Brand loyalty is a key issue for monopolistic competitors. In fact, it\'s the ke
ID: 1110207 • Letter: B
Question
Brand loyalty is a key issue for monopolistic competitors. In fact, it's the key reason we say that economic profit "tends towards" zero and not automatically becomes zero in the long run (like perfect competition).
Sure there are substitutes for Hostess Cupcakes, but let's be honest, a Little Debbie cupcakes are just terrible. I like Hostess so much more that I'd be willing to pay $3 more per box for my preferred brand. That's brand loyalty.
What THREE brands are you most loyal to, and why? What are the best known substitutes for the products/brands you love. How much of a premium are you willing to pay to keep buying your brand name product? (There must be some threshold where you would switch to a different similar product - don't just say you're willing to pay more. No credit can be given if there isn't a specific price differential included in your answer.)
Explanation / Answer
Explanation:
Brands to whom i am loyal
- Garnier
- Heineken
- Axe
These are the brand brands which i am using from a long time and I believe in those brands more than anything. These brands deliver best ever result to me and I have been depended on them more than any other.
Best know substitute
- Head & Shoulder
- Corona
- Nivea
In case of if my best loves product has increase the price of their respective brand I would not hesitate to spend more on them as I could spend around 50% premium on original price of my favorite product.
Suppose there if my favorite product has price tag of 100 and it would raise its price to 150 I would not mind spending that much amount on it, since I have been using those brands for long time and I cannot imagine not using them in any time.