Absolutely, it is proven that people are more willing to pay for a famous brand than for a product with the same specifications produced by a less famous brand. In the marketing industry, the concept is called Brand Equity. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an Original Essay Fundamentally, brand equity is the values ​​associated with a brand, based on how consumers understand it. Brand equity is a term used in the marketing industry that describes the importance of having a well-known brand, depending on the concept that the owner of a famous brand can generate more revenue simply from brand recognition; that is, from products with that brand than from products with a less famous brand, since consumers assume that a product with a well-known name is better than products with less well-known brands. Brand value talks about the value of a brand name. Brand value has been analyzed from two different points of view: cognitive psychology and information economics. According to cognitive psychology, consumers generally view familiar brands as more trustworthy and worthy of more attention. Furthermore, they can correlate the brand with quality attributes not necessarily focused on detailed knowledge of the actual products. According to information economics, a strong brand could be a reliable indicator of product quality for low-aware buyers and produce price premiums as a form of return on investments in the brand. These benefits help consumers rationalize spending more on more popular brands versus a less popular brand. For example, most consumers will assume that the Apple Watch is higher-end, much easier to use, and more reliable than its rivals, even if they have never used these types of watches. It's actually because they already correlate Apple with those attributes. It has been empirically proven that brand value plays a vital role in determining the pricing structure. Positive brand equity can bring many benefits to the company, including commanding higher prices from consumers. In other words: if a consumer is aware of the brand, he or she will be willing to pay more for the products or services. Several marketing researchers have come to the conclusion that trademarks are one of the most valuable assets of a company, one of The most important factor in increasing the financial value of the brand for the owner is the value of the brand, although it is not the only . Essential elements that can be included in evaluating brand equity include (but not limited to): change in market share, profit margins, recognition of logos and other visual elements by consumers, brand language associations by part of consumers, perception of quality by consumers and other relevant aspects. brand values. Other research has shown that people attached to a familiar brand refrain from switching to a new one. According to new research, sixty percent|60%} of global consumers with access to the Internet prefer to purchase new products from a well-known brand rather than switching to a new brand. Below are seven reasons why consumers prefer a well-known brand over a lesser-known brand. Brands provide peace of mind. By purchasing branded products, consumers want comfort, happiness and satisfaction in their lives. Consumers form a reliable opinion about the brand by constantly evaluating whether the brand provides a positive experience, which it does?.