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The Value of Brands

In: The Economy of Brands

Author

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  • Jan Lindemann

Abstract

The value of brands materializes in several ways. The most direct and obvious is the sale of products and services to consumers. The combination of the price paid for a product plus the quantity and frequency of purchase creates the sales revenues for a business. This is converted into profits and ultimately shareholder value. The share price of a company is driven by investor’s expectations about the future ability of the business to attract customer revenue and extract profits from these. The value of brands also materializes in mergers and acquisitions, the subsequent balance sheet recognition, licensing, and other financial transactions such as securitizations.

Suggested Citation

  • Jan Lindemann, 2010. "The Value of Brands," Palgrave Macmillan Books, in: The Economy of Brands, chapter 0, pages 9-17, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-27501-0_3
    DOI: 10.1057/9780230275010_3
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    Cited by:

    1. Hultman, Magnus & Yeboah-Banin, Abena A. & Formaniuk, Liam, 2016. "Demand- and supply-side perspectives of city branding: A qualitative investigation," Journal of Business Research, Elsevier, vol. 69(11), pages 5153-5157.

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