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Article
Publication date: 6 June 2016

Marsela Thanasi (Boçe)

The approved methodology of property valuation in Albania evaluates the reference property prices based on the average contractual price of properties sold and takes into account…

Abstract

Purpose

The approved methodology of property valuation in Albania evaluates the reference property prices based on the average contractual price of properties sold and takes into account only factors such as price, square meters of living and location of property. Simple method is the one used on evaluating the reference price for a group of properties with similar characteristics. The purpose of this study is, by building a hedonistic pricing model for apartments in Tirana, to prove empirically that in addition to location, there are other characteristics that affect the value of apartments.

Design/methodology/approach

The capital city is chosen as a case study for the construction of a hedonistic pricing model. In the database were included detailed characteristics of 1,421 apartments. Multiple regression analysis was chosen in this model as a method to test hypotheses about the causal relationship between house value Y and independent variables XS, representing the characteristics of the property. Population equation parameters β0, β1, β2 […], βn. were evaluated by the ordinary least squares method. Selection of α-standard is 5 per cent, taking into account the significant number of observations and the degree of regression freedom.

Findings

Based on this study, it was proved empirically that the characteristics of the apartments as square meters of living, number of rooms, access to parking, furniture, view and surface of living affect their price. As a literature review showed, location is the most important variable that affects the value. Results showed that the marginal effect that the number of rooms has on the apartment value depends on the square meters of living of the apartment. In the same line, the effect of the square meters of living on value depends on the square meters, as the relationship between these variables is nonlinear and depends more on the number of rooms.

Research limitations/implications

It was impossible to find the information on property sales contracts. That is why this study was oriented toward the market and took into account the properties offered for sale at one of the biggest real estate agency “Çelësi”. More accurate information regarding properties characteristics could be obtained. The information was limited and depended on the best apartment characteristics that potential sellers wanted to advertise. On the other side, contractual sales price is oriented by the reference price, so, the applied methodology has resulted in better evaluations of real estate prices, which reflect the market price.

Practical implications

This study is conducted as an applicable research. After analyzing the property valuation system in Albania, the study recommends the change of the method used on apartment valuation. Improvement of the property valuation system requires first of all creation of a complete and updated database for all real estate sales.

Social implications

Property valuation is a very important function of the land administration system which directly affects people’s life. Property evaluation for different purposes like tax evaluation, compensation and expropriation is a process that must be designed using an equal, transparent and well-accepted methodology by all. Promotion of property valuation system development is helpful to various interest groups in society, as it can reduce the risk of investment in this sector and encourages lower rates of interest on loans.

Originality/value

To the author's knowledge, the hedonic model is not applied on the Albanian housing market, thus providing encouragement to deepen the study in this regard. The study is original and has a very important impact on policymakers to change the actual property valuation methodology to obtain more accurate property values.

Details

International Journal of Housing Markets and Analysis, vol. 9 no. 2
Type: Research Article
ISSN: 1753-8270

Keywords

Article
Publication date: 5 March 2018

Urbi Garay

The purpose of this paper is to present the progress and trends of the literature on art as an investment and to outline potential research lines to be developed.

Abstract

Objective

The purpose of this paper is to present the progress and trends of the literature on art as an investment and to outline potential research lines to be developed.

Design/methodology/approach

This work gathers, analyses and critically discusses the attributes of investments in art in general, and in Latin American art in particular.

Findings

Most studies report that art (art in general, and Latin American in particular) has offered relatively low but positive real returns, which have tended to be below those offered by stocks and similar to those realized by bonds. Art has a low correlation with other investments.

Research limitations and implications

The literature on the attributes of Latin American art as an investment is limited and new research would help to close the knowledge gap with respect to this segment of the art market as it continues to grow.

Practical implications

Similarly to the research carried out into other segments of the art market, studies on Latin American art suggest that the works of art are worth more, ceteris paribus: the more renowned the artist, the larger the work, whether they were executed in oil, and if they were auctioned at Sotheby’s or Christie’s. The paper also details a series of practical implications for those who participate in the art market.

