GB/T 29186.1-2021Evaluation of brand value elements - Part 1: General principles (English PDF)

1 Scope

China's national general principles for evaluating the elements of brand value. It is Part 1 of GB/T 29186 and specifies the general principles, the evaluation index system, the acquisition of evaluation data, the measurement and calculation of results, the requirements on the evaluating body and its personnel, the evaluation procedure and the evaluation report. Valuing a brand is not like valuing a machine. There is no market price for a brand except in the rare case where one is sold, no cost basis that means anything, and no physical asset to inspect. What can be examined is what produces the value: the quality of the product behind the brand, the service, the technology and innovation, the customer relationship, the recognition and reputation in the market, and the management of the brand itself. Those are the elements, and evaluating them rather than jumping directly to a monetary figure is the approach this standard takes - which is why the family is called element evaluation rather than brand valuation. The general principles part fixes what every element evaluation has in common, so that the sector-specific parts do not each invent their own method. That includes the composition of the index system and how indices are selected, the determination of the weights, where the data comes from and how its reliability is judged, how a qualitative index is turned into a number, and how the results are combined. It also fixes the requirements on the evaluating body and the competence of the evaluators, and the content of the report - which for an exercise whose output is used in rankings, in procurement and in negotiation is what makes the result examinable by someone who did not perform it. Issued on 30 April 2021 and in force since 1 November 2021, it replaces GB/T 29186-2012.

This Part of GB/T 29186 stipulates the general principles, evaluation index system, evaluation data acquisition, evaluation implementation, evaluation procedures and evaluation reports for the evaluation of brand value elements. This Part applies to various entities to carry out evaluation of brand value elements, brand evaluation and brand management activities.

2 Normative references

The following documents are indispensable for the application of this document. For dated references, only the dated version applies to this document. For undated references, the latest edition (including all amendments) applies to this document.

GB/T 29185, Brand value - Vocabulary

GB/T 29186.2, Evaluation of brand value elements - Part 2: Tangible elements

GB/T 29186.3, Evaluation of brand value elements - Part 3: Quality elements

GB/T 29186.4, Evaluation of brand value elements - Part 4: Innovation elements

GB/T 29186.5, Evaluation of brand value elements - Part 5: Service elements

GB/T 29186.6, Evaluation of brand value elements - Part 6: Intangible elements

ISO 20671:2019 Brand evaluation - Principles and fundamentals

3 Terms and definitions

Terms and definitions determined by GB/T 29185, ISO 20671:2019 and the following ones are applicable to this document.

4 General principles

The evaluation of brand value elements shall follow the following principles: -- The selection of evaluation indexes reflects the characteristics of the industry, the type of the subject of brand and other characteristics; -- The acquisition of evaluation data shall be reliable, objective and sufficient; -- The evaluation process shall be open, transparent and fair; -- The evaluation methods should be consistent, to ensure that the results are relatively stable and comparable.

5 Evaluation index system

5.1 Composition of the evaluation index system The basic elements that constitute the foundation of brand value include five categories: tangible, quality, innovation, service, and intangible. Each category of elements can be measured and evaluated by specific indexes, where: -- Tangible elements refer to the identifiable and directly measurable resources that are controlled by the entity. The indexes of the element include but are not limited to material resources and financial resources, which reflect the ability of the brand entity to control the tangible resources; -- Quality elements refer to the resources which are invested in quality commitment, quality management, and perceived quality. The indexes of the element include but are not limited to implementation of the quality management system, process documentation, and qualified quality management personnel, which reflect the sustainable and stable ability of the brand entity to provide products and services that meet customer needs; -- Innovation elements refer to the resources that are invested in innovation activities. The indexes of the element include but are not limited to the ability, sustainability and effectiveness of innovative activities, which reflect the capacity, sustainability and effectiveness of the brand entity's innovation activities; -- Service elements refer to the activities that are carried out by the brand entity to meet customer needs and strengthen brand perception and participation. The indexes of the element include but are not limited to -- Evaluation-related information and data which is obtained by the evaluation subject through surveys and other methods; -- Relevant investigation reports, literature and other relevant materials that are provided by credible third-party organizations; -- Relevant information that is publicly released by social media.

7 Result measurement and calculation

7.1 Quantitative evaluation indexes The quantification of the evaluation of brand value elements can be measured and calculated according to the methods that are given in GB/T 29186.2 ~ GB/T 29186.6. In the quantification process, the metric calculation formula which is given in the above standard can also be optimized according to the actual situation.

7.2 Measurement and calculation results By weighting and summing the scores of the evaluation indexes of each element, calculate the evaluation result of each element. The calculation formula is shown in Formula (1): Where: K -- evaluation value of a certain element of brand value; Ki -- evaluation value of the ith first-level index in a certain element; Wi -- weight of influence of the ith first-level index on a certain element that is evaluated. For example, the evaluation index system is composed of multi-level indexes; the brand value element score can be obtained by calculating indexes of each level; the calculation formula can be extended with reference to Formula (1).