What is the function of a brand?
The brands satisfy and benefit both buyers and sellers.
For buyers - to reduce
1. Search costs by helping them identify specific products
2. Perceived risk by providing an assured level of quality
3. Psychological risk by eliminating negative social consequences of using the wrong brand
For sellers - to facilitate
1. Repeat purchases
2. Introduction of new products
3. Promotional efforts and premium pricing
4. Communication of identical messages to target customers