Originality/value

To the best of the authors’ knowledge, this is the first exhaustive review of the literature on the attributes of Latin American art as an investment. The findings of this study are useful for academics, art collectors, auction houses, gallerists and others who take part in the arts market.

Propósito

Presentar los avances y las tendencias de la literatura sobre el arte como inversión, y delinear líneas de investigación a ser desarrolladas.

Diseño/metodología/enfoque

Este trabajo reúne, analiza y discute críticamente los atributos de inversión del arte, en general, y latinoamericano, en particular.

Hallazgos

La mayoría de los estudios reportan que el arte (tanto el arte, en general, como el arte latinoamericano, en particular) ha ofrecido rendimientos reales positivos, aunque relativamente bajos, los cuales tienden a ser inferiores de los de las acciones y a ser similares a los de los bonos. El arte tiene una baja correlación con otras inversiones.

Limitaciones e implicaciones de la investigación

La literatura sobre los atributos del arte latinoamericano como inversión es limitada. Es de esperar que nuevas investigaciones permitan ir cerrando la brecha del conocimiento con respecto a esta parte del mercado del arte a la par que éste continúe creciendo.

Implicaciones prácticas

Los estudios de arte latinoamericano sugieren, similar a las investigaciones sobre otros segmentos del mercado del arte, que las obras de arte valen más, ceteris paribus: cuando el artista es más reputado, a medida que el área de las obras es mayor, si han sido ejecutadas en óleo, y cuando son subastadas en las casas de subastas Sotheby’s o Christie’s. En el trabajo se detallan, además, una serie de implicaciones prácticas para los participantes del mercado de arte.

Originalidad/valor

Hasta donde se ha podido comprobar, esta es la primera revisión exhaustiva acerca de los atributos del arte latinoamericano como inversión. Los resultados de esta investigación son de utilidad para: académicos, coleccionistas de arte, casas de subastas, galeristas, y demás participantes en el mercado del arte.

Article
Publication date: 29 January 2021

Elena Shakina, Iuliia Naidenova and Angel Barajas

Focusing on managerial problems related to the measurement of intangibles, this paper develops and validates a hedonic-pricing methodology for the evaluation of the intangible…

Abstract

Purpose

Focusing on managerial problems related to the measurement of intangibles, this paper develops and validates a hedonic-pricing methodology for the evaluation of the intangible resources of companies obtaining their shadow prices.

Design/methodology/approach

The paper adapts a hedonic-pricing methodology developed primarily for markets in real estate and secondhand cars to define how much intangibles may contribute to companies' market value. A certain calibration of the original tool has been developed to make this methodology appropriate for interpretation and practical use. The main advantage of this approach is that it allows for an evaluation of the shadow prices of intangible resources. These prices can be interpreted as the market value of the intangible resources which are not reflected on the balance sheet.

Findings

The results of this study demonstrate that hedonic pricing with a self-selection correction generates robust estimates. As one can see, the positive contribution of a high endowment of intangibles for all shadow prices is confirmed through estimations using two different techniques. Meanwhile, the negative effect of a low endowment is even more evident for the baseline model. This model shows consistent negative shadow prices for the majority of underinvested intangibles. Brands have the highest shadow prices in the introduced models; human capital, as measured by the qualification of top management and investments in employees, has likewise demonstrated high prices. However, most structural resources seem to be not reflected to a large degree in companies' market value.

Practical implications

This paper brings new opportunities to obtain the monetary value of intangible resources based on estimated market prices of a corporation's resource portfolio. These prices may be used for several purposes – for example, benchmarking for performance management, capital budgeting or knowledge-management practices. Moreover, by having methodological value, this study opens ways to evaluate any other intangibles which are not explicitly discussed in the empirical test of this particular study.

Originality/value

This study primarily contributes to the methodological advancement of evaluation of corporate intangible resources. It departs from the conventional hedonic-pricing mechanism to identify cogent estimates to intangibles in monetary terms. Importantly, this mechanism implies individual shadow prices for specific intangible resources which makes the contribution of this study unique for the existing literature, both within resource-based and value-based views.

