What is referred to when firms create wants for their products through methods like advertising?

When firms create wants for their products through methods like advertising, this is referred to as non-price competition. Non-price competition focuses on various factors other than price to attract consumers, such as quality, branding, customer service, and promotional activities. Advertising plays a crucial role in building brand awareness and creating a perceived value around a product, which can influence consumer preferences and drive demand.

In non-price competition, companies seek to differentiate their products from those of competitors by emphasizing unique features, benefits, or experiences associated with their offering. This approach is particularly important in industries where price competition may lead to diminishing returns or reduced profitability, as firms work to build loyalty and competitive advantages without solely relying on pricing strategies.