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30 May 2022, 17:27
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Hello again, jabhatta2. How about we kill two birds with one stone?
1) Kellogg's Raisin Bran
2) Post Raisin Bran
3) nonbrand raisin bran
Now, if a consumer looks at Kellogg's and believes that it is guaranteed to be as good as either Post or the off-brand, then that consumer is more likely to purchase Kellogg's. The same can be said of a different consumer with Post, but not, according to answer choice (A), of a third consumer who was considering the off-brand product. (There is no belief in its guaranteed quality.) If the price of Kellogg's and Post were no higher than that of the off-brand cereal, then either Kellogg's or Post would be a safer bet, and that thought (conscious or unconscious in the mind of a consumer) could understandably drive sales for both brand-name products.
Perhaps the answer choice makes more sense now. Thank you for following up.
- Andrew
jabhatta2
Hi AndrewN - thank you for responding. Two qqs on (A), if thats okay ?
(i) I thought (A) was something that was just repeating the premise (Yellow highlight specifically) - from the yellow hightlight -- we were told that branded products have the same or lower quality as Non Brand products.
So if the quality is the same or lower (as per the yellow highlight) --> isnt (A) by definition implied ?
A restatement of a premise does not supply new information, and answer choice (A) tells us what people believe, and nothing could be stronger than a guarantee. In combination with answer choice (A), the highlighted portion from the passage makes me think, Well, why not? Why would people not want to buy brand-name products when they do not sell at higher prices than their "generic" counterparts? But the answer choice did not go in that direction.Quote:
“Products sold under a brand name used to command premium prices because, in general, they were superior to nonbrand rival products. Technical expertise in product development has become so widespread, however, that special quality advantages are very hard to obtain these days and even harder to maintain. As a consequence, brand-name products generally neither offer higher quality nor sell at higher prices. Paradoxically, brand names are a bigger marketing advantage than ever.
“Which of the following, if true, most helps to resolve the paradox outlined above?
“(A) Brand names are taken by consumers as a guarantee of getting a product as good as the best rival products.
“Which of the following, if true, most helps to resolve the paradox outlined above?
“(A) Brand names are taken by consumers as a guarantee of getting a product as good as the best rival products.
(i) I thought (A) was something that was just repeating the premise (Yellow highlight specifically) - from the yellow hightlight -- we were told that branded products have the same or lower quality as Non Brand products.
So if the quality is the same or lower (as per the yellow highlight) --> isnt (A) by definition implied ?
jabhatta2
AndrewN
(ii) I thought the term "the best rival products" was ambigous. Why ?
The "the best rival products" could be referring to perhaps : rival BRANDEDproducts.
So, if Branded products are taken by consumers as a guarantee of getting a product as good as OTHER RIVAL BRANDED PRODUCTS -- that wouldnt explain the paradox at all.
We cannot define what, exactly, rival products refers to without further information, but I take it to mean any similar product that is competing with a given brand-name product. For instance, consider three cereals. (Pardon the American references.)(ii) I thought the term "the best rival products" was ambigous. Why ?
The "the best rival products" could be referring to perhaps : rival BRANDEDproducts.
So, if Branded products are taken by consumers as a guarantee of getting a product as good as OTHER RIVAL BRANDED PRODUCTS -- that wouldnt explain the paradox at all.
1) Kellogg's Raisin Bran
2) Post Raisin Bran
3) nonbrand raisin bran
Now, if a consumer looks at Kellogg's and believes that it is guaranteed to be as good as either Post or the off-brand, then that consumer is more likely to purchase Kellogg's. The same can be said of a different consumer with Post, but not, according to answer choice (A), of a third consumer who was considering the off-brand product. (There is no belief in its guaranteed quality.) If the price of Kellogg's and Post were no higher than that of the off-brand cereal, then either Kellogg's or Post would be a safer bet, and that thought (conscious or unconscious in the mind of a consumer) could understandably drive sales for both brand-name products.
Perhaps the answer choice makes more sense now. Thank you for following up.
- Andrew
31 May 2022, 02:47
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Namangupta1997
KarishmaB
zest4mba
Products sold under a brand name used to command premium prices because, in general, they were superior to nonbrand rival products. Technical expertise in product development has become so widespread, however, that special quality advantages are very hard to obtain these days and even harder to maintain. As a consequence, brand-name products generally neither offer higher quality nor sell at higher prices. Paradoxically, brand names are a bigger marketing advantage than ever.
Which of the following, if true, most helps to resolve the paradox outlined above?
(A) Brand names are taken by consumers as a guarantee of getting a product as good as the best rival products.
(B) Consumers recognize that the quality of products sold under invariant brand names can drift over time.
