Topic 11: Brand Names and Utility

When people are buying foods and some other normal goods, it is common that people will compare the price between one and other grocery store. Although some people might also base on that is the brand of the certain product, some of them actually only care about the quality can the price, which in my opinion is a correct choice of thinking. Right now the economy is not really well. If the buyers are still buy things that have a famous brand and expensive price, it will not be an efficient way to use your savings. For the people who determine to buy things by brands, they might get more utilities because of the brands, but now it might not be the right time for people to get more utilities by their money. For me, although sometimes I will buy products based on the brands, when there another item that has no brand and is cheaper, I will choose the cheaper one instead the product with brand. In an economic way to see this, sometimes even if I know the item with brands will not let me achieve maximum utility; I’ll still buy it. But if there is an substitute items right beside the item that gives me a lower cost, I will rather choose that and the demand of the items that has brand will decrease. Some of them for me might felt important to have brands and some of them don’t. For example, if I want to eat potato chips, most of the time I will first choose Lay’s, but not like “7-11 select”. In contrast, root beer and Dr.Pepper is the same for me. Same as 7-up and Sprite, it’s ok for me to drink either of them.