Why is branding important? Because people often choose products based on their perceived value rather than their actual value.
Think about the celebrity who drives an Aston Martin instead of, say, a Skoda, which is continually ranked “car of the year” in many European countries and delivers much better mileage at a significantly cheaper price. Sure, Skoda is the logical choice, but it’s Aston Martin’s identity, which conjures images of luxury and status, that usually clinches the sale. Then there’s Lexus versus Scion. Which would most people pay more for, and why?