‘Branding adds to cost e.g. to the cost of packaging, labelling, legal protection and promotions however, it provides several advantages to the sellers as well as the customers.’ Yes, We agree with the statement. The reasons are:
(i) It helps in product identification because if a customer is satisfied with the product, he need not make a close inspection every time he has to buy the product.
(ii) It ensures quality because if there is any deviation in the quality, the customers can have recourse to the manufacture which builds up their confidence.
(iii) It is a status symbol and the consumers of branded products feel proud of using them adding to their level of satisfaction.
(iv) Branding helps the firm in differentiating its product from those of the competitors.
(v) Branding helps in advertising and display programmes.
(vi) Branding enables a firm to charge differential price for its products. (vii) Branding helps in introduction of a new product under the same brand name.