The Best Way To Name Your Product.
When it comes to consumer, when they see brand name continuation they expect a improvement to the existing features. When they see a brand name change they expect fundamentally new feature and they perceive the product as riskier and they feel that this current version is likelier to fail or more prone ti compatibility problems.
So Before choosing the product name a manager must answer these questions:-
- What is the target market attitude toward risk and reward?
Consumer risk tolerance varies widely from one demographic to another . young people typically accept risk in exchange for greater reward.Example: The wii was Nintendo fifth video game console; its name changed signalled a dramatic departure from previous generations.
- What are the consequences if things goes wrong?
Consumer’s perceptions of risk depend in part on the setting. Error is less acceptable in business and social contexts than in private. The possibility of error is more easily tolerated when backups are available.Example: Honda wisely stuck with accord each iteration of its family sedan.
- What is competitive landscape?
Your relative strength in the market also matters.So before naming watch you competitor how they will be affected and benefited.Example: Microsoft vista operating software primed consumers to expect dramatically new capabilities that the software did not actually have. The company thus mismanaged expectations.
Above all names sets expectations. So Managers have to make sure that their products delivers on them.
Idea Source: HBR Review For Mba
The Digital MBA 