Management Notes

Reference Notes for Management

Right branding increases _________ of the product, which should be more than that of the generic product.

Right branding increases _________ of the product, which should be more than that of the generic product.


A. Consumer revolt
B. Market share
C. Profit
D. Value

The Correct Answer Is:

  • D. Value

The correct answer is D. Value. Effective branding can significantly enhance the perceived value of a product in the eyes of consumers, making it more valuable than a generic or unbranded counterpart. Let’s explore in detail why “value” is the correct answer and why the other options are not suitable.

Value (Correct Answer – D):

Branding plays a pivotal role in shaping consumer perceptions of a product. It contributes to the creation of a unique brand identity, and this identity, in turn, can increase the perceived value of the product.

A strong brand is associated with various positive attributes such as quality, reliability, trustworthiness, and a positive customer experience. These associations often lead consumers to assign a higher value to branded products compared to generic or unbranded alternatives.

Brand value can allow a company to charge a premium for its products, as consumers are often willing to pay more for brands they trust and perceive as offering superior quality. This increased value can result in higher profit margins, greater customer loyalty, and a competitive advantage in the market.

Consumer Revolt (Option A):

The concept of “consumer revolt” is not directly related to the impact of branding on product value. Consumer revolt typically refers to situations in which consumers protest against a company or product due to dissatisfaction, grievances, or perceived injustices.

It involves consumer activism, and while branding can certainly influence consumer sentiment, it is not the primary focus of branding to prevent or address consumer revolt. Rather, branding aims to create positive associations and build brand equity, which, in turn, enhances the perceived value of the product.

Market Share (Option B):

While branding can influence market share indirectly, it is not the immediate outcome of effective branding. Branding is more about building a strong brand image, fostering customer loyalty, and attracting new customers. These efforts can, in the long run, affect market share by increasing a company’s share of the customer base.

However, market share is a broader concept that involves various factors, including market competition, pricing, distribution, and product quality, in addition to branding. It’s the outcome of multiple strategies and actions, not the singular result of branding. Therefore, while branding contributes to market share, it is not the most direct answer to the question.

Profit (Option C):

Option C, “profit,” is closely related to the concept of branding but doesn’t capture the essence of the question. Effective branding can indeed lead to increased profits, primarily through price premiums, enhanced customer loyalty, and the ability to reach a broader market.

However, the question specifically focuses on the idea that branding increases something, and that something is the “value” of the product.

Branding influences the perceived value of a product, and this increased value can subsequently lead to higher profits. Profit is the financial outcome of various business activities, while value pertains to the perceived worth or desirability of a product.

While closely connected, the two concepts are not identical, and “value” is the more direct answer in the context of branding’s impact on a product’s perception.

In summary, the correct answer, “value” (Option D), is accurate because branding has a direct and substantial influence on the perceived worth and desirability of a product in the eyes of consumers. This increased value can lead to higher profits, customer loyalty, and a competitive edge in the market.

The other options, while important in business and marketing, do not directly represent the concept of branding’s role in enhancing the perceived value of a product, as the question specifically focuses on this aspect of branding.

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