As Stephan king says about the brand “A product is something that is made in a factory; A brand is something bought by customer”. Reflecting the importance of brand in any market. The brand is something that assures the supplier about the sale of his product. Haven’t you noticed in a real-life experience that people prefer to buy products/services related to a brand? But, why they do so? Is there any rule that only a brand can make/supply good products/services? Can’t any local dealer do this? They can, but still, the majority prefer to ignore them. It is because the brand creates trust among people. They know if they find any issue, someone will be there to help them. It is like marrying your daughter/son to a person about whom and his/her background you know.
But, sometimes it emerges as a mistake. In the economy, there is a term related to it.
Irrational judgment: When people judge any product because of its price not by quality. If the price of a brand stands higher than other brands, people see it as an indicator of a quality product. For example, if the product of brand A has a higher rate than brand B, irrational consumers would prefer product B because of its high price.