Best In Brief
What are brands good for?
Niraj Dawar
Brands are considered an indispensable part of modern business because of their ability to aggreate consumers, reaching large numbers with a promise to deliver a clearly-stated proposition. These promises attract consumers and make purchase decisions easier by reducing their risk. As consumers learn to identify with them brands develop market power.
However, the information revolution is undermining the logic of aggregation, the very source of brand power. In an information-rich environment consumer disaggregation can be more efficient than aggregation. With CRM,...