Goodwill perceptions in the construction market of the Czech Republic

article in a collection out of WoS and Scopus

English

Goodwill is considered an intangible asset of the company. From the economic standpoint, as opposed to the accounting and legal view, Goodwill is considered to be a good reputation of the business. The company monitors the levels and development of Goodwill in internal accounting. Because Goodwill contributes to the optimization of economic results through a suitable business policy, which is influenced by the marketing strategy. The connection of Goodwill and marketing strategy allows to examine the results of marketing activities and monitor its development. When determining the amount of Goodwill in the business, it is not possible to speak about determination of its price, but about determination of its value. Goodwill reflects a number of specifics. Thetwo most important specifics considered by authors are the specifics of the business and the size of the company. For the purposes of the paper, the authors conducted a research focused on the construction industry. For the purposes of the research, the authors chose an area whose specifics are significant, and which unequivocally manifest itself in different approaches to the creation of Goodwill Construction companies operate on the construction market of the Czech Republic in the segment of constructionworks where their specifics are clearly reflected in different approaches to the creation of Goodwill. Other significant differences in approach and expression of Goodwill were influenced by the size of the company. Two basic groups were created, namely large companies and the second group contained medium and small firms. There were also significant differences between the large group and the second group of medium and small companies. Micro-companies were not included in the research. Through the questionnaire survey were addressed construction companies, whose main activity are realizations of buildings. The BrandBeta method was chosen for the method of determining the value of Goodwill, considering the ability to capture the value amount, structure and nature of Goodwill development. The questionnaire tested in what extend two basic groups of respondents attribute weight to individual parameters of this method. The research was carried out at large companies operating in the Czech Republic and regional companies in six regions. The results of the research showed a different degree of importance for BrandBeta parameters and resulted in a recommendation to extend BrandBeta evaluation by further criteria through further research.

Goodwill; Construction company; marketing strategy; method BrandBeta

DOHNAL, R.; HANUŠOVÁ, H.; PELČÁK, S.

25. 11. 2019

Varazdin Development and Entrepreneurship Agency, Varazdin, Croatia

Varazdin

1849-7535

Book Series: International Scientific Conference on Economic and Social Development

Republic of Croatia

41

50

10

https://www.esd-conference.com/upload/book_of_proceedings/Book_of_Proceedings_esdWarsaw2019_Online.pdf