Brand Valuation Model Research Articles

Intention to enroll and recommend a higher education institution for STEM degrees: a brand valuation approach.

Taking as a framework the brand valuation model proposed by the National Service of Intellectual Rights of Ecuador, the purpose of this study was to evaluate whether the variables that reside in the consumer’s mind, such as brand awareness, associations, and evaluation of choice determinants, are significant in explaining the intention to enroll and recommend a higher education institution. After applying a generalized least squares regression analysis to a sample of 227 potential students of science, technology, engineering, and mathematics (STEM) degrees, it was found that the evaluation of the choice determinants is the only factor that explains the intentions. The high level of consumer involvement with the higher education service could justify this finding.

An empirical investigation of the relationship between brand value and firm value: Evidence from Turkey

AbstractThis paper aims to investigate the relationship between brand value and firm value by using a two‐step approach. In the first step, we use the financial‐based brand valuation model (FBVEM) to obtain the brand value of firms that operated in the Turkish manufacturing industry during the period between 2014 and 2018. In the second step, we examine the effect of brand value on Tobin's Q. In doing so, we use a novel GMM, with a measurement errors model, which takes into account mismeasurements of the financial variables. We try to get an accurate estimation of the link between brand value and Tobin's Q in our analysis. The obtained findings show that the effect of brand value on firm value is positive in the Turkish manufacturing sector. Our results remain stable after robustness checks. This is the first well‐controlled study that considers the endogeneity problem and consequent measurement errors in the relationship between brand value and firm value.

Impact of financial brand values on firm profitability and firm value of Indian FMCG companies

The research paper reviews literature on various brand valuation models and estimates FMCG companies' financial brand values using an appropriate financial brand valuation model in the Indian context. From 2009 to 2018, 26 BSE 500 FMCG companies were sampled. Financial brand value, prestige driver, loyalty driver, extension driver, return on assets, return on equity, stock price, and Tobin's Q were the main variables in the models. Brand value had a contemporaneous effect on stock prices, but its three-year time-lagged effect was negative. The findings have important practical implications for FMCG firms, investors, investment analysts and managers, the government, and policymakers.

Valuation of the Hamrah-e-Aval brand based on brand valuation models using Topsis multi-criteria decision-making model

By offering the possibility of accepting the financial value of the brand as a bank guarantee, especially for industries that need constant investment and financing strategies, clear brand value is an advantage in obtaining facilities. The communication industry is among these industries and for this reason, estimation of brand financial value is very important in this industry. Therefore, this study aimed to find a suitable brand financial valuation model using the Topsis method in the mobile phone industry and determine the financial value of the brand of Mobile Telecommunication Company of Iran or Hamrah-e-Aval. This study is an applied and descriptive-survey research. Necessary financial information was collected from the Tehran Stock Exchange, the Company’s financial experts, and related questionnaires. The valuation model was selected using the Topsis method and two models of Intangible Business and Brand Finance were used for the brand valuation of Hamrah-e-Aval. The findings indicate that the difference in values of these models is because of structural differences and each model’s estimations process, and the results are valid. The results of the research’s main model (Intangible Business) indicate that about 78.1% of the stock value (market value) in this company is related to its brand.

Formulating a Case for the “Brand Encapsulation Model” and its viability within the Higher Education Sector

This study will make a case for the use of a new brand valuation model called the “brand encapsulation model”; this model will build upon research conducted by David Aaker and will be proposed for the higher education sector. A survey will include a presentation of a branded item and a non-branded item to prospective consumers of varying demographics. Perspective consumers will be asked which product they would likely consume. In order to prove the validity of the brand encapsulation model, the survey will require that all of the respondents choose the branded item.

Research on brand valuation models based on triangular fuzzy matrix game

Market competition has entered into the era of brand competition with economic growth. Brand evaluation represents an important approach for brand management and value enhancement. In this paper, an analysis was made, based on the triangular fuzzy matrix game theory, on the profits and losses incurred by participating enterprises and evaluating institutions due to their adoption of different game strategies. The applications of triangular fuzzy matrix game theory were expanded to the brand valuation field, and a theoretical method for evaluating the current evaluation models was proposed.

Specifying the Determinants of Brand Value by Using AHP Method

Recently, the most successful companies in the world display the importance of knowledge based economy. The transformation from industrial economy to knowledge based economy highlights value added of intangible assets to the companies. Brand as a worthwhile intangible asset constitutes a substantial part of firm value. However lots of studies conducted to measure brand’s value solely. There hasn’t been generally accepted brand valuation model yet. In this paper it is aimed to present the most important factors in measuring brand value based on the Analytic Hierarchy Process. According to the expert team’s responses to our questionnaire the financial and behavioral factors which can affect brand value were found and prioritized. As a result it is determined that the most important factor in brand valuation in the frame of main criteria is Investment in Brand with 0,47 while in general; it is RandD Costs with 0,1893 and Takeover Costs with 0,1852 as the second. On the other hand, Rise in Ratio of Price/Sale and Rise in Net Sales are not considerably important with weights less than 1% on brand valuation.

Governance of private label as a strategic asset: developing a brand valuation model

This paper aims at identifying which factors should be considered in the building of an economic evaluation model for the private label brand. In fact, some specific characteristics of private label, with respect to industrial brand, make unusable the consolidated models available. The results of the paper are the definition of some specific factors of private label, the assumptions about how these features impact on the traditional economic evaluation models and how these could be included in a model. Because of the complexity of the topic, the hypothesis is to build a model of synthesis, made of two parts: one part for a Financial-Based evaluation of Brand Equity, with the addition of some specific factors and indicators to the traditional formulas, while the other part is for a Consumer-based evaluation of Brand Equity, thanks to an index that summarizes the strength of private label brands from the consumer perspective. The private label economic evaluation has some relevant managerial implications on the retail system, on the vertical supply chain relationships and on the understanding of the strategic nature of this asset.

