EOC Chapter 1 Questions

1. According to the text, Brand/Story, branding is “the cumulative image of a product or service that consumers quickly associate with a particular brand, it offers an overall experience that is unique, different, special and identifiable.” The text also states that branding is “A competitive strategy that targets customers with products, advertising and promotion organized around a coherent message as a way to encourage purchase and repurchase of products from the same company.” This means that branding is creating not only a product but also a lifestyle for consumers. A great example of brand is Ralph Lauren. Ralph Lauren offers high quality products in several areas from apparel to bedding to towels. Ralph Lauren is known for their high-quality, preppy style merchandise. Branding helps to establish a product’s identity by adding a certain style or charm to the product. For Ralph Lauren, this style is preppy.

2. Companies are able to charge high prices for everyday items such as t-shirts, jeans and sunglasses after they have established their brand’s reputation. Luxury brand’s, such as Dolce & Gabbana, are able to license their name and logo to companies that mass produce sunglasses, underwear and swimwear to heighten the prices of their merchandise. Consumers are willing to pay more for a brand with a luxurious reputation. Another item sold in the luxury market that was not traditionally perceived as a luxury good is underwear.

3. Three consumer groups that differ from my own are:
• 21-35 yr. old Men
• 45 + Women
• Children
These three consumer groups do differ from each other with regard to fashions and the types of brands they purchase. This is because all three groups want something different from their clothing. Men in the specified age category tend not to care about the brands that they wear or how much their clothing costs. Women ages 45 and up tend to want a look that is sophisticated and mom-like but do care about what brands they wear and are generally loyal to their favorite companies. Children are dressed by their mothers who tend to also stick to their favorite companies which vary greatly from the companies chosen for themselves.