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 these alternatives is correct.

Question

Quizplus · Accepted Answer

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 involves adding value to a product through its name, packaging, and reputation, which can allow for a higher price point. However, if the demand for the product is not strong enough to support a profitable price, the added expenses of branding may not be worth it for the firm.