Final answer:
The rivalry between Coke and Pepsi is fueled by marketing strategies, price competition, taste preferences, and brand loyalty. Their high brand recognition has established an oligopoly in the soft drink industry, making competition fierce. An example of an election scenario where the Pepsi candidate wins despite fewer representations underlines the influence of brand loyalty on consumer choices.
Step-by-step explanation:
The huge rivalry between Coke and Pepsi can be attributed to several factors, with differences in marketing strategies, price wars, consumers' taste preferences, and intense brand loyalty being at the forefront. Both companies employ aggressive marketing campaigns to create strong brand recognition, which is critical in the soft drink industry. This competition has led to an oligopoly market structure where only a few players dominate, making it difficult to establish new brand names that can compete with the likes of Coca-Cola and Pepsi.
Using the example of an election for Soft Drink Commissioner, where the candidate from the Pepsi party wins despite more candidates from the Coca-Cola party running, illustrates the impact of brand loyalty and voter behavior. Even though multiple Coca-Cola candidates suggest a stronger following, the divided vote among these candidates likely led to the consolidated Pepsi voter base securing a win for their single candidate. This outcome sheds light on the deep-rooted loyalty consumers have towards their preferred brand and how it can influence market outcomes.