I will go with the statement that people pay more for a
famous brand instead for a commodity with the same properties produced by a
less famous brand.
As people are often talk about branded items claiming that
branded items are always better that unbranded items. And 90% of the times they
are right. Usually all known brands have a reputation to keep.
“A brand is no longer what we tell the customer it is- it is what customer
tell each other it is”
But at the same time paying high for the branded items
arises some questions in our mind that should we pay 10% extra on the brand
because they sponsored the Cricket World Cup and spent millions in advertising?
Is it worth paying 3000 for the branded when other in the same properties are
available for nearly 1500 less? Should I buy Samsung instead of china item? Unfortunately,
there is not a clear answer of all these questions.
But after analyzing I came to the conclusion that one factor
stands out digitally in all following cases- “the longetivity of the ownership”
Imagine that you are at the supermarket, looking for the
salt to buy. Will you pick Morton salt or a lower price store brand salt? After
all, salt is salt. Right?
Customer will pay for Morton because over time the brand has
created a perception of quality, trust and consistency.
“Branding helps define in an instant, with a minimum of thoughts”
Usually people generally avoid risk and seek safety. Imagine
you are in other country which is unfamiliar to you and you need to pick a restaurant
for lunch. You are mostly like to choose a restaurant which is national brand restaurant
instead of local one to which you are unfamiliar.
Brands also express who we are and who we want to be. Brand name
clothing gives a positive impression to everyone around you.
“Products are made in the factory but brands are created in the mind”