How is consumer perception of a certain company related to the company

In other words, how can consumer perception of a certain brand affects the strategy of that brand?



Consumer perception can dictate brand strategy in its marketing, pricing, packaging and even its form.





Here are a few examples:





1. If consumers have negative perception of a brand or product, the strategic plan can be geared to a defensive strategy ie consumer re-education or attacking the negative perception by emphasizing its inaccuracy and harping the products positive attributes.





2. When consumers perceive that product A is better than the cheaper product B although the company producing product B knows that both products are the same in quality and performance, the company's strategy should be geared towards showing consumers that both products are of same quality and emphasizing its value-for-money proposition.