The Impact of Brand Name Substitution on Product Evaluation and Purchase Intention

Abstract

The aim of this article is to understand the impact of a brand name substitution on the evaluation and purchase intention of the product. To achieve this, we present various types of brand name substitutions. Then, drawing on work relating to brand extension and co-branding, we propose variables that are likely to explain the evolution of the evaluation and purchase intention of the product whose brand name has changed. The empirical study demonstrates that five variables influence the evolution of the evaluation and purchase intention of the product under a different brand name: (1) the similarity between the substitution brand and the initial brand, (2) the fit between the substitution brand and the product, (3) the difference in awareness of the two brands, (4) the difference in image of the two brands and (5) consumer attachment to the initial brand.

Consumer reaction to service rebranding

“…However, it is possible to construct a typology of the most frequent cases. To this end, we will look at the criteria proposed by Collange (2008) for consumer goods and see whether they are applicable to services. The first criterion is awareness of the new brand.…”

“…The third criterion proposed by Collange (2008) is the number of brands for the product. Consumer goods may be signed by a single brand (a product brand name) or by two brands (a product and a parent brand name).…”

“…changing product brand names, has become increasingly common over the last twenty years (Kaikati and Kaikati, 2003;Kumar, 2003). This marketing practice consists in removing one brand name for a product and replacing it by another (Collange, 2008). But while once this phenomenon primarily concerned consumer goods, there has been an explosion in service brand name changes throughout Europe over the last decade: in the United Kingdom the "Midland Bank" has become "HSBC", in Germany the mobile provider "Mannesmann" has been renamed "Vodafone", and in France the insurance company "AGF" is now "Allianz".…”

“…Although rebranding has thrived in recent years, there has been very little academic research on the topic (but see Aimé-Garnier and Roux, 2006;Jaju et al, 2006;Muzellec and Lambkin, 2006;Collange, 2008;Kapferer, 2008;Collin-Lachaud et al, 2012). The few studies that have been made focus on the implementation strategy (i.e.…”

“…However, both strategies need to be right if the rebranding is to be successful (Keller, 2003). Only two studies (Jaju et al, 2006;Collange, 2008) have investigated how the characteristics of the two brand names involved impact the evaluation of the product/company. So, no model has been developed in the context of services and the topic is in need of investigation (Ailawadi and Keller, 2004).…”