Assessment of the Factors of Brand Value in the Automotive Market

Almost all companies in the world try to create a strong brand or increase the value of their brand, but how to do it? What factors influence the brand value? Our work answers the above questions after identification of this factors and assessing the degree of this influence. But we only explore brands of one market- automotive, because every trade mark on such market is brand, so this market is noteworthy object to study. The aim of this work is to use a regression analysis for identification of factors that affect the value of the world automotive brands and for assessing the degree of this influence. To achieve the goals we will perform the following tasks: 1. Find factors that can, in our opinion, influence the automobile market brands with the help of scientific articles 2. Collecting data about automotive brands and above-mentioned factors for the last 3 years. 3. Construction of the regression models and selection of the best model 4. Determining the degree of influence of factors on the value of brands As a result of the research two most representative models were revealed with the help of various econometric tests : a basic multiple regression model and a model with panel data and random effects. Summarizing the conclusions obtained from these models, we can see the following results: the turnover growth by 1 billion dollars gives an average increase of 1%. The emergence of a new competitor in the manufacturer country reduces the brand value by 6%, and the development of innovative models, by contrast, increases the dependent variable by 49%. The increase in the size of the company by 1% (equivalent to an increase in assets by $ 100 million) significantly increases the brand value by 0.3-0.6%, the dependent variable decreases by 8.7% with the opening of an additional division of the company. There is a significant positive effect of the model range of cars on the brand value (2% increase in cost with the appearance of one new model).