Brand name change: Can trust and loyalty be transferred?

Abstract

In this article, the authors propose and test a model that aims to identify key determinants that could alleviate the degradation of consumer trust and loyalty to a brand in the case of a brand name change (examples of brand name change: Marathon changed to Snickers, Raider became Twix, Taillefine replaced Belvita and so on). The results identify five key influencing factors that marketing managers can use to reduce the degradation of trust and loyalty. Namely, (1) the consumers’ degree of acceptance of the brand name change, (2) the perceived similarity between the old and new brand, (3) the degree of attachment to the initial brand, (4) the presence of an umbrella brand, and (5) consumers’ awareness of the brand substitution. Each of these five key determinants has a direct or indirect impact on the transfer of perceived quality and trust towards the new, substitute brand. Furthermore, the transfer of the consumers’ relationship to the new brand appears to be a sequential process. First, it is important to make sure that the perceived quality has been transferred so that the transfer of trust can be carried out effectively. Finally, a successful transfer of trust implies an efficient transfer of the consumers’ loyalty.