Research Insights: The Impact of Rebranding on Consumer Preference

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Research Insights: The Impact of Rebranding on Consumer Preference

Discover key findings from a study on the psychological impact of rebranding. Learn how consumer attitudes and product expertise shape rebranding success.
  • - 7 mins read

At BoldCrest, we’re always on the lookout for insightful studies that deepen our understanding of branding and consumer behavior. One particularly intriguing study we came across, conducted by Angelina Nhat-Hanh Le and her team from the University of Economics, Ho Chi Minh City, and the National Central University, Taiwan, sheds light on the psychological impact of corporate rebranding on consumers. Let’s dive into what this study reveals and how it can inform effective rebranding strategies.

Study Overview:

This research aimed to explore how consumers’ attitudes towards a brand’s original name and their product expertise influence their response to different rebranding strategies. The study was meticulously designed, involving 220 undergraduate participants, and used a 2 × 2 factorial experimental approach to draw its conclusions.

Key Findings:
1. Evolutionary vs. Revolutionary Strategies:
  • Evolutionary Rebranding: When consumers have a positive attitude towards the original brand name, minor changes or evolutionary rebranding strategies are more effective. This approach leverages the existing positive sentiment and attachment to the brand, enhancing brand preference.
  • Revolutionary Rebranding: In cases where the original brand name isn’t held in high regard by consumers, revolutionary rebranding strategies, such as adopting a new brand name, can be more effective. This method helps in distancing the brand from any negative perceptions and reestablishing it in the consumer’s mind.
2. Role of Consumer Product Expertise:

For expert consumers, who possess substantial knowledge about the product or service, the type of rebranding strategy (evolutionary or revolutionary) doesn’t significantly impact their brand preference. They tend to process information more deeply, making them adaptable to either strategy.

Novice consumers, however, respond better to evolutionary rebranding strategies. This group prefers continuity and familiarity, making them more receptive to minor changes rather than a complete overhaul of the brand.

3. Emotional Connection and Brand Loyalty:

A key takeaway is the importance of emotional connection in the rebranding process. When consumers have a strong, positive emotional tie to a brand, evolutionary strategies that maintain some elements of the original brand can be more successful.

Managerial Implications for Rebranding

Understanding consumer psychology is critical when considering rebranding. The findings from this study underscore the importance of assessing consumer attitudes toward the original brand and their level of product expertise. Here are some strategic considerations for brand managers:

  • Evaluate consumer sentiment towards the original brand. If it’s positive, leverage this through evolutionary rebranding.
  • In cases where the original brand is viewed negatively, consider revolutionary rebranding to create a fresh start and a new brand identity.
  • Tailor rebranding strategies based on the target audience’s product expertise. For markets with a higher concentration of expert consumers, both evolutionary and revolutionary strategies can be effective.
  • For markets with more novice consumers, focus on evolutionary strategies to maintain familiarity and ease the transition.
Conclusion

This study offers vital insights into the psychological impacts of rebranding on consumers. As brand experts, we at BoldCrest understand the significance of aligning rebranding strategies with consumer attitudes and knowledge levels. By adopting a nuanced approach that considers these factors, businesses can effectively navigate the complexities of rebranding, ensuring a positive impact on brand preference and loyalty.

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