What type of product competes solely on price?

The type of product that competes solely on price is a generic product. Generic products are typically undifferentiated goods that do not have branding associated with them. These products often rely on competitive pricing as their primary strategy because they do not offer additional features, brand loyalty, or unique selling propositions found in more differentiated products.

By positioning themselves primarily based on lower prices, generic products attract price-sensitive consumers who prioritize getting the best deal. This focus on pricing can sometimes lead to lower margins for producers, but mass production can help mitigate costs. In contrast, value-added, expected, and differentiating products focus on factors beyond price, such as quality, branding, and unique features, which allow them to command higher prices in the market.