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Why Is the Principal-Agent Problem Less Likely When Getting a Haircut

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Why is the principal-agent problem less likely when getting a haircut than when getting a car repaired?


Definitions:

Family Branding

Marketing strategy that involves selling several related products under one overarching brand name.

Brand Ambiguity

The uncertainty or confusion that consumers experience due to unclear brand messages or inconsistent brand image, which can affect brand perception negatively.

Brand Loyalty

The tendency of consumers to continuously purchase one brand's products over another's due to satisfaction with the brand.

Positioning

The process of establishing a brand or product in the mind of customers relative to competitors’ offerings.

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