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  • Senthil Kumar

Are We Really Paying for the Brand?



Brands fulfill higher-order needs...Brands can substitute or complement human passions and desires. Brands have become the symbol of high quality. People assume brands can buy them status or esteem and are willing to pay a high price for them. Not surprisingly, more the price consumers pay for a brand, more they perceive being elevated in the society. Such is the magical spell modern marketing has cast on us.

It is true that better quality products enjoy good reputation and command better prices. No doubt, several branded goods and their pricing reflect the value and the segment-positioning that they are designed to reach. However, for many branded products, from an economic and business point of view, there is a disconnect between the actual worth of the product and the pricing charged on the product. The disconnect is often due to a range of paraphernalia or furnishing associated with the distribution, packaging and advertising and shopping mall showrooms and display.