Less famous vs famous brands
Several scholars have concluded that consumers are more likely to pay for famous brands than less famous brands with comparable properties. The research paper found that the main thing that drives the distinction between popular and less famous brands is the branding principle, which seeks to differentiate goods on the market by generating representations of greater product quality and value in the minds of consumers. Research has also shown that the majority of customers equate price with quality, especially in the case of popular brands. Famous brands are created by relaying messages that demonstrate a product’s ability to deliver quality and value, as well as encouraging repeat purchases. Repeat purchases are crucial in building customer loyalty, whereby once a customer loyal to a brand, he or she ceases to be price-sensitive, since the customer always seeks to have the same quality experience with a product over and over.
Moreover, the research demonstrated that the key factors that influence brand choice include customer loyalty, customer perceptions, which include price, quality, value, and risk perceptions, and the influence of social status. Before selecting a particular brand, customers establish whether the brand provides them with the expected value and quality in relation to the product price. On the other hand, customers assess the risk of purchasing a particular product, whereby the risks involved include functional risks, social, financial risks, and physical risks; the aspect of risk majorly relates to new products, with which a customer possesses limited experience and knowledge. Conclusively, the research established that the conception that people are more willing to pay for a famous brand rather than a similar product from a less famous brand is faulty since, although customers associate famous brands with high quality, value, and low risk, a large number of customers is price-sensitive and therefore, they would opt for a cheaper brand that offers the same value, quality, and level of satisfaction as that provided by the famous brand.
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