The application of multivariate statistical analysis to the valuation of durable goods brands

Abstract

Nowadays, due to changes in the market and new trends in consumer behaviours, intangible assets, such as brand, have gained fundamental importance. The more frequent conviction that a product with a well-known name is better than other products contributes to the case of replacing the price of a product by its brand name as the predominant factor in the purchase decision process. Thus, for many companies the strengthening of brand equity has become one of the key elements of marketing strategy. The main aim of this study is an attempt to improve the process of analysing the position and value of brands using selected multivariate statistical analysis methods (hedonic regression, multidimensional scaling, classification and linear ordination methods). In the conducted research the direct approach to the evaluation of the position of the brands for a selected ICT good - smartphones - have been applied. The measurement was performed on two levels: the product level, in which the prices of branded products were compared, and the consumer level, where the perception and attitudes of consumers towards the brands were studied. The analyses have been carried out on two sets of data, which enabled fuller and more comprehensible understanding of decision rules that guide consumers in choosing the brand.