New research from Gies College of Business suggests that informative brand names can significantly boost the viability of new products.

“Consumers often struggle to keep up with the latest offerings, and a product’s name can play a pivotal role in its discoverability, and ultimately, its success and survival,” said Olga Khessina, associate professor of business administration at Gies College of Business. Khessina co-authored “The Role of Informative Names in Niche Dynamics and Product Survival in a High-Velocity Industry” with Samira Reis from the Universided Carlos III de Madrid. The study was published in the Journal of Management Studies.

Product discovery in high velocity markets

Khessina’s paper focuses on high-velocity markets, characterized by rapid rates of product change and turnover. The research examined the relationship between the names of optical disk drives and their success in the marketplace. She selected this industry because it allowed for data analysis of all CD-drive products shipped worldwide during a 16-year period at the height of their popularity.

“The research shows that informative names grab attention and help customers quickly categorize products and understand their purpose,” said Khessina, who added that marketers can apply these research findings to other high-velocity markets such as technology, fast-moving consumer packaged goods, and automotive supplies.

Smartphone apps are one of these dynamic categories – with about 29,700 new apps introduced every month just for iPhone. Consumers access an average of 30 apps a month, but only 4% of iOS users are likely to keep using an app 30 days after downloading it. Weight loss apps are one example of a high-volume niche. It includes brand names like Lose It! that clearly signal their function to potential users, creating a halo effect for less descriptive ones like Noom and WW.

Similarly, the fast-growing CBD beverage category is filled with descriptive names: The Hemp Division focuses on its key ingredient while other entrants, such as Vybes and Happy Place, highlight the drink’s effects.  These brand names create a halo effect for less obvious ones, including Recess and Cloud Water.  

The spillover effect

Khessina’s research shows that “informative names” that clearly convey the product’s attributes positively impact the success of all entries in the category. They attract attention to the entire niche, increasing the likelihood that consumers will discover other products within the category.

“Essentially, businesses can ‘piggyback’ on the efforts of their competitors by choosing to enter niches with established informative naming practices,” said Khessina.

The password management market is an example of a rapidly growing market with a lengthy list of entries. According to Grandview Research, this $3B market is expected to grow at a CAGR of 22% from 2024 to 2030, fueled by the increasing frequency and sophistication of cyberattacks. In addition to well-known brands with informative names like 1Password or Keeper, there are more ethereal ones such as Aura, Avira, and Iolo.

“In markets with many product categories, niches that have more products with informative names are likely to attract greater customer attention and outcompete niches with fewer such products,” said Khessina.

Enter niche early for maximum impact

Khessina added that entering a niche rich in products with informative names in the early stages of category development is most likely to boost a product’s chances of success. The research found that both the number and percentage of informative names in a category influence product visibility, but these benefits diminish over time as the niche matures.

“Marketers should prioritize informative names that clearly communicate function or purpose to potential customers,” said Khessina, who added that further research is needed to understand how informative name dynamics impacts other facets of organization performance, such as innovation, reputation, and distribution channels. “My next study will explore how startups select their names.”