(C) In many acquisitions of one corporation by another, the acquiring corporation is interested more in acquiring the right to use certain brand names than in acquiring existing production facilities.
(D) In the days when special quality advantages were easier to obtain than they are now, it was also easier to get new brand names established.
(E) The advertising of a company’s brand-name products is at times transferred to a new advertising agency, especially when sales are declining.
Which of the following, if true, most helps to resolve the paradox outlined above?
(A) Brand names are taken by consumers as a guarantee of getting a product as good as the best rival products.
(B) Consumers recognize that the quality of products sold under invariant brand names can drift over time.
(C) In many acquisitions of one corporation by another, the acquiring corporation is interested more in acquiring the right to use certain brand names than in acquiring existing production facilities.
(D) In the days when special quality advantages were easier to obtain than they are now, it was also easier to get new brand names established.
(E) The advertising of a company’s brand-name products is at times transferred to a new advertising agency, especially when sales are declining.
I answered D but it is incorrect- D states that it was easier to get brand names established. What it means is that today is it difficult to establish a brand name. I believe that explains the paradox as even though good quality products can be made by any one it is difficult to create a brand name and for those who have created it- they have a marketing edge and that is what the question is asking.Can someone tell me whats wrong with this logic
In the past, brand names sold better because their products were better quality than non-brand rivals.
Today, brand-name products generally neither offer higher quality nor sell at higher prices. (quality of all is same and the price they command same too)
But still, brand names are a bigger marketing advantage than ever. (people still buy predominantly brand names)
Why? When the quality and price are usually the same, why do people prefer brand names today too?
We need something that will explain this.
(A) Brand names are taken by consumers as a guarantee of getting a product as good as the best rival products.
This tells us that brand names reassure consumers that the quality is at par with best rival products. They do not have this assurance about non branded products. So though technical expertise may have become widespread and quality may not be different, assurance about quality today also comes from brand names only. That is why brand names sell.
Correct. Helps explain the paradox.
(B) Consumers recognize that the quality of products sold under invariant brand names can drift over time.
This is against brand names if their quality drifts over time. So it cannot be the reason why people buy brand names.
(C) In many acquisitions of one corporation by another, the acquiring corporation is interested more in acquiring the right to use certain brand names than in acquiring existing production facilities.
Irrelevant. We need to explain why people buy brand names.
(D) In the days when special quality advantages were easier to obtain than they are now, it was also easier to get new brand names established.
Irrelevant. The question is about today.
(E) The advertising of a company’s brand-name products is at times transferred to a new advertising agency, especially when sales are declining.
Irrelevant.
Answer (A)
Hi KarishmaB
So "invariant" brand names actually mean brand names? Or do they mean non-brand names. And why add the word invariant if it refers to brand names anyway ?
They used "invariant" to show contrast. "Invariant" means constant, not changing. They mean to say that though the brand name stays the same, the quality of the product could still change. The quality of the same brand name product may not be consistent over time.
31 May 2022, 06:19
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AndrewN
We cannot define what, exactly, rival products refers to without further information, but I take it to mean any similar product that is competing with a given brand-name product. For instance, consider three cereals. (Pardon the American references.)
1) Kellogg's Raisin Bran
2) Post Raisin Bran
3) nonbrand raisin bran
Now, if a consumer looks at Kellogg's and believes that it is guaranteed to be as good as either Post or the off-brand, then that consumer is more likely to purchase Kellogg's. The same can be said of a different consumer with Post, but not, according to answer choice (A), of a third consumer who was considering the off-brand product. (There is no belief in its guaranteed quality.) If the price of Kellogg's and Post were no higher than that of the off-brand cereal, then either Kellogg's or Post would be a safer bet, and that thought (conscious or unconscious in the mind of a consumer) could understandably drive sales for both brand-name products.
1) Kellogg's Raisin Bran
2) Post Raisin Bran
3) nonbrand raisin bran
Now, if a consumer looks at Kellogg's and believes that it is guaranteed to be as good as either Post or the off-brand, then that consumer is more likely to purchase Kellogg's. The same can be said of a different consumer with Post, but not, according to answer choice (A), of a third consumer who was considering the off-brand product. (There is no belief in its guaranteed quality.) If the price of Kellogg's and Post were no higher than that of the off-brand cereal, then either Kellogg's or Post would be a safer bet, and that thought (conscious or unconscious in the mind of a consumer) could understandably drive sales for both brand-name products.
Thanks so much @AndrewN - i loved this example. If i could take this example - specifically the yellow highlight.
Why doesn't the third consumer have an gaurantee in the non-brand raisin bran ?
I ask because per the blue highlight below - the qualities of Kellogs / Post / Non brand ARE the same
Isn't the consumer AWARE of the blue highlight ?
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