Branding is more likely to be successful if demand for the general product class is strong enough to allow a profitable price. This is because branding typically involves creating a unique identity and image for a product that can command a higher price and differentiate it from competitors. Without sufficient demand for the product class, customers may not be willing to pay a higher price for the branded version.

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Branding

Question 157

Multiple Choice

Branding:

A) is especially helpful with a low quality product.
B) is handled by manufacturers, but not intermediaries.
C) helps consumers, but it is bad for the firm because it increases expenses.
D) is more likely to be successful if demand for the general product class is strong enough to allow a profitable price.
E) None of the above is true.

Correct Answer: