Final answer:
Private brands, which compete with national and manufacturer brands in the market by providing similar quality products at lower prices, are also known as reseller brands. Strong brand management is crucial for success in markets with monopolistic competition.
Step-by-step explanation:
Private brands are also known as reseller brands. In the context of the given information, it is evident that building a strong brand was essential for companies. In the past, national brands like Coca-Cola and Crisco built their reputations over time by ensuring consistency in their products and by preventing sales staff from compromising the product quality for their own gain. As a result, such careful brand management led to them becoming widely recognized and respected, which is key in a market that is characterized as monopolistic competition, where firms have their own mini-monopolies due to unique styles, flavors, or brand names while still facing intense competition.
A reseller brand is developed and owned by a retailer or supplier who gets their goods made by a contract manufacturer but sells them under their own brand name. Retailers like Walmart with their Great Value line, or Target with up & up, are examples of reseller brands. These brands often provide similar quality products compared to national or manufacturer brands but at a reduced price, thereby offering value to consumers and establishing a competitive edge within the market