A firm is more likely to adopt multiple brand names for the same product when the good is a nondurable.

Question

Quizplus · Accepted Answer

Non-durables are frequently purchased (such as bread).The consumer can try different brands over time to determine if any quality differences exist.In the case of durable goods (such as a car or household appliance),the consumer is stuck with her purchase for a period of time; there is less opportunity to compare her experiences with different brand names.

A Firm Is More Likely to Adopt Multiple Brand Names