When consumers go into Walmart or Kroger or many major retail stores, they find

Question

When consumers go into Walmart or Kroger or many major retail stores, they find store brands alongside national brands on the shelves. Often, the retail store puts signs up asking consumers to compare their store brand, which is often cheaper in price but with the same ingredients, to the national brand. Yet, many consumers (about 80%) continue to buy the national brands, which are typically more expensive. From what you have learned in the course, why is this? Why do consumers pay more for national brands? Be specific in your response by integrating course concepts and material into your answer.

Explanation / Answer

Consumers are fond of national brand products rather than the store brand products. A national brand product has the name of manufacturer and it is distributed widely. Because of its large network, it becomes costlier too. A store brand product is the private level brand, which has limited network and cheaper price.

Although the national brands are costly, consumers use them more. One of the reasons of it is marketing and advertising. Marketing and advertisement of national brands creates impact on consumers mind. They start believing that national brands are better than store brands. Since there is no marketing or advertisement, store brands do not have such facility.

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