Question : Statement 1: Branding enhances customer trust and loyalty.
Statement 2: Branding has no impact on product differentiation and positioning.
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 plays a significant role in building customer trust and fostering loyalty by creating a strong brand identity that resonates with consumers.
Statement 2 is false. Branding is closely tied to product differentiation and positioning. A well-developed brand helps differentiate a product or service from competitors and positions it in a certain way in the market to appeal to target consumers.
