Question : Statement 1: Branding increases customer trust and facilitates product differentiation.
Statement 2: Branding has no impact on consumer perceptions and preferences.
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 building customer trust and helping products or services stand out through differentiation.
Statement 2 is false. Branding has a substantial impact on consumer perceptions and preferences. The way a brand is presented and the associations consumers have with it significantly influence their preferences and buying decisions.
