Given below are two statements labelled as Assertion (A) and Reason (R).

Assertion (A):  Every product or service should be branded otherwise they will be treated as commodity.

Reasons (R): If the product or service is branded then it always commands a higher price.

Read the statements and choose the correct answer from the options given below:

Key Points

 Branding

• Branding is giving your company a unique identity in the eyes of your target market and customers.
• Branding can identify and differentiate a product from competing goods and services. 

Important Points Assertion (A):  Every product or service should be branded otherwise they will be treated as commodities.

• Every good or service needs to have a brand name because a brand name gives human characteristics to an object. Otherwise, it is considered just a commodity. 
• It makes it easier for you to stand out from rivals in the market

Hence, the assertion is correct that the product should be given a brand name, or else it will be considered a commodity. 

Reasons (R): If the product or service is branded then it always commands a higher price.

• It need not be true that a branded product or service always fetches a higher price.
• Occasionally brands attempt to compete with their rivals by adopting a cost leadership strategy or by reducing prices.

So, the reason is not correct.

Hence, the correct answer is (A) is correct but (R) is incorrect.