(a)Explain branding and give two suitable examples. (b) In which five ways does branding affect...
(a)Explain branding and give two suitable examples.
(b) In which five ways does branding affect the consumer?
Explanation
(a) Branding is the act of giving a distinctive name or label to product. It helps in creating, stimulating and maintaining demand for it. It is a form of advertising. Examples of branding includes: 505 ( Peugeot), BMW, Elephant blue deterge Omo, Guider, star, maltex, etc.
(b) Ways in which branding affects the consumer are:
(i) Branded goods are more costly.
(ii) Too many brands may confuse the consumer.
(iii) It encourages standardized pricing.
(iv) Branding informs the consumer about the existence of a particular product.
(v) It simplifies buying and saves time in the selection of goods or it encourage self-service
(vi) It is an assurance that the standard or quality will be maintained by the manufacturer.
(vii) The consumer place order from his home, it therefore encourages self-selection and mail -order business.