Listerine mouthwash sells for $2 more than Target's Up & Up brand mouthwash even though both products contain the same ingredients and are manufactured by the same company.This is because _____ brands can command a price premium.

Question

Quizplus · Accepted Answer

National brands enable manufacturers to leverage marketing resources by creating efficiencies in marketing communications, and distribution. In addition, national brands generally have a higher perceived quality and, as a result, enjoy a price premium. However, developing a national brand is costly and lower-priced store brands are strong competitors in many product categories.

Listerine Mouthwash Sells for $2 More Than Target's Up