Brand valuation: a comparison of alternative models

We propose a brand valuation model, which merges objectivity with robust underlying quantitative structure, thus sharing a direct financial interpretation and providing risk analysis insights. An empirical analysis allows us to compare both numerical results and financial insights derived by analysts from the utilisation of the Hirose Methodology, the Royalty Method and the proposed model.

Brand Valuation: Viewpoint of Customer and Company

The article consists of five parts, where the first part formulates the problem, aim and research methodology. The aim of the article is to prepare integrated economic brand valuation model on theoretical layer analysis and summary of brand valuation models and to test it empirically. The article analyzes the problem how to prepare integrated brand valuation model which enables thorough estimation of brand value in viewpoint of customer and company. The second part of the article presents substantiation of brand valuation and theoretical studies of brand valuation models. Analyzing traditional economic brand valuation models the results of theoretical and empiric researches by authors who study these models are presented. In summary it could be stated that traditional economic brand valuation models estimate only material brand value form and ignore customer influence on brand value. Nonfiction literature presents psychographic and behaviorally oriented brand valuation models. Aaker (1991), Kapferer (1992), Keller (1993) and Mckinsey (1994) present brand valuation models where user, user attitude and behavior are in focus. This article presents composite economic and behaviorally oriented brand valuation models, which unite both economic and psychographic factors. Though composite economic and behaviorally-oriented models reflect brand valuation influencing factors more detailed, still more economic, financial and behaviorally-oriented factors integrating model are missing. After completing theoretical studies of brand valuation models it can be stated that some model only estimate material brand value (economic brand valuation models), others uncover customer attitudes and behavior in brand valuation (psychographical and behaviorally-oriented brand valuation models), and still others mostly estimate material brand value also taking into account customer behavior in the viewpoint of brand value. In the third part of the article on the ground of theoretical study of brand valuation model the integrated brand valuation model is prepared. This model unites economic, psychographic and behaviorally oriented brand valuation models. Integrated brand valuation model mostly measures brand value on the ground of economic brand valuation models. According to this model, brand value is measured from two positions: customer and company.

Risk Analysis in Brand Valuation

After an empirical start, brand valuation has attracted the interest of both accounting practitioners and academicians. Several methods for the assessment of brand value have been developed. However, a major critique shared by these models has been the lack of objectivity. In view of such criticism, the Japanese Ministry of Economy, Trade and Labour created a dedicated Committee with the twofold task of rigorously defining brand and of developing a methodology for brand valuation based on publicly available balance sheet data. The result goes under the name of the Hirose methodology. The methodology, however, while achieving the above two mentioned key-merits, does not allow a financial interpretation of the valuation results. We propose a brand valuation model which merges objectivity with robust underlying quantitative structure thus sharing a direct financial interpretation and providing risk analysis insights. An empirical analysis allows us to compare both numerical results and financial insights derived by analysts from the utilization of the Hirose Methodology, the Royalty Method and the proposed model.

Brand valuation model

Abstract Brand valuation technique is a core problem in a company value creation process. It has been done a lot of researches on the issue since brand valuation hit the headlines in 1988. The main task in brand valuation is to distinguish brand earnings from the earnings attributable to another assets: patents, intellectual property, and tangible assets. This seems to be an undisputable must, but not the only task for brand valuator. Another task is to estimate probability that the brand will generate these earnings in the future. Aim of our article is to propose brand earnings calculation, brand index calculation and brand risk assessment models, which are the results of the final doctoral dissertation. We believe that we have developed an ideal brand valuation model for emerging markets with low share liquidity.

BRAND VALUATION MODEL

Brand valuation technique is a core problem in a company value creation process. It has been done a lot of researches on the issue since brand valuation hit the headlines in 1988. The main task in brand valuation is to distinguish brand earnings from the earnings attributable to another assets: patents, intellectual property, and tangible assets. This seems to be an undisputable must, but not the only task for brand valuator. Another task is to estimate probability that the brand will generate these earnings in the future. Aim of our article is to propose brand earnings calculation, brand index calculation and brand risk assessment models, which are the results of the final doctoral dissertation. We believe that we have developed an ideal brand valuation model for emerging markets with low share liquidity.

Using Consumer Attitudes to Value Brands: Evaluation of the Financial Value of Brands

ABSTRACT This article introduces an Advanced Brand Valuation (ABV) model that combines the psychological strength of a brand in the mind of its consumers with accepted accounting practices to determine the true financial value of a brand. ABV is a modular approach that integrates common marketing research metrics into financial calculations and meets standards for tax and financial reporting purposes. (Sattler, H., S. HOgl, and O. Hupp. ‘Evaluation of the Financial Value of Brands.’ In ESOMAR, Excellence in International Research 2003, D. S. Fellows, ed. Amsterdam: ESOMAR, 2002.) This tool can be used for strategic decision-making purposes, such as assessing international expansion opportunities or prioritizing the purchase and/or sale of brands.

Market power and its measurement

Addresses the importance of brands in the assessment of market power. Traditional approaches to assessing market power are fraught with problems because they ignore the power of brands, and are constrained by the classification of companies within domestic markets. Introduces a model for assessing market power which uses brand value as the basis of market power measurement. The model emphasises the importance of brands and acknowledges the international nature of markets. It has the further benefit of being forward‐looking rather than focusing on the past performance of companies. Using this model, it is suggested that within the UK beer market, the threat is from the owners of powerful non‐domestic brands rather than from large UK brewers. The analysis of the beer market represents a pilot study for the model proposed in the paper. The brand valuation model itself needs refining before the proposed model can be validated on a widespread basis.