Question : Statement 1: Branding contributes to product differentiation and building customer loyalty.
Statement 2: Branding has no impact on customer recognition and perception.
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 indeed plays a significant role in product differentiation, helping a product stand out from competitors. It also contributes to building customer loyalty by creating a strong brand identity that resonates with consumers.
Statement 2 is false. Branding has a substantial impact on customer recognition and perception. A well-developed and maintained brand helps in creating a positive perception among customers and helps in building recognition and trust.
