Understand Updated Product Name Changes

Suppose you run a golf pro shop. Callaway Golf Company notifies you that the Big Bertha driver is being replaced by the Great Big Bertha. Suppose you sell razors and you’re thinking of phasing out the Sensor in favor of the Fusion.
     What difference does the name change make?
     Management scientists at Harvard University and London Business School distinguished between the two situations. Here’s my interpretation of their findings.

• In the Callaway example, the name modification indicates a continuation. When such a product comes into your store, consumers expect to see improvements in the current features and consider switching to be relatively low risk. This eases resistances to making a switch. At the same time, there’s little excitement about upgrading, since it looks like nothing is dramatically improved. Why bother?
• In the Gillette Sensor to Fusion example, the new name suggests fundamentally new product benefits. There are implications of substantial improvements in quality and thereby great satisfaction in usage. The other side of the coin here is that, compared to the name modification situation, consumers consider the product as having a higher likelihood of failure. This razor is closer to the cutting edge upon which purchasers could be sacrificed. Compounding the perception of risk, consumers are more likely to fear that once they start using the new product, it will be difficult to move back to using the older version.

     When the product being newly introduced in your store involves a name modification, not a complete name change, assess the risk tolerance of the shopper. With the shopper who wants to protect against losses, emphasize the comfort of staying with the familiar. This fits well with golfers, who prefer incremental improvements to chancing a noticeable deterioration in performance while on the course.
     If the shopper has a high risk tolerance and the newly introduced product has a name modification, not a name change, emphasize the value of the augmented capabilities of the product. Younger shoppers are, in general, more likely to want this than will older shoppers.
     The suggestions are largely just the reverse for the situation where there is a complete name change with the new product.
     In all the situations, there’s more to understand, aside from the significance of the nature of the name change and the risk tolerance of the shopper: Also understand thoroughly how to use the newly introduced product so you can fluently answer questions.

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