Details

Journal of Intellectual Capital, vol. 23 no. 3
Type: Research Article
ISSN: 1469-1930

Keywords

Article
Publication date: 1 March 1989

Stephen L. Lee

Examines the role of property in a portfolio investment context.Demonstrates that the return an asset is required to achieve depends onthe variability and correlation of returns…

Abstract

Examines the role of property in a portfolio investment context. Demonstrates that the return an asset is required to achieve depends on the variability and correlation of returns and not simply average returns. Shows that property, as measured by the Jones Lang Wootton Index, should have been included in institutional portfolios using both nominal and real returns, even if the variability of property was more than doubled. Suggests that property portfolios still offer considerable benefits to existing gilt/equity dominated funds in terms of improved risk‐adjusted performance.

Details

Journal of Valuation, vol. 7 no. 3
Type: Research Article
ISSN: 0263-7480

Keywords

Article
Publication date: 12 August 2014

Peter Jones, David Hillier and Daphne Comfort

Large-scale shale gas reserves have recently been identified under many parts of the UK and development pressure for detailed exploration and possibly the exploitation of these…

1967

Abstract

Purpose

Large-scale shale gas reserves have recently been identified under many parts of the UK and development pressure for detailed exploration and possibly the exploitation of these reserves by hydraulic fracturing, popularly described as fracking is growing rapidly and seems to have UK Government support. With this in mind the purpose of this paper is to offer a general review of the possible development of shale gas reserves by fracking within the UK and to explore a number of the planning and property issues associated with such development.

Design/methodology/approach

The briefing note begins with an outline of the characteristics of shale oil and the fracking process and of the initial developments within the UK and discusses some of the planning and property issues associated with such developments. The note is based upon information drawn from the internet sources, principally national and local governments, business organisations and environmental and community pressure groups and on visits to a small number of sites of exploratory fracking.

Findings

The note reveals that planning applications for exploratory and production fracking will be determined at local authority level rather as Nationally Significant Infrastructure Projects determined by the Secretary of State. In determining planning applications local authorities have received planning guidance from the UK Government and will need to consider a wide range of environmental factors but some critics suggest that the guidance is not comprehensive and that it is weighted in favour of granting permission. A number of property issues are also identified possible effects of fracking on property prices, the availability of mortgages and the insurance of properties.

Originality/value

This paper provides an accessible review of the development of shale gas resources by fracking within the UK and as such it will be of value to planners, developers, land and property professionals and students.

Details

Property Management, vol. 32 no. 4
Type: Research Article
ISSN: 0263-7472

Keywords

Article
Publication date: 5 June 2023

Mohammad Hossein Zolfaghar Arani, Mahmoud Lari Dashtbayaz and Mahdi Salehi

This study aims to determine the contributing factors to technical knowledge valuation at the related quadruple levels of commercialisation, including the idea, benchtop technical…

Abstract

Purpose

This study aims to determine the contributing factors to technical knowledge valuation at the related quadruple levels of commercialisation, including the idea, benchtop technical knowledge, prototype technical knowledge and commercialised technical knowledge, and then classify the factors by the valuation objectives.

Design/methodology/approach

The study method is descriptive-causal, and documentation tools of published scientific research articles in authentic local and international journals were used to extract the contributing factors to technical knowledge valuation. Moreover, the Likert spectrum-based questionnaire is used to determine the weight of each determined component. On the other hand, hierarchical analysis is used based on the extracted results from the distributed classification questionnaire among scholars to determine the allocable weight of each component.

Findings

The results indicate that at the idea step, the highest ranks among the contributing factors to technical knowledge valuation are for the indicators of innovation rate enhancement, novelty, creation of new products, profitability growth and dependence decline. In the benchtop technical knowledge step, the indicators of profitability growth, product quality enhancement, novelty, production risk drop, innovation rate enhancement, production costs drop, product price competitiveness and independence from rare machinery have the highest impact coefficients on valuation. Moreover, the prioritisation of factors in prototype technical knowledge shows that the indicators of productive risk decline, infrastructure, decrease in product delivery time, productivity growth and profitability growth are the most critical factors in technical knowledge valuation. Finally, profitability growth factors, production cost drop, productive risk drop, creating a new product, product price competitiveness and dependence decline determine the most valuable technical knowledge in the commercialisation phase.

