Rebranding is a frequently used marketing measure whenever corporations strive for changes in the physical elements of their brands or their brand management. This paper analyzes how consumers’ brand awareness and brand image is affected, when consumers are confronted with altered brand names and symbols. By elaborating the concept of brand equity transfers and four different consumer response scenarios, psychological theories and effects are derived and related to prevalent findings of rebranding-caused brand equity loss.
"Rebranding" ist ein vielfach-angewandtes Marketinginstrument für den Fall, dass Unternehmen Veränderungen in physischen Markenmerkmalen oder ihrem Markenmanagement anstreben. Diese Arbeit untersucht wie Markenbekanntheit und Markenimage von Konsumenten beeinflusst werden, wenn Konsumenten mit veränderten Markennamen und –symbolen konfrontiert werden. Anhand der Ausarbeitung des Konzepts von Markenwert-Transfers sowie vier unterschiedlichen Konsumentenreaktionen werden psychologische Theorien und Effekte abgeleitet und in Zusammenhang mit verbreiteten Forschungsergebnissen über "Rebranding"-induzierte Verluste im Markenwert gesetzt.
Table of Contents
1. Introduction
2. Old wine in new bottles: Principles of corporate rebranding
2.1 Brands and brains – basic branding theory from a cognitive perspective
2.2 Dimensions of rebranding
2.2.1 From color shift to brand name change: different acts and motives of rebranding
2.2.2 Distinct marketing strategies for managing the rebranding process
2.2.2.1 Abrupt vs. gradual rebranding
2.2.2.2 Communicated vs. non-communicated rebranding
3. Rebranding from a consumer perspective
3.1 Rebranding as a potential destroyer of brand equity
3.2 Brand equity transfer: re-branding is re-settling consumer associations
3.3 Consumer response scenarios with regard to consumers’ brand awareness and brand image
3.3.1 The consumer decision-making process
3.3.2 Brand agnosia or surprise effect – impacts on brand awareness
3.3.2.1 Awareness and recognition as a premise for brand choice
3.3.2.2 Worst-case scenario: recognition failure due to ruptured associations in consumer memory
3.3.2.3 Rebranding as a surprise effect to activate consumers
3.3.3 What the consumer thinks: impact on brand image
3.3.3.1 Negative attitude due to consumers’ reluctance to change
3.3.3.2 Avoiding consumer annoyance through communication and mere exposure
3.3.4 Outlined response scenarios at a glance
3.4 Derived implications for marketers to avoid brand equity loss
4. Outlook and conclusion
Research Objective and Key Themes
This thesis examines how corporate rebranding activities—specifically changes to brand names and symbols—impact consumer behavior from a cognitive psychological perspective. The primary research focus is to analyze how these changes influence brand awareness and brand image, and to identify how firms can manage the rebranding process to minimize the risk of brand equity loss.
- Cognitive processing models in consumer decision-making
- Impact of rebranding on brand awareness and recognition
- Strategies for successful brand equity and knowledge transfer
- Psychological effects of change (cognitive dissonance, mere exposure)
- Marketing strategies for communicating rebranding initiatives
Auszug aus dem Buch
3.3.2.2 Worst-case scenario: recognition failure due to ruptured associations in consumer memory
Unless a firm did not rebrand to delete the old brand, for instance due to reputation problems, the latter consequence is not an ideal outcome of a conducted rebranding, as it results in consumer confusion, and thus in negative effects on purchase behavior. Delassus and Descotes (2012, 117) concluded that rebranding will cause brand equity loss, as consumers will consider the brand as a completely new brand, if they are not prepared or informed about the switch. From this can be inferred that rebranding, which significantly alters the brand’s outer appearance, leads to recognition failure and doubts about the brand’s quality (Delassus and Descotes 2012, 117). This has serious impact on consumers’ purchase behavior and decision-making: recognition failure lowers the likelihood that the brand will enter consumers’ consideration set, as the altered brand lacks the necessary familiarity. Familiarity, defined as “…the number of product-related experiences that have been accumulated by the consumer” (Alba and Hutchinson 1987, 411), plays a central role in consumers’ buying behavior because consumers often buy brands that they already know, due to their risk-aversion (Aaker 1991, 19, Erdem and Keane 1996, 1; 14). Unfamiliar brands, on the other hand, fail to activate any association in consumer memory because consumers have not yet had any experience with the brand (Campbell and Keller 2003, 293). P&G’s failed rebranding of Fairy serves as a valuable example: Following the rebranding, consumers were not able to find Fairy on the supermarket shelf anymore, as it had changed one of its fundamental cues – its name. Instead, consumers were suddenly faced with an apparently new dish washer under the name Dawn, which, however, lacked the necessary familiarity, and thus did not activate any associations in their memory.
Summary of Chapters
1. Introduction: This chapter introduces the phenomenon of rebranding, highlights the risks involved, and outlines the research focus on cognitive processes and brand equity.
2. Old wine in new bottles: Principles of corporate rebranding: This chapter provides the theoretical foundation for branding, explores dimensions of rebranding like names and symbols, and discusses strategic management options.
3. Rebranding from a consumer perspective: This chapter analyzes the core of the study, detailing how rebranding impacts consumer cognition, brand recognition, and brand image through various psychological theories.
4. Outlook and conclusion: This chapter summarizes the findings and offers implications for marketers to avoid brand equity loss in future rebranding projects.
Keywords
Rebranding, Brand Equity, Brand Awareness, Brand Image, Consumer Behavior, Cognitive Processing, Brand Knowledge, Recognition Failure, Knowledge Transfer, Marketing Strategy, Cognitive Dissonance, Mere Exposure Effect, Brand Equity Loss, Consumer Decision-Making, Corporate Branding.
Frequently Asked Questions
What is the core subject of this paper?
The paper focuses on the psychological processes triggered in consumers when a company undergoes a rebranding, specifically involving changes to brand names and logos.
What are the primary thematic areas covered?
The central themes include cognitive branding theory, the mechanics of consumer decision-making, the impact of rebranding on brand awareness, and the strategies for maintaining brand equity during a transition.
What is the main research question or objective?
The goal is to explore how consumers' cognitive representations of a brand are affected by rebranding and to derive actionable insights for marketers to prevent the loss of brand value.
Which scientific methods are employed?
The work utilizes a literature-based analysis of psychological theories (e.g., cognitive dissonance, assimilation-contrast theory) combined with an application of cognitive processing models to explain consumer response scenarios.
What is discussed in the main body of the paper?
The main body examines the dimensions of rebranding strategies, discusses the concept of brand equity transfers, and details various consumer reaction scenarios based on their level of awareness and perception of the new brand image.
Which keywords characterize this research?
Key terms include Rebranding, Brand Equity, Cognitive Processing, Consumer Decision-Making, Brand Awareness, and Brand Image.
Why is the "Raider to Twix" case considered a long-term success?
It succeeded because the name change was accompanied by a large-scale, well-communicated advertising campaign that generated significant consumer attention and awareness, ultimately allowing the new brand to inherit the equity of the old one.
What does the "Worst-case scenario" imply for firms?
The worst-case scenario occurs when consumers fail to recognize the brand at the point of purchase due to drastic, non-communicated changes, leading to confusion, recognition failure, and a direct loss of market share.
- Arbeit zitieren
- Teresa Pavelka (Autor:in), 2014, Consumer Responses to "Rebranding". The Concept of Brand Equity Transfers and Four Different Consumer Response Scenarios, München, GRIN Verlag, https://www.grin.com/document/298646
