one another predominantly through their price levels. In markets characterized by price competition, firms aim to attract customers by offering lower prices than their competitors. This strategy can take various forms, including discounts, special promotions, or price matching guarantees. The goal is to increase market share by appealing to consumers who are price-sensitive, thereby stimulating demand.

In contrast, the other factors such as the quality of the product, customer service quality, and convenience may play significant roles in a business's overall competitiveness but are not the primary focus of price competition. While these elements can influence consumer choices, price competition specifically hones in on making products more affordable as the key mechanism to drive sales and gain an advantage over rivals.