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- Sports wear and electrical appliances are
examples of brand name effect.
- Their brand name usually associates with
constant quality. This will help to reduce the information cost of
consumers, as they can save the cost of seeking prepurchase
information, eg. quality.
- Sport wear, eg. shoes, usually sells at a
prevailing market price set by the producers. Their prices seldom
fluctuate among the sellers. This also help to lower the information
cost of consumers, as they need not to find the prices offered by different
sellers.
- Consumers will have more
confidence towards
the quality of some well- known brand names, eg. edidas,
nite, Bansonic,
Lokia, as they are
usually associated with constantly high quality (in terms of
durability).
- Consumers will then
be more willing to pay for the high price of the products. This is
because the cost of paying the high price can still be covered by
the saving of information cost.
- Increase in
the number of sales may also be resulted.
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