The basic reason manufacturers spend time and money building their own brands is to
A) create brand awareness.
B) build brand equity.
C) offset the power of private-label manufacturers.
D) create positioning possibilities for their generic product lines.
E) maximize product line depth.

Question

Quizplus · Accepted Answer

Building their own brands helps manufacturers create brand equity, which is the value that a brand adds to a product beyond the functional benefits. This can create loyal customers who are willing to pay more for the brand, differentiate the product from competitors, and provide a barrier to entry for new competitors. Brand awareness is a component of brand equity, but not the main reason for building the brand. Private-label manufacturers and generic product lines are not necessarily a threat to manufacturers who build their own brands, and maximizing product line depth is not necessarily related to building brands.

The Basic Reason Manufacturers Spend Time and Money Building Their