Do Brands Benefit Consumers?

Abstract

Advertising exists to communicate information about, and promote, brands — using ‘brands’ in the broadest sense. Brand owners, it might be believed, are thereby promoting their own interests. This paper explores the extent to which consumers benefit. Brands provide economic value for money, functionality in developing the requisite quality of products to solve consumer problems and psychological satisfaction. Thus functional benefits are intrinsic to the brand and its component products, psychological benefits are in the mind of the consumer and economic benefits relate to the exchange transaction. Brands are diverse, offering different benefits in different ways to different consumers at different times. Any aggregation of brand (dis)benefits therefore needs to be treated with caution. The picture is not wholly positive and consumer concerns with branding need to be factored in. The defence is the marketplace itself: consumers are free to choose. Retailer brands meet the demand, where it exists, for alternatives to manufacturer brands. Some consumers are undoubtedly confused for part of the time but branding is a long‐term investment. Manufacturer brand leaders fifty years ago are brand leaders today. They would not exist at all if enough consumers did not continue to buy them.