Executive summary of “Overcoming resistance to product rebranding”

Citation

(2015), "Executive summary of “Overcoming resistance to product rebranding”", Journal of Product & Brand Management, Vol. 24 No. 6. https://doi.org/10.1108/JPBM-09-2015-943

Executive summary of “Overcoming resistance to product rebranding”

Article Type: Executive summary and implications for managers and executives From: Journal of Product & Brand Management, Volume 24, Issue 6

This summary has been provided to allow managers and executives a rapid appreciation of the content of this article. Those with a particular interest in the topic covered may then read the article in toto to take advantage of the more comprehensive description of the research undertaken and its results to get the full benefits of the material present.

Product rebranding has become a frequent occurrence during recent times. Companies typically engage in the practice following mergers or as part of a shift from domestic to global perspective. Danone’s move to rename its popular bio yoghurt as Activia in several European nations is one prominent example of a rebranded product. Another is the L’Oréal makeup brand Maybelline, which was formerly marketed under various names around the world.

Firms are driven to make such changes because of the longer-term possibilities these changes proffer to them. However, rebranding is inherently risky. Many consumers object to brand name alterations and will often avoid the products concerned. Some might be more vociferous and demonstrate their feelings through complaints or protests. Procter & Gamble and the UK’s Royal Mail are among the organizations to face vehement opposition to change. The former quickly reverted to its Fairy soap brand name, while rebranding plans were aborted in the latter case.

In spite of such issues, research to date has largely concentrated on rebranding at the corporate level. Implementation of change to products and services has captured only minimal attention. One relevant study concluded that the rebranding process does not necessarily have to include a transition phase of “cobranding”. The need for fit between the new name and the product was a key finding in other works which additionally noted that strong brand equity for the new brand name was also imperative.

Investigations into consumer response to rebranding and the reasons why they react in certain ways have not been conducted. Collange and Bonache therefore seek to address this void in the present work. Qualitative research constituted the first part in which the aim was to identify factors which potentially influence consumer reaction. Interviews were conducted with 45 subjects recruited in two areas of France. Women accounted for 91 per cent of the sample, and the majority were affluent, younger than 45 years old and with a child at home. These participants were identified as a market for consumer packaged goods, where product rebranding has been common for well over a decade.

Discussion focused on brand name changes in general and subjects were asked for their views about the practice and the reasons why. Just under half felt negative toward product rebranding and the remainder were neutral. No-one expressed an obviously favorable attitude. The interviews revealed that opinion was likely to be influenced by five variables, the authors defined as:

1. Surprise: Consumers who oppose rebranding express shock about the change and believe the firm is jeopardizing brand equity. Surprise is often seen as “short-lived” and emerges when something unanticipated occurs or when new information does not belong in a “schema” consumers hold about a particular product or service. Causal search which follows can lead to updating of the schema. Less surprise is evident among those with neutral views who tend to have faith in the company’s ability to manage the change successfully.

2. Incomprehension: Some respondents are confused about change and seek to infer reasons for it. Negativity toward rebranding is likely to prompt suspicion about the motives and doubts about it offering much benefit to the organization. A failure to attribute change generates incomprehension and may negatively impact on consumer attitudes. Neutral subjects assume that valid reasons such as a merger probably explain the decision to change.

3. Negative emotions: Partly explain the unfavorable attitudes some consumers display. Change is perceived as disconcerting, disruptive and a cause of inconvenience to them, as product and brand name are seen as intrinsically linked. Belief that change demands extra effort on their part also prompts anger at the assumed contempt and lack of respect it indicates. Sadness is also a possibility, this time because rebranding effectively signals the end of an era that is cherished somewhat. It is uncertain whether negative emotions are directly triggered by surprise or emerge due to incomprehension.

4. Trust: Those who have faith in the organization believe its motives, whereas opponents of change question its integrity and are skeptical about information received.

5. Novelty: People impartial about change appear to embrace the novelty involved, providing only the brand’s name is altered. This does not appeal to negative participants, who value the “status quo”.

The authors suggest that trust and novelty might lessen the likelihood of surprise, incomprehension and negative attitudes emerging. It is further speculated that variables such as age, gender, need for cognition and locus of control might additionally influence consumer attitudes toward product rebranding.

These factors were further examined in a quantitative study comprising 480 respondents from across France. Women accounted for 63.1 per cent of respondents, the majority of which were aged between 18 and 64. Subjects completed an online questionnaire asking for their opinions on rebranding and responses to statements pertaining to key variables.

Initial scrutiny confirmed that the more consumers are surprised about product rebranding, the more they will:

• experience incomprehension;

• feel angry, worried and sad; and

• exhibit less positive attitudes.

In addition, the less positive attitudes emerge, the more consumers experience comprehension or feel these negative emotions.

The sample was then divided into two groups based on high and low trust in brands and then similarly on high and low attraction to novelty. Analysis showed that anger, worry and sadness have less influence on consumer attitudes the more that they trust firms. Attraction to novelty had no effect.

Results here emphasize the effect of surprise on consumer attitudes toward rebranding. Collange and Bonache point out that different processes drive its impact. In addition to a direct, negative impact, there is also mediation by incomprehension which reflects a “higher-order cognitive process”. A correspondingly indirect effect occurs through the mediation by negative emotions aroused by the change. This represents “a higher-order affective process”.

These three responses are subject to variation depending on other factors. Indications here are that high trust in a company means that only the cognitive process will be activated. On the other hand, the affective process is likely to shape the attitudes of consumers whose trust is low.

The capacity for product rebranding to divide consumers should highlight the dangers involved in product rebranding. Caution when designing strategies is therefore urged. In the authors’ opinion, marketing managers should notify consumers about brand name changes to lessen any surprise, resentment and negative emotions. Consumers might also feel “helped and supported” by this approach which can also improve trust.

Some explanation for the change could be productive too. In this case, total transparency is not necessarily advocated. Managers could just offer a reason that is plausible. However, some might be unwilling to justify their decision on the basis that it might be perceived as admitting the original brand name had failed.

Collange and Bonache suggest limiting change to the brand name alone. They contend that additional alterations, such as to the marketing-mix, will only serve to make consumers bewildered and insecure.

Further work could examine consumers in other nations less high in uncertainty avoidance than their counterparts in France. Brand characteristics and other marketing-mix changes might also be explored, along with additional entities involved in brand name alterations.

To read the full article, enter 10.1108/JPBM-10-2014-0730 into your search engine.

(A précis of the article “Overcoming resistance to product rebranding”. Supplied by Marketing Consultants for Emerald.)