How to Deal with Brand Neophobia?

Brand Valuation
Knowledge Center

Best Practices

Sign up

Jim

How to Deal with Brand Neophobia?

Daniel Goldstein of London Business School says in HBR 03-2007 that research shows that customers may prefer a recognized brand even when it has clear shortcomings - even if it's dangerous.
He calls this "Brand Neophobia" (avoidance of the new). To alleviate neophobia, he recommends new brands to:
1. Give buyers time,
2. Provide comparison tables, and to
3. Change the category.

  Abed alwahab
 

Love it

i just love it and it helped me doing my assignment. thanks !!

  Anonymous
 

Brand Neophobia

Research shows that customers may prefer a recognized brand even if it has clear shortcomings—even if, in certain circumstances, it's dangerous. This is called "brand neophobia": an unhealthy avoidance of a new brand. Or if you like: an unhealthy preference for a known brand.
Based upon research at the Max Planck Institute in Berlin, Goldstein wrote: "In general, if you assume people will follow a simple rule—"In a choice between a known quantity and an unknown quantity, I'll take the one I know, even if there's something wrong with it"—you'll be surprisingly accurate in predicting customers' choices in a variety of markets."

Start a new forum topic

 

More on Brand Valuation:
Summary
Special Interest Group

Do you have a keen interest in Brand Valuation? Become our SIG Leader

Brand Valuation
Knowledge Center



About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
© 2021 12manage - The Executive Fast Track. V15.8 - Last updated: 18-10-2021. All names ™ of their owners.