A Known Name Facilitates An Unknown Purchase
A relatively new academic paper, based on both experimental and field-based research, suggests that early adopters prefer existing brand names for cutting-edge products vs. new brand names for less innovative products.
Obviously, the choice of a name is part of a brand strategy and as the article notes, "choice of an appropriate branding strategy is a critical determinant of new product success."
The researchers note that their findings echo prior research suggesting that when it comes to buying a product they don't know, it is reassuring to find it wrapped in a name they are familiar with.
The issue at hand is whether existing brands should gamble their equity on a new high-technology offering, which may or may not be successful.
For Further Reading
Yann Truong, Richard R. Klink, Geoff Simmons, Amir Grinstein, Mark Palmer, Branding strategies for high-technology products: The effects of consumer and product innovativeness, In Journal of Business Research, Volume 70, 2017, Pages 85-91, ISSN 0148-2963, https://doi.org/10.1016/j.jbusres.2016.07.003.(http://www.sciencedirect.com/science/article/pii/S0148296316304805)
Keywords: Innovation; Branding; Consumer innovativeness; Product innovativeness; High-technology products
Copyright 2017 by Dannielle Blumenthal, Ph.D. All opinions are Dr. Blumenthal's own. All rights reserved. Photo by qimono via Pixabay (CC0 Creative Commons).