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Incongruence in Brand Names and Its Effect on Consumer Preference

Author

Listed:
  • Ferdian Hendrasto

    (Universitas Gajayana, Faculty of Economics and Business)

  • Bagus Ibnu Utama

    (Universitas Gajayana, Faculty of Economics and Business)

Abstract

Purpose – Brand name is one of the determining factors of a brand’s success. Simple brand names capable of capturing consumers’ attention will make them easy to remember and get to perceive the brand. The significance of brand names has caused practitioners to have high consideration in determining brand names for products. With the sprouting up of new SME-based businesses in Indonesia, it is worth studying how these new businesses name their products. Specifically, we aim to analyze how different brand name designs affect consumer preference. Design/Methodology/Approach – This study employed a 3x2 experimental method where respondents were exposed to three types of fictional brand names that were congruent (e.g., Coffee Corner), incongruent (e.g., d’Coffee Corner) and highly incongruent (e.g., d’Koffee Korner), the respondents’ evaluation was observed through their preference against 3 types of brand name congruence and the use of Indonesian and English in the brands. The analysis technique utilized was a two-way ANOVA. Findings and Implications – The results indicated that congruent brand names had the highest effect on consumer preference in comparison to incongruent and highly incongruent brand names. The use of Indonesian and English in the brand names, however, showed no significant difference on consumer preference. Limitation – The main limitation of this study consists in localized research samples and objects. Consequently, the result may not be the same in a wider, more general environment. Originality – This research study contributes to the examination of brand designs by applying the theory of incongruence as a foundation for the analysis. It adds to the existing knowledge by investigating consumer preference on differently designed, new brand names.

Suggested Citation

  • Ferdian Hendrasto & Bagus Ibnu Utama, 2019. "Incongruence in Brand Names and Its Effect on Consumer Preference," Tržište/Market, Faculty of Economics and Business, University of Zagreb, vol. 31(1), pages 83-96.
    • Handle: RePEc:zag:market:v:31:y:2019:i:1:p:83-96
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    References listed on IDEAS

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