There is a simplifying assumption in business that humans operate on the basis of rational economic maximization.  Yet the empirical evidence is that humans actually derive utility from a variety of sources, of which function and price are always important, but frequently do not determine the ultimate customer decision.

The result is a gap between the business concept of value (functionality at a reasonable price) and the customer concept of value (a broader concept that incorporates consideration of factors such as trust, status, reputation and security).   

Brands are the manifestation of the “added value” that companies can create for customer when they explicitly consider the broader needs that their products and services fulfill.