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.
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Anonymous
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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."
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