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Jlenok [28]
3 years ago
15

Adam wants to buy a washing machine and is looking for something that is not too expensive. When he goes to make the purchase, h

e finds there are two options that meet his requirements. One is an IFB Bosch product, while the other is a newly imported South Korean brand. Adam is not very familiar with the latter and does not hesitate in choosing Bosch. This example implies that ________.
A) the imported brand will not survive the competition from Bosch
B) Bosch has a positive customer brand equity
C) the South Korean company has a low advertising budget
D) the imported brand is unreliable
E) the Bosch washing machine has better features than the imported brand
Social Studies
1 answer:
GarryVolchara [31]3 years ago
4 0

Answer:

B) Bosch has a positive customer brand equity

Explanation:

From the perspective of microeconomic theory, companies that produce similar products seek to differentiate themselves through product differentiation that creates a link between the brand and the customer. These differentiations are diverse and can be punctual, for example, a washing machine that uses less energy compared to the average of other machines on the market, or solid, when the company can make the brand a synonym of quality for the consumer, as is the case with Bosch. Since Adam does not know the imported product, he chooses Bosh precisely because this company has a positive brand equity with him.

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