Question : Assertion: Branding contributes to customer loyalty and brand equity.
Reason: Branding has no impact on consumer trust and recognition.
Option 1: Both assertion and reason are true, and the reason is the correct explanation of the assertion.
Option 2: Both assertion and reason are true, but the reason is not the correct explanation of the assertion
Option 3: Assertion is true, but the reason is false.
Option 4: Assertion is false, but the reason is true.
Correct Answer: Both assertion and reason are true, and the reason is the correct explanation of the assertion.
Solution : The correct answer is (a) Both assertion and reason are true, and the reason is the correct explanation of the assertion.
The assertion is true. Branding indeed contributes to customer loyalty and brand equity. A strong and well-managed brand can build trust and loyalty among consumers, leading to increased brand equity.
The reason is the correct explanation. Branding significantly impacts consumer trust and recognition. Effective branding creates trust and recognition, essential elements for building brand equity and fostering customer loyalty. Thus, the reason correctly explains why branding contributes to customer loyalty and brand equity.
