It is actually the market value of the brand that determines its cost which in turn is directly related to the organization. A brand will symbolize what the values and beliefs of the organization are which will ultimately determine the offer price.
Due to the increasing similarity between products, companies are resorting to branding in order to generate an inclination for their offerings as branding is definitely a crucial factor in the triumph of famous companies.
In effect, some successful brands have a value much greater than their book value, and more businesses have begun to use branding for offerings. Branding implies the promise that the offer of the company will generate and deliver an assured intensity of the performance. When a product is successfully branded, its cost is consequently established by well-known and respected customers who are ready to pay a good price.
Competition does play a commendable role in the set price of a product. It provides the consumers with greater choices thereby impelling the companies to not only improve their service eminence which also incorporates customer service. When there are greater choices available in the market for a similar product, each company will obviously look at improving all the aspects of the products they have to offer and will also keep a compatible price to attract the customers to buy their products thereby helping to keep the prices low.