Research On The Influence Of City Brand On Enterprise Performance

In the period of excessive selection, demand determines supply, selection and recognition of consumers has become a key factor of enterprise marketing performance. Then what kind of factors influence consumers’ selection ?From the brand perspective, this article demonstrates that the city brand,as a signal, can affect the enterprise image and status in the eyes of consumers, is an important factor influencing consumers’ choices, thereby affecting the market performance of the enterprise. And also, the city brand has an important impact on the enterprise’s performance level.Firstly, this article uses the theoretical model, assuming that the brand signal will affect consumers’ selection cost. This article mathematically demonstrates the city brand can affect the performance of the enterprise level as a signal, under the buyers and sellers of information asymmetry market condition. The theory of path is as followed, the more various a city’s resources, the more strongly the city will release the brand signal. Because the signal strength and brand choice cost of consumers is inversely proportional to, so consumers will tend to select the relevant products with a high city brand signal. City brand, as a kind of signal, will affect the tendency of consumer choice, thereby affecting the enterprise market sales levels, thereby affecting the performance of enterprises.After theoretical analysis, this paper makes the corresponding empirical analysis. Firstly, this paper quantifies the 54 samples of city brand signals. Different from the previous research, this paper thinks that the city brand isn’t all elements within the city simple summation, but from the enterprise image evaluation system, dividing the city brand signal intensity quantization system into signal generating system and signal transmission systems, and on the economic factors, foundation to further establish signal generation system infrastructure elements, science and education elements of location factors, four two class indexes and experience communication, signal transmission system oftraditional communication, network communication, other communication four level two indexes. Finally we draw the Douglas production function, at the same time using two systems to generate the value of signal intensity of the final value of city brand.On the basis of quantitative city brand signal, this paper takes Chinese industrial enterprise database with 177130 companies in 54 samples of city as the research object in 2009, using the hierarchy analysis model of city brand influence on the performance of enterprises to do further analysis. Using the rate of return on total assets(ROA), the rate of return on net assets(ROE), sales profit ratio(ROS), the three indicators, to measure business performance. Zero model checking analysis hierarchy model shows that the difference of city enterprises accounted for the difference of ROA between the 18.53% performance, the difference of ROE between the 11.32%, the difference of ROS between the 4.31%. The high impact ratio illustrates that the city factors is an important factor influencing the enterprise performance difference. Further investigation of various factors through the whole model of city brand signal influence on the performance of enterprises testify that the economic elements of U and U1 in the system of signal generation system, infrastructure elements U2, V1, V2 experience communication of traditional communication, network communication and system V3 V signal transmission system have a positive effects on enterprise performance. At the same time it also proved that the significance of science and education elements of U3, U4, the location factors of other forms of communication between V4 and enterprise performance is not significant.