Entry 11: Brand Names and Utility

Brand names have a very strong effect on the satisfaction on consumers. Many consumers consumes some kinds of goods or services may very well be influenced on the brands and the effects of it. There is a reason brand names sell better and it's because people associate products with the brands and associate the brands with positive or negative or even neutral feelings. Whenever one brand has a positive association with the people and their minds, the association is often carried to all the goods and services it provides and it would haver a higher trustworthiness because it's associated with a good brand. For example, we like apple products. (Just believe so for the moment) It increases our sense of satisfaction and utility because essentially we don't say, look at this cool phone, we say, look at this iphone. Who supplies iphones? the Apple Company. What do we think about the Apple Company, we like it. When a product is without a brand, I might need to really like the product for me to buy it and with any imperfection I would discard that choice. Hoever, with iphone, even with some problems I would tell myself that it's still worth it because it's an Apple product. However the lack of brand name also works well in a way. The example in the video, Aldi sells only prepackaged products, 95 percent of which bear their own private brand labels. By avoiding name brands, Aldi is able to keep selling prices low. Because they avoid these high prices by avoiding brands, people see that this unbranded product could supply them with low cost products. I think brand increases utility and satisfaction because by having a brand with a good association in our minds and among our peers, we feel better.