Branding a Next-Generation Product

The launch of a next-generation product, companies typically have the opportunity to continue with an existing naming sequence or switch to an entirely new brand name.

            John T. Gourville and Elie Ofek, Harvard Business School marketing professors, teamed up with London Business School's Marco Bertini to search out the best practices for naming next-generation products. 

During experimental research, data showed that each naming approach affects customer expectations. With a name change, research participants expected features that were distinctly different or new. With a name continuation, customers just expected improved performance on existing features.

            Companies must also assess risk versus reward when branding a product upgrade.  They must weigh in the excitement generated by a new name against the danger of scaring away customers who worry that new features pose the threat of new glitches and a steep learning curve.

In my opinion, companies may find appealing the thought of using a new brand name to signal an important innovation. People generally view innovation in a favorable light. However, the concern is that a new brand name not only leads consumers to believe that they are exposed to greater rewards, but it also leads consumers to believe that they are exposed to greater risks.

Cited:

How to Brand a Next-Generation Product. (2012) Retrieved April 25, 2012 from http://hbswk.hbs.edu/item/6961.html.