WHY DO WE CHOOSE TO GO TO
🍟MCDONALD'S🍔
WHEN THERE ARE A THOUSAND OTHER RESTAURANTS
OUT THERE?
BRANDING is the answer. Companies just like McDonald's spend HUGE amounts of money building their identities. How? Through MARKETING.
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| Why is it that when you are hungry the first restaurant that comes to your mind is McDonald's or when you want coffee Starbucks pops up in your mind? Because these companies have an identity, a personality. Just like people brands build a reputation over time. The better the reputation the more valuable the brand. In Naked Economics they mention how, because of branding, the brand becomes more valuable than the product itself. For example, people don't go to McDonald's because their burger or nuggets taste like no other, they go there because it's McDonald's. In the book, Charles also gives an example about fashion that I can connect to very well. Girls my age think that just because they are wearing Prada cloths or Ray-Ban glasses they are more style and better dressed. | 
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The reason why you choose to go to McDonald's for food or to Starbuck for coffee instead of any other fast-food or coffee shops is because you already know what their products look and taste like, their burgers, nuggets and coffee is good and you know you like it. So why go somewhere else?
| Branding can be a +positive+ tool but it can also be considered negative, if used in the wrong way. On one side consumers no longer face the dilemma of not knowing where to eat, companies choose for them. The better the identity of the company the more costumers they will have. Remember the more value you add to your company the more costumers that will be attracted. Additionally consumers no longer have to try out new foods that they might like or dislike. They already know what is good. We choose McDonald's because we know it's good! Why risk it going somewhere else? | 🍔🍟🍴 🍔🍟🍴 🍔🍟🍴 
🍔🍟🍴 🍔🍟🍴 🍔🍟🍴 |
| On the other hand branding can also have a -negative- effect on consumers. Branding controls and manipulates consumers to buy things they don't need. By creating advertisements and very good MARKETING they are able to persuade buyers to buy their products Thus branding is considered a very profitable strategy. Investing in branding is short- term loss, because of all the money put into, but a long-term success. | 
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💵$Price MAKER$ 💵 →
"Producers of branded goods create a monopoly for themselves--and price their products accordingly-- by persuading consumers that their products are like no other."
-Naked Economics
Finally, how do companies know how to create amazing reputations that capture us consumers? Companies gather information by paying other companies that have the consumer's personal information. Companies such as Facebook, Snapchat, Instagram, Whatsapp and more sell individual's personal information to companies like McDonald's so they can brand themselves better and appeal more their consumers. Surprised? I was too. This is why these apps don't cost because they will make all their profit from selling consumers personal information.
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