ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Brand loyalty can also affect the price elasticity of demand. Consumers who are loyal to a particular brand may be less likely to switch to substitutes, even if prices increase, leading to inelastic demand.

Detailed explanation-2: -Brand names and marketing have a large impact on the price elasticity of demand as well. When comparing similar products with different price points, consumers may purchase the higher-priced product if their brand loyalty to that product is high.

Detailed explanation-3: -Leads to Better Consumer Engagement Brand Loyalty drives large consumer engagement. The majority of consumers will always give the audience and also, want to be identified with a brand that has maintained its loyalty to them over time. They tend to give full support to a brand they love.

Detailed explanation-4: -Brand loyal consumers pay higher prices. They often don’t shop with cost in mind, but rather are willing to pay whatever price for a particular brand. This can often shift the demand curve and cause a company to adjust its figures.