Research limitations/implications

The most salient innovation of the study involves the development levels of technical knowledge in the commercialisation cycle for determining the contributing factors to technical knowledge valuation and using multivariate decision-making methods to classify the so-called factors. The major limitation can be the context of the study because the paper was carried out by Iranian assessors and specialists using the experiences, opinions and approaches of opinion leaders based on the dominant social, cultural and accounting background of a developing country, not a developed one.

Originality/value

This paper is applicable because it elucidates the technical knowledge valuation factors for managers and owners of technological and knowledge-based companies to facilitate value determination and register the technical knowledge of innovative products in financial statements for the logical presentation of available intangible assets in the economic unit. Besides, in the high-tech area, collecting information from the contributing factors to technical knowledge valuation provides an opportunity to support intellectual property rights and facilitate transaction processes. Finally, in legal areas, in cases of breaching intellectual property rights relative to technical knowledge, the determination of technical knowledge value provides a solid basis for estimating the damage rate.

Details

International Journal of Innovation Science, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1757-2223

Keywords

Article
Publication date: 27 November 2019

Nitin Soni and Jagrook Dawra

An open question of behavioral pricing literature is: What are the factors which influence consumers’ judgments of acquisition value and transaction value? An important framework…

Abstract

Purpose

An open question of behavioral pricing literature is: What are the factors which influence consumers’ judgments of acquisition value and transaction value? An important framework to explain consumers’ shopping and purchase decisions is their decision-making styles. This paper aims to examine the influence of consumers’ decision-making styles, that is, perfectionistic high-quality conscious, brand conscious-price equals quality, novelty-fashion conscious, recreational-hedonistic, price conscious-value for money, impulsive-careless, habitual-brand loyal and confused by overchoice on their judgments of acquisition value and transaction value.

Design/methodology/approach

From the literature, a conceptual framework was formulated. Data was collected from a survey of 304 respondents. The measurement model was tested using exploratory factor analysis and confirmatory factor analysis. The structural model was tested using structural equation modeling.

Findings

The consumers’ judgments of acquisition value and transaction value vary with their decision-making styles. The measurement and structural models exhibited good fit, and 12 of the 16 proposed hypotheses were found to be significant.

Research limitations/implications

The respondents for this research study were urban and postgraduate students.

Practical implications

The results of this study can help managers personalize their promotional offers and market offerings targeted at consumers with different decision-making styles.

Originality/value

Behavioral pricing literature has not convincingly shown that consumers make the judgments of the two values, acquisition value and transaction value, in a purchase scenario. There is limited literature on the impact of decision-making styles on the marketing variables. The results of this study contribute to the literature by showing that consumers make the judgments of these two values, and these judgments vary with their decision-making styles. Also, this is one of only a few studies to examine the two components of the purchase value in an Indian context.

Details

Journal of Indian Business Research, vol. 12 no. 3
Type: Research Article
ISSN: 1755-4195

Keywords

Article
Publication date: 6 March 2007

Woonbong Na, Youngseok Son and Roger Marshall

In most markets it is possible to identify a brand leader and a number of brand followers. The purpose of this paper is to address the following question: “Why should any consumer…

2202

Abstract

Purpose

In most markets it is possible to identify a brand leader and a number of brand followers. The purpose of this paper is to address the following question: “Why should any consumer purchase a ‘second‐best’ option?”

Design/methodology/approach

Consideration of the way in which these two groups of consumers (brand leaders and followers) trade off product attributes (utilitarian benefits, hedonistic benefits and price fairness) during the choice process is made in the study by path analysis of the appropriate structural equation models and then a consideration of the level and the differences between the means of the three variables.

