Amazon is the world's most valuable brand for the third consecutive year - Leaving Cert Business - Question 7 - 2019

Having a strong brand image provides multiple benefits for a business:

Brand Loyalty

A strong brand fosters loyalty among customers, ensuring that they remain loyal to the brand due to its reputation for quality and consistency. For example, Apple iPhone users are known to upgrade to newer versions of the iPhone consistently. This loyalty can lead to repeat purchases and a steady revenue stream.

Higher Prices can be Charged

Brands that have built a positive reputation are often able to charge higher prices than their competitors. This is due to consumers' perceptions of quality associated with the brand. For instance, prestigious brands like Rolex can charge a premium price based on their established reputation.

Easier to Launch New Products

When a brand has a strong image, it becomes easier to introduce new products to the market. Customers are more likely to try new products from a brand they already trust. For example, when Apple launched the iPod, it was well received due to its established brand image before its introduction.

Aids Advertising

A well-known brand can invest less in advertising while still maintaining visibility. This is because consumers already recognize the brand and its products, which can reduce the need for extensive promotional efforts. For example, McDonald's brands are recognized globally, allowing them to spend less on marketing compared to lesser-known competitors.