XYZ brand is the market leader in small appliances.Its brand is also the strongest in the category and customers identify with the brand.Because of the strength of its brand,other competitors are finding it difficult to successfully enter the marketplace.This is an example of the _______ benefit of brand equity for brand sponsors.

Question

Quizplus · Accepted Answer

When customers identify with a brand and then transfer that loyalty to the product, it creates an additional barrier to entry for new brands, particularly for smaller firms that lack brand recognition. The default choice for network servers is Cisco in many corporate IT departments because executives have heard of Cisco even if they are not familiar with the product itself, thus making it harder for other servers to enter the market.

XYZ Brand Is the Market Leader in Small Appliances