Unformatted text preview: packaging can be protected through copyrights and proprietary designs. These intellectual property rights ensure that the firm can safely invest in the brand and reap the benefits of a valuable asset. Brands signal a certain level of quality so that satisfied buyers can easily choose the product again. Brand loyalty provides predictability and security of demand for the firm, and creates barriers to entry that make if difficult for other firms to enter the market. Loyalty also can translate into customer willingness to pay a higher price – often 20% to 25% more than competing brands. Although competitors may duplicate manufacturing process and product designs, they cannot easily match lasting impressions left in the mind of individuals and organizations by years of product experience and marketing activity. In this sense, branding can be a powerful means to secure a competitive advantage....
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- Spring '11