Final answer:
Contoso Coffee bids on the brand keyword 'Contoso Coffee' mainly to prevent competitors from bidding on it, ensuring they appear first in search results and maintaining their brand dominance.
Step-by-step explanation:
The Contoso Coffee chain likely wants to bid on the brand keyword 'Contoso Coffee' to prevent competitors from bidding on their brand name. When a company has a firmly established brand name, it's crucial for them to maintain control over it and ensure that when potential customers are searching for their brand online, they find the actual company's website and not a competitor's offering.
By bidding on their own brand name, Contoso Coffee can ensure that they appear at the top of search results, therefore protecting their brand and capitalizing on the search traffic that is directly looking for them. In addition, typing 'Contoso Coffee' into a search engine shows a clear intent on the part of the searcher to find information about the Contoso Coffee chain.
If competitors were to bid on this keyword, they could potentially divert traffic away from Contoso and reduce the effectiveness of Contoso's online presence. Bidding on their own brand keyword allows them to safeguard against this threat, leading to the maintenance of their customer base and leveraging monopolistic competition strategies for market dominance.