How does branding work?
There have been many in-depth studies, this is a very broad topic so a simple question like "How does branding work?" isn't easy to answer with a few words but we will try by example.
In our kitchen we have tea and coffee. We choose these products based on their flavour, availability and cost. Invariably, if the cost is the same or within a few pence and there may be no 'real' preference on taste and a range of products are available we will buy one particular brand because, we bought it before and it was fine. Our purchase decision is based on a variety of factors including trust. Having used a product already, we trust it will be good again.
A long standing and trusted soap manufacturer changed their formula in the 2000's from one that had been in use since the 1920's. Customers continued buying the soap even though many complained it was "not as good" and even formed pressure groups to convince the company they should return to their original formula.
One could argue that Apple computers who have had periods of severe difficulties have survived because of brand loyalty. This list goes on and on where a companies reputation is encapsulated with its brand. When customers and clients feel they can trust the brand it becomes extremely powerful and important to the success of a business.
One could argue that with health care brand loyalty is irrelevant because if course if one is healing then once that person feels better, the job is done and one would not wish them to return. This ignores the trust element, a person who trusts your 'brand' even if they no longer need your services is in fact an asset for your business.