Why brand names are so important

Studies have found that our brains respond differently to names than to any other words

A Duke economist found that companies with a founder included in the brand’s name perform better than those that don’t.

Why are brands so important? We buy Cokes, not sodas; Starbucks, not coffee; iPhones, not mobile phones. Typically, brands make us feel like an item is of higher quality than a similar generic product. But often, brand promises do not match the value we place on them.

As social creatures, there isn’t much that’s more important than a person’s name, and brands are like names in terms of how the brain works.

Studies have found that our brains respond differently to names than to any other words. Our brains light up at the sounds of positively associated names, sending endorphins that give us a high. Names with negative associations can induce reactions that create fear and anxiety. And a name that has deep meaning — like your own — can be heard across a crowded room or easily spotted in an obscure picture.

When psychologists test brand names, they find similar responses. So companies exploit this by deliberately linking their brands to positive emotional triggers. Coca-Cola embraces cuddly polar bears and world peace; Apple has, well, the delicious apple.

Over time and with consistent marketing, a brand’s message is reinforced in our minds. As long as it stays true to itself, its mark becomes indelible. With consistency, brands ultimately build trust and confidence. (Think Coke’s secret recipe or United Airlines’ “Fly the Friendly Skies.”) Inconsistency, of course, does the opposite: It creates havoc that can damage a brand. (Think New Coke or United’s recent customer service snafus.)

Company founders work to protect brands as if they were their own names, and with good reason: A founder’s reputation is linked to the success of their company. Taken to the extreme, a company can quickly become synonymous with its founder.

To that point, a Duke economist found that companies with a founder included in the brand’s name perform better than those that don’t. So much for creating cute and clever names that are immediately memorable. It is far better to use a name that is authentic, and nothing can be more authentic than the name of a real person.

It should be obvious what to do if you are running a business: Treat your brand with care.

If you can, use your own name. Make sure your message remains authentic, and treat each customer as if your reputation depends on it.

Seems obvious, but far too often companies don’t respect their own brands, let alone their customers. As a consumer, that leaves us with the age old adage “buyer beware.”