Question

Saffexo, a company that manufactures sports goods, hikes the prices of its entire range of athletic shoes. However, the company does not experience a fall in the sales of its shoes following the hike as the consumers continue to buy them. The information given in the scenario indicates that Saffexo has a good _____.

Answer 1

Answer:

The information given in the scenario indicates that Saffexo has a good brand equity.

Explanation:

The marketing term brand equity refers to the value of a brand. What a customer perceives about the brand and his/her experiences with it are what set out its value. If people have a good image of the brand, it will result in positive brand equity. On the contrary, if the brand gives bad service and disappoints customers, it will result in negative brand equity.