Question

Are there any products to which you are extremely brand loyal? Why do you think we are loyal to a brand for some products, and not others? Can you give me some examples? How can you tie in the concept of elasticity with a person's desire to be brand loyal? Would that person have elastic or inelastic demand for that product?

Answer 1

I am extremely brand loyal to the apple products, be it handset or any accessory because of the quality of product and service i get. We are loyal to some brands and not others because these brands have made themselves abled to provide quality services and have gained customer trust that the customer will get the best possible service as per their requirements. other examples includes : Amazon, Starbucks, Subway.

A customer who is brand loyal to a particular brand will have inelastic demand for the product of that brand. i.e., with the change in the price of the product, the customers' s demand for that product will not change. This implies that even if the customer is getting the desired product at a relatively higher price, he would still demand the product from his preferred brand due to being a brand-loyal customer thus making his demand for the product of that particular brand price-inelastic.