Question : Statement 1: Branding contributes to customer loyalty and helps differentiate products.
Statement 2: Branding has no impact on consumer perceptions of product quality.
Option 1: Both statements are correct.
Option 2: Statement 1 is correct, and statement 2 is false.
Option 3: Both statements are incorrect.
Option 4: Statement 2 is correct, and statement 1 is false.
Correct Answer: Statement 1 is correct, and statement 2 is false.
Solution : The correct answer is (b) Statement 1 is correct, and statement 2 is false.
Statement 1 is correct. Branding does indeed play a significant role in fostering customer loyalty by creating a strong brand identity and emotional connection. Additionally, branding helps differentiate products from competitors in the market.
Statement 2 is false. Branding has a notable impact on consumer perceptions of product quality. A strong and positive brand image often leads consumers to associate higher quality with the branded products.
