What is referred to when businesses compete for customers?

When businesses compete for customers, this is known as competition. Competition refers to the rivalry among businesses to attract customers and gain market share. This rivalry can take many forms, including pricing strategies, marketing efforts, product quality, customer service, and innovation. The ultimate goal for businesses in a competitive market is to provide better value or benefits to customers than their rivals, which can lead to increased sales and customer loyalty.

In a competitive environment, companies must continuously assess their strengths and weaknesses in comparison to their competitors, which can drive improvements and innovations that benefit consumers. This dynamic also helps to ensure that prices remain fair and that there are choices available to customers. Thus, understanding competition is crucial for any business seeking to succeed in the marketplace.