As there are many similar products that is found in the market, branding can have a large effect on the price the customer pays for the product.
Brand value, then, comes into the pictures as it pertains to the extra money a company can possibly make from its products just because of its brand name.
It is a premium that accrues to brand of products from customers who are willing to pay extra money for it. The simplest example for this is paying for a coffee at Starbucks as opposed to paying more to a coffee at the fast-food restaurants. Continue reading