ed at that time. On the other hand, when extending products’ information can not be represented by the original brand to receive a continuous awareness of consumers, brand recognition will be weakened at that time.
(E) Concentrated performance of brand effect in enterprises
Brand can protect the interests of producers and dealers. (Li Yining, 2003) Brand becomes a unique enterprise resource after registration and will be protected by law, shall not be counterfeit and use for other enterprises. It can be prosecuted according to law and claims if discover counterfeit goods. If products are not registered, they would not be protected by legal, it then will cause losses to businesses. Brand is an effective marketing tool. Brand enables enterprises to carry out focused publicity in the advertisement, simple and focused, take effect quickly, have deep impression, it is served to help consumers to familiar with products and inspire desire to purchase in products sales. Brand can help consumers identify and select products. Brand effect is generated in its publicity. It is impossible to try before purchasing goods for consumers, so it mainly by brand effect. If a brand is well-known and popular, even without trying or use, consumers will buy because of brand effect. The generation of brand effect may be due to the operators’ own publicity, it may be from brand recognition from other consumers. Brand effect is an effective way to establish a corporate image. Brand is a general conclusion of product quality, features, performance, general purpose grades, enterprises’ spirit and credibility. When consumers have access to products brands, these contents will be quickly appeared in the minds of consumers, in this sense, brand also on behalf of their market. Brand effect is the interest by using of brand. If enterprises want to get good brands, it should increase brand advocacy both in breadth and depth, but also it’s necessary to have fundamental means of improving product quality, enhancing products and services.
In the modern market operation, enterprises should always have relations with various economic and social main bodies for material, information exchanges. As there have information asymmetry for different principal owners, advantage parties often have chances to do opportunism behavior to components, thus increasing transaction costs, but if the transaction bodies have higher moral qualities, treat other consciously with hearts, then it will greatly reduce the opportunism behaviors, and even eliminate the ‘moral hazard’ behaviors, so that both sides will have higher expected returns. It shows that honesty is the basic guarantee for the completion of both transactions.
China elder said that, ‘People have three immortalities, the first is morality, second is merit, another is credit.’ If China's entrepreneurs can obey the good faith doctrine in the market of economic reforms, they will be very casual to advance into the world economy.
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