That is a huge and complex matter for debate.
IMO it is one of many things that undermines the notion that we live in an economy that has efficient markets and is genuinely competitive.
> When applied to expensive consumer goods, brand loyalty makes sense. Why would I want to spend a year’s salary on an unproven product?
Except that the brands know this and know they can drop quality and it can take many years for it to damage sales, so strong brand loyalty actually undermines the incentives to sell a good product.
> . Toyota (and Honda, though to a lesser extent) have a reputation for a reason.
yes, and they probably deserve it, on the other hand every car brand has loyal customers, and so do many other brands, including lifestyle branding for cheap (but high margin!) products.