It is our common experience whenever we go to shop a product that the branded ones are costlier than the unbranded ones and the reasons are not far to seek. Let us first look at the term “brand”. And whenever that word is spelt before us, a host of reputed brands comes to our instantly. A user of brand products scores heavily in term of attention and social prestige over the the ones who do not. These brands also carry such tags like Luxury brands, High End brands, Premier brands etc. Customers buy them depending on their personal choice and affordability and some of them even overlook the high prices to use products of their favourite brands

A brand is basically a symbol or a design or may be a blend of both that serves as distinguishing mark which sets it apart from others in the same class of goods or commodities and acts as a link between the product and its legitimate owner. It might take years, if not decades to develop a brand and to position it in the market to enjoy the benefits of goodwill which accrues from it.

Compared to an unbranded product, a branded product enjoys unique advantage by virtue of its success in establishing a niche market for the product. As the brand symbolizes some intrinsic and inherent qualities which helps it to build an army of loyal customers, the brand-owners have to constantly monitor its performance to cater to the satisfaction of their customer by taking appropriate measures towards product innovation and development which goes to build a steadfast loyalty on the part of the customers. This is known as the Brand Equity.

While satisfactory performance of brand brings in more customers, its poor performance may lead to negative results in the form of loss of customers who may opt for some other competing brands. The reasons for dissatisfaction could be many and varied. For example, a quality brand product may not be favoured with because of the existence of a poor after-sales service record. Thus a successful brand-owner would always make sure that he produces defect-free products for a smooth performance especially during the warranty period and attend to the complaints of the customers with due diligence and care to retain their loyalty.