The \"Lacoste\" brand is very popular, and shirts made by Lacoste sell for much

Question

The "Lacoste" brand is very popular, and shirts made by Lacoste sell for much higher prices than shirts made by competitors. Furthermore, when competitors raise or lower their prices, Lacoste is able to sell for the same, high price. Why is Lacoste able to do this? The Lacoste logo makes the shirts "pop" off the shelves. The Lacoste brand protects the shirts from price competition. Lacoste is benefiting from the vendor allowances it negotiated with retailers. Lacoste uses a price skimming strategy Lacoste is legally protected from price setting.

Explanation / Answer

There is something called brand loyalty. All the big brands be it Lacoste, ZARA etc. they all have standard set of loyal customers who will not go to any other stores whatsoever the reason is. I have seen people waiting for the products which are not available in their favourite brand store rather than just going to next store to purchase. This makes Lacoste also come under the same category of brand loyalty hence option 2 seems to be the most appropriate answer i.e. Lacoste brand protects shirts from price competition.

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