How a Brand performs the function of a risk reducer.

How a brand performs the function of a risk reducer.
A brand performs the function of a risk reducer please elaborate the understanding of this statement.
A brand is an identity that includes all sorts of components; depending on the brand, A brand can be said an image where the consumer perceives a brand as representing a particular reality or A brand can be explained that it is a relationship where the consumer reflects upon him or herself through the experience of consuming a product or service.

In purchasing something a consumer would like to prefer branded products they know about rather than the local and unknown products.

A risks connected with the brand may involves the physical risks, functional risks, financial risks, social risks.

If you have found a brand that works for you, you are probably going to stick with it because there is a risk that changing brands will bring a less satisfactory result. The new brand may not help you achieve your goal, you will have wasted money, and perhaps worst, you will feel bad doing so.

We know that brands reduce risk to owners and investors. We saw it in the way share price of the strongest brands in Top 100 Most Valuable Brands Ranking recovered quicker than others after the Great Recession. These brands were a safe bet for investors because they had proven themselves a safe bet for consumers.

Opinion over geographical locations being branded?

Answer.

Because of globalization, changes in the production processes have also altered the way commercial brands employ the concept of territory.

Locations act as brands because people want to be proud of their place of origin. “As a result, manipulating the image of cities, cultures and experiences has become the most important component of the entire branding process,”

Locations have also become important attributes for some commercial brands, largely because industrial development in a particular sector is often focused entirely in a single city or region. The wine industry provides perhaps the most obvious example of how a place-name can play an important role in branding. We buy a Rioja (a location brand) but not a Ramon Bilbao (a commercial brand.)

Another example involves France. That country has become a brand through association with what it usually produced – perfumes. As a result, France is perceived as glamorous.