Sam McDonald Chapter 5 #6

While reading chapter 5 of Naked Economics, I found out how important and powerful the strategy of branding is. One example of the importance of branding given in this chapter is the difference between McDonalds and "Chuck's Big Burger". Naked Economics states that when looking for a fast food restaurant, more people will choose McDonalds over Chucks Big Burger. This is not necessarily because of the quality of the food, for Chuck's Big Burger may "offer one of the best burgers west of the Mississippi, but rather a result of branding. No matter where one goes, he will know exactly what kind of service and food he will get from McDonald's, whereas he most likely will not know whether Chuck's Big Burger will be great, or give him food poisoning. Branding is extremely important for businesses because it can save companies from their prices being driven down to next to nothing. People are willing to pay more for a recognized label than one they are unfamiliar with, regardless of each's quality. Overall, I found this passage  about branding intriguing because companies use tho interesting, yet simple, psychology to maximizes their profits.