Absolutely, it is proven that people are more willing to pay for a famous brand than for a product with the same specifications produced by a less famous brand. In the marketing industry, the concept is called Brand Equity. Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”? Get an Original Essay Basically, brand equity is the values ​​associated with a brand name, based on how consumers understand the brand. Brand equity is a term used in the marketing industry that describes the importance of having a well-known brand, following the concept that the owner of a famous brand can generate more revenue simply through brand recognition. the brand; this concerns products with that brand name rather than products with a lesser-known brand, because consumers assume that a product with a well-known name is better than products with lesser-known brands. Brand equity talks about the value of a brand. name. Brand equity has been analyzed from two different angles: cognitive psychology and information economics. According to cognitive psychology, consumers generally view familiar brands as more trustworthy and worthy of more attention. Additionally, they may associate the brand with quality attributes that are not necessarily centered on detailed knowledge of the actual products. According to information economics, a strong brand could be a reliable indicator of product quality to uninformed buyers and would lead to price increases as a form of return on brand investments. These benefits are intended to help consumers rationalize their higher spending on more famous brands than on a less famous brand. For example, most consumers will assume that the Apple Watch is more premium, much easier to use, and more reliable than its rivals, even if they have never used these kinds of watches. This is actually because they already associate Apple with such attributes. It has been empirically proven that brand equity plays a vital role in determining pricing structure. Positive brand equity can bring many benefits to the business, one of which is charging higher prices to consumers. In other words: if a consumer is brand conscious, they will be willing to pay more for products or services. Several marketing researchers have come to the conclusion that brands are one of the most valuable assets of a company, one of The most important factor in increasing the financial value of the brand to the owner is the equity of the brand, although he is not the only one. The essential elements that can be included in the assessment of brand equity include (but are not limited to): market share evolution, profit margins, consumer recognition of logos and other visual elements, brand language associations made by consumers, consumer perceptions of quality, and other relevant elements. brand values. Another research proved that people tied to a familiar brand refrain from moving to a new one. According to a new study, sixty percent|60%} of global consumers with access to the Internet prefer to buy new products from a well-known brand rather than switching to a new brand. Below are the seven reasons why consumers prefer a well-known brand. than a lesser known brand. Brands provide peace of mind. By purchasing ?.