Economics Analysis Of Brand Forming Mechanism

With the development of the marketization and economy opening, the brand shown as the name, term, mark, symbol or pattern, has become one of the key elements of modern economy units' competitiveness, and the meaning and function of it in the economic activity is increasingly strengthened. This article analyses the forming mechanism of brand from the economics respects of the new institutional theory, transaction cost theory, consumer behavior theory, and theory of market structure, etc. Using comparative analytic approach and the method of norm and real example analysis, it explains the reason, terms and environment of brand. Some suggestions are given for optimizing the brand building system of our country. There is also special analysis and economics explain of bank brand, which has strong directive significance for economic behavior of the government as well as enterprise.Brand is defined as a kind of non- mandatory system agreement of both parties in economy in the article. And it is pointed out that the theoretical foundation of brand forming mechanism is new institutional economics and consumer behavior theory. The existence of the transaction cost causes the institution system, and the operation of the system helps to reduce the transaction cost. Brand arrangement offers a material body for both consumers and producers to realize the purpose of transaction cost reduction. The levels and diversification of consumption demand determine that brand exists in the diversity markets, and brand can weaken marginal utility progressive decrease. "Buyer's market" is the terms of brand producing, while monopolize competition and oligarch are the market structures which impel brand products creation. It is the net institution income that makes the existence of brand as an institution. Suggestion for government policy, market environment and enterprise's interior system construction concerning brand building of our country are given.This article analyses "brand" which is one of the management concepts with the theory and view of economics, forming an intact theoretical system of brand, which gives the brand building behavior theoretical base and further direction instruction.