Economic Effect of Brand — Problems of Evaluation

Occupation: Associate Professor
Affiliation: National Research University "Higher School of Economics" (St. Petersburg)
Address: St. Petersburg, Russian Federation

Journal name

Ekonomika i matematicheskie metody

Edition

Pages

100-108

Abstract

The present paper contains an analysis of existing methods of evaluation of a brand economic effect (which is understood as the value generated by the brand for the brand owner). These methods are based on the calculation of brand value on the basis of comparison of cash flows generated by brand with cash flows generated by no-brand product. It is demonstrated that on the brand product market brand efficiency should be measured on the basis of comparison of branded products with an imaginary average brand. It is demonstrated that de facto there are brands that generate no additional income and simply allow their owners to operate on brand-dominated markets. It means that the brand value cannot be used as a measure of brand efficiency for these brands. Contrarily to the traditional brand value, the proposed index of brand efficiency may have positive and negative value. The novelty of the research consists in delimitation of notions of brand value and brand efficiency; introduction of the concept of an average brand; description of the model of calculation of its parameters and methods of calculation of all components of brand efficiency listed above. We also propose to introduce the concept of net modified brand value which can be used to measure the integral brand efficiency from the point of view of brand owner.

Keywords

brand, brand valuation, brand value, economic effect of brand

Received

13.08.2019

Publication date

22.08.2019

Number of characters

21168

Cite

GOST	Kotliarov I. Economic Effect of Brand — Problems of Evaluation // Ekonomika i matematicheskie metody – 2019. – V. 55. – Issue 3 C. 100-108 [Electronic resource]. URL: https://emm.jes.su/S042473880005784-1-1 (circulation date: 19.04.2024). DOI: 10.31857/S042473880005784-1
MLA	Kotliarov, Ivan "Economic Effect of Brand — Problems of Evaluation." Ekonomika i matematicheskie metody 55.3 (2019):100-108. DOI: 10.31857/S042473880005784-1
APA	Kotliarov I. (2019). Economic Effect of Brand — Problems of Evaluation. Ekonomika i matematicheskie metody 55(3), pp.100-108 DOI: 10.31857/S042473880005784-1

100 rub.

When subscribing to an article or issue, the user can download PDF, evaluate the publication or contact the author. Need to register.

Number of purchasers: 2, views: 1146

Readers community rating: votes 0

1. Azgaldov A.A., Karpova N.N. (2006). Valuation of Intellectual Property and Intangible assets. Moscow: International Academy of Valuation and Consulting (in Russian).

2. Bagiev G.L., Kozeychuk D.A. (2006). Brand Valuation within the Context of Customers Loyalty. Brand Management, 3, 146154 (in Russian).

3. Damodaran A. (2012). Investment Valuation: Tools and Techniques for Determining the Value of Any Asset. L.: John Wiley and Sons.

4. Davcik N.S., Vinhas da S.R., Hair J.F. (2015). Towards a Unified Theory of Brand Equity: Conceptualizations, Taxonomy and Avenues for Future Research. Journal of Product and Brand Management, 24 (1), 317.

5. Hirose Y. (2002) Ministry of Economy, Trade and Industry, the Government of Japan. The Report of the Committee on Brand Valuation, 24 June.

6. Kozyrev A.N. (2015). Economics of Intellectual Property: Measurements, Mythology, Mathematical Models. Journal of the Russian Academy of Sciences, 85 (9), 776 (in Russian).

7. Kozyrev A.N. (2016). Valuation of Intellectual Property: Functional Approach and Mathematical Methods. Moscow: Izdatelskie Resheniya. Available at: http://spz.socionet.ru/~nevolin/files/2016_Kozyrev.pdf (accessed: May 2019, in Russian).

8. Kozyrev A.N., Makarov V.L. (2003). Valuation of Intangible Assets and Intellectual Property. Moscow: Interreklama (in Russian).

9. Negative or Declining Brand Values: Transfer Pricing Issues. An Idea Worth Considering. (2010). Grant Thornton LLP. Official Website. Available at: http://grantthornton.es/publicaciones/fiscal/GrantThornton_Negative%20brand%20values.pdf (accessed: May 2019).

10. Nikulina K.G. (2012). Methods of Brand Valuation. Modern Science: Actual Problems of Theory and Practice. Series: Economics and Law, 4, 3116 (in Russian).

11. Ritson M. (2010). Negative Brand Equity: A BP Death Sentence. Brand Strategy Insider. Available at: https://www.brandingstrategyinsider.com/2010/07/negative-brand-equity-a-bp-death-sentence.html#.WFt_ylOLSUk (accessed: May 2019).

12. Salinas G. (2009). The International Brand Valuation Manual. Sussex: John Wiley & Sons Ltd.

13. Sawaya W.J., Giauque W.C. (1986). Production and operations management. N.Y.: Harcourt Brace Jovanovich.

14. Standards of Valuation RICS. (2011). Moscow: Alpina Publisher (in Russian).

15. Starov S.A., Vilkov V.S. (2002). Classification of Main Approaches Towards Brand Valuation in Russian Companies. Journal of the St. Petersburg University. Series 8: Management, 2, 120133 (in Russian).

16. Zhukova N. Yu., Matasov G. M. (2014). How to Estimate the Brand Value: A Modification of Hirose Model. In: Modernization of Economy and Management: II International Scientific and Practical Conference. 27.02.2014, 143148 (in Russian).