Brand name substitution and brand equity transfer

Abstract

PurposeDespite the prevalence with which firms change the brand names they use, this research stream has received little academic attention. Managers confronted with brand name substitutions fear most a loss of brand equity, which would decrease their market share. This research aims to identify key influences that might enable companies to minimise their brand equity losses in response to brand name substitutions.Design/methodology/approachA preliminary qualitative investigation (20 semi‐directive interviews) pertained to better understand how brand equity loss might be minimised in the case of a brand name substitution. This qualitative research and a relevant literature review provided input for the questionnaire design. Furthermore, the resulting survey data from a sample of 300 consumers served for the test of the research propositions.FindingsThis study identifies five key influence factors that marketing managers can use to transfer brand equity in the case of brand name substitution, based on consumers' knowledge of the brand change, attitude toward brand change, perceived similarity between the old and new brands, degree of attachment to the initial brand, and recognition of the presence of an umbrella brand. Finally, the brand equity dimensions are interrelated, such that the transfer of perceived quality and brand image influences loyalty transfer, and brand quality transfer improves brand image transfer.Originality/valueThis research represents a first attempt to answer the pressing question: how can firms transfer brand equity successfully in the case of brand name substitution? The study also identifies for the first time key influence factors that favour brand equity transfer from an old to a new brand.