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Littera Scripta

ISSN (online): 1805-9112

Open access

Financing of adverts and its impact on the brand value

Margareta Nadanyiova1*, Jana Kliestikova1, Judit Olah2

  1. University of Žilina, Department of Economics, Žilina, Slovakia
  2. University of Debrecen, Institute of Apllied Informatics and Logistics, Faculty of Economics and Business, Debrecen, Hungary

* Corresponding author: margareta.nadanyiova@fpedas.uniza.sk

Abstract

The brand represents an important role not only for managers of companies of different sizes in strategic decisions, but also for consumers in their daily lives. It expresses the certain relationship between the product and the customer, and its value has both the ability and the power to influence the purchasing decision-making process of customers. Building brand value is a very important and fundamental step for every company. If a company wants to have a strong market position and also own a strong brand, it must make every effort and cost to implement the planned strategies. The aim of this article is to define the theoretical basis of the brand as well as brand value and its relation with financing of adverts from the viewpoint of Slovak and foreign authors. This includes a regression and correlation analyses focused on investigate the dependence between the advertising costs and brand value in technology industry. The basic sources of research were secondary data obtained from worldwide surveys in the form of rankings published by Interbrand, Forbes magazine, annual reports of companies and published professional publications. General scientific methods were applied for the processing of the data, as well as mathematical-statistical methods to evaluate the data collated from the results of regression and correlation analyses and test the linear independence. The results of an analyses show that the advertising costs and brand value are linearly dependent, specifically it is medium-strong direct linear dependence. Therefore, the financing of adverts has a direct effect on brand value in technology industry.

Keywords:brand valuefinancing of advertsadvertising coststechnology brandstechnology industry.

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