Transcript
A (0:00)
Nerd Alert. Learning is important, right?
B (0:02)
Yes, exactly. But a bunch of nerds.
A (0:04)
Nerd alert. That's right.
B (0:06)
Marketing Architects. Hello and welcome to the Marketing Architects, a research first podcast dedicated to answering your toughest marketing questions. I'm Alena Jasper. I run the marketing team here at Marketing Architects. And I'm joined by my co host, Rob demars, the chief product architect of misfits and machines.
A (0:22)
Hello, Elena.
B (0:24)
Hello. We're back with your weekly Nerd Alert. Every week I'll take a deep dive into academic marketing research and translate its complex ideas into simple, understandable language for Rob and of course, for all of you. Are you ready to nerd out, Rob?
A (0:35)
I just guzzled my third cup of nerd and I'm feeling quite wired, Elena.
B (0:40)
Perfect. Let's get into it.
A (0:41)
A little jittery.
B (0:43)
Great. As always, we'll link the research we cover in the episode Notes. This week I read a study titled BMW is Powerful. Beamer is not Nickname Branding impairs brand performance. This is by Zhang Ning Yi and Matthew Thompson, published in 2024. But before we get too far, Rob, I wanted to ask you this. What is your favorite nickname that you've ever heard or maybe even created yourself for a brand?
A (1:07)
I always love calling Whole Foods Whole Paycheck. I don't know if that's a good brand. That's a good. I don't know if that's a positive nickname, but feels very authentic.
B (1:17)
Yeah, that's a great one. Trying to think. I think Tarjay is probably one of them.
A (1:21)
Tarjay is classic. Absolutely.
B (1:23)
So this paper looked at something that seems pretty harmless on the surface unless you call it Whole Paycheck. That's not as harmless. But brand nicknames, so we know like Target for Target, Starbies for Starbucks, Nordy for Nordstrom, or Beamer for BMW. We consumers love using them as a signal of familiarity, sometimes even affection. But increasingly, brands are picking up these nicknames and using them in official campaigns. They use them on social, on store signage, even in product naming. The study calls this nickname branding and it's defined as when a brand adopts the nickname that consumers created and uses it in their own marketing. And it sounds like a good way to build authenticity. However, it's been shown to hurt brand performance across key metrics. So what these authors did was they conducted a massive empirical investigation using real world social media data, field studies using Facebook and TikTok ads, experiments with real brands like Starbucks and BMW, and even studies measuring price, premium brand choice and brand power. Across 11 studies. The results were consistent. When brands use their nicknames, they perform worse. And not just a little worse, significantly worse. They have lower engagement, lower purchase intent, and lower willingness to pay. The authors explain this through something called speech act theory, which I promise is more fascinating than it sounds. The idea is that when a company uses a nickname created by its customers, it's a social signal, so it shifts the perceived power dynamic between the brand and its audience. Instead of reading as fun or approachable, it reads as submission, like the brand is giving up control of its own identity. So, Rob, have you ever seen a brand try to sound casual or like one of the gang, and it totally backfired? And why do you think that could happen?
