Customers will pay a premium if a brand consistently delivers on a promise.

Question

BlackTom AI · Accepted Answer

Consider the statement: 'Customers will pay a premium if a brand consistently delivers on a promise.'
Option 1 (True): This aligns with branding and value perception theory. When a brand consistently fulfills its promises, customers experience reliability and trust, which enhances perceived value. This consistency reduces perceived risk and increases customer willingness to pay more for that trusted signal of quality and predictability.
Option 2 (False): This would suggest that consistency in delivering on promises has no impact on willingness to pay more, which ignores core branding principles. In practice, many buyers are willing to incur a premium for brands that reduce uncertainty, provide dependable outcomes, and reinforce a strong, credible promise over time. The counterargument rests on market saturation or price sensitivity, but the core idea remains that reliability often supports premium pricing, all else equal.
Further nuance: the premium customers pay is also influenced by other factors such as perceived quality, differentiation, emotional appeal, and overall value proposition. Merely delivering on a promise is necessary but not always sufficient for a premium; it must be credible, sustained, and coupled with other value drivers to sustain higher prices.
In summary, the rationale behind Option 1 rests on the link between brand trust, perceived value, and willingness to pay a premium, while Option 2 overlooks the established relationship between consistent promise-fulfillment and premium pricing, and thus is inconsistent with common branding dynamics.

BUSI406 [Kubowicz Malhotra]: Principles of Marketing Chapter 8 Quiz

Customers will pay a premium if a brand consistently delivers on a promise.

查看解析

登录即可查看完整答案

类似问题

__________ refers to the differential effect that brand knowledge has on consumer response to the marketing of that brand.

Which of the following levels of the Customer Based Brand Equity pyramid refer to customers' subjective/personal responses to the brand's marketing?

The value of a brand can be calculated and compared to other brands in the form of brand Blank ______.

Brands are assets that a firm can build and harness over time to increase its Blank ______.

Which of the following is not a measure of brand equity?

One key feature of the value of a brand is that:

Why did New Coke fail as a product?

Which of the following statements about brand equity is true?

更多留学生实用工具

考试浏览器助手

风格化写作助手

论文查重助手

文献引用助手

课堂转译助手

课堂笔记助手

Quiz搜索助手

学校历年真题

智能刷题助手

智能匹配练习

希望你的学习变得更简单