Thursday, March 31, 2011

Why do brands matter?


  1. Brands identify the source or maker of a product and allow consumers to assign responsibility to a particular manufacturer or distributor.
  2. From the past experiences with the product and its marketing program over the years, consumers find out which brands satisfy their needs and which ones do not.
  3. Brands provide a shorthand device or means of simplification of their product decisions.
  4. From an economic perspective, brands allow consumers to lower the search costs for products both internally (in terms of how much they have to think) and externally (in terms of how much they have to look around).
  5. Based on what the consumers already know about the brand – its quality, product characteristics and so-forth- consumers can make assumptions and form reasonable expectations about what they may not know about the brand.

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