Question

In 2-3 full sentences, answer the following question.

Why do you think the same product (like shoes or cereal) can have very different prices depending on the brand?

Answer 1

Brands charge different prices because they add value beyond the basic product—through perceived quality, design, reputation, status, and advertising—which makes some customers willing to pay more. Price also reflects real differences in materials, manufacturing, packaging, distribution, and marketing costs, as well as each brand’s positioning and target market.