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kensingtonboi | Economics Explain why consumers pay extra for goods with brand names. ? |
Explain why consumers pay extra for goods with “brand names.” What does that suggest about the dollar value of honesty to a firm? |
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jerry-the-bookkeeper
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The purpose of a brand name is to differentiate a product from similar products. As far as consumers are concerned there is a real or perceived difference that makes branded products worth more money than generic items.
"consumers pay extra for goods with brand names" because they believe those goods offer more value, usually in the form of higher quality, than unbranded goods.
"What does that suggest about the dollar value of honesty to a firm?" In my opinion -- nothing! I grew up in the grocery business. A business where the private label products were/are usually as good as the national brands. In fact, many of the chain stores private label merchandise is packed by the national brands and the only difference is whose label goes on the product as it reaches the end of the line.
Hope this helps
Jerry-the-bookkeeper
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doncrisp99
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A brand name is a name given to the product by the originator of the product. Such originators are protected from competition for a certain number of years via patent for the product, so they can charge whatever your misery will allow. A generic brand is a name given to a product by a manufacturer of a product after patent protection no longer protects the originator of the product. The originator usually produces the best product for a short time after expiration of their patent, but their competition usually sells the product for much less. My advise is to buy generic brands, because they will usually be your best buy. |
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Judy1
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Because they think they are better. That is sometimes true, sometimes not. |
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Caroline S
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Habit. Consumers absorb advertising messages, and once they have bought the item, inertia sets in, and there is no reason to try other products, even though they may be both of equivalent quality and cheaper. The challenge for own brands is to gain a foothold - once you've tried 19p tins of tomatoes and noticed no difference, why would you pay 4x the price? |
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Sir Percival Blakeney Baronet
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Brand names are considered superior to no name brands. I'm not going to answer the second question since a corporation's goal of existence is to generate profit. |
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frimpong isaac manso
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in my opinion a brand generally denotes uniform quality and it makes it easier to choose between competing product. Also it makes easier to pick among a lot and helps consumer to cope with information overload. |
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