Published: 2/15/2025

Brands are everywhere these days, from clothing to food to even mineral water (how ironic), but why do we have brands in every place? Why do we prefer brands over non-branded ones? Let’s explore these questions today.

What is a brand?

A brand, in simple words, is a name that carries some kind of trust or promise along with it, e.g., a normal local market chips packet vs. Lay’s Chips. Both, at the end of the day, are fried potato chips, but why we may prefer Lay’s Chips over a local market chips given a choice is due to the Lay’s brand name. When we hear Lay’s, we have a recognition that, yes, I know this one, before adding to a certainty in the mind of the consumer, plus your past recall of having tried Lay’s chips comes into the picture; hence, you are more likely to prefer Lay’s chips as they are familiar, you have had a good experience, or maybe you have a preconceived notion about it from all the TV ads you saw.

A brand can be an asset as well as a competitive advantage for companies or the only differentiator between their products. It is a tool that helps you sell stuff, and that is why it becomes important to have a brand if you are considering selling something today.

Why do we have brands in every place?

A brand is something that carries an unsaid trust or promise with it, but it is also a tool that helps in creating a product differentiation that leads to sales. It helps create product differentiation, attach a preconceived status in the minds of the consumer, or offer a consistent experience while owning it. Even consumers prefer buying something with a brand instead of a non-brand product, which is why companies are transitioning into turning their non-brand product into a brand. Think about it: if you can charge a higher price for the same stuff just by attaching a brand to it and increasing your product’s status, why wouldn’t you make such a step?

Why do we prefer brands over non-branded ones?

A consumer, when buying something for the first time, is more likely to buy a brand product over a non-brand product simply due to its familiarity factor. If in an uncertain situation, you can get some kind of certainty, our brain picks that up. We subconsciously want to have certainty over uncertainty, and this is why we tend to prefer brands over non-brands.

Brands are not just for products or services but for individuals as well. These days we are seeing online influencers coming out as brands wherein they are presenting themselves with certain qualities and virtues which then helps them sell stuff or be differentiator among the crowd of online influencers.

That concludes this week's topic on brands—why do we prefer them? Hope you learnt something new today.

Keep learning! :)