Findings

The paper finds that utilitarian attributes are of paramount importance to satisfaction with the brand. This is not in accordance with conventional wisdom, which leads us to believe that price is most important to buyers of second‐tier brands and hedonic considerations most important to buyers of leading brands.

Research limitations/implications

The model fit attained is only good enough for exploratory work (GFI =0.88/0.90) so replication with a larger sample would be appropriate. In addition, the research is carried out in South Korea – although we know of no reason why this should affect the results it would be of interest to generalize the results to a western economy. Nevertheless, the method of first fitting the model then trading off the attribute levels is unusual and quite interesting.

Practical implications

Marketers of leading brands should not concern themselves about price but merely stress the benefits, whereas marketers of follower brands should make much of the price differential.

Originality/value

The importance of utilitarian benefits have hitherto not often been stressed when marketing premium brands – this research suggests that this is wrong.

Details

Journal of Product & Brand Management, vol. 16 no. 1
Type: Research Article
ISSN: 1061-0421

Keywords

Article
Publication date: 18 October 2019

Sartaj Chaudhary and Ajoy Kumar Dey

Materialism has become a topic of increasing interest to researchers and policymakers because it can influence consumer behavior. However, a clear picture of how this phenomenon…

Abstract

Purpose

Materialism has become a topic of increasing interest to researchers and policymakers because it can influence consumer behavior. However, a clear picture of how this phenomenon impacts consumers has proven to be elusive. Using an integrated framework, this paper aims to derive hypotheses from theoretical concepts of materialism and consumer decision-making styles and uses a survey of 1,216 respondents in India to test the hypotheses.

Design/methodology/approach

The present study is the first of its kind to test the impact of materialist values on consumer decision-making styles among a sample of 13-18 years old school children. The constructs are validated through a first- and second-order confirmatory factor analysis and an integrated second-order structural model is developed.

Findings

This study finds that materialism is a positive predictor of “recreation/ hedonistic”,; “confused by over-choice”; “brand consciousness”; “perfectionistic high-quality consciousness”; and “habitual brand loyal” style of consumers. Further, materialism has a negative impact on “price value consciousness” of consumers. These findings have important implications for theory and practice.

Research limitations/implications

This study is restricted to school children in the National Capital Region and hence cannot be generalized to the whole young population in India.

Originality/value

Conceptualizing both materialism and consumer decision-making styles as second-order constructs, this is a maiden study that examines the impact of materialistic values on the consumer decision-making styles of young consumers.

Details

Journal of Indian Business Research, vol. 12 no. 2
Type: Research Article
ISSN: 1755-4195

Keywords

Article
Publication date: 16 March 2012

Janeen Olsen, Liz Thach and Liz Hemphill

The purpose of this paper is to focus on one product category, organic wine, to provide a possible explanation for consumers' purchase behaviors regarding organic wine…

2183

Abstract

Purpose

The purpose of this paper is to focus on one product category, organic wine, to provide a possible explanation for consumers' purchase behaviors regarding organic wine. Specifically, the authors consider the role of environmental protection and hedonistic values and their impact on organic wine purchases.

Design/methodology/approach

Hypotheses are proposed to examine relationships between environmental and hedonic values in organic wine purchasing. Online survey data were collected from 321 wine drinkers in the USA. Partial least‐squared analysis was used to test hypothesized paths between latent variables.

Findings

In total, ten of the 13 proposed linkages were supported by the data. Values reflecting the need for environmental protection and for living a hedonistic life were found to lead to belief systems that influence the purchase of organic wines.

Research limitations/ implications

The results demonstrate that hedonistic and environmental protection values and beliefs can partially explain the propensity to purchase organic wines. The study is limited in that only two values were investigated.

Practical implications

The results indicate several marketing implications for professionals around communication, promotion, and point‐of‐sale information for organic wine.

Originality/value

This is the first study to integrate environmental and hedonistic values to explain the purchase of organic wines.

Details

International Journal of Wine Business Research, vol. 24 no. 1
Type: Research Article
ISSN: 1751-1062

Keywords

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