A conceptual study on brand valuation

Abstract

Recognizing brands on the company's financial statement as an identifiable intangible asset is a relatively recent development in financial reporting, which only became a focus of attention in the late 1980s. Accounting bodies throughout the world have appeared uncertain as to how to treat the issue of placing a brand in the financial statement as there is little guidance and less understanding over accounting treatment of brand valuation. The debate over procedures for valuing brands and including them as a fixed asset to the corporate financial statement has become a great controversy. As a descriptive study, the present conceptual study highlights the problems associated with brand valuation. Many corporate companies support the fact that valuing and hence capitalizing their brand bring a lot of advantages to the organization. The present study examines four main methods of valuing brands, namely the cost-based method, marketbased method, income-based method and formulary method. The method used in every valuation is subject to the suitability of the brand condition determined on their existing uses. A few recommendations based on the conceptual study are made in order to meet the needs of organizations and the business community as well.

Perceived Quality Produk Elektronik Merek Sony Di Kota Ambon

“…Variabel price premium dapat diukur melalui indikator-indikator yang dikembangkan oleh Setharaman et al (2001) dan Agarwal dan Teas (2002) yaitu perbandingan harga (relative price), kepatutan dan keaslian.…”

“…Price premium cenderung mengacu pada hal-hal yang berkaitan dengan bagaimana suatu produk dapat dijual dengan harga yang tinggi. Setharaman et al (2001) juga menyatakan bahwa price premium berhubungan dengan perceived quality.…”

“…Namun sebaliknya Peterson (1970) mengemukakan bahwa harga (perceived price) merupakan penentu utama bagi perceived quality. Hal senada juga dinyatakan oleh Setharaman et al (2001). Secara empiris Lichtenstein et al (1993), Agarwal dan Teas (2002) menemukan bahwa harga (perceived price) berhubungan positif dengan perceived quality.…”

The Impact of Chocolate Brand Image, Satisfaction, and Value on Brand Loyalty // Uticaj Imidža Brenda Čokolade, Zadovoljstva I Vrijednosti Na Lojalnost Brenda

“…According to Seetharaman et al (2001), the market value of the brand is a result of the investment in the brand activities. Acceptance of the brand by consumers has always been of high interest to traders and producers.…”

What is your corporate brand worth? A guide to brand valuation approaches

“…Managers face the problem of not knowing which brand valuation method is appropriate to use. Although the different brand valuations are well documented, a gap exists in the literature with regard to performing a brand valuation of an organisation using different methods (see among others Seetharaman, Bin Mohd Nadzir & Gunalan, 2001). Each valuation method is more suitable to achieve specific objectives which can vary according to organisational needs.…”