Question

John West brand tuna sells more than the same size competitive brand tuna, even though the other tuna costs $0.15 less per can. John West has high brand ________.

Select one:

A. Extension

B. Licensing

C. Service

D. Evidence

E. Equity

Answer 1

John West's tuna sells more than its less expensive competition due to its high brand equity, which reflects the brand's value, customer loyalty, and ability to charge a premium.

Step-by-step explanation:

John West brand tuna selling more than the same size competitive brand tuna, even though it is $0.15 more expensive per can, suggests that John West has high brand equity. Brand equity refers to the value and strength of a brand that enables it to generate more sales or to charge a premium over competitive products. This equity is built over time through customer experiences, perception of quality, and effective marketing. Comparing choice D (equity) with choice B (licensing), the latter is less applicable because brand licensing typically refers to the leasing of a brand name to another company for use on a non-competing product or in a different market, which doesn't directly pertain to the company's ability to sell its products at a higher price. Therefore, equity is a measure of a brand's ability to retain and attract customers, despite a higher price point, making it the correct answer.