Consumer Responses to "Rebranding". The Concept of Brand Equity Transfers and Four Different Consumer Response Scenarios

Table of Contents

1. Introduction

2. Old wine in new bottles: Principles of corporate rebranding

2.1 Brands and brains – basic branding theory from a cognitive perspective

2.2 Dimensions of rebranding

2.2.1 From color shift to brand name change: different acts and motives of rebranding

2.2.2 Distinct marketing strategies for managing the rebranding process

2.2.2.1 Abrupt vs. gradual rebranding

2.2.2.2 Communicated vs. non-communicated rebranding

3. Rebranding from a consumer perspective

3.1 Rebranding as a potential destroyer of brand equity

3.2 Brand equity transfer: re-branding is re-settling consumer associations

3.3 Consumer response scenarios with regard to consumers’ brand awareness and brand image

3.3.1 The consumer decision-making process

3.3.2 Brand agnosia or surprise effect – impacts on brand awareness

3.3.2.1 Awareness and recognition as a premise for brand choice

3.3.2.2 Worst-case scenario: recognition failure due to ruptured associations in consumer memory

3.3.2.3 Rebranding as a surprise effect to activate consumers

3.3.3 What the consumer thinks: impact on brand image

3.3.3.1 Negative attitude due to consumers’ reluctance to change

3.3.3.2 Avoiding consumer annoyance through communication and mere exposure

3.3.4 Outlined response scenarios at a glance

3.4 Derived implications for marketers to avoid brand equity loss

4. Outlook and conclusion

Research Objective and Key Themes

This thesis examines how corporate rebranding activities—specifically changes to brand names and symbols—impact consumer behavior from a cognitive psychological perspective. The primary research focus is to analyze how these changes influence brand awareness and brand image, and to identify how firms can manage the rebranding process to minimize the risk of brand equity loss.

• Cognitive processing models in consumer decision-making
• Impact of rebranding on brand awareness and recognition
• Strategies for successful brand equity and knowledge transfer
• Psychological effects of change (cognitive dissonance, mere exposure)
• Marketing strategies for communicating rebranding initiatives

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Summary of Chapters

1. Introduction: This chapter introduces the phenomenon of rebranding, highlights the risks involved, and outlines the research focus on cognitive processes and brand equity.

2. Old wine in new bottles: Principles of corporate rebranding: This chapter provides the theoretical foundation for branding, explores dimensions of rebranding like names and symbols, and discusses strategic management options.

3. Rebranding from a consumer perspective: This chapter analyzes the core of the study, detailing how rebranding impacts consumer cognition, brand recognition, and brand image through various psychological theories.

4. Outlook and conclusion: This chapter summarizes the findings and offers implications for marketers to avoid brand equity loss in future rebranding projects.

Keywords

Rebranding, Brand Equity, Brand Awareness, Brand Image, Consumer Behavior, Cognitive Processing, Brand Knowledge, Recognition Failure, Knowledge Transfer, Marketing Strategy, Cognitive Dissonance, Mere Exposure Effect, Brand Equity Loss, Consumer Decision-Making, Corporate Branding.

Frequently Asked Questions

What is the core subject of this paper?

The paper focuses on the psychological processes triggered in consumers when a company undergoes a rebranding, specifically involving changes to brand names and logos.

What are the primary thematic areas covered?

The central themes include cognitive branding theory, the mechanics of consumer decision-making, the impact of rebranding on brand awareness, and the strategies for maintaining brand equity during a transition.

What is the main research question or objective?

The goal is to explore how consumers' cognitive representations of a brand are affected by rebranding and to derive actionable insights for marketers to prevent the loss of brand value.

Which scientific methods are employed?

The work utilizes a literature-based analysis of psychological theories (e.g., cognitive dissonance, assimilation-contrast theory) combined with an application of cognitive processing models to explain consumer response scenarios.

What is discussed in the main body of the paper?

The main body examines the dimensions of rebranding strategies, discusses the concept of brand equity transfers, and details various consumer reaction scenarios based on their level of awareness and perception of the new brand image.

Which keywords characterize this research?

Key terms include Rebranding, Brand Equity, Cognitive Processing, Consumer Decision-Making, Brand Awareness, and Brand Image.

Why is the "Raider to Twix" case considered a long-term success?

It succeeded because the name change was accompanied by a large-scale, well-communicated advertising campaign that generated significant consumer attention and awareness, ultimately allowing the new brand to inherit the equity of the old one.

What does the "Worst-case scenario" imply for firms?

The worst-case scenario occurs when consumers fail to recognize the brand at the point of purchase due to drastic, non-communicated changes, leading to confusion, recognition failure, and a direct loss of market share.