You now understand what a brand truly is and how the brand triangle works. But here's the million-dollar question: why do people pay $5 for Starbucks coffee when the gas station sells coffee for $1?

The answer lies in psychology, not logic.

Engagement Message

Which branded item have you happily paid extra for over a generic version?

Here's what's happening in your brain: brands trigger emotional decisions, while generic products trigger logical ones.

When you see that Starbucks logo, your brain doesn't think "coffee." It thinks "comfort," "status," or "treat myself."

Engagement Message

What feeling does your favorite brand trigger for you?

This is called the "brand premium" - the extra money people willingly pay for emotional value.

Apple sells laptops for $1,200 while similar-spec computers cost $600. The difference isn't technology - it's the feeling of being innovative and creative.

Engagement Message

Why do you think people justify paying double for similar products?

Strong brands create what psychologists call "emotional shortcuts." Instead of comparing features and prices, your brain says "I trust this brand."

This saves mental energy. Choosing Nike means "athletic performance" without researching every sneaker specification.

Engagement Message

What brand do you buy without comparing alternatives?

Brands also fulfill our need for identity and belonging. People buy Patagonia to signal environmental values, or drive BMW to project success.

We're not just buying products - we're buying the story we tell ourselves and others about who we are.

Engagement Message

What does your favorite brand say about your identity?

Here's the business impact: branded companies consistently outperform generic competitors in profit margins and customer retention.

People who love a brand become repeat customers and recommend it to friends. They're also less likely to switch when competitors offer lower prices.

Engagement Message

Which brands have you recommended to friends recently?

Type

Sort Into Boxes

Practice Question

Let's identify what drives brand loyalty. Sort these purchase motivations into emotional (brand-driven) vs logical (feature-driven) factors:

Labels

• First Box Label: Emotional Factors
• Second Box Label: Logical Factors

First Box Items

• Status symbol
• Comfort feeling
• Identity match
• Trusted name

Second Box Items

• Best price
• Most features
• Fastest delivery
• Highest rating