Consider the following statements about branding:
(A) Under branding, a marketer decides whether the firm’s products will be marketed under a brand name or a generic name.
(B) The process of giving a name or a sign or a symbol etc., to a product is called labelling.
(C) Brand name helps in creating product differentiation, which in turn helps in building customer’s loyalty.
(D) Branding adds to the cost, for example to the cost of packaging, labelling, legal protection and promotion.
(E) Selling products by generic names, such as camera or book, helps marketers to distinguish them from competitors’ products.
Which of the statements given above are incorrect?
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → (B) and (E) only
(A) Under branding, a marketer decides whether the firm’s products will be marketed under a brand name or a generic name. — True. This is one of the most important product decisions. The firm chooses between a brand name and the name of the whole product class.
(B) The process of giving a name or a sign or a symbol etc., to a product is called labelling. — False. Giving a name, sign or symbol to a product is called branding. Labelling means designing the label that carries information about the product.
(C) Brand name helps in creating product differentiation, which in turn helps in building customer’s loyalty. — True. A brand name gives a basis to tell the firm’s product apart from competitors’ products. Buyers can then ask for it again, so loyalty grows.
(D) Branding adds to the cost, for example to the cost of packaging, labelling, legal protection and promotion. — True. A brand has to be packed, labelled, legally protected and promoted, so it adds to the cost. It still gives several advantages to sellers and buyers.
(E) Selling products by generic names, such as camera or book, helps marketers to distinguish them from competitors’ products. — False. A generic name is the name of the whole class, so every firm’s camera is just a camera. With generic names it is very difficult to distinguish one firm’s product from another’s, so most marketers give a brand name.
NCERT (2026-27 Edition): “Branding One of the most important decisions that a marketer has to take in the area of ‘product’ is in respect of branding. He has to decide whether the firm’s products will be marketed under a brand name or a generic name. Generic name refers to the name of the whole class of the product. For example, a book, a wristwatch, tyre, camera, toilet soap, etc. We know that a camera is a lens surrounded by plastic or steel from all sides and having certain other features such as a flash gun and so on. Similarly book is a bunch of papers, which are in a bound form, on which some useful information about a subject is printed. Thus, all products having these characteristics would be called by the generic name such as camera or book. If products were sold by generic names, it would be very difficult for the marketers to distinguish their products from that of their competitors. Thus, most marketers give a name to their product, which helps in identifying and distinguishing their products from the competitors’ products. This process of giving a name or a sign or a symbol etc., to a product is called branding. …” “6. Branding: … Brand name helps in creating product differentiation, i.e., providing basis for distinguishing the product of a firm with that of the competitor, which in turn, helps in building customer’s loyality and in promoting its sale. …” “Branding … Though branding adds to the cost e.g., to the cost of packaging, labelling, legal protection, and promotion, it provides several advantages to the sellers as well as the consumers.” |