Question

3.3 Why are people prepared to pay more for certain brands?

Answer 1

Answer:

they are more familiar with them and trust them more

Answer 2

Creating and publicizing a brand tends to create the perception of quality among consumers. When they perceive this, they will pay more for the good. So, the reason for this is that consumers believe that branded goods are of higher quality and therefore are worth a higher price.

Branded products often have clear, recognizable packaging when compared with unbranded products. Moreover, this branding is deliberately designed to stand out against its competitors so consumers are far more likely to notice it. Bottles of Coca-Cola, for example, stand out because they are shaped differently than regular bottles. Moreover, the labeling is immediately noticeable: a red label with white text catches the consumer's eye. If it's easier to locate, a consumer is likely to pay more